Why The Rich Aren’t Affected By Recessions


As silly as it sounds, now is the best time to invest your savings and money into real estate. In this pandemic, the price of real estate has significantly decreased. Many people are selling their properties to cope up not just with mortgage payments, but with the pandemic as well.

So if you have the money to spare, now is the best time to check out some properties and invest. As long as you have patience and the right information, earning huge chunks of profit will just be a matter of time.

To further convince you on why you should invest in real estate right now, below is a written version of the podcast of Max Av of EndlessValue and Peter Guerriera where they talked about the state of real estate today.

 

Source: Unsplash.com

Peter: Let’s talk about real estate. Because we’ve been going back and forth with finance, Real estate, I guess, is one of those niches as well, where a lead could be a hundred bucks.

So, I have a lot to say about Graham Stefan’s opinion on the real estate market today. I’m not so sure if everybody understands what’s going on with the real estate market. Graham Stefan’s video was super detailed and interesting. And I just want to go over it.

Max: Okay.

Peter: So there’s a real estate pandemic going on right after the actual pandemic. And what’s happening right now is that you want to buy a house and the house is worth $500,000, but for some reason, and there’s a multitude of issues here, for some reason that $500,000 house is going to sell for like $550,000 – $575,000.

So you’re going to go and you’re going to offer $500,000 and I’m going to go and offer $515,000. And then you’re going to come back at $520,000. And then, some random guy from the left field is going to come in and say, No, actually I’m going 550,000 and so on… So something like this has not happened in years, like in 2008, this wasn’t even happening.

Max: Uh-Huh.

Peter: Right. So, Graham Stefan did some research and I think this is super interesting where he noticed that larger real estate companies are coming in, and just sweeping the market of real estate. So you have a company like Fundrise for instance, where they come into the market and there’s a whole neighborhood that was built by, let’s say, Toll brothers or somebody of that stature.

They come in and buy the whole thing. And they say, “You know what? I’m buying the whole thing for $600,000 a house. Meanwhile, if you sold the house to a regular person, It would have been $520,000. So the pandemic for the housing market made everybody want real estate now because there’s so much on the market.

So people are willing to say, “I’ll pay whatever I can for it”. Its effect on the economy is going to be absolutely tragic because the economy is closely tied to the real estate market. And what happens now, is that you’re going to go and next year, when you have no more buyers, there’s going to be either a lot of houses on the market with no buyers or all the people who want to buy a house now, the ones that were competing to buy houses are going to go and there’s going to be no more houses to buy. A lot of people will be stuck with money in their hands.

Invest in Real Estate Right Now

Ever heard of the saying, “Imitate the successful, and you will be successful”? This applies to the current situation today. There’s a reason while giant companies like Fundrise and Toll Brothers are spending their money on real estate right now.

If these people are investing in real estate today, they are projecting huge returns in the future, right? You don’t need to be an expert to figure this out. And taking into account the positive impact and effect of vaccines and social distancing, we can expect a brighter future after this pandemic.

So, if you have money right now, buying real estate will definitely be a wise decision.

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