Why Buy Real Estate Now ?

10X Real Estate Marketing & Coaching

Hey, there are 10 X real estate warriors. How are you today?

Hey, it is Thursday, and I got a great question in from another agent. Um, and obviously realize that the 10 X real estate warrior nation, our goal here is I saw in our mission here is to take back the real estate business from those big boys that are the big Z companies or all those other companies trying to stick their hands in your pockets. And one of the ways that we help you to do that and build a duplicatable repeatable and scalable business is by helping educate you on how to make the right conversations and how to actually justify why now is actually a great time to buy a so one of the questions that came up was how would I overcome a buyer's concern at the market is about to crash?

So one of the things that we always talk about is the, you know, the amount of money that's spent when you buy a home, unless you're buying a cash. In many cases, you're buying it with financing. So that means that you're, you know, if you have a property in a, in a, in middle America right now, 68% of the United States actually properties are bought with three and a half percent down or less, uh, which is pretty amazing, uh, that we store able to do that in the United States. It's a great opportunity. And it's mostly the first time buyer program where they're able to buy houses with a three and a half percent down. Um, interestingly enough, I did some research and I wanted to look back at, you know, first of all, how do you overcome the concern about the market crashing? You know, real estates is single goal.

It goes up and down. Uh, I've been doing this for 30, you know, I've been in the industry 30 years on the sales side for 25. And over that period of time, I've seen the market go probably four or five times from one extreme to the other. Um, and you know, as an example, case in point is if you look at, uh, the 30 year interest rate for a mortgage on November of 2019, that interest rate was 4.83%. Again, I'm going to say that again, 4.8, 3%. Why am I saying that? It again is because if you look at today's interest rate, it's 2.7, 8% for the same loan. So how does that affect a buyer coming into a property? First of all, if that price, if that buyer is renting right now, let's just look at the tax advantages of this and, and look at the difference there, but let's go through a scenario first.

So we have a property right now. It's listed, it's a, it's a senior community, 55, and over it's listed at 319,000 that property, if somebody was to buy that property today and they put down three and a half percent, which is probably unlikely, but if they did, they put three and a half percent down and had they bought it a year ago with 4.8, 3% interest, $6,400 in taxes, 44 50 in maintenance. It comes out to about 2,800 a month. Okay. Ironically enough, though, how they bought that property today with a difference in the interest rate, that number goes down to $450, 25, a $2,450 a month. Again, $2,450 a month for the same property. That's a 13% savings. So if you bought that property for the same exact price today, had you bought it a year ago, you're actually buying at 13% cheaper on a monthly basis right now.

The other thing is, is that if that person let's say the person is renting and they're renting for $3,000 a month, which is not unusual, they do that for 12 months as 3,600 3,600 times zero is zero. I mean, I, I need to go to like YouTube to help my kid do fifth grade math, but I can do three 30, uh, $36,000 times zero. It's actually zero had that been a monthly payment though. And they were paying like, in this case, if they were paying $2,500 a month and $450 of that is for the maintenance on the property, even though the maintenance is not tax deductible, the empty, the money that they're paying for the interest on the loan. And also, which is 90, 98% of the payment for the first three to five years, that's about $2,000 a month. So if you do $2,000 a month, times, 12 months, that's 36, that's 24,024,000 and a 38% tax bracket is $9,000.

So in essence, they're going to put up, call it 10 or $12,000 to buy that property. And in the first year they're going to get there, they're going to get their money back. Um, the ironically enough, they're going to get that every year over and over and over. So w even if the market went sideways and crashed, I don't know any other place that they're going to get a 13% savings or, or, you know, for argument's sake, they're going to go invest 10, 10, or $12,000 to get $9,000 back in the first year, and then get that same savings back every year, going forward. So, Hey, 10 X real estate warriors, if you're not sure about how that works, go see your broker, give us a call. We can help you with it. Give us a, you know, as somebody who's more senior in your community, but you know, the, it, you know, this is a great opportunity to buy a home.

Even if the market went in the toilet, real estate is one of the few places where, you know, even in the worst of markets, the real estate is actually done pretty well. If you want to find out more about this and find out how interest rates and how money actually affects the acquisition of the property, by the way, it's not always money. Um, in many cases, it's got a lot to do with, um, what they're actually trying to achieve. First. You've got to find out what their, what motivates them of why they're actually buying. Um, once you do that, then it may come back into the numbers. You know, the easiest thing to remember is, you know, emotion sells houses, not, not numbers, uh, but the numbers are going to be important. So you want to find out more, check us out a 10 X real estate, where your nation look forward to seeing you on the other side.

Again, look for our 10 X real estate warrior nation summit. It's kicking off in January. We're going to be starting to do some advertising marketing for that. It's going to be free for the realtor community. And we're going to show you how to actually build a duplicatable repeatable, trackable business. That's scalable, and we're going to have 30 of the industries, um, mega agent experts, uh, and what I call weapons experts and foundational experts to come in and give us a hand on answering the question of how do I build a duplicatable repeatable, trackable, scalable business without buying leads from big Z companies and or giving away the farm and the referral fees. See, on the other side, I have a great day.