Today, I want to show you what the media ignores about real estate… And how you could benefit from these news outlets’ ignorance. Here’s the situation…
The bull market attracted many new multifamily investors to the game, because it was easier to snag million-dollar deals.
But when the economy hits a down cycle (and it will)… how will you stay strong?
And when the news cycle turns to shit, real estate investing gets hard, other investors contract, and rent growth slows down…
How do you STAY in the game?
This is exactly what I want to talk about today.
The TRUTH About Real Estate and the Media
If you’re new to the real estate game and get your news from mainstream media…
I don’t blame you. It’s the most abundant source of information out there right now.
But be wary of what you consume, especially when it’s not the full picture.
Take this CBS News article below about U.S. home prices dipping by 20%… and how high mortgage rates will go.
The overall message of the article?
Don’t buy, don’t sell, don’t move… In other words: contract.
But this only refers to single-family homes.
The mainstream media is obsessed with reporting about single-family homes…
Because it’s still peddling the crumbling American Dream of homeownership.
And if that’s all you read about, then the future seems bleak for real estate investors.
But What About Multifamily Real Estate?
What about one of the best-kept secrets of the mega-wealthy… that the media conveniently leaves out of the real estate news cycle?
You have to dig around to find reports like this one:
According to this report on multifamily by Fannie Mae:
- MORE people want to rent because they can’t afford to own: “Demand for multifamily rental housing will remain positive because elevated single-family housing prices along with higher interest rates are making homeownership far less affordable, perhaps convincing many renters-by-choice that staying in their units longer is the better option.”
- Revenue growth for multifamily is STILL rising: “Class A revenue growth has surged by more than 12 percent over the past 12 months. Class B units have experienced a similar trend, with year-over-year revenues up more than 11 percent as of June 2022. Even Class C units, those offering the least expensive rents in a metro, still saw year-over-year revenue growth of slightly more than 4.0 percent as of June 2022.”
- Experienced investors see multifamily as the BEST investment for a recession: “With a recession potentially looming, as well as consumer confidence weakening, it appears that many commercial real estate investors are deciding that future demand for multifamily is a better bet than for other property types, such as office or retail.”
Why Am I Telling You All This?
During major economic contractions like these…
The world becomes convinced to reduce, save, be careful, and stay cautious.
And that’s the dominant real estate narrative you see in the media right now.
But by focusing on self-preservation and protection of assets, you’re likely never going to achieve TRUE wealth and financial FREEDOM.
On the flip side, when you dig a little deeper beneath the dominant narrative… What do you find?
Opportunities for EXPANSION.
I know that it can be very difficult and counterintuitive to expand… while others are taking protective measures.
But you must keep expanding… regardless of whether the economy and the people around you encourage you to do.
Why?
Because we live in a society that promotes contraction most of the time…
And when it does support expansion, it is typically TOO late in the cycle.
News of contraction should serve as an indicator for you to do the opposite of what everyone else is doing: to expand, push, and take action.
In every economic contraction I’ve lived through, do you know what I see successful investors and businesses doing?
They EXPAND.
These people understand that these times of tightening are UNIQUE opportunities…
To do what others are unwilling to do…
To snatch great multifamily deals from those who stop searching…
And to seize market share from those who cut their business expenses.
Yes, this is scary.
Yes, most people will struggle to apply this discipline in the real world.
But there’s a saying that FEAR stands for False Events Appearing Real.
And to me, it’s a signal to waste no time on fear… and to take MASSIVE ACTION.
It’s an approach I adopt to take advantage of opportunity.
Yes, my detractors will criticize my constant, unwavering expansion…
Because it seems greedy, unnatural, or whatever it is they’re complaining about…
But I stuck with it long enough…
I never stopped walking deals… studying deals… calling brokers… forming relationships with lenders… and talking to ENOUGH people about real estate…
Soon, my detractors saw that I’m COMMITTED and serious…
And they got out of my way.
Ready to expand?
Remember: You never want to blindly follow the masses; they are almost always wrong. Instead of following the pack, lead it!
Be Great,
Grant Cardone
* Disclaimer: This content is intended to be used for educational and informational purposes only. Before investing, you should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.
We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
