Speaker 1: (00:00) [inaudible] [inaudible]
Speaker 1: (00:00)
[inaudible] [inaudible]
Speaker 2: (00:16)
okay. So anyway, so the, um, the Coronavirus, right? So how’s the coronavirus impact in the real estate market, the real estate industry? Uh, as a, as a, as a builder-developer, you know, host sellers, investors, how’s this, this whole Coronavirus and everything that’s happening right now in the current moment is impacting our personal lives, you know, um, as well as our communities and just the fear factor of everything that’s been going on it as a real estate investor, as a builder, I have a couple of properties on the market for sale that I’m trying to sell. This thing just came in at the wrong time. And then I have a couple of properties I’m building. And so I’m thinking in my mind like, okay, you know, how is this going to be six months, nine months, 12 months, you know, how long is this going to be?
Speaker 2: (01:11)
Um, you know, I’m watching the stock market, I’m watching CNBC and watching all the data. I’m listening to the economists, you know, Goldman Sachs, JP Morgan, I’m listening to Muhammad and Larry. Bill gross, you know, Sam Zell, Carl Icahn. I’m listening to all these guys, and I’m seeing all this fear and the market’s crashed, you know, all the down to 20,000 right now, my escape when they are 3000 points today alone. So, you know, I am worried, I’m worried about a lot of things right now. And, and you know, of course, I’m worried about the business and the real estate market and how this is gonna impact the market. So I know they brought the rates down to almost 0% over the weekend. And so the 30-year mortgage, the mortgage is, are like crazy low. I get that. And if you are trying to refinance, this is a good time to actually refinance if you were trying to refinance and um, for buyers, you know, it’s amazing time for the buyers to buy because they have so much buying capacity with the rates being so low.
Speaker 2: (02:16)
Right? And so the buyers should be out there like trying to buy as much as they can right now. Uh, but at the same time, the fear of the Coronavirus and with the uncertainty, is it going to be, you know, two months, three months, six months, you know, is it going to kill 70 million people or it’s going to kill 2000 people. Like what’s going to happen and how, how far is it going to get spread. And so there’s a lot of just uncertainty and because of the uncertainty and because of the volatility in the market is bringing the numbers down, it’s bringing, you know, the market down. Right? It’s just, I’m just a lot of unknown factors. I mean, it’s not like they have a, you know, a motto does this, they don’t have a motto this, there’s no financial model because this has never happened at the same time around the entire world.
Speaker 2: (03:07)
Right. So you have like [inaudible], but it’s happening to every country, almost around the world at the same time. That’s the biggest thing. And it’s these viruses in a shared amongst contacts and things like that. So, you know, I guess if we do what the government is saying and some of the CDC, you know what they’re saying and wash your hands, stay away from people in the shutting down the gyms and the restaurants and all that. Um, you know, it’ll stop the movement of people and then the movement of people won’t, well, you know, spread it. So, but it is creating a recession, right? So at the same time, you know, there’s gonna be a big recession coming, and people are saying some of the economists that it won’t be till 2022, 2023, 2024 when we’re going to start pulling out of this thing, right? This, I mean, it’s, this is going to put us in a really bad situation, and we don’t know how long it’s going to take to kind of get back to what they call normal.
Speaker 2: (04:13)
So normal might be, you know, a year from now, two years from now, we don’t know because we don’t know how bad it’s going to be because it just started right here in the US at least. So anyway, man, a real estate market, you know, if you are buying out there, you know what I’m saying? You have to look at this market as the same as 1987 87 as same as the 2000 markets. Um, and then as as the same as the 2008, nine, 10 market, when it was dipping, they’re falling down. So if you’re going to be buying, you got to buy at like 50 cents on a dollar, you know, 40 cents on a dollar, you got to buy low because you don’t know how far this is going, right? So in 2008, when the market was crashing, like the knobs were falling out the sky.
Speaker 2: (05:01)
People were still out there buying, I’m still buying in 2008, but I was buying stuff in Capitol Heights, Maryland for like twenty five thousand forty five thousand seventy five thousand when today, everything in Capitol Heights, Maryland is a two 2232 5,300, three 50. So you need to be able to get those numbers down because we don’t know what’s gonna happen, right? But if you, if you, uh, we get lucky, we pull out of this thing in six months, seven months, you could really buy some great deals at a dip and then hold on to them, rent them out, you know, do a cash-out refinance and leverage. And then because the market is going to go back up, you know, whenever it comes down this far so quickly, if you look at a hundred-year chart, it constantly just bounces back up. Then it just levels off. And so it’s going to be a bounce here. It’s just going to take some time.
Speaker 2: (05:52)
It’s going to be a balance. So if you’ve got cash and you’ve got access to cash, and if you could find that, that, that, that motivated seller, um, they just, you know, they go sell the second home and the beach home and the third home. First people want to protect their primary residence. What do we start getting rid of? Is they, after the second home and third homes. So go after landlord’s got to after absentee owners go after, uh, you know, landlords with violations. Okay. And then just start beating them down and then see if you get them to bite. Um, you can also do subject to financing on the financing, take over the mortgage, you know, and then you could do that. That’s, that’s going to be hot play right now too. But yeah, so that’s gonna I’m subject to financing and owner financing and going in and talking to the people, the homeowners meeting at the kitchen table and taking over their mortgage.
Speaker 2: (06:50)
Um, you know, when doing a workout with that. So that’s going to be good at the moment because a lot of these homes are like 80, 90% LTV. There’s not a whole bunch of equity in there. And so you may ha that might be the only way to do that. Um, but again, real estate is risky, but if you have knowledge and you have a strategy, and you understand your local area, you understand what’s, where are you buying that? Then you could control the risks. You know, I know my area, so if I bought something in this area for like 300, three 50, 400,000, I’m getting a deal. So, um, I don’t need to think twice about that. So just know your market. Be careful, you know, bar. Um, you know, watch the market. I mean, this is brand new. See what happens for the rest of the week, the next two weeks, three weeks.
Speaker 2: (07:38)
Just, you know, watch it. But no, I believe it was, we were going to come out of this is going to be sooner than later. Um, and you know, real estate, like I gotta sell my own houses. I got a couple houses I’m selling, I got to cut, I got to finish. So I really hope we come out of this. I can give her that shit. So anyway, look, sit. How me with a brick from properties and construction. I’m just having a real conversation with you guys about what’s going on at the moment. Uh, like say I’m worried about some things, but at the same time, you know, I’m just trying to make smarter decisions with real States and with everything that’s happening with the put the market in the Coronavirus. All right. Sit Humvee with brick from properties and construction are thought gas later. Take care of
Speaker 1: (08:24)
[inaudible].