So, what's going on with the real estate market, what's going on team, it's ricky with tackle solutions, we actually just got done filming a video on nick paladino's channel uh, his instagram and youtube channel is gon na be linked down below one of the questions as a Lot of you guys have been following us throughout our journey of just getting started, investing and flipping real estate. Here, really in the arizona area i mean we were able to take part of such a bullish market and we're so grateful for it that, during the time that we were just getting started, it was almost like perfect timing. We definitely got lucky with that being said. Now it's kind of like this challenging time where i feel like people are being reminded that it's not always super bullish and for people like nick and myself that are just getting started.

What are we seeing right now on the investment side, and what are we seeing right now on the you know, agent and buyer side right for the first time home buyers? I thought that we would break it down and kind of share with you. Some of our concerns - and maybe you guys, can do the same down in the comments section as you're, either just getting started and or if you're a real estate agent. What you can share about your experience, so one of the first things that i want to share. As interest rates have risen, obviously it's made it less attractive for people to take out loans to buy properties.

In my experience, even with the different listings that we've had the contingencies in the way that people make their offers are so much less aggressive, at least in the arizona market, we still sell them relatively pretty quick. We still get multiple offers, but not in which the way that we used to experience it right and also when it comes down to taking on new projects we're not scared of taking on new projects by any means. Our biggest focus is just being more selective in the opportunities that we choose to take advantage of. If we still see a property that has, you know, 15 to 20 percent cash on cash net return, our job is still to take advantage of opportunities and we're going to do so.

So it just means that i mean we literally just got presented a property yesterday and today and if this was during the bull run, we would have taken advantage of this opportunity, no question, but the margins are just a little bit too tight where we have enough. In our pipeline with what we have going on that we're just like, let's not over exert ourselves with all the different flips that we are taking on, we have one out of state right now. The rest are in state in arizona, and it just didn't make too much sense where you know the net cash on cash return, just wasn't there. So, as of now, we've decided to pass on it, but i wanted nick to share.

Not only only is he a real estate agent, but he is also someone that has a series of rental properties, so i think him sharing his experience would be somewhat of value for you guys as well yeah. So the last property that we had listed was about six weeks ago and we, i really started, noticing a huge transition within the last six weeks, so we actually haven't listed a property yet to um, to where we've seen or us personally, i've seen a huge shift In the market, but after talking to my team members on monday, they have listed three or four properties since then, and they have actually start to personally have seen less traction on their properties less offers if there's any offers at all. So what i think that means going forward is first of all, the biggest thing is interest rates, but obviously people don't know what's going to happen and the uncertainty in fear is what's going to be driving the market over the next couple months here and i think Properties are just going to end up sitting on the market a lot longer. I think buyers are also going to have a bigger opportunity to actually get a good offering without really over leveraging themselves and they're going to be able to negotiate a little bit more on the inspection negotiate a little bit more on.

Obviously the purchase price and just have a little bit of an overall, better selection when they go and buy a property, but with that being said, at the same time, yes, it's going to be more of a buyer's market they're, also dealing with interest rates that have Almost doubled or have doubled over the last six months. I think we're now at about six percent for a primary residence which, over the 40-year span, is not anything crazy. But if you look back even a year a year and a half ago, when we're at sub four percent three percent - it's crazy for people to think about that. And i think that will kind of drive the market a little bit um.

And i think it's going to really be dependent state of the state, i think arizona. We still have a lot of inbound moves. We still have a high demand for purchasing. We have a really high demand for rentals as well, just because the amount of people that are moving in here, i don't think we're going to see anything crazy here, but it's obviously more than just the real estate market.

It's an overall economic issue. Um the inflation issue, so i think that is my more of my biggest concern is: what's gon na happen with the inflation what's gon na happen with the overall economy? Is the unemployment going to go up because that's gon na that's gon na be what really dictates the overall real estate market um, but just the real estate market on its own? We still have a ton of demand, there's still a ton of buyers and um. I think it'll be an interesting next couple months for sure, so touching back on the point of what we're doing with our flips, we're just being more conservative, we're dropping down our purchase prices a little bit more. I know i talked about in my video, but two three months ago we we uh, we would have picked up a property for four hundred thousand dollars, but now i think we're going to drop it down to we'd, probably make an offer about 360.

370.. So that's how we're being more conservative, um and moving forward as well when things start to open up or clear up a little bit more, i think we'll see a little bit more of a steady market yeah, and i i mean i the thing that i really Like about what we're experiencing right now is we we experienced such a bull run that now the challenges that we're experiencing are something that are just reminding ourselves of like the core criterias, that we should always have as investors, and that's really just it right. Uh, there's! No question that six months ago i mean we could buy, i could throw a rock by any property and i could make you know tens of thousands of dollars off of it, and you know if i would have listed that property it would have gone so many Offers above ask price, and you might be asking why we continue to talk about interest rates. We continue to talk about inflation and to make it very simple.

It's just money was super cheap to borrow where interest rates been at three or four percent. It was just a given that, like investors and first-time home, buyers were just buying properties because they cannot necessarily because they needed to, but then, as interest rates begin to rise. Obviously it makes it more expensive when it comes down to. You know your monthly mortgage payment that now i think - and this is something that nick has touched on before, as i think now we're going to see a transition where, as interest rates begin to rise, it's also going to be more expensive to own these properties.

Right and i think that's where we will see rental rates begin to catch up with purchase price um. I and if you already think it's expensive, i think arizona had specific cities where it was. You know top ten in the united states, scott's still being one for sure. I think it's going to be pretty interesting, that if you think that they're inflated now uh just wait for that cpi data report in the next couple of months, so overall i'm very excited.

Just to kind of see how the market plays out regardless, if it's good regardless, if it's bad again, our job is not to avoid risk, it's to simply manage it. I'm sure we're going to make a ton of mistakes, but that's why we have this youtube channel. It's to not only share our successes but, of course, our failures. So again friendly reminder, i don't know if you guys own a property and or know anyone, that's interested in selling their property.

But if it's in in the arizona area, especially gilbert, we're in the gilbert and chandler area, send us a message right now on instagram. If you know anyone, possibly even possibly interested in selling their property, we buy properties, cash, we don't borrow money and we can close as quick as 10 days if needed, we offer lease backs and if you refer us to someone that we end up buying their house, We can pay you a percentage of the net profits we make on the flip or, if you don't even want to take that chance, we can pay you an upfront fee of a couple thousand dollars, depending on the property that you present to us. So again, it's one message away: we've already paid over fifty thousand dollars in finders fees this year so far and we hope to partner up with you guys as well. So really do appreciate you guys time again.

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