Real Estate In 2018 – Is It Safe To Invest?
Articles,  Blog

Real Estate In 2018 – Is It Safe To Invest?


Kris Krohn here and we are going to dive
right into what’s going down with real estate in 2018. Alright, friends, it’s officially here,
it’s 2018 and a lot of people are busy making their New Year’s resolutions.
Steven Michael Miller and I are here in the house today to talk about our real
estate resolutions for 2018 so we’re going to talk about what you can expect
real estate to do. So Steven, let’s kind of kick off, you know, it’s
interesting, the last several years in the game of real estate, the rates haven’t
moved a whole lot, the opportunity has certainly stabilized. For us, it’s like a
dream real estate market. What do you see happening in 2018 with all the thousands
of deals that our acquisition company has done? – Absolutely. You know, I honestly,
I look at 2018 and looking back over the last ten years that we’ve been doing
this, I see and I don’t have a crystal ball but I believe that 2018
will produce a lot of what we saw last year. There’s going to be your typical
steady growth in the markets that we’re in, we’re going to see a lot of safety, a lot
of those huge margins of safety that we’ve been talking about, we’re going to see
a lot more of that. We’ve got a very steady economy right now for the next
several years, I believe, where I see steady growth in the economy as well. So
the growth in the economy is usually right along the lines of steady growth
in real estate as well and so I believe 2018 is going to produce a lot of what 2017
produced. – You know, it’s interesting when you look at real estate and it’s 15 to
20 year cycles, every 15 to 20 years, it reevaluates and what that means is that, it’ll
have dramatic drops and then it’ll have steady growth and then I’ll have
dramatic pops. We’re really in the safe zone right now where we’re
nowhere near that drop zone and eventually, we’re going to get into the
pop zone but we’re in the really nice, this is a year for acquiring real estate,
this is a year for buying real estate and if I were to be specific, our cash
flow markets like Memphis, Indianapolis, these markets are stable, they’re going to
do their really great continued growth over growth cash on cash returns but
Florida is getting closer I think to its reevaluation period. We’re still getting excellent deals
on these homes that are still significantly below the rebuild and
we’re getting closer to Florida’s pop. I don’t know if it’s so much this year,
next year, it’s already done a lot of growth over the last couple of years but
2018 right now really is looking, it as wild as things are in the political
arena, the reality is that as far as economy goes and as far as real estate
goes, we’re just looking at our next stable bumps and boosts in growth so a
fantastic year for you to be out there investing in real estate.
– Yeah, I think we’re going to continue to invest in the same markets that we’ve
been in at this point. I also get people asking me, hey, you know, where’s the next place
you’re going? And the reality is as long as the markets that we’re currently
in are providing the supply that we need, we’re going to stay there. It doesn’t
make a whole lot of sense and I want to say this to you also as investors, it
never makes sense for you to just jump off and go into other crazy markets just
because you are on a whim or just because you want to unless there’s a
massive huge need for it, right? So we’re going to stay in Memphis, we’re going to stay
in Indianapolis, we’re going to stay in Orlando and there’s Charlotte and those are
really where our focus is going to be and although other areas may be great
markets that may pop up, it’s not really going to pull us from what we’re
currently doing because we’re already established there. – Yeah, I want to talk to
maybe just a little bit if we can about our personal goals, some things that
we’re doing together individually and then Steven, let’s also
give them some challenges for what you can do based on where you’re at in your
real estate arena. For me personally, I can tell you that
I’ve got a couple of strong goals in real estate this year. This last year
I’ve sold a lot of properties and I’ve consolidated a lot of properties into
into a commercial project, it’s a convention center, right now it’s being
built out, it’s going through the city approval process. It has the ability to
produce around one and a half million per year just in profit on renting out
the event center but its first year, it’ll only have a little more
than a half year. Right now I think we’re just shooting for a half a million in
profits so really just getting that project off the ground. I’m still going
to be buying a lot of single-family projects but I don’t believe necessarily
that a bunch of little projects have to get consolidated into the big ones. I
only do it when it makes sense and when the numbers your irrefutable and when
the numbers can give me a lot more promise than the single-family can at
its stable ten, fifteen, twenty, twenty-five percent returns year on year.
So that’s one of my goals. What about you, Steven? – I’ve got a very simple
goal this year. My goal is just personally of course not talking about
partnerships or anything like that but personally, I’m going to be buying two
additional properties this year, really excited about that.
Most likely one will be here in Utah because I see the market here doing some
neat things and I’ll probably buy one here probably, one in Memphis. So that’s
that’s my goal for this year, just personally but then Kris, you and I
have been talking about also our goals and what we want to do and
we talked a lot about partnering and partnerships. Why don’t you help everyone
understand? – Well, Steven and I, we’re really careful. When we partner with
individuals, we’re looking for the right partner and something you need to perk
up your ears, if you have some money sitting in a 401k, IRA, you might be one
that’s selected to do some partnering with us this year. This year we’re only
looking at bringing on 12 partners that have the ability to do multiple
properties and what that ultimately looks like is, we’ll do all the work,
we’ll go into the markets, we’ll manage the entire process, our partners
basically put up the money and then we’re both really decision-makers
and what we do with the portfolio but we’re doing all the day-to-day stuff to
make it easy for our investors that are out there and so Steven and I, we’ve got a
pretty strict vetting process that we use to just, you know, picking 12 people
is actually a really small number but it’s also about just managing good
relationships with the right people and and so that’s one of our goals that we
have this year is we’re going to be hand selecting some people that we can buy
our next 20-30 properties with and that might apply to some of you but let’s
talk about you right now, let’s talk about your personal goals. Steven, if
someone is watching this, has never bought any real estate before, no matter
where they’re at in their life, whether they’re a college student or whether
they’re an empty nester, what would be a good goal for them for 2018? – Absolutely. I
would say take your first step and that first step would be if you’ve never had
a property before, just work on this year, 2018, getting your very first property.
That could be one that you purchased yourself, that could be purchased with a
partner, that could be, you know, maybe you’ve got a couple friends that want to go
into a property with you, however that might look for you doesn’t really
matter, just have your goal of getting your very first property. I will say
though, if you’re a more seasoned investor, if you’ve got multiple
properties then have a goal to get multiple properties more, right? I mean if
you’ve got lots of properties, just have a goal to make a goal that’s
commensurate with your current experience.
– Yeah and Steven’s bringing up a really good point here. You know, it’s
interesting that when you’re a brand new investor and you get a home, it’s
exciting and once you have one, you want to get a couple but then you can get
yourself into the multi home run and the multi home run is, I use my credit or I
use my money and essentially, I’ve run out of resources. The banks are telling
me it’s harder to qualify so I guess I’m just stuck with what I have. I love
what I have but I wish I could keep going. There’s ways for you to take our
partnership courses that we talked about, some of the other things that we do so
that we can line up credit partners or other people’s money and actually get
you keep investing. Steven’s absolutely right, if you’ve got a lot of properties
then have a goal, get back in the game, don’t go into maintenance mode,
wake up outside of maintenance mode and have a goal to get multiple two or more
properties this year and especially if you don’t have the money or credit or
can’t see away, then I’m going to challenge you to make it an even bigger goal that
you actually figured out because that’s the knowledge that has made all the
difference for Steven and I. If you want any help trying to figure out how to see
that far ahead, if you feel stuck in any way, I want to invite you to go ahead and
click the submit in the form up here and and put in just a formal request saying,
hey, Steven, Kris, I want to talk with you guys and I want to get a game plan and I
want to know what you can see that maybe I don’t. That’s going to be important to
make sure that you can keep and frills you have never bought before, I recommend
that too because bottom line is, 2018, you’re going to regret it if you don’t buy
property this year, I can tell you that. So you’re going to want to go out there and
you’re going to want to make that happen. So what does all this mean? It means that
there’s no reason to hold back. You know, I’ll meet people from time to time
that’ll say, oh I’m only going to invest in real estate when the market does
this, when the market does that. I’ll tell you what, if you really know what you’re
doing or you’re working with a competent team, it’s always a good time to be
investing in real estate and you know what, I’ve described this low point and
this high point and where we’re at in the process, it’s always going to be a
good time to invest in real estate but I’m like for real telling you like right
now is an excellent time to be in the game of real estate so make sure it’s
part of your 2018 resolution and you know what, contact me and my team, click
on the link, see in the different ways that we can interact and play together
and let’s make some real estate magic happen.

30 Comments

  • Financial Investor

    Nice – I would like to get into real estate, but at the same time Wifey & I are looking to get a larger house as the family has grown. Our agent said our city is tough to get a good price for ROI. What target price do you guys go for Min/Max – Rent range and ROI Range ?

  • WeastCoastHunter

    Can you go in more depth about the last minute or so of this video. Why it is a good time to buy, even if the markets high. I'm looking to purchase my first property but the current market is extremely high I would like to wait but waiting seem like a waste of time.

  • Michael Misilo

    Great video guys could you please explain to me please quickly on what you meant by the multiple property rut? Will the banks only let you have a number of mortgages on your credit or something? Thank tou

  • Mistress M

    My husband and I have 10 paid off single families in the greater Cincinnati area. I’d like to expand because the inventory here is limited. But, I have been burned buying remotely. How did you guys build the network to buy and manage real estate in Memphis when you’re in Utah. Love your vids

  • CODY DUNLAP

    How much do you guys ask of your investors? Are you looking for millionaires or people with 300k sitting around? You are great!

  • ready2run1

    Great video and channel! Do you and your company have any experience working in Canadian markets or with Canadian investors?

  • Let's Talk Money! with Joseph Hogue, CFA

    You know your stuff Kris. Great video. I started in commercial real estate as an analyst in my 20s before getting into residential rentals. It's not quite the passive income source I thought but still a good business and solid returns. I think it's important investors start slow to see how much time committment one or two properties take before getting in over their heads. I think it's also helpful to invest in REITs as a way to diversify your portfolio into different property types and in different markets.

  • Wong Zhun Hou

    Rubbish advise, please don't listen to them. real estate is going to crash by 2019. Real estate crash every 10-15 years, look at the past data. the previous crash is on 2008, good lucky buying more real estate now 🙂

  • really far feched

    My wife and I have been trying to find the right house for 3 years everything that we find seems to be 35 to 45% higher than it should be . Obama ERA Real Estate bailouts actually hurt the market the one thing that I can and have been doing is saving 2 year salary in 3 years I don't even want to touch a bank at this point Wells Fargo is slimy I'm online looking for more info

  • Rav Urj

    Man you guys clueless about bubbles. Housing bubble 2.0 will pop late this year or early next year. Let see how people who listened to you will appreciate your advice. LOL

  • Parker Antoine

    I agree on Florida in general but many factors have set Central Florida up for continued growth. Population increases, extreme weather displacement, crisis of affordable housing, things look to stay hot. Always appreciate the insight

  • Carlos Pena

    Man kris when i heard you say INDY my jaw dropped.. I’m a new listener… but i live in the Indy area. looking into real estate more then ever here recently !! Never had any interest in real estate, what so ever . Help please!! Please I’m motivated… I’m writing this at 411 est. watching your videos you guys are awesome 😎

  • Anthony Gonzales

    Why is it a year to invest in real estate if it's at a all time high? A time to invest in real estate would be when the market drops right where there's a correction correct? And how do you guys know that the markets going to stay stable, quit misleading people that could lose everything by listening to your video.

  • George Berry

    I know you said staying safe is buying a house under 250 or 200 thousand but I live in San Diego and houses out here I usually a million to 300000. Girlfriend doesn't want to leave San Diego so I'm stuck here to do real estate going to be really challenging really difficult but I think if I stick to your videos and sick to your Vice I think I'll do pretty good out here but if anyone has any kind of advice let me know please

  • alma gomez

    Sorry about that I wanted some advice and live in California I did buy my first house my partner couldn't continue working with me.

  • Delphina

    Don't agree , not for Cali , price reductions , slow sales , fewer buyers 🙁 maybe other markets where prices didn't rise much , are safer. Anyway , I never give Realestate advice , just my humble opinion 🙂 no more multiple offers , very few from what I know .

Leave a Reply

Your email address will not be published. Required fields are marked *