Avoid these Housing & Real Estate LIES.

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