There is a tendency of people on the internet to mislead other people, especially when they are lowly educated on things that they're talking about. Unfortunately, most people are lowly educated on real estate investing and that's why I believe that there is a substantial opportunity for people to build massive wealth and real estate. And honestly, the more I see this sort of lack of understanding by normal people on the internet when it comes to real estate, the more excited I get because I know how to make a lot of money in real estate I know it's an in-person business I know it's a people business and I know I got to be there to make money. That's why I have a housing startup.

But let's talk about what this individual says. and let's break this down because this individual let me just be up front and say they have absolutely no idea what they're talking about. Uh, does that bias my opinion at all? I don't think so because I think I'm right. But anyway, recession Confession says: my neighbor bought a house for 650 000 last year.

He lost his job at a tech company. His house has been on the market for 45 days. nothing. The only bid was for 350 000.

He is running out of money. The real estate market is going to crash so hard. This tweet got one million views, five thousand, three hundred likes because it's dramatic. It sounds intense.

Oh my gosh, this sounds terrible. but guess what's missing in his post now? He'll end up giving me this info because I call him out on it. But what's missing when you first read this? Well, most people they read this and they think oh My Gosh bought a house for six hundred Fifty thousand dollars. That and he's only got a bid for three hundred Fifty thousand dollars.

Holy smokes, that means the property's Fallen But essentially half. That's the signal that this individual is trying to manipulate people who are uneducated in real estate to believe. So the individual wants you to believe that real estate prices went from 650 000 down to Three hundred Fifty thousand dollars. And keep in mind: I Sold my real estate at the beginning of 2022, expecting not only to start a housing startup, but also expecting real estate prices to come down.

So if real estate prices came down 80, Uh, or well, let's see here, 350 divided by 650 real estate prices came down. uh, 53.8 percent. Uh, as in this, uh oh no, 350 is 53. So this would be a this would represent to be exact here: a 46.2 percent decline in real estate prices.

For me to believe that real estate prices came down 46.2 percent would actually reiterate why I sold and it would actually reiterate the benefits of me being able to start my housing startup. But the problem is I I Don't base my decisions on uh, misleading information like this, but why is this misleading I mean Kevin after all, if the house it was bought for six hundred fifty thousand dollars and today the only bid is 350 000, doesn't that mean the market price is 46.2 percent lower? No. First of all, that's not how real estate works. The real estate industry is a people business and when a property is overpriced for six hundred fifty thousand dollars, people won't make an offer on it.

Normal home buyers will not make an offer on it. The only people who will lowball properties listing price are generally investors or people who are brand new to the market. People who are brand new to a real estate market will often throw low balls out left and right and they'll just end up offending a lot of real estate agents and sellers and they'll end up getting nothing and they'll end up very devastated. The proper way to lowball is actually to get on the phone with the listing agent, or your your agent, get on the phone with a listing agent and work through the issue in the presentation before you present a low ball.

You don't just go spaghetti lowball. That's stupid. Now some people do that and you'll generally only get cash offers or investors basically trying to bottom feed right. They see something and they say, oh, let's send a local offer to every property that's been on the market for more than 30 days.

Let's spaghetti them out. We'll call them. We don't even call the age agents, you just throw them out. That's very normal, but it's not actually the definition of what where the real estate market is And see, that's because we know a few things.

First of all, we know the psychology of a home seller and a home buyer is very simple. Most home buyers realize that a seller's probably going to be upset with an offer that exceeds a 10 reduction in the listing price, and as a result, most home buyers won't even bother making an offer unless it's within a striking range of around five percent. Now that's actually really interesting psychologically, because that means if this 650 000 seller If instead of waiting 45 days realize that most offers happen within the first 10 days, and then they just dropped their price by day 14 to 599 000, they could have potentially knocked an offer out for 550. But you actually won't get the 550 offer.

Even if you're worth 550 when you're listed at 650, you're too far away to act actually attract the home buyers. That's because the home buyers who are qualified and ready to close don't spaghetti offers. This is not. eBay People don't throw offers out like they do on.

eBay It doesn't take one second to make an offer. It actually takes an agent probably 30 minutes to write an offer. It takes the client another 30 minutes at least of their own time to actually read it. If they read it and go through it, you know, Who knows, Maybe they're blindly signing it fine, then you can cut that out.

But then the agent has to put it together and prep it in an email and contact the other agent and submit it. There's a lot of work involved relative to putting it a bid in on. you know, sort of the free market stock market. or Ebay There's a lot of work involved.

And that's not to say that the market isn't efficient. but let's be real, the real estate market is not efficient. Okay, there are a ton of inefficiencies in the real estate market. That's actually why sometimes people do these low balls because they realize the property could be worth 550 if we pick it up for 350.

My gosh, it's a steal. That's because of the way the market works. The real estate market is not purely efficient. You do not have perfect information because there is no open bidding on real estate.

If if this was an auction and this property was listed for 350 000 I guarantee you I don't even care where the property is I Guarantee you the property would get 37 to 50 offers. Boom like that. How do I know that? Well, this is where we can actually use data. See The nice thing is we know that the most real estate prices have fallen throughout the country off of peak and this assumes the individual bought the property at the peak in April or May depending on the particular area.

If the individual bought the property at Peak the peak real estate decline that we've seen throughout the country is about 21, not 46. 21 would represent a price of about five hundred and thirteen thousand dollars, which would indicate that if this seller listed the property for 4.99 they would probably get multiple offers and may even sell for closer to that 550 which is not that full. Uh, a 21 reduction? That's because real estate is a people business. It does not work the way people think that it does.

But that's okay. it creates opportunities for people who understand that. So this individual is essentially creating this tweet that has gone viral, misleading people into thinking the real estate market has dropped Uh 50 essentially 46 to 50 percent. And as a result of this anecdote, not as the result of any actual data, the individual says the real estate market is going to crash so hard so bigly.

This is the kind of information that in my opinion you're stupid to believe. Now it would be concerning if we can actually get facts like what's the property address? how much was it actually listed for? Is the property a massive Fixer-Upper or is it move-in ready? Is it under high tension glow-in-the-dark power lines or what's wrong with it and I guarantee you if I look at the address I could tell you the property's overpriced, probably by a range of 15 to uh, 10 to 15. probably somewhere in that range. And if they do, if they lower their price, it would sell.

There's no reason for a property to be on the market. If it's if it's a normal property for more than 14 days. It doesn't take more than 14 days to sell a property. If a property is on the market for more than 14 days, guess what? The problem is price.

So now I I Agree, the property is overpriced. I Agree The individual paid probably closer to the peak of the market for the property. But does that mean because the only bid is three hundred fifty thousand dollars that the property is worth 350.? Absolutely not. Because that's not how the real estate market works.

Now you know that this individual is, uh, clearly uninterested in providing uh, actual data because the individual comes out and says, oh, well, I don't want to dox the person So of course we're not going to get the address. uh and on top of that, the individual then resorts to add hominin attacks and says, oh well, Kevin hasn't lived through a bare market so he doesn't know. Oh, fantastic argument. As if as somebody who's actually educated in the real estate space can't understand how markets function because they're younger.

Okay, brilliant argument. In my opinion, this is the kind of Internet idiocracy if that's even a word. I may have made that up, but that misleads people. My goal on this channel is always to provide you perspective I don't care if I'm right or if I'm wrong on what's going to happen on the market tomorrow, what's going to happen with CPI data I do my best I try to increase my odds and hopefully we can increase your odds as well.

but when you provide misleading anecdotes I get upset because they lack logic. Logic is actually something that I teach in my courses my Stocks and Psychology of Money group my Elite Hustlers group my real estate investing course. but most people on the internet don't want to post logical tweets because those don't get as many views. they're not as potentially viral to post logic.

It's much easier to just resort to ad homine attacks which are at person attacks and try to offend somebody in a way that's really just a red herring. It has nothing to do with the fundamentals of how real estate work. uh, how real estate works. but then again, like I said every time I see stuff like this I actually get excited and I rather than saying they're an idiot which they are I I may as well just say thank you thank you Mr recession confessions for being a complete uneducated idiot about real real estate because you make it easier for me to make money in real estate.

Now think about that if the store. This story is completely made up and the person just made up the story to get a viral tweet. And therefore, it makes sense Why they're not providing city data, uh, location data. Anything about the property, which look, we're not asking for? Uh, you know, let's publicly send the address everywhere.

How about you even just privately send it to me? I Look at properties all day long. Privately send it over. Let me, let me take a look at it. Let's look at the actual data.

Oh no, no, wouldn't want to do that. Hey, want to ask your friend, uh if he's okay with Kevin looking at it and giving you a free expert consultation on why your property isn't selling? Who knows. Maybe I could tell you to make a small little adjustment and it'll make a big difference. Oh no, no, no, wouldn't want to do that.

Yeah, because the story is probably made up and in which case, if the story is made up then then what's even more disgusting is that if people believe these stories, they're being completely misled. But they don't have a reason not to believe this person because he's getting a lot of likes on it. It's it's disgusting. It's an abuse of social media.

Uh, and uh. this is exactly the kind of stuff that that just leads to a further, uneducated, uh, society and and ultimately people reiterating why they're living. Paycheck To Paycheck.