4 reasons why the next Real Estate Crash will be gold-mine for "SUBJECT TO" investors!
Hey guys this is Mike from my real estate dojo four reasons why the next Real Estate crash will be the subject to heaven for Real Estate Investors like you and me. Now for the people who doesn’t know what the subject to is, it’s basically a creative financing strategy where you are able to buy rental houses or whatever real estate property without using your own money yep you heard me right. So again a subject to strategy is creative financing strategy where you are able to buy real estate property without using your own money without using your own credit all you have to do is go to your sellers shoes and take over their property that is what subject to is you may say is it legitimate? Is it legal? I have done tons of videos I’ve done tons of property since the crash of 2004 to 2005 and then 2008 and sold it all out so the video is available on my YouTube channel so go there and watch it if you are interested because with the story of this video is 4 reasons why when the crash happened it became a heaven for subject to real investors like me so normally I freestyle all my videos but this time I have jot down a couple of points because I wanted to do an in-depth video discussing the four reasons why is the next Real Estate will be a subject to heaven for investors like you and me.
Alright so the number one reason is that when this crash comes it’s going to be a subject to heaven because there’s going to be massive massive cash flow what do I mean by that when a crash does gum and you buy a property subject to and you decide to rent it out you’re going to receive massive massive cash flow let me give you the example 2007 4th quarter, the market crashed 2008, 2009 I was buying subject to deals for my home investment because I’m a buyer kind of guy. And all of my sellers I took over their existing loan or took over their mortgage or did a subject to wrap up strategy every single one had 5% 6 % higher interest rates okay and even though they have such a high interest rate because they had bought in the pre bubble crash I was able to turn around and rent these properties out for a minimum of $200 a month usually a lot more 400 500 Etc. per property let me remind you that this is a 6% 7% interest rate the seller had their original Bank let’s a bank of America but today when the crash comes all these people who are going to lose their homes in the bubble are going to have ultra-low listen again ultra-low interest rate they’re going to have 2% 3% and so what does that mean for you and me as a subject to investor? Now, we’re going to get big humongous cash flow from these properties that are unheard of because their original sellers underlying is 2 3 present interest rates so that’s going to be humongous.
Okay so I don’t want to mess any point here, the support my cash flow idea is inflation. When we go into any kind of inflation, the Federal Reserve which you are quietly easing basically printing out money and that by itself increasing gas, food, rent prices and that’s why people say the rental business is a hedge in case of inflation let me give you an example in my own life, i had a property in Lancaster, when I first bought, it I bought it as a subject to. My P.I.T.I which is principal interest tax insurance to the seller’s lender which are roughly around 450. I don’t have paperwork in front of me, I’m just giving of rough estimates but I’m just rounding it off to make it simple. My rent to that seller is 450 it was a Lancaster duplex house with two bedroom, a garage, back door it was pretty good, and I turned it around and I rented the two bedroom house out for 650 per spot in. And as the crash continued and as the inflation the more money came up. The same unit right now today, I’m renting that unit up for 950. So from let’s say 2008 2009, its grew from 650 to 950, 300 dollar increase in 4 years and that’s the facts and when the crash happens in the future, it’s going to put out more money.
So, another reason why it’s going to be a massive cash cow, is because of inflation rites giving you the example of renting the house from 650 to 950 same thing is going to happen and what is going to happen is you’re going to have inflation on top of this massive interest low interest rate subject to would now create two stress points to increase cash flow for you. So the reason for the massive cash flow is what I talked about which is low interest rate, 2 I talked about inflation and to support the massive cash flow which you’re not going to get through landlords, we buy subject to in the next crash. It’s going to be harder for buyers to get credit therefore if you look at the 2008 crash, 2007 crash; we notice that lenders are tied up even when they’ve already gotten bell money. So what that means is there’s going to be a bank credit crash. The average person will not be available to qualify for a loan. You probably are not going to have any money to qualify for a loan, because majority of people are going to lose their homes, people's money in the stocks are going to crash, now I’ll get to that in a little bit later.
You have a right now at least three different types of bubbles, the real estate bubble, the stocks bubble, the bum bubble. A lot of wealthy people have their money in stocks which they’re going to get lose. Many people are going to lose loans, and renting is just going to push the rental price up because of the demand and then you have also low interest rates because you know we bought the property ultra-low interest rate because the previous seller bought it in a time that have interests ultra-low, so that three things can come into that massive cash flow than you and me are going to receive by buying subject to properties.
The next reason why some massive cash cow is that during the crash a lot of the lenders did was called lower modifications, and there are so many people that are having lower interest rates than whatever the fair market is because they did loan mods. And these people’s interest rates may be 1% 2%, something ridiculous, okay. So again that should be useful for you and I getting massive cash flow because we’re going to be able to buy properties subject to that had already done loan mods on them, ultra-low mortgage rates.
Now the next reason is because simple economics which is supply and demand. A lot of people are going to lose their homes, a lot of people are going to lose their jobs, a loss of people are going to lose their money in stocks, so they’re going to leave a place to live and that guy needs to be able get home with his credit crashes theirs. And the lenders are not able to provide the loan because that’s just lost a lot of money. So there’s going to be a lot of demand for people to rent properties because they can buy a home or they’re just lost. For you and I is going to make a shitload of money in cash flow because as I explained to you, we have ultra-low interest rates, inflation kicking in, credit crunch, loan mods, and people losing their jobs, homes and now they’re going to rent. All these five points, shall all focus in to little hubs keep going up and up and up, that’s why I say the next crash is going to be at the subject to heaven for real estate for the clever investors and not the average investors that goes to auctions, or hires a realtor, they bid on HUDs. I’m not talking about those okay, imp talking about using creative financing, where you don’t use your money or your credit but just a couple of grand, take over your sellers existing mortgage. You got to do some hard work, you’ve got to get renters in there, you got to monitor them, you got to qualify, you got babysit them, but 4 to 7 years, those properties would at least give you equity cash out of like 60 to a Hundred thousand or for what I’ve done.
Alright so imp going to go to point number 2 whereas number to reason why crash is going to be Heaven for Real Estate Investors is it is feasibility of getting a deal it’s going to be so easy to get the deal let me run through some of the reasons why I say this number one every newspaper every TV that you watch we’ll talk about how the stocks have went down how foreclosures are all time high cut if you look at the crash year 2008 ALL media were shouting out loss equity, foreclosures , so what that’s going to do to create a panic for the average home buyer psychologically you’re going to think that they’ve lost equity and they’re just going to run out and sell their property some of them, other of them will just lose their jobs because of economy crash and they’re not going to be able to make payments others would have shitloads of money and they’re going to lose stocks but again when that bubble crashes they’re going to lose a shitload of money for this next crash you won’t just be able to buy the average houses not like the last crash wherein they scammed poor people, this time the Federal Bank will scam the rich people so in the next crash we will be able to buy mansions and mansion for subject to you can also find medium property houses are entry-level houses so basically the next crash would provide you with a variety of motivated sellers. Really rich people that has 10 million 20 million in stocks all the way to Jose that has a subprime mortgage or whatever because we’re actually heading to subprime renting because if you watch the news they’re talking about 3 or 5 credit scores or we can help you out just listen did the media and the commercials can tell where we are headed to.
So coming to point number 2, next crash will be subject to Heaven because a feasibility to closing a deal. So number one reason will be because television newspaper in media will be advertising and that hey imp marketing this shitty, and people are going to believe that. Number 2 is going to be there heard of things just like ours just like any kind of heard we’re going to hear in the news for going to see it drive down on the streets that one guy is selling their home the other is for foreclosure and they’re going to do what they heard does so basically even if they don’t need to sell their homes they’re going to think Oh shit I just lost a significant amount of money and I will be able to make my payments I need to sell my home.
The next crash will be easy to do these deals because they’ll be massive inventory guys. The other reason it’s because everybody will be running away if you look at 2007 fourth quarter crash all very realtors that were doing real estate went out got jobs becoming receptionists, lawyers, are being a school teacher because being a realtor sucks. All the investors that you see right now on the Facebook or wherever because it’s not hard to Deals right now everyone can actually do it so all the Realtors are going to be closing shop and be leaving their business and that’s why there is going to be less competition only people who are like you and me who are going to be there in the long run just come here and hit three home runs we are going to buy in the crash and sell at the bubble just as how it's supposed to be done.
And the last reason why it’s going to be easy to make deals is the mind-set of the people again people are going to see the news people are going to drive in the streets and their friends and families are going to talk about losing their homes are selling their homes and how they’re going to me is going down and becoming shitty. And their mind-sets are going we shifted into something like “oh my house is worth” to “I have so many responsibilities and liabilities.” Since it’s easier to negotiate per se
All right let’s go to my next point which is point number three, to Wyatt real estate crash will be a subject to heaven for investors is that there’s going to be lack of competition guys less competition I don’t know how to explain it but there’s going to be more inventory and less .people cause the inventory is on fire the media is telling everybody to run away that the real estate is going down did taxi drivers are saying it’s going down Umber is saying it’s going down your hair stylists is saying it’s going down so you have a massive inventory and all the investors that I’ve been doing real estate would have run away the home builders that will take that were just building whatever run away and the developers are going to dry up and the lenders are going to dry up and when that happens is going to be less competition because of less real investors that will buy subject to properties and with massive inventory. A lot of people lost their money because they’re doing deals right now, but right now is not the time for making deals unless you’re who is selling or you’re selling up contracts but if you’re buying properties in today’s market you are going to lose a lot you are going to get screwed because this is the first time to get into real estate this is the time to cash out the bubble the time to cash out is on the depression the recession.
So the fourth reason why the next trash will be subject to Heaven for Real investors like you and me is because they’re going to be up all types of motivated sellers let me explain it a bit more see in the 2007 2008 crash there was all types of sellers there were two the big percentage of it at least like 70% lower level there was some middle-level really rich levels like lawyers doctors making mansions uptown who you know lost a lot of money but the next crash that’s coming up is not going to be like the last crash there were buyers that weren’t qualified there were by yourself didn’t have proof of funds that they did not understand adjustable mortgage system sucked up their payments and robbed them, they’ve been robbing everybody. But the last crash of real estate was what they called the prime even so the next crash the Federal bank will now Rob the middle class and the rich people and the way they’re going to get the middle class and the rich people is that the middle class they’re getting it from their retirement plan or financial plan are pension plans because these guys are just putting their money into mutual funds and the rich class not the ultra-rich they have invested their money in stocks and as you know stocks is an all-time high real estate’s all time high and there’s multiple bubbles right now so this time what they’re going to do is they’re going to depend the central banking system and they’re going to rub the middle class and the rich class. But what does that mean for me and you as a real estate investor that uses a subject to strategy is that this crash will have a variety of homes I have really nice middle Quality Homes between this range and also amazingly Rich homes dude what I call a mansion so dapple have motivated people or rich people become motivated sellers.
Some investors like that, to have million dollar homes for a fraction of the costs, for example for a million-dollar home or 5 million dollar home you can get that if you apply for a loan and you get a loan can get it for only $500,000 which is very minimum but if you are an investor and the market is crashed and lying there is so much money in stocks and he doesn’t have the dividend to come in and pay his mortgage of this 5 million dollar home he’s just lost a lot of money and he’s been listening to the news and he's been beaten up by the economy instead of him wanting the world, he starts to think psychologically from the media to the hit of the body, maybe he’s going to give it to you for like 25 grand or even just give you the deed of the house because he had lost everything and you can say hey buddy Pierce 100k let me take over the payments he may take it whereas he would need to pay 500k. See what I’m saying and the great thing is you’re basically allowing that dollar I mean you’re using his money and you’re using his credit and you’re only going to give him a hundred k I mean sure but if you would have to get a loan to get this amount of cash you would have to have million dollars plus to do all kinds of qualifications two passion proof of funds income tax whereas this guy, you can close at the property you closer the title company you close at the attorney’s office there’s a variety of options if you’re going to give big leads if you want. Now you can rent or landlord the million dollar home or you can have it for yourself, now some people leverage on the situation or the crash by buying million dollar homes for themselves for a fraction the of the cost. Now cooler thing is if you do buy it for yourself you do not use your own credit use the owners credit you don’t use your money.
So 4 reasons why the next crash will be a subject to Heaven for Real Estate Investors, it’s going to be where immigrants who are illiterate come to here as a refugee are just going to go up because I’ve spent a significant amount of time and energy and my most contributing asset which is my mind in the society we’re living in things are changing so fast if you’re not going to be able to learn through time then you’re going to be left out or you’re going to go down but the next crash is definitely going to be an awesome and the perfect opportunity try to understand subject to, if you don’t understand it guys, I have a masters in subject to, that’s all I do. You know there’s all kinds of investors, some of them do auctions, some of them do HUDs, and some of them whatever but all these guys go through borrowing money and are going through debt. Well I’ve had come up what I call Alchemy of business return wherein imp able to come up with something with nothing, I’ve done it multiple times already.
I was in total control, because I’ve learned from my mistakes and actions wherein I was able to create a creative win-win situation wherein seller one, I won, and they’re able just to give me their fucking property. And then I rented it out for 4 to 7 years the whole property and when the bubbles came in I cashed it out and 1 property was in the rambling, I put it in my Facebook, you know I make 66k dollars on equity cash out. So simply put I made a hundred thousand for each fucking deal. I bought all these properties using my technique called subject to wrap up. We make the most amount of money because I bought it during the depression, these guys these investors probably didn’t do it because they couldn’t get funds, no banks, no lenders. But when everybody was running away, they went right with them. That’s the point imp wanting to make, these are smart people but when everybody was going right, they went with them; I was the guy that was going left. I went right into the fucking fire. I went into where everybody told me I shouldn’t fucking go. The media all these fuckers, I bought the property, used the strategy called subject to wraps and paid the sellers hardly anything. I learned and acquired new skills from property management screening, so I collected the cash flow and when the bubbles came I cashed it all out. Now one of these properties cane under my credit, and I did it all through my creative imagination.
Now if you want learn some more information about that, let me know, read the comments, I’ll be happy to help you out guys as I have tons and tons of free videos online on how to do real investments. This is my sole purpose, this is to change your lives guys, you all have a better fucking life, to help you guys awaken because the more the more I wake up the more I can awaken you and just love the idea of love.
Thank you again, see you later gang