Make investing in 2023 your best year ever with the help of a mentoring team that will shortcut your path to success. Apply to be my next apprentice here: www.freedommentor.com/apprentice
Hi Phil just found your content and listened to Real Estate Investing Gone Bad today. Awesome info. I love the fact that you promote creative deal structuring. Have one single family rental and have struggled to get through the endless amounts of conflicting info from “real estate attorneys,” “CPAs,” IRA “experts,” and on and on and on.
Creating confusion is the business model for most in our industry; from attorneys/CPAs/IRA Experts to real estate educators, etc. The more confusion, the more they can charge beginners. This is one of many reasons why our mentoring program has been so incredibly successful. We create clarity where there is confusion. And with clarity comes results.
Hi Phil. Thank you for mentioning your faith in God. My wife and I have been in ministry for years. At first, we were pastoring a church and running a private school. We did well for over 23 years, then the government muscled in on the 3-year-olds, and after that came COVID. Closing the church was hard. Now we have daycare. We drop the children off and pick them up from school. The truth is, we work hard from 6am to 6pm, with nobody else but us to run the business. At 63, I am concerned about our future. This is our only source of income. Not to mention we can't find anyone who wants to step into our role. Another source of income sure would be nice.
I understand home foreclosures are surging. That should have a positive impact on inventories. Is now the time to buy your real estate program or should I wait? I'm not an expert when it comes to real estate strategy everything developing now is unlike anything that has occurred in a long time. I don't think a 40% drop in home prices is unrealistic. Is now the time to buy your program?
Foreclosures are not "surging" in real numbers, only in the artificial comparison of a foreclosure moratorium (which is 0) to what is now, way below normal, pre-pandemic foreclosure rates. You may not think a 40% drop in home prices is unrealistic but it is. Real estate prices in many parts of the US have increased over the past 12 months and they will continue to. Our Apprentices are making a fortune right now but we LOVE when people think it's a bad time to be in the business. More for us! Here's a video on why trying to time the real estate market is such a perilous financial plan: ua-cam.com/video/wzyQ7rW_TlA/v-deo.html
@@freedom_mentor I have no way of knowing if the numbers are as irrelevant as you're saying but I did watch the video on market timing and again and I guess buy at all cost and hold is the rule to follow. I had asked you a very specific question in that videos comment section and I'd really love your perspective because I do believe you're the real deal when it comes to buying property. What would the impact on real estate be if the dollar was no longer the currency used to complete trade. What would happen to real estate prices here if say BRICS replaced the dollar? I've been looking at land flipping carefully. I would love to get involved in real estate the right way but I know the banking system is imploding and the FED is trying to make it as painless as possible but global economy is going to tank and it's going to tank hard and I've been wondering what impact it will have on real estate. So I guess it's a two part question actually. What happens to US real estate if the dollar is replaced as the worlds trade currency and what happens to US real estate if the global economy rolls over under a new currency. I'm focusing on the dollar being replaced because you've already pointed out there is no bad time to buy real estate.
@@kenshofalco8326 Land prices are established based on supply and demand, not the form of currency to which one could buy that land with. Buying land with crypto or the US dollar or some other currency has no bearing on the value of land. If a ton of people tragically died and at the same time, millions of acres of new land were instantly created from volcanoes, then we could possibly see land prices decrease. Otherwise, I wouldn't bet on land prices dropping. Furthermore, if you are flipping land, it won't matter since you are getting in and getting out so quickly. But if you are holding onto land long term, that only makes sense if you lease it during your ownership.
It's definitely a sweet spot for some homeowners. I touched on that topic back in February in this video on the most productive rental properties: ua-cam.com/video/KlS8KpXWNbA/v-deo.html Interestingly, most of my people that did ADU deals went on to sell them and acquire larger multi family deals or high performance vacation rentals. Turning a 1 unit into a 2 unit could be a financial homerun for a homeowner but for a professional investor, they may need even bigger results.
Inventory levels are controlled by banks and as long as they're being manuplitated , as always, the trend will continue. However, a crash is still not far. Banks can sucker people for only so long before the shit hits the fan. All the online realestate r mauplitated as well. But, really, all that doesn't mean much to realestate pros;they make money either way. Good job on the vid phil. U r awesome in ur profession man
Can't find deals that cash flow much in NJ when using leverage (can't afford to be a cash buyer). Can't afford to leave the state because I have a great job in the NYC metro and remote work is not an option. Is it worth buying a deal with like $100 CF a month and then hope to increase my CF with a refi when rates go down in a couple years? Thoughts Phil?
You need to improve the process by which you are looking for deals. Since your intent is for long term rental purposes, what types of properties are you looking for? Right now is a great time for multi family. You're looking for mis managed multi family that has huge rental rate increase potential as well as value add plays whereby renovations could greatly increase rental rates too. The problem is NOT New Jersey. There are plenty of opportunities right in your own backyard.
@@freedom_mentor Admittedly I'm only looking at marketed deals through the MLS. How else can I source? This would be my first deal so I don't have any connections to source "off-market" opportunities
@@mrmagorium12 That's a skill that professional real estate investors keep close to the vest; and those on UA-cam that do share are usually only telling the half truth. The value of knowing how to do that is worth millions of dollars. I only share that wisdom with my Apprentices. www.freedommentor.com/apprentice
I’ve got an opportunity to build an ADU on my backlot this will be 500sq ft I rent my top floor of my house and that’s being paid off by the renter I believe I can get this done to the point where I can bring 1900 in profit per month not counting the note being paid off I’m starting to get cold feet about this deal even though a 23k loan payment is only $500/m I’m wondering if this is something I should do I know I can get this done over time but what are your thoughts on this? I’m not trying to put state of the art finishings in the unit either will lumber prices drop any?
Anytime you can lower your cost of living and the numbers make sense is a good idea. Your living cost is usually the larger expense people face each year but the numbers have to make sense!
@@freedom_mentor thx think I’m going to do the project I think it’ll get finished one step at a time with patience and persistence thx for the feedback Phil
I have a question regarding inventory. What if companies like RedFin, OpenDoor and Zillow either start to liquidate their houses or go bankrupt? What if big institutional investors who have apparently bought up significant lots of houses over the years decide to dump their housing portfolio for T-Bills at government guaranteed 4.5% rate of return? If these institutions were to release all these houses on the market and inventory increased either suddenly or drastically, how could that contribute to the overall prices of homes? Thanks.
Private Equity and Hedge Fund SRF investment firms have proven that they aren't selling their rentals. If they were going to sell any in their portfolios, they would have already, while at the top of the market in early 2022. Instead, they are holding onto all of them because the returns are too strong; especially now with the low inventory and high rents. Meanwhile, we have already faced the scenario of iBuyers having thousands of houses to liquidate; it happened with Zillow Offers and RenfinNow. What did they do? They sold their inventory to those SFR investment firms off-market so that they didn't lower the values of their houses as they were selling them by listing hundreds at the same time. So if OpenDoor and/or OfferPad officially go belly up, they won't list all of their inventory at the same time; they will either space it out or sell in bulk to an SFR investment firm. And since iBuyers only represent a tiny fraction of the markets they operate in, even if they add their inventory to the market, it won't make all that much of a difference. That's a long answer to say, your concerns won't impact inventory levels.
The number of transactions is crashing, not prices. Only distressed sellers must reduce their prices to get a deal from a buyer who can deliver all-cash at closing. Creative financing solves huge problems for buyers and sellers. *"Want to sell your property for 10% more than asking price? You can when you sell it to me!"*
Can someone answer this. My inherence home in ny bx which. I havnt yet put my name on deed . My sister sold her share to an investor . Whom went and put his name as llc to deed. Now the home has 2 violations. Called oath hearing. And was not authorized to answer summons. The investor knows he was to answer and never did. The question is when i buy his share out . Will i have issues with the summons being in default. Oath said its in his company name. Just want to know , to be prepared. I also hired an architect and filed to DOB. To correct the violations. To find out it not my problem. But when i do have the deed in my name . Will i be ok. I am awaiting for approval to get permits for plumbing, ect.
At the time that your sister sold her interest in the home to someone else, who was the title holder of the property? Was it the estate of the deceased? Or had the probate been finalized and were both you and your sister the legal title holders at the time?
@@freedom_mentor Estate was from my deceased parents. We went through probate. and my nephew is now the administrator.Never got to put our names on title /deed. Also i paid the violations cause the Investor never responded to oath hearing . So i panic and paid it .
@@JanetDiaz6152 Hire an attorney to make sure you can protect your interest in the property. I doubt the Investor has title insurance so you're still ultimately in the Driver's seat.
So the soft landing is panning out in real estate. I never bought the crash scenario. Sure, some markets were too bubbly. Those deserved a correction. I live in the Chicago area and prices are still solid/ high, not low. Everything will hinge on inventory next year. I don't foresee an explosion of it. If you have your eye on a house and price doesn't seem too crazy, scooping it up might not be a bad idea.
We have already faced the scenario of iBuyers having thousands of houses to liquidate; it happened with Zillow Offers and RenfinNow. What did they do? They sold their inventory to those massive SFR investment firms off-market so that they didn't lower the values of their houses as they were selling them (by listing hundreds at the same time). So if OpenDoor and/or OfferPad officially go belly up, they won't list all of their inventory at the same time; they will either space it out or sell in bulk to a large SFR investment firm. And since iBuyers only represent a tiny fraction of the markets they operate in, even if they add their inventory to the market, it won't make all that much of a difference.
Hi Phil, not sure if you'll get thia but I've watched your material for a while now and although I'm homeless, in a wheelchair half paralyzed id love to work with you on the apprentice program, my only problem is that I'm not getting enough from the government to pay for it right now, would you you be open to doing a deal where we can still find a way to operate with one another and I would give you a bigger portion of my cut as well as paying it off over time? I just don't want to be stuck here anymore the shelter that im in isnt helping us with getting groceries or clothes and im now at the point where im at risk of dying due to my condition deteriorating. Please ill do whatever it takes just looking for you to take a chance on me.
Thank you so much for reaching out and sharing your story. You can work your way in as a pre-apprentice by registering here: www.freedommentor.com/pre-apprentice-program-details/ this can be a great first step towards us working together as a full protege of mine. Look forward to working with you.
So what happens when the recession hits and homeowners don’t have a job? Builders are not building? Meaning they will no longer be in business? Also, interest rates and high prices equal high mortgage, or, more renters. I’m raising all my rents dramatically. Something is going to give and I’m hoping for a market meltdown.
Something may not have to give. What you are fearing is already happening as we speak and it's simply not causing a market meltdown. Let me explain...my understanding is that, from the historical definition of a recession, we are already in a mild recession right now, and have been here in 2022. And it also appears that this current recession will persist for quite some time into the future. This recession is a macro economic determination, not specific to real estate. Meanwhile, unemployment is at all time lows and it seems every thriving business in our economy is struggling to hire enough staff. So there is also extremely "low inventory" of employees for employers. I have personally noticed, or what some refer to as "anecdotal evidence", that hundreds of small businesses have gone out in 2022. Doors have been closing left and right. And yet, there is still a massive deficit of employees for employers! Wages are continuing to climb as employers battle for the few employees out there. So even amidst this recession, with businesses folding and interest rates rising, unemployment is non existent, foreclosure rates remain incredibly low and home prices are now stable (or climbing in some areas). Something may not have to give.
@@freedom_mentor I agree that employment remains strong but I don’t see a fed pivot and rates will remain elevated throughout next year. If your thinking is hinged on employment, the question is then, can employers continue to grow in a high interest rate economy?
@@JinNani224 Many businesses are still in a state of back log; too few employees to keep up with demand. Businesses don't need to grow. They literally need to find a way to catch up, even in this current high interest rate economy. At least that is what I am experiencing in the real world of commerce. So from my perspective, there is room to play in both directions; rates can continue to rise to slow down the economy even more and unemployment can go up, and we're still fine.
Your not considering.... 1.Baby boomers who need money to retire. 2. All the layoffs coming from tightening of money. 3. Majority of people don't have $1,000 in bank account for emergency.
Can you be more specific on your substantiation of those points as well as how they will impact real estate in 2023? For example, my understanding is that there is still plenty of cash savings amongst homeowners, prospective home buyers and real estate investors. America is not cash poor yet. Even with layoffs, which have already been happening, there is such a shortage of labor relative to employment openings that it won't create a massive issue. And most baby boomers that I know who have been hammered by the stock market in 2022 are simply going to patiently wait for it to climb up before fully retiring. In other words, retirement age is just being pushed off. So I don't follow how your points change my analysis but I am open to learning more about your perspective.
Make investing in 2023 your best year ever with the help of a mentoring team that will shortcut your path to success. Apply to be my next apprentice here: www.freedommentor.com/apprentice
I appreciate your videos Phil. Thank you for the time and effort you put in to making them. I am considering your mentoring program.
Hi Phil just found your content and listened to Real Estate Investing Gone Bad today. Awesome info. I love the fact that you promote creative deal structuring. Have one single family rental and have struggled to get through the endless amounts of conflicting info from “real estate attorneys,” “CPAs,” IRA “experts,” and on and on and on.
Creating confusion is the business model for most in our industry; from attorneys/CPAs/IRA Experts to real estate educators, etc. The more confusion, the more they can charge beginners. This is one of many reasons why our mentoring program has been so incredibly successful. We create clarity where there is confusion. And with clarity comes results.
Hi Phil. Thank you for mentioning your faith in God. My wife and I have been in ministry for years. At first, we were pastoring a church and running a private school. We did well for over 23 years, then the government muscled in on the 3-year-olds, and after that came COVID. Closing the church was hard. Now we have daycare. We drop the children off and pick them up from school. The truth is, we work hard from 6am to 6pm, with nobody else but us to run the business. At 63, I am concerned about our future. This is our only source of income. Not to mention we can't find anyone who wants to step into our role. Another source of income sure would be nice.
Amen, thank you! Have you thought about real estate investing to create more income?
Thanks Phil. Your channel is one of, if not the best there is.
Thank you for that compliment. I'll keep the quality coming (although I can't promise quantity).
Your insights are spot on thank you!
Agree!
Thank you so much! We appreciate the support on our channel. Are you investing in real estate right now?
Yes single family homes@@freedom_mentor
Great information presented clearly. Thanks Phil.
My pleasure! Thank you. We appreciate the support on our channel.
Should you refinance in this market. I have a lower rate but need home improvement financing.
Do you need home improvement financing for your own home or for an investment property / house flip?
Spot on info and we'll put together, thanks Phil
Thank you!
I understand home foreclosures are surging. That should have a positive impact on inventories. Is now the time to buy your real estate program or should I wait? I'm not an expert when it comes to real estate strategy everything developing now is unlike anything that has occurred in a long time. I don't think a 40% drop in home prices is unrealistic. Is now the time to buy your program?
Foreclosures are not "surging" in real numbers, only in the artificial comparison of a foreclosure moratorium (which is 0) to what is now, way below normal, pre-pandemic foreclosure rates. You may not think a 40% drop in home prices is unrealistic but it is. Real estate prices in many parts of the US have increased over the past 12 months and they will continue to. Our Apprentices are making a fortune right now but we LOVE when people think it's a bad time to be in the business. More for us! Here's a video on why trying to time the real estate market is such a perilous financial plan: ua-cam.com/video/wzyQ7rW_TlA/v-deo.html
@@freedom_mentor I have no way of knowing if the numbers are as irrelevant as you're saying but I did watch the video on market timing and again and I guess buy at all cost and hold is the rule to follow. I had asked you a very specific question in that videos comment section and I'd really love your perspective because I do believe you're the real deal when it comes to buying property. What would the impact on real estate be if the dollar was no longer the currency used to complete trade. What would happen to real estate prices here if say BRICS replaced the dollar? I've been looking at land flipping carefully. I would love to get involved in real estate the right way but I know the banking system is imploding and the FED is trying to make it as painless as possible but global economy is going to tank and it's going to tank hard and I've been wondering what impact it will have on real estate. So I guess it's a two part question actually. What happens to US real estate if the dollar is replaced as the worlds trade currency and what happens to US real estate if the global economy rolls over under a new currency. I'm focusing on the dollar being replaced because you've already pointed out there is no bad time to buy real estate.
@@kenshofalco8326 Land prices are established based on supply and demand, not the form of currency to which one could buy that land with. Buying land with crypto or the US dollar or some other currency has no bearing on the value of land. If a ton of people tragically died and at the same time, millions of acres of new land were instantly created from volcanoes, then we could possibly see land prices decrease. Otherwise, I wouldn't bet on land prices dropping. Furthermore, if you are flipping land, it won't matter since you are getting in and getting out so quickly. But if you are holding onto land long term, that only makes sense if you lease it during your ownership.
well said. great information
Thank you!
In Calif., have you looked at leveraging the addition of an ADU in your analysis? Costs are heavily subsidized while in a high rental market.
It's definitely a sweet spot for some homeowners. I touched on that topic back in February in this video on the most productive rental properties: ua-cam.com/video/KlS8KpXWNbA/v-deo.html
Interestingly, most of my people that did ADU deals went on to sell them and acquire larger multi family deals or high performance vacation rentals. Turning a 1 unit into a 2 unit could be a financial homerun for a homeowner but for a professional investor, they may need even bigger results.
Inventory levels are controlled by banks and as long as they're being manuplitated , as always, the trend will continue. However, a crash is still not far. Banks can sucker people for only so long before the shit hits the fan. All the online realestate r mauplitated as well. But, really, all that doesn't mean much to realestate pros;they make money either way. Good job on the vid phil. U r awesome in ur profession man
Another amazing video by Phil Pustejovsky. Thanks for your thoughts and insights. Happy New Year and I anxiously await you next video!!
Thank you!
Can't find deals that cash flow much in NJ when using leverage (can't afford to be a cash buyer). Can't afford to leave the state because I have a great job in the NYC metro and remote work is not an option. Is it worth buying a deal with like $100 CF a month and then hope to increase my CF with a refi when rates go down in a couple years? Thoughts Phil?
How much money down?
You need to improve the process by which you are looking for deals. Since your intent is for long term rental purposes, what types of properties are you looking for? Right now is a great time for multi family. You're looking for mis managed multi family that has huge rental rate increase potential as well as value add plays whereby renovations could greatly increase rental rates too. The problem is NOT New Jersey. There are plenty of opportunities right in your own backyard.
@@freedom_mentor Admittedly I'm only looking at marketed deals through the MLS. How else can I source? This would be my first deal so I don't have any connections to source "off-market" opportunities
@@mrmagorium12 That's a skill that professional real estate investors keep close to the vest; and those on UA-cam that do share are usually only telling the half truth. The value of knowing how to do that is worth millions of dollars. I only share that wisdom with my Apprentices. www.freedommentor.com/apprentice
Thanks
Anytime!
Gotta love those interest rates
Epic vision 👍🙌👏❤️🙏🏽🔥🌹
Thank you!
I’ve got an opportunity to build an ADU on my backlot this will be 500sq ft I rent my top floor of my house and that’s being paid off by the renter I believe I can get this done to the point where I can bring 1900 in profit per month not counting the note being paid off I’m starting to get cold feet about this deal even though a 23k loan payment is only $500/m I’m wondering if this is something I should do I know I can get this done over time but what are your thoughts on this? I’m not trying to put state of the art finishings in the unit either will lumber prices drop any?
Anytime you can lower your cost of living and the numbers make sense is a good idea. Your living cost is usually the larger expense people face each year but the numbers have to make sense!
@@freedom_mentor thx think I’m going to do the project I think it’ll get finished one step at a time with patience and persistence thx for the feedback Phil
I have a question regarding inventory. What if companies like RedFin, OpenDoor and Zillow either start to liquidate their houses or go bankrupt? What if big institutional investors who have apparently bought up significant lots of houses over the years decide to dump their housing portfolio for T-Bills at government guaranteed 4.5% rate of return? If these institutions were to release all these houses on the market and inventory increased either suddenly or drastically, how could that contribute to the overall prices of homes? Thanks.
Private Equity and Hedge Fund SRF investment firms have proven that they aren't selling their rentals. If they were going to sell any in their portfolios, they would have already, while at the top of the market in early 2022. Instead, they are holding onto all of them because the returns are too strong; especially now with the low inventory and high rents. Meanwhile, we have already faced the scenario of iBuyers having thousands of houses to liquidate; it happened with Zillow Offers and RenfinNow. What did they do? They sold their inventory to those SFR investment firms off-market so that they didn't lower the values of their houses as they were selling them by listing hundreds at the same time. So if OpenDoor and/or OfferPad officially go belly up, they won't list all of their inventory at the same time; they will either space it out or sell in bulk to an SFR investment firm. And since iBuyers only represent a tiny fraction of the markets they operate in, even if they add their inventory to the market, it won't make all that much of a difference. That's a long answer to say, your concerns won't impact inventory levels.
@@freedom_mentor really appreciate this great answer - learned a lot! thanks
Always spot on...
Thank you! What did you like most about the video?
The number of transactions is crashing, not prices.
Only distressed sellers must reduce their prices to get a deal from a buyer who can deliver all-cash at closing.
Creative financing solves huge problems for buyers and sellers.
*"Want to sell your property for 10% more than asking price? You can when you sell it to me!"*
Why builders or the government are going to build new houses when there are a lot of abandoned houses?
Can someone answer this. My inherence home in ny bx which. I havnt yet put my name on deed . My sister sold her share to an investor . Whom went and put his name as llc to deed. Now the home has 2 violations. Called oath hearing. And was not authorized to answer summons. The investor knows he was to answer and never did. The question is when i buy his share out . Will i have issues with the summons being in default. Oath said its in his company name. Just want to know , to be prepared. I also hired an architect and filed to DOB. To correct the violations. To find out it not my problem. But when i do have the deed in my name . Will i be ok. I am awaiting for approval to get permits for plumbing, ect.
At the time that your sister sold her interest in the home to someone else, who was the title holder of the property? Was it the estate of the deceased? Or had the probate been finalized and were both you and your sister the legal title holders at the time?
@@freedom_mentor Estate was from my deceased parents. We went through probate. and my nephew is now the administrator.Never got to put our names on title /deed. Also i paid the violations cause the Investor never responded to oath hearing . So i panic and paid it .
@@JanetDiaz6152 Hire an attorney to make sure you can protect your interest in the property. I doubt the Investor has title insurance so you're still ultimately in the Driver's seat.
New sub 👍🙌👏👋🐐
Awesome! Great to hear!
So the soft landing is panning out in real estate. I never bought the crash scenario. Sure, some markets were too bubbly. Those deserved a correction. I live in the Chicago area and prices are still solid/ high, not low. Everything will hinge on inventory next year. I don't foresee an explosion of it. If you have your eye on a house and price doesn't seem too crazy, scooping it up might not be a bad idea.
A Chicagoan as well. Your comments are spot on. I never bought into the crash as well. Maybe we'll go back to pre-covid prices.
Don't the i buyers still have huge inventories that may be dumped on the market if they fail
We have already faced the scenario of iBuyers having thousands of houses to liquidate; it happened with Zillow Offers and RenfinNow. What did they do? They sold their inventory to those massive SFR investment firms off-market so that they didn't lower the values of their houses as they were selling them (by listing hundreds at the same time). So if OpenDoor and/or OfferPad officially go belly up, they won't list all of their inventory at the same time; they will either space it out or sell in bulk to a large SFR investment firm. And since iBuyers only represent a tiny fraction of the markets they operate in, even if they add their inventory to the market, it won't make all that much of a difference.
Ok I want try and read what inside a book 📖
Have you been able to read the book yet?
Hi Phil, not sure if you'll get thia but I've watched your material for a while now and although I'm homeless, in a wheelchair half paralyzed id love to work with you on the apprentice program, my only problem is that I'm not getting enough from the government to pay for it right now, would you you be open to doing a deal where we can still find a way to operate with one another and I would give you a bigger portion of my cut as well as paying it off over time? I just don't want to be stuck here anymore the shelter that im in isnt helping us with getting groceries or clothes and im now at the point where im at risk of dying due to my condition deteriorating. Please ill do whatever it takes just looking for you to take a chance on me.
Thank you so much for reaching out and sharing your story. You can work your way in as a pre-apprentice by registering here: www.freedommentor.com/pre-apprentice-program-details/ this can be a great first step towards us working together as a full protege of mine. Look forward to working with you.
How do you think NY will do in 2023?
I think it will fair similar to the rest of the north eastern states.
So what happens when the recession hits and homeowners don’t have a job? Builders are not building? Meaning they will no longer be in business? Also, interest rates and high prices equal high mortgage, or, more renters. I’m raising all my rents dramatically. Something is going to give and I’m hoping for a market meltdown.
Something may not have to give. What you are fearing is already happening as we speak and it's simply not causing a market meltdown. Let me explain...my understanding is that, from the historical definition of a recession, we are already in a mild recession right now, and have been here in 2022. And it also appears that this current recession will persist for quite some time into the future. This recession is a macro economic determination, not specific to real estate. Meanwhile, unemployment is at all time lows and it seems every thriving business in our economy is struggling to hire enough staff. So there is also extremely "low inventory" of employees for employers. I have personally noticed, or what some refer to as "anecdotal evidence", that hundreds of small businesses have gone out in 2022. Doors have been closing left and right. And yet, there is still a massive deficit of employees for employers! Wages are continuing to climb as employers battle for the few employees out there. So even amidst this recession, with businesses folding and interest rates rising, unemployment is non existent, foreclosure rates remain incredibly low and home prices are now stable (or climbing in some areas). Something may not have to give.
@@freedom_mentor I agree that employment remains strong but I don’t see a fed pivot and rates will remain elevated throughout next year. If your thinking is hinged on employment, the question is then, can employers continue to grow in a high interest rate economy?
@@JinNani224 Many businesses are still in a state of back log; too few employees to keep up with demand. Businesses don't need to grow. They literally need to find a way to catch up, even in this current high interest rate economy. At least that is what I am experiencing in the real world of commerce. So from my perspective, there is room to play in both directions; rates can continue to rise to slow down the economy even more and unemployment can go up, and we're still fine.
They can become a renter
Your not considering....
1.Baby boomers who need money to retire.
2. All the layoffs coming from tightening of money.
3. Majority of people don't have $1,000 in bank account for emergency.
Can you be more specific on your substantiation of those points as well as how they will impact real estate in 2023? For example, my understanding is that there is still plenty of cash savings amongst homeowners, prospective home buyers and real estate investors. America is not cash poor yet. Even with layoffs, which have already been happening, there is such a shortage of labor relative to employment openings that it won't create a massive issue. And most baby boomers that I know who have been hammered by the stock market in 2022 are simply going to patiently wait for it to climb up before fully retiring. In other words, retirement age is just being pushed off. So I don't follow how your points change my analysis but I am open to learning more about your perspective.