When is the real-estate market going to
crash? Dude, it’s a fantastic question and I get hit up all the time. People want to
know the answer to this question. But today, I’m going to be giving it to you a
little bit different because it’s going to surprise you that when the market
crashes has a lot to do with how you and I feel about the market. Feelings. How on
earth could people’s perceptions and feelings in the marketplace actually
dictate when the market is going to crash? Here. Check this out. You see this pile of
cash? It’s for a different video that I’m getting set up to record with my kids to
upset a lot of people on the planet about how I train them about money. But
this pile of cash, it evaporates in a second when the market crashes. So it’s
here today. It’s something you can spend. It’s real it’s tangible and then
something shifts in the market. And it’s gone. What is that? So, back in 2008,
October. For those of you that remember it. That market from one moment to the
next. I was getting ready to close on like my… I don’t know, how many umpteenth
hundredth property. I was getting ready to close and this is how I knew that
something really screwy was going down. I had talked to the lender, we were getting
ready to put 20% down. And I had like a 5%, 6% interest rate. Something like that.
And all of a sudden, that very next day, the bank calls me up and says, “The
interest rate is now 17%.” The bank had shifted the interest rate by 11%.
Why had they done that? Because they were basically trying to tell me,
“We’re not going to fund this deal and we know there’s no way that you’re actually
going to do this deal with 17% interest rate.” The very next week, the
bank went out of business. They evaporated, they no longer existed. And
everything changed in our world as we knew it. Except that for me, what everyone
considered the worst of times, stock market crash, thrown themselves out of
windows. Was for me the best of times. So by the way, I just want… As I explains it too, I want understand that when the market crashes, is it a bad thing? Well, it
depends which side of the fence you’re on it depends on what you understand
about the market. So, it was a real estate investor, when everyone is running this
way then we should be running what way? This way. When everyone’s scared, we get
really excited. When everyone’s really excited, what do we do? We don’t get
scared, we start running the opposite direction. We’re counter-cyclical, we go
in the different direction than people are. And that’s because feelings dictate
a lot in this market. Let me show you something here. When you take a look at
the way the market moves, real estate does go up over time. But we know that it
doesn’t look like that. What it does it is it actually moves in waves. And this
part we call a what? Dude, you’re so smart. That’s a bubble, right? And what’s this?
Yep, that’s the trough. So anything over this line is going to have to
course-correct and come down. So, when the market tanked back in 2008, why was I so
excited? Because I went on with my team to go and purchase 2,000 homes in
Phoenix and Vegas. And that’s buying up those homes for 70, 80, 90 thousand dollars that were
previously selling for 250 to 300 thousand. They had
over built in that market. And I’m going to tell you right now. I’ll answer at the
end of this video when the markets going to crash. But I want you to know that when
it happens, I’m going to be freaking jumping up and down. I’m going to be excited because
there’s a massive problem and you know what real estate investors really are?
We’re problem solvers. We’re the cleanup crew and we’re going to make a lot of money
because no one else is going to clean it up. Everyone’s too busy, scared, they’re like
ostriches heads in the sand shaking the big meaty part out for the tiger to come
in rawr! And jump on you, right? Meanwhile, we’re the tiger. We’re out there saying,
“Dude, look at all this lettuce? Look at all this opportunity and the government
can’t clean it up. No one else can clean up. It’s an opportunity just for you and
I to be able to do that.” So let me kind of show you what that means.
How are people feeling at this point in the market? There’s optimism. Why? Because
the market has just finished coming back. Optimism turns into what? Optimism turns
into excitement. Now, when people get excited then there’s the thrill. When
there’s the thrill then we hit this climax. We’re going to call that euphoria.
Be very afraid when the feelings of everyone around you are real estates the
best thing. Well you’re skeptical friend says, “I’m jumping in and doing real
estate?” Guess what we do? We are running in the absolute opposite direction.
Because what happens after euphoria? Well, the market shifts. And the first thing
that happens is there is anxiety. Now, stock market just recently did this and
people are feeling anxiety. They don’t even know it. But what comes next after
anxiety? It’s denial. And from denial, we move right here into fear then we move
into desperation and then we move into hopelessness. Now, if you understand the
market, if you read the press clippings and if you talk with people, you’ll start
getting a really good feeling for where we are in this market. But guess what
happens after this? There’s a recapitulation. Something really
beautiful happens that I love, The market starts turning around and we move into
hope. Now, when people are hopeful, they’re still scared. And they’re still running
from the opportunity. At this point, they’re feeling relief because the
market cap got caught up with the rebuild value. That’s what this means.
Anytime… If a home cost 200,000 to build and up here, they’re
selling it for 300, there are a hundred thousand dollars above the build
price. That’s a bubble. Anything above the build value. Good is going to have to
crumble and anytime you can buy something beneath what it costs to buildm
here’s how you know it. No one is building, no one’s developing. And all the
stuff that had been built is getting eaten up by the who? The investors. 2008,
2009, 2010. You know who my biggest competitor was? Warren Buffett, Blackstone. In the year that I bought a thousand homes,
he bought 40,000 homes. I only wish that I was bigger which is why I will tell
you when the market crashes. At the in this video, you will be ready for it and
you and I, we’re going to go and we’re going to be the next cleanup crew because even
though in the last 5 years, I made my investors over 70 million dollars.
It’s nothing compared to what’s going to be happening. Because this cycle is
predictable. It never jumps here and jumps backwards. And then goes here and
goes backwards. There’s nothing finicky about real
estate. It is slow moving and always in this direction.
It’s called the K wave cycle. You can look at the kondratieff cycle. It was a
Lithuanian that actually came up with this economic model that’s been tracked
for the last 3,000 years. Friends, were talking about science right now. But
oddly enough, it tracks the emotions that will lead all the way back up to
optimism and excitement. Now, I want to share something with you this little…
There’s a little bonus, okay? Before I help you understand when this is going to happen
again next? I want to ask you this question. When should you be buying like
crazy in the cycle? Right here. This point right here, this is where you’re going to
make your most massive gains. When should you be selling? Some of your like, “Kris,
you should sell at the peak.” No one knows when the peak is. You’ll only ever know
what it is in hindsight. Do you know what I’m selling? I’m selling right here. Just
when it’s… Just when the going is getting good. Now, why can I afford to do that?
Because when was I buying all the way down here. And here’s the cool thing. The
entire market doesn’t move this simple. We’ve got sub markets moving. United
States 350 sub markets that make up this country. So when am i buying real estate?
I’m always buying real estate. And if you’re a subscriber, you know that I have
a system. You know that you can click the link below talk to my team and we’re
gonna break it down for you. That system essentially means that we’re buying
homes underneath the median. And we don’t care what’s happening in the market
other than when the market tanks, we get uber excited. Because we’re going to
compress our 5 and 7 year gains into a much shorter time frame. So do we
get excited about it? Yes. Here’s what it means for you. Whatever age you are right
now, go ahead and look at your watch. It’ll tell you how old you are. And think,
“In the next few years when this happens, I have one of the biggest wealth
creation moments of my entire life ahead of me.” You can make in a handful years what people cannot make in an entire lifetime if you understand the power of
what I’m sharing with you right now. So, let’s answer this question. When is it
going down? When is it going to happen? When is the market going to lose its
stuff it’s going to hit the fan and everything is going to shift and change
in the marketplace? They tell you right now. Where we’re at in this market is
we are at optimism, we’re at excitement and we’re moving in the zone right here.
I can’t give you the month the date, I can’t even give you the year. But what I
can tell you is I’m buying real estate crazy right now because I understand
where we’re at in the market. And I’m in the markets that are in this phase right
here. So, we’re out there, we’re crushing it, we’re making it happen. And just wait.
In a handful of years here, your moment, your biggest moments gonna come. What can you do right now to be ready for it? Number 1, you got to pay yourself first.
You’ve got to start leveraging that job like a beast. Stop
living paycheck to paycheck. At this point, pay yourself first means that when
you go to your job, if you’re going to trade all your hours for that money, you better
not be putting it all towards your bills. You better be stockpiling some of that
money. What’s the next things that you should do? You should be buying
profitable real estate. I look at real estate that has 20% ROI. And if you buy
it underneath the market… And in fact, if you click the link and talk to my team,
we’re going to reveal the entire plan to you of how you can buy real estate in
any market cycle and freaking get these numbers to hold true and crush it. And
then the third thing that you can do is get excited. Best way to do that is to
experience a full immersion event with me. Every quarter, I put on a 3-day
financial freedom workshop. That’s a three-day opportunity for you to get
with me and for me to actually train you on all the systems and all the mindsets
that you need to go out there and freaking crush it. Because the market,
it’s going to crash again. And while everyone thinks that’s a bad thing. I
mean, look at their emotions. Anxiety, denial, fear, desperation. That’s what
happens when you pay attention and pay homage to society’s financial gameplan.
That’s what it looks like when your 401k-ing, IRA-ing, house payer offering and doing these other weird things that are never going to get you where you’re going to be. Wake up.
Now is the time for you to realize that there’s only one person in charge your
financial destiny and that person isn’t me, it’s not your boss. That person is you.
It’s time to make it happen. Click the link in the description below, make sure
that you get a chance to talk to my team. Ask for a custom game plan for making
your next million dollars. And in the meantime, subscribe because tomorrow I
got another hot and juicy coming your way.