Chasing the “yes”

When we were first starting out in this business, we faced a lot of “no’s.” Literally hundreds, maybe even thousands. But the funny thing about being told no is that it actually made us stronger every time we heard it. Every no was fuel for us, because it meant we were that much closer to our big “yes.”

We saw successful agents all around us closing huge deals and moving up in their careers. And we knew that if they were doing it, we could as well! As long as we worked hard and stuck to our ethics, there was no option but a yes!

In this newsletter, we’ve talked a lot about how we started out door-knocking. We are here to tell you that, the more doors you knock on, the more likely you are to find one that opens.

- James and David

New homes on market hit 14-year high

There’s very good news regarding new homes and new home sales. Check out these stats from the latest report by the Commerce Department.

• There were 444,000 new homes on the market at the end of May, the highest number since May 2008 and up from 437,000 units in April

• Sales of new homes rose 10.7% and pushed this year’s new home sales expectation up to 696,000 units. This was the first rise in four months

• At May's sales pace, it would take 7.7 months to clear the supply of houses on the market, down from 8.3 months in April

Our take

These numbers show that the market isn’t as gloom and doom as the media portrays it. Look at what happened the moment extra inventory hit the market. Boom! Sales exploded. It just goes to show what we have been saying all along–interest rates aren’t THAT bad. Yes, they are higher, but owning a home is still the best investment you’ll make in your lifetime. Perception becomes reality, so when you’re working with clients, explain to them how real estate is a safe haven for their finances.

These numbers show that the market isn’t as gloom and doom as the media portrays it. Look at what happened the moment extra inventory hit the market. Boom! Sales exploded. It just goes to show what we have been saying all along–interest rates aren’t THAT bad. Yes, they are higher, but owning a home is still the best investment you’ll make in your lifetime. Perception becomes reality, so when you’re working with clients, explain to them how real estate is a safe haven for their finances.

The widening rent-vs-own gap

According to a new report by John Burns Real Estate Consulting, not only is home ownership more expensive than renting, the gap continues to widen. Check out these stats:

• As of April, owning a home cost an average of $839 more per month than renting (for reference, just one year ago, the average renter paid nearly the same as a homeowner).

• Nationwide, renters save an average of 31% per month. The cost gap between renting and owning is now wider than it’s been in over two decades.

• The rent-vs-own gap is biggest in the Raleigh-Durham metro area, where homeowners now spend an average of 42% more than renters.

Our take

You know what we’re going to say… even if your buyers can save some money renting, one of the best things they can do is get on the property ladder. Even if it means they can’t have the exact house they want right now, building equity is worth the short-term sacrifice.

You know what we’re going to say… even if your buyers can save some money renting, one of the best things they can do is get on the property ladder. Even if it means they can’t have the exact house they want right now, building equity is worth the short-term sacrifice.

Where investors are buying up property

There’s no question investors have been busy over the past two years, but now we have solid evidence to show investor activity was one of a few key drivers of those white-hot pandemic housing prices.

Here are the Top 5 cities that saw the biggest rise in the percentage of properties purchased by investors between Q1 2021 and Q1 2022, along with the total percentage owned:

1. Atlanta, GA - 10.4% (33.1% of total homes)

2. Charlotte, NC - 9.1% (32.2%)

3. Jacksonville, FL - 8.8% (32.3%)

4. Phoenix, AZ - 8.6% (29%)

5. Nashville, TN - 7.3% (24.6%)

Our take

Investors are in the business of capitalizing on the best opportunity available. If investors are buying a lot in your state, that goes to show you are in the right market. Share this data with your buyers if they are on the fence. It’s important to watch what these big investors are doing, because you just might recognize a big opportunity early enough to jump in!

Investors are in the business of capitalizing on the best opportunity available. If investors are buying a lot in your state, that goes to show you are in the right market. Share this data with your buyers if they are on the fence. It’s important to watch what these big investors are doing, because you just might recognize a big opportunity early enough to jump in!

Schematics

The news that just missed the cut

• Check out these 17 Airbnbs that generate $1M+ per year!

• Shaq scores big on a Dallas mansion

• What would you do if your showing had a secret room like these?

• These job boards are full of open real estate positions

• How to max out your real estate income while minimizing your taxes

• Check out these 17 Airbnbs that generate $1M+ per year!

• Shaq scores big on a Dallas mansion

• What would you do if your showing had a secret room like these?

• These job boards are full of open real estate positions

• How to max out your real estate income while minimizing your taxes

Foundation Plans

Advice from James and David to win the day

Owning a rental property is a great way to earn (somewhat) passive income, but before you buy in, here are three crucial things you need to know:

1. You’re gonna need professional advice. Have an accountant help you manage your finances and file taxes, and keep a lawyer on speed dial in case of tenant issues.

2. Look for potential, not perfection. You have the potential to make a lot more as a landlord if you find a quality fixer-upper. Remember, the worst home in the best location often comes with a huge upside!

3. Lower your expectations and raise your commitment. There will be bumps in the road. Unexpected expenses, tricky tenant situations, and inconvenient delays… but if you’re prepared to deal with them as they come and always stay flexible, you can end up with an investment that truly pays for itself.

1. You’re gonna need professional advice. Have an accountant help you manage your finances and file taxes, and keep a lawyer on speed dial in case of tenant issues.

2. Look for potential, not perfection. You have the potential to make a lot more as a landlord if you find a quality fixer-upper. Remember, the worst home in the best location often comes with a huge upside!

3. Lower your expectations and raise your commitment. There will be bumps in the road. Unexpected expenses, tricky tenant situations, and inconvenient delays… but if you’re prepared to deal with them as they come and always stay flexible, you can end up with an investment that truly pays for itself.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

Thanks for reading today’s Blueprint! Our goal is to equip you with the tools and knowledge you need to absolutely crush it this week— all in 5 minutes or less. We truly believe if you put just one tip to work today or share just one of these stories on a cold call, your career will be better for it!

So get out there and make this your best week of the month!

- James and David

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