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Creative Real Estate Podcast
Creative Real Estate Podcast
Real estate has created more millionaires than any other industry. What you may not know is that many of those millionaires got started with zero money down. How is that possible? They used some of the many Creative Real Estate strategies we discuss on this podcast.
AAA335 Think Real Estate is Overpriced? Think Again!-Bob Fraser
In this podcast, you'll learn
6 metrics to check if the market is looking strong right now:
Mortgage Rate
It will stay low for an extended period of time it is primarily driven by the global money flow.
Money is Global
Money flows. Its driving down global bond rates and US interest rates
All interest rates flow together
Inflation. Are we at the peak?
For the largest markets right now prices are at the peak
Smaller markets prices are right above the peak
Price to Rent Ratio
Price to rent ratio are 25% below the peak.
The best way to buy a real estate is called adiscounted cash flow basis. Look at the cash flow that you're going to receive from the investment and that determines the price you will pay.
Supply and Demand
Multifamily massively recovered since the crisis and above where they were pre crisis
Single family homes shortage. It never recovered from the crisis. There are fewer single family homes.
Consumer Debt Services
US consumer's debt service is lower than anytime in the last 30 years
The percentage of their income are used to pay their debts
Consumers are in great shape today!
Mortgage Underwriting
In 2006 only 50% of origination are above 700 FICO score
Today 80% origination are above 700 FICO score
Underwriting is still very conservative
Having been to many crisis, people are now very aware and concern of not repeating the last crisis
"The way to make money is to buy when blood is running in the streets" - JP Morgan
To connect with Bob, visit https://aspenfunds.us/creative-real-estate/
Sponsors: (https://thinkmultifamily.com/podcast/)
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(https://podcasts.apple.com/us/podcast/creative-real-estate-podcast/id1285094279)