https://streetsmartinvestor.com/trusts/renting-versus-buying-hint-never-be-a-renter/

Never pay rent again.

Rent has climbed 7% year-over-year and 5% since March (according to Zillow)! That is by no means a small jump, and the reasons behind it should come as no surprise.

With a surge in housing prices, mortgages continue to go up, causing landlords of newly purchased properties with a dilemma: raise the rents to meet the mortgage or keep rents low and throw away your profit entirely. Combine the above with rampant inflation we’ve been experiencing, and you have a perfect storm for higher and higher rents.

Investors are snapping up houses. Why? How does this impact future renters and homebuyers?

Timestamps:

0:01 – Introduction – “Renting vs Buying”

0:31 – Great things are happening in the real estate market

1:38 – Lou’s gift – “Doing Good While Doing Well” book

2:18 – Lou’s Wins of the Week

3:08 – MJS attendee shares his takeaways on the event

6:24 – Lou brings to everyone his real estate news

6:52 – Investor Home Purchases Hit Record, Surpassing Pre-Pandemic Levels – Redfin

11:00 – Real Estate is a stable place to invest your money

12:25 – Topic of the week: Never Pay Rent Again!

18:21 – https://www.WealthBuilderWorkshop.Online – One-day training for only $1 on September 18th

21:09 – Real people, Real stories – Testimonials to Lou’s Street Smart System – https://www.StreetSmartInvestor.com

31:45 – “Doing Good While Doing Well” – Free ebook copy of Lou’s book at https://www.GetDoingGood.com

If you are JUST getting started in real estate investing, you NEED to attend my ONE-DAY virtual training. I teach it LIVE over ZOOM, and it’s only $1 (yes, one dollar) for SIX HOURS of solid how-to training! https://www.wealthbuilderworkshop.online

If you’re ready for a more in-depth experience, then you owe it to yourself to investigate my THREE- DAY Millionaire Jumpstart Event. I host it four times a year in various locations, and you can attend LIVE and in person. I’ll be your coach all three days. Find out more at https://millionairejumpstart.com/

Renting Versus Buying – Hint: Never be a Renter!

Lou Brown

00:00:12

It’s good that you’re here today and I’ve got so much good stuff that’s been happening in Street Smart as well as real estate. My goodness, what an amazing time that we live in. You might think that these are tumultuous times, but you know, so much money is made in upheaval. So much money is made in breakdowns. So much is made when there’s confusion in the marketplace. And right now we have that very thing going on. So people don’t know what to do. They don’t know how to do it. And I was just on with one of my coaching clients and they were talking about people coming in from California, selling 2-bedroom, 1-bath homes for a million dollars. They’re coming to Nashville, Tennessee and other places. And they’re seeing absolutely incredible, beautiful 5,000 square foot houses that they can buy for a million dollars.

And they’re going, “Holy cow! Life is different!” and that’s true. Different parts of the country, things are completely different. And that’s going to be part of the news that I’m going to share with you today, but let’s start with a gift I have for you today. So at the end of the event, I’m going to tell you how you can get my book, “Doing Good While Doing Well.” If you don’t have a copy of that, you should have a copy of that because it’s a book that we use with sellers. We’ll talk about that on another show, but wow, it’s absolutely a powerful tool to use, with both sellers and lenders, as well as private money financing of any kind and also with the mayor, city, council, county commission. Just lots of people that you connect with. I have a book and we’ve got that book put together.

It’s pretty amazing. So let’s talk about wins of the week. We had some amazing things happen last weekend with our Millionaire Jumpstart event in Pittsburgh, Pennsylvania. And what an awesome event, what an awesome city, what awesome people that came to the event for sure. We had a nucleus of people from the Pittsburgh and Pennsylvania area, but we also had people there from New York, California, Washington, Florida and just everywhere. And it was so exciting to have that nice group of folks in that setting we were in. Sure enough, it was an amazing experience. And I’m so glad we had that opportunity. In fact, let me share with you what one of the attendees shared with everybody while he was at the event.

James Owens

00:03:29

Okay. So my name is James Owens. I’m from Las Vegas. I’m coming into this event. What I thought we were going to have is kind of like a sales pitch. I know that Lou is extremely polished and he’s definitely got sales experience and background and skills. And that’s what I thought we would have is a 3-day kind of a hype session. Something along those lines. What we actually found was over 40 pages, a typical set of notes in here on the very first day. Some people over 50 pages of notes on the first day, homework at night, when you come to this event, you’ve just got to plan on learning the entire time and putting in the work. Saturday night, I was up until almost midnight last night, finishing the homework and you say, “Oh yeah, I’ve got that.” But then when they say, “You’re going to do the homework on it,” you realize you don’t actually have it.

We had two calculators out, we’re working on it until we call it burning the midnight oil. Finally, what we’re walking away from here after 3 days feels like we’ve been here for a week. We’ve learned an absolute ton of things that we’re going to be able to go home and monetize and the amount of money that we’re going to save. And the mistakes that we’re going to avoid coming out of this weekend are going to be gifts that will last an absolute lifetime and will help make us more successful. Overall, people don’t realize how many things can take them out of the game because they don’t know what not to do. So just very thankful for this training, Lou’s training. And the entire team is just absolutely fantastic. The support you get, the family feel, everything you’re looking for is here. Not just one piece. The entire system is here.

Lou Brown

00:05:00

Yeah, baby! Wasn’t that awesome? James’ spiel was not scripted. He just came in and all of a sudden, boom, he just shared that amazing testimonial from the event. And I just love what he said. He expected a whole sell-a-thon. And he said that on the first day he had over 40 pages of notes and there were other people with over 50 pages of notes. I know another person had 27 pages of notes. So that’s just how much information they got because I’m all about the information. Look, I realized that if I’m the one who delivers true content, real content, when you come see me at a very inexpensive event, then you’re going to want to learn more from somebody who’s been there and done that. So I pour it out.

Definitely, come to the Millionaire Jumpstart. If you’ve joined us a year or two or 10 years in the past, you should definitely come because you’re going to definitely hear some things that you’ve never heard before. You’re going to say, “I’ve never said them before,” and that’s okay because you just weren’t ready to hear them at another time. So pleased that I could share that and pleased that I could talk about today’s market, what’s happening now, and what my crystal ball shows of the possibilities of what’s coming. So sure enough, I think there’s some very interesting things coming and I’m going to cover that here in the news segment.

So, what’s the news of the week? Well, let me tell you something. There are some amazing things happening out there in the world. So investor home purchases hit record surpassing pre-pandemic levels. Now you might’ve heard that things are slowing down. You might’ve heard that things are just not the same as they were. I do believe that we are headed towards a downmarket, but I’ll tell you what the numbers are definitely out there. Investors took the housing market by storm in the second quarter. Now this is an article from Redfin and I’m going to be reading this off to you. “It is very likely that in the second quarter, investors bought over $49 billion worth of homes as the surging property prices and rental demand created opportunities for hefty profits.”

“Multi-family properties remain the most popular among investors, but single-family homes and condos are gaining steam. Relatively affordable metros, including Phoenix and Miami have jumped in popularity during the pandemic and are the top markets for investors. Real estate investors purchased 67,943 U.S. homes in the second quarter of 2021, the highest quarterly figure on record. That is up 15.1% from the prior quarter, up 106.7% from the second quarter of 2020. Investors bought a record $48.5 billion worth of homes in the second quarter, up from $38.9 billion in the prior quarter and $20.9 billion a year earlier. The typical homes that they purchased cost $439,600, which is 23.7% higher than a year earlier, amid surging housing prices. We define an investor as any institution or business that purchases residential real estate.”

“When we refer to a record in this report, the record dates back to the year 2000, scroll to the bottom two of this report to read the methodology.” So here is the graph that shows what’s happened from the year 2000, and then you can see it kind of spiked up 2005 to a little less than 60,000 homes. And where are we now? All the way over to the second quarter of 2021. Wow! It bursts through that at almost 70,000 homes. It’s actually 67,943 homes in the second quarter. That’s huge y’all. And so that means that investors are out there if you’re not aware, and if you have properties that you’d like to sell, well, I can put you in touch with some hedge funds that are definitely paying a premium right now. What you’d want to ask yourself is why is it that these institutional investors are paying a premium?

First of all, they get their money at very inexpensive rates. Secondly, there’s a lot of investors, meaning mom and pops, people with their own retirement money. There’s pension funds and so on. People who have lots and lots of cash and they want to put that cash to work. Sure enough, that’s exactly what they’re doing. They’re buying these single-family homes, and there’s a reason for that. It’s a stable place to put money in. So if you’re concerned about the stock market, which might be a good thing to be concerned about these days, if you’re concerned about many things, one of the great things is that when people purchase a home, even if the value goes down, they still tend to pay. Yes, in the last downturn, people did turn back their houses when they went upside down, but it was actually a small percentage compared to the overall market and compared to the number of people that continued to pay the mortgage, regardless of the fact that the property was worthless. And those people ended up winning because now of course, those properties are at a much higher value. So if they turn around and sell their properties, guess what? They’re in a great position. So think about that as we think about today’s news and what can happen in your real estate world.

So our topic of the week is “Never pay rent again.” How about that? And believe it or not, I’ve actually got a book by that name, “Never Pay Rent Again: The Path To Home Ownership.” This is the book that we give to our potential buyers. These are the folks that work with us to eventually end up with home ownership. And boy, let me tell you something, there’s a lot of people in our world right now that are very happy they met Lou Brown and Trust Properties because they were able to get what we call, “The Path To Home Ownership.” We gave them the opportunity to purchase a home on our Rent-To-Own plan. For the others, we gave them the opportunity to own a home with our Owner-Finance or In-House Financing program. And it turned out to be fantastic for them because we gave them an option to purchase the property at our Rent-To-Own level.

And that option to purchase fixed the price for one year. And then after one year, the price began to appreciate by a half percent per month until they exercised their option to buy. Well, we’ve got some raving fans right now in our world. They joined our program and became members of the Path To Home Ownership plan. As a result of being a part of that, they improved their credit. They built up their down payment and they were actually in a position to go buy a different house than the one they were getting from us. And they were so thrilled, so happy because of the fact that they got with us and stuck with us, they were able to achieve their dreams of buying a property. Well, we’re not upset at all if they want to move on to another property.

In fact, we count those clients as platinum members of our program because the ultimate goal, the ultimate strategy is for them to end up with home ownership. By the way, if you have any questions today, we are going to be answering them. So just put them in the questions box and we’ll be more than happy to answer questions as soon as I’m finished with this chat about home ownership. Now we’ve had folks join us with the Rent-To-Own plan and other people are moving up the Path To Home Ownership. And they’re so happy that they join our program because included in their option to purchase is the fixed price with the increase if they go past the one year. Well, several of our people this year have exercised their option to purchase the property and in doing so, they actually are getting equity at that time.

We got one right now, he’s exercising his option to purchase. We optioned the property to him at around $109,000, and it’s now built up to about $115,000. And he’s so happy because currently the property is worth about $165,000. So he’s thrilled to be part of our program and also to move up that Path To Home Ownership and to do it with equity as well. So we’re so pleased that that’s happening for one of our clients this week. And we’ve had several others that have been able to do the same thing. So just know that when we are giving people the opportunity at home ownership, there’s something in it for both parties. We have a great customer living in the house. They take good care of the property. They’re improving the property to their specifications and their love. And they have a path to end up with ownership of that property.

We love that and we’d like to give that to other people. And we’d like to teach other entrepreneurs around the country how to build a business exactly as we’re doing. So you see, what’s happening out there in the world is that investors are snapping up homes like crazy, and they are planning to just rent those properties out. But we don’t like just mere rentals. In fact, we used to be landlords many, many moons ago and we decided we really didn’t enjoy landlording at all, but we did enjoy the Path To Home Ownership. We did enjoy having residents move into our homes and have the opportunity to end up with home ownership and sure enough, that’s exactly what’s happened for many, many folks in our world. And I’m very pleased to say that as founder of the program, “Certified Affordable Housing Provider,” we’ve got entrepreneurs all over the country offering the same program in their local market, and they are making a difference in their communities.

And it’s something I encourage all of you to do because it’s one thing to make money, it’s another thing to actually impact someone’s life and to cause someone’s life to be better. So hopefully that’s your goal, that’s your mission, and that’s your dream because that’s something that you can do for other people, helping them to achieve their mission, their goal, and their dream as well. So thank you for being a part of that. Thank you for listening to me talking about renting versus buying because renting versus buying is a whole other thing. In fact, next week, I’m going to be talking more about that, but I just wanted to give you this foundation of conversation around the possibilities that happen when you give someone that chance at home ownership. And if you’re interested in knowing more about that, we have an event coming up and it’s called the Wealth Builder Workshop.

So the Wealth Builder Workshop is an event that I put together. I used to speak a lot at real estate investor associations, and they would love to have me come in and share a whole day of education and information. And I thought why don’t we take that show online? Why don’t we give people a chance to really learn some amazing things about what we do and how we do it and why don’t we do it almost free, like for a dollar? So sure enough, I’ve got the Wealth Builder Workshop that I’m currently offering for $1. We have it coming up again on September the 18th. So I want you to sign up for that. I’ve got a link here and it’s just www.WealthBuilderWorkshop.online. You simply go there, you pay your dollar, and we’ll remind you right before the event. In fact, we’re going to send you documents to download that I want you to have as part of what we’re going to be training on that one day.

And we’re going to start at 10:00 AM going to go to 6:00 PM, even going to have a Happy Hour after that. So a lot of information, a lot of value, so I can guarantee you’re going to have a lot of takeaways. And that’s exactly what my purpose is in doing these events. I love to pay it forward. I love to give others the opportunity to have some A-ha! moments and realize that this business is absolutely doable. We help many people to become multimillionaires in this business. We know that there’s some unique things that we do that have been very powerful in our business. And I love to share that with other folks. So we do that at WealthBuilderWorkshop.online, and I encourage you to take advantage of that for sure.

Scott Paton