Disclaimer: Transcripts were generated automatically and may contain inaccuracies and errors.

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You should feel feverish. At the idea that if you are not actively acquiring single family residences right now, to whatever degree is that you are able to, you should feel this feverish desire, like, Oh my gosh, I gotta get my hands on. I, It’s what you just described, Steve. It’s what I’m feeling right now.

It’s like, oh my gosh. And this is kind of what we felt during the Great Recession, right? When we started to see like, Oh my gosh, what is happening? It was like, Oh, we have got to go by. What would your life look like if you could replace all of your working income with simple and conservative investments that could do it for you?

Over the last 13 years, we’ve helped. Thousands of clients transact over half a billion dollars in simple and conservative real estate transactions, allowing them to begin replacing their work income with real estate investment income. Each week we’ll be pulling back the curtain on the ins and outs of real time retirement based real estate transactions that will transform your financial future.

Even if you have no real estate experience. This is replace your income with me, Kevin Clayson and Steve Earl. Well, hello everybody and welcome to Replace Your Income with Kevin and Steve. What’s up man? How’s it going, Kevin? Oh, dude, I am doing phenomenally because, uh, we got a really good topic today and I’m pretty excited about it.

And, um, what’s funny Steve, is listen, if you’re listening right now, this was supposed to be an entirely different episode. It was one that we recorded, uh, like a week ago, and then when I went to go look at the record. Yeah, I somehow managed to erase it , and so I’m just assuming it’s because we needed to do this topic much more than we needed to.

Have you guys hear the other one? You know, it’s funny, I think I told you this Steve, but when I was, when I was doing my book, I was recording my audio book and I had like half of the book done and somehow some way garage band in on my Mac somehow erased the entire book, and I had about a minute. Of, you know, wailing and gnashing of teeth.

And then I went, Huh, maybe it’s because I just need to do a better job. And so I’m gonna take this serendipitous turn of events, uh, as this is the topic we need to talk about this weekend. This is the thing we need to share. And I really, I think that it really is. Well, I’ll, I’ll, I’ll run with that, Kev.

And so, uh, you’re not fired. Okay. . Yay. Woohoo. My wife’s gonna be so happy. Well, hey, listen guys, we are so thankful for you. Thank you for tuning in again, The feedback continues to just be awesome on the podcast. We love it. We love having these conversations and we feel like it’s like, Little bit of a different conversation than we’re here and out there.

And so we really do appreciate your support and like always, if, if you like it, if share it with a friend, it would mean a lot. And today, this is gonna be one of those episodes where you’re absolutely gonna want to share this with, If anybody is considering, should I get into real estate right now? What is happening to the economy?

Like in terms of actual data, what, what we’re really seeing, This is gonna be one of those episodes that should be a game changer, I hope, for you and for anybody that’s considering real estate investing right now. Yeah, I agree. Kevin, this is, this is a topic that we kind of addressed at the beginning of.

Doing these podcasts because we started doing this after Covid had hit. But you and I had been having conversations for weeks that it’s like, man, everybody’s talking about how this is gonna be another great recession type of a, of a scenario and situation. And we kept looking at each other, kind of confused looks.

We were like, That’s not what we’re seeing. Boots on the ground with our people out in the markets because we were seeing the exact opposite. Like the demand for the rental properties that, uh, were, are under management was greater than it had ever been. And we were seeing home prices actually like going up.

Right. If anything. And, and we were told that home prices were gonna drop. Yes. And so, Everything that, that we were being told at the beginning of this whole pandemic. We, we, we just like, we’re just like, that’s not what we’re seeing. Yeah. And now, several months later, what we were kind of talking about and, and kind of saying, Hey, this is what kind of, what we think is gonna happen is, is actually coming to fruition.

So it’s, it’s pretty exciting to see that in our little microcosm of a world where we’re doing, you know, a handful of deals every single month and we’ve got you, you know, 2,500 properties under manage. Like we’ve got a pretty good sense, a pretty good feel for what’s going on, at least in the markets where, where we’re at.

Right? But it’s being reflected across the country, quite frankly. Yeah. That what we saw in our little micro world is actually, is actually what’s happening. It makes me think of this like whenever something happens and nobody knows what, there’s always these speculative narratives, right? And there’s always these narratives that kind of take shape before we have any sort of data to prove one side of the argument or the other.

And it always seems like it’s motivated for personal reasons, and we’ve taken this whole approach. I mean, obviously we want our clients to succeed. We want our business to. But, but we were really just, I think we do a good job of kind of sitting back and saying, Okay, what’s actually happening right now?

And then reacting to what’s happening as well as forecasting, not speculating, but saying, Okay, what are the leading economic indicators? What are the things that we’re seeing in real time? And how does that influence, uh, our, our decision making process as we look forward for our clients, for our company?

And I feel like that’s what we’ve tried to do ever since, since this pandemic started. As we’ve tried to say, what are the leading economic indicators? What are we actually seeing? Not what’s the narrative that’s being pushed by any news outlet or, or any podcast, but what are we actually seeing and then reacting and saying, Okay, how do we move forward with this?

Because we kind of, Steve, when this whole thing started, I know you and I both, you know, kind of looked at each other and we said, No matter what the, we’re gonna, we’re gonna, we’re gonna take this pandemic. It’s gonna be an opportunity, right? It’s not gonna be a roadblock. It’s gonna be an opportunity. And I’m a big believer that whenever life throws roadblocks up in front of you, it, it’s a great.

Opportunity to learn how to bust through ’em, climb over ’em, or just get a little smarter, a little faster, a little stronger. And that’s the way we’ve approached this. And what’s been awesome with that is it’s proving itself to be a, a very successful approach now, because what we’re gonna talk about today is that.

There may be, and I tell me if you think this was an overstatement, Steve, but to me, I don’t know if there’s been, maybe with the exception of the Great recession, I don’t know if there’s been another better time in our life’s history to be investing specifically in single family residences based on what we’re gonna share today and what we’re seeing.

I, I think this may be the. Maybe kind of like a perfect storm, right? I mean there’s, there’s a lot happening that says now maybe the best time in our lifetime outside of what we saw during the Great Recession, right? Yeah. When you talk about when is a good time to invest in real estate, and we always say to each other and to our clients, it’s like, well, the best time to invest it in real estate was 20 years ago.

Right? But when’s the second best time today? Well, I mean, today, like you just. It may be a better time than ever before just because of market conditions. Right now, you know, based on what, what we were talking about before, it’s been really interesting to see the news cycle kind of changing as more data comes out and as people kinda realize what’s really going on out there and.

And the interesting thing for me is like I, I, I subscribe to, uh, a newsfeed, which is all just real estate related type articles. And that’s a, that’s a paid newsfeed, right? Like Yeah. Yeah. And so I, so I, I read, you know, two to five articles a day on, on information and the trend. It’s been interesting to see this trend to where, you know, finally there, there’s been in the last couple of weeks kind of a culmination of, it’s like, okay, wait a minute.

Actually, this isn’t like the end of the world. This actually as far as real estate goes, this might be one of the next big opportunities specifically for single family investing. And I’m excited to talk about some of these things cuz Kevin conditions, there are some things that have changed because of Covid, but there are some other things.

That are exactly the same as they were prior to Covid. It’s just that they’ve been exacerbated. Right. They’ve been amplified in a way that has created kind of this perfect storm that you’re describing. Yeah. All the way from One of the reasons why at the, at the beginning of this that I didn’t feel like we’re gonna see another great recess recession type situation is cuz one, the lending industry.

Very, very different from, From 2008, 2000. Yeah, totally. Number two, supply and demand. Back then there was a massive oversupply. Yeah. Right now, because there was a lack of building for so many years right there, there was a major undersupply. Mm-hmm. before Covid hit. Right. And so we knew, we knew that the opportunity was really good before.

Because there was such a huge undersupply of single family properties. But now with Covid, there’s a couple of things, Kevin, that let’s talk about. Number one, Covid has created a scenario where we, we thought that interest rates were historically low last year. , um, at the end of last year. Laughable. Now, right now it’s like we’re we’re a 0.2 points, three point flow.

Then we were, it’s crazy at this time. Last year’s crazy. So interest rates, um, massive. Number two. The supply issue, the supply and demand issue has been exacerbate, has been amplified even more. Right? Mm-hmm. , and we’ll talk about that. And so there’s a number of different things that, that I’m excited to, to, to kind of just discuss that has, that we’re seeing has created what, what, I don’t know if there’s a better term to describe it then.

The perfect storm and opportunity for investing in single family homes today. I mean, I don’t care if you wanna read that a couple. Yeah, yeah, yeah. Sure. Well, I wanna first talk about the fact that you said exacerbated, because I’m trying to, How many five syllable words do I know? ? I don’t think I know many.

And I bet if we went back and listened to all of the episodes of the podcast, you would maybe have hear, have heard me, maybe use one. Um, and so I just appreciate, you know, look, you have a son who went to Harvard and so I feel like your vocabulary is improving, Steve. It’s really good. Um, I, I think, I think as a parent you get smarter.

Um, as your kids go to college, just, just cause you get to kinda talk to them. . I’m just kidding. It’s like they raise your intelligence level, like just to keep up with, with all of your kids, whatever school they go to. Right. It’s like, oh my goodness. Like, I gotta make sure that I’m staying on top of this.

They’re not gonna leave you behind. In fact, I, I was having a conversation with, with one of my sons yesterday and, and it was really, it was quite fun. We had this, this whole discussion about the judicial branch of government. Oh. And I know I talk about that with my nine year old all the time. Yeah.

Anyways, we had this really good conversation actually. I felt like, I was like, I think maybe I got the better, tremendous conversation. so i’s kinda proud of myself to get myself back a little bit and good. I’m glad you feel good about arguing with your attorney son. That’s good. . Just kidding. Oh, that’s awesome.

So, yeah, there’s a couple articles that, that we saw recently and I was like, Oh my gosh, let’s jump on the podcast. And rather than you guys just having to hear us, right, let’s see what others are saying. So there’s a really high level, uh, data set that we subscribe to. It’s very expensive, but it’s awesome because it gives us real time information that changes pretty much monthly.

On like hundreds of markets across the country. And it’s a big piece of what we use in our research. And the guy who writes it is this guy, he’s this, this economist, I think he’s like a Wharton business school guy. I don’t know. The dude has been, he’s been awarded up to Wazo because of his ability to analyze data and forecast, so on and so forth.

And so, Well, Kevin, the nice thing about this data is. There’s no agenda behind it. Yeah, Right. He takes government data and he interprets it and there’s no like hidden, like a lot, like you gotta be careful sometimes, like the, the, the information that you read because yeah, you gotta, you gotta look at the source and decide and, and, and kind of understand what’s their agenda, right?

Because a lot of times, perspective. Is driven by agenda. It totally is. And really, his agenda is very neutral. Well, and, and look, and that’s, We fall victim to that too, right? It’s like we do, we search for things that sort of fulfill our agenda, but that’s because we, I feel like, Steve, I feel like we’ve done enough research and we’ve had enough of a track record over more than a decade to say, Look, we know what’s right, at least in terms of what works well for us, what works well for our investors.

So we do find things that. Prop up that agenda. But what’s interesting is I feel like this agenda that we have, which is really just replacing your income one property at a time, I feel like that agenda is one that speaks to Americans because it’s something that we can all kind of rally around and something that we can take a look at.

And that’s part of why I like this. If we were to say, we have an agenda, I like our agenda because our agenda isn’t just. Us necessarily. It’s about how do we help average people like us replace their income and get to the point where they can experience some freedom? And so you’re right, I think we always have to sort of take it with a grain of salt when we see information.

And I would say, Look, even when you come and listen to this podcast, whatever information we share, You should always go and verify. We know that you’re gonna find information that backs up a lot of what we’re saying, but don’t you think so? I mean, it’s like Ronald Reagan, right? Trust but verify, right?

Yeah. Yeah. In fact, I, I just clear, maybe clarify one thing, Kevin, like you said that we’re just, you know, average guys, so I’m kinda like the homes that we buy, I’m like right below the median average guy Uhhuh. Yeah. Just right below. Yeah, just right below media averages. That’s good. And I would say that my hair.

Is below the median average hairline for most men. So, well, well probably well below . Okay, so here’s this first article by this guy’s name’s, Ingo Windsor. Can we talk about that name for a second? I wish my name was Ingo. That’d be awesome. Cool. Name The Ingo eight. My ba B, right? Isn’t that a old sign of the line?

The Dko. But the Inco. Okay, sorry. We can edit that. Okay. Um, okay, so. Here’s an article. There’s an old time. Did you not watch that Seinfeld episode? Yes, I remember. Okay, good. . All right, so here’s what it says. This is awesome. It says, so this is this, uh, economic forecaster, this real estate. He’s kind of describing what he thinks is the national economic outlook.

Okay. And this was an article that was written, uh, in late August. Okay. It says, As, which is when we’re recording this podcast, as we get more actual data about the economy, it’s possible to see where real estate markets may be headed. It now looks to me that we’re in a holding pattern that can easily persist for the next year.

Now, here’s this next line is the one I really wanna focus on. He says, The main consequences of the pattern are that home prices will hold steady. While demand for rentals increases. And, and so here we have now that that’s the first thing that we want to talk about is, is, is rental demand increasing? Are we seeing an increase in rental demand given the current situation?

And Steve, you have another article that kind of says something similar. Yeah. So, um, the headline for, for this particular article, states increased demand for single family rentals could lead to 10. Of Undersupply 10 years. And you’re talking about that Kevin, there has been a massive undersupply of single family homes for several years now and, and, and I’ve read other articles where it’s like there just is not enough available labor to build homes fast enough.

Yeah. To supply the demand that that is there. And so this article goes on to say, I’ll just, I’ll just read like, uh, one paragraph here. It says, The Coronavirus Pandemic has upended the stability of many Americans’ livelihoods potentially pushing back the dream of home ownership and leaving more individuals stuck in the rental market based on current trends of increasing demand for single family.

Rental homes as a result of circumstances related to the pandemic. The US faces a shortage of single family rentals for the next 10 years. According to an analysis by R C L C Real Estate Advisors, um, about 6% of new single family homes are built specifically for the purpose of being rented out, which would yield roughly 700,000 new single family units being constructed over the next 10 years.

However, if families continue to provide demand for these rentals at their current rate, R C or R C L C O says, the current rate of production of these homes will fall well short of demand. Now, of course, that demand could change if the number of units being produced increases dramatically, or if the Covid 19 recession leads to more substantial foreclosures.

But that is not the trend to date. So here we have two articles totally separate. These are completely different sources. These are just people doing their separate research and analyzing the data separately. And they are saying the same thing that we talked about when we talked about, oh, kind of. We had a podcast a few weeks ago that was talking about kind of what’s going on in the current, like what’s the current state of the market and, and we had some quotes from some of our teams in the market that were saying, Oh my.

Rental demand is really high. Like we can’t keep enough inventory of available rentals. So that was literally, I mean, Steve, how long has it been since we’ve been hearing from our teams that there is limit that, that they can’t get enough inventory for the demand for rentals? How long have we known that?

Oh, well, it, I mean, so pre pandemic, there was always very strong demand for the rental properties that, that we’ve been buying, that our clients have been buying. And typically, and we track all of that data, right? The average time to get a property rental app post-purchase and, and rehab was about 28 days.

Mm-hmm. , which is pretty darn. Yeah, it’s really good. Yeah. Like you’re not talking months, you’re talking literally less, just less than one month. Right. But. Pandemic or, you know, following the, the, the hitting of the pandemic that that number has dropped to about 10 days. That’s crazy. And if you take a look at the inventory of single family homes that are available like on the MLSs across the country, like it is incredible.

Kevin, I was, look, I was going through the MLS yesterday. I’m, I’m the broker here at, at, uh, Nure Real Estate, and I’m constantly looking at our local market here as. And you can’t hardly find a home that’s been on the market and not under contract that’s older than like a week. Yeah. Like, it, it, it’s great.

Right. And one of the, the most difficult challenges today is, is, is you’re getting multiple offers on, on almost every deal. Yeah. And, and therefore one of the challenges is that people can demand a higher price, but then the property. Isn’t appraising. No. We’re seeing somebody is willing to pay for it. In fact, we’ve seen that with a lot of lo even local deals here in Utah, that we’re seeing that there’s a lot of deals that are appraising for less than the offered price.

Yeah. Yeah. And and that’s because there’s so much upward pressure on price, right? Because people. Are trying to get into those homes or trying to buy those homes. And so, and by the way, that upward pressure and, and people putting homes under contract for more than what they appra for, that will all kind of normalize over the next couple months.

As, as you know, people pay higher prices than maybe even the asking price. Yeah. It’s just a lagging That becomes a comp in the future. Right? Yeah. So it’ll kind of catch up, but it’s just interesting that that’s what we’re seeing. Demand is so, For people. For the one, and this is crazy, but it’s also, see, it’s that we’ve seen this really high demand for rentals.

Okay? We see a lot of people kind of moving out of these major metropolitan areas in these multifamily units. And these apartment buildings. In fact, I was, I was just reading you an article from, uh, The New York Times, which I don’t know, I don’t necessarily love the New York Times. I used to be forced to read it in college and uh, but every now and then there’s an article that kind of catches my eye, and this was talking about in Manhattan, right?

Which I think is probably the most prolific sort of multi-family apartment building type of place because you have millions of people living on top of one another in this concrete jungle cuz so many people live there on this little island. There’s almost nothing but, you know, apartments and multi-family type units.

Uh, but the, the, what was it? It was the vacancy percentage is the highest that it’s been in nearly two decades in Manhattan. That’s amazing. And on top of that, there was even a, a pricing drop of about 10% in Manhattan. So you’ve seen rents come down. But you’re still seeing larger vacancy rates in Manhattan than we’ve seen in nearly two decades, which indicates though it’s not just that rental demand period is high, it’s that single family residences kind of this, this merge or this move to the suburbs, that those types of homes are what’s in exceptionally high demand right now.

Not just multifamily units or just rentals in general. Single family residences, of which there is an undersupply of which there is massive competition even just to go and buy them because the people that can afford to buy ’em are going, I gotta buy right now. And then the people that can afford to buy ’em are going, Oh, I can’t afford to buy.

I’ve gotta rent. So all of these things are kind of combining with record low interest rates. To say, Holy cow right now is literally like this crazy perfect storm of. If you can invest in single family residences, not only is it a great time to get your hands on them, if you have the ability and you have a supply chain that allows you to, but it also means that you should get it rented possibly quicker than you maybe ever could have got it rented before.

Yeah. And to, to just kind of further, you know, illustrate the point that you justm made, the, the concluding, you know, paragraph of this, uh, article that, uh, I’m sharing with everybody here states this, and though no one can anticipate the future with certainty, There’s some evidence to suggest that Americans living preferences could be shifting to the suburbs where there’s more space and more single family housing, and less chance of contracting the virus.

If current trends prove long lasting single family rental properties may require a boost from new construction. Given the anticipated undersupply of single family rentals for the foreseeable future, this segment represents a strong opportunity for investors, builders, and developers. To create new rental home communities in a variety of formats.

Serving a growing market is what, uh, this report concluded. So, so, so interest. You know, it, it just like, I, like, like I said earlier, a couple minutes ago, pre. Pandemic supply and demand situation was, there was more demand than supply. And right now that’s just been amplified, you know, uh, greatly. Right. So that’s the opportunity.

So prices are going, gonna continue to go up and according to this article, for, for at least the next 10 years. And personally, I, I don’t, I really don’t see that that shifting a whole lot. Cause there are other demands on. The rental, the single family rental market, The millennials Yes. Gen, The Gen Xers, right.

Are coming into situations where, because they weren’t planning to buy in the first place, you know, that demographic, they haven’t saved up enough of a down payment to be able to buy. And so they still wanna, they, they, they wanna transition to into single family homes as well. And so for the first several years of them transitioning to single family homes, it’s gonna be a rental situation.

Prior to them, you know, being in, in a financial situation to where they can actually purchase. Yeah. If I kind of try to syndicate this all, and I just think about it in my mind, it’s so interesting to me that we’re seeing all of this happen right now and that we’re seeing this kind of collective shift in the, the overall mentality of how people live and where they wanna live.

I mean, we’re not just seeing it in terms of living situation, We’re seeing it in terms of working as well. Right. I just read an article yesterday. Salesforce announced the big company Salesforce, the CRM company. They announced that all of their people can stay working from home to like 2021, right? So they don’t even have to go into the office in 2020.

And I think that. So look, the different types of real estate that people talk about, right? There’s commercial, there’s multifamily, there’s single family. Now I know there’s a lot of subcategories, but those are kind of three big categories that I know people talk to me about all the time. Do you guys do commercial?

Do you guys do multifamily? And my answers always no, we don’t do commercial. No, we don’t do multifamily. We do single family residences. And there’s a reason we do that. And it’s because if you, uh, the episode a couple weeks. We had a guest on Kelly Fastline. She talked about how single family residences should be viewed as liquid.

It’s actually more liquid than other types of investments because you have the ability to sell out of a single family residence all the time because there’s always such demand for single family residents have to just sell to another investor. You can. Sell to an end user, which increases the number of potential buyers, you know, exponentially.

And Kevin, you, you, you bring us something that I just wanna touch on and, and focus on for just a minute, and that is interest rates and, and the fact that purchasing single family homes provides for the most, uh, what’s the word? Advantageous, maybe advantage. A scenario for interest rates, like you’re gonna get a better interest rate, you know, purchasing a single family home than you will on a, a multi-family or some kind of a commercial property.

And now Covid has also amplified the whole interest rate scenario. The Fed in an effort to kind of stabilize things and to encourage investment. They lowered. The rate to nearly zero, and they’ve stated that it, that they’re not gonna touch it for the foreseeable future, like potentially up until 2021 or 2022.

I can’t remember what they said. And so this is like Kevin, like, so we’ve talked about our performance before on the podcast where we, we put together projections on the properties that Right. We present to our clients to buy. I haven’t seen cash flows in the numbers that we’re talking about for quite some time because interest rates are so, are so low that what would’ve been, call it a a 300 to $350 a month, put positive cash flow is now like 400 or 450.

I’m seeing cash flows in the five and 600. Crazy, like, you know, I, I, Well, and part of that too, like unrealistic expectations that cash. Or anywhere from, you know, a hundred to 200 to $250 higher per month on a property than, than they were six months ago. Because interest rates are so low. Like I’ve, I’ve said to you, Kevin, several times in our conversations, Like, and I’ve just figured some things out to put myself in a, in a scenario where I’m personally gonna be picking up at least another four properties because I’m like, I have to, to take advantage of these interest rates right now.

Well, and here’s some more of the perfect storm when it comes to cashflow, right? So you’ve got these low interest rates, but then you’ve got this high rental demand, which over time that demand has an upward, upward pressure on the price of rentals, right? It’s simple supply and demand, right? You have to, and so you’ve got low interest.

You’ve got a higher demand. And on top of that, what lenders are wanting right now on an investment property is generally 25% down, right? So you’re having to put a little bit more down so your, your, your liability is a little bit less on the property combined with really low interest rates combined with an upward pressure.

On rents so that we’re seeing rents increase. And then you combine that with this crazy demand of people wanting to buy these properties. Like it literally. I, I, Here look, I , let me just say this. Okay. If you’re listening to this podcast, We love you. You’re part of this income replacement Ranger family of ours, right?

You should feel feverish at the idea that if you are not actively acquiring single family residences right now, to whatever degree is a, that you are able to, you should feel this sort of, you should feel this feverish desire. Like, Oh my gosh, I gotta get my hands on. I, It’s what you just described, Steve.

It’s what I’m feeling right now. It’s like, Oh my gosh. What? How do we just, And this is kind of what we felt during the great recession, right when we start, when we started. See, like, Oh my gosh, what is happening? It was like, Oh, we have got to go by. And so this is what I would say to you if you’re listening right now, look, if you’ve been wondering whether or not you should get in real estate, I get it.

We all wonder that most of our lives, if you’re listening to this podcast, you’re either already doing it, you’re on the cusp of doing it, or you’re nibbling around the edges and wondering a single family investment real estate might be a good idea for you regardless of what category you’re in. If you’re already doing it, do what you have to to go and get another property or two.

If you are a, if you’re just on the cusp of doing it, like don’t wait any longer, okay? We know enough. There’s enough information that says, whatever research you need to do, whatever financial position you need to get yourself in, you ought to be looking at buying today. And if you’re nibbling around the edges, wondering if single family, residential real estate.

Could be good or not for you? Listen, you gotta take a leap at some point. Why not now and be because the reality is, Steve, and this is what we’re talking about and this is kind of the summary of the episode. We are seen from national, um, outlets and researchers that rental demand is incredibly high. That supply of rentals is low, right?

So we’ve got low supply, high demand, which is gonna have an upward pressure on cash flows. All, I mean, an upward pressure on rents being collected, which for you as the investor, has a positive impact on your cash flow. So we’re seeing rental demand go up. We’re seeing a possible 10 undersupply. On top of that, we’re seeing this desire to get into single family residences because of this mass exodus away from apartment buildings, away from multi-family.

Because people want to live in the suburbs. They want to live in single family residences. And you compound that with the fact that all of these millennials and even these people that have kept jobs or been able to collect a higher level of unemployment, they want to be in single family residences.

They want to be in the suburbs, but because prices continue to rise with these incredibly interest rates, low interest rates, but prices still go up, the average person is getting priced out of their ability to buy a primary. For themselves and for their families. So they’re going into the rental market to still be able to experience some of the single family residential lifestyle.

So all of this to say, And one more thing, Oh, really quick, Kevin, is that one additional thing to the demand is because of the scenario where people have discovered, businesses have discovered that their employees can can work from home. Oh. People feel like they can live in the suburbs because they don’t have to commute.

That’s good point. 15 minutes to work anymore. Or they only have to commute to work once or twice a week because which adds to the demand. Yeah. Is to work from home and, and so that’s just added like to the longevity of this, Kevin, I don’t think this is gonna be short lived because the American business.

Owner, Psyche, the leaders of companies are now seeing the benefit of, Hey, I can have my, my people work from home and they’re still productive, if not more productive because they just cut two hours of commuting out of their day. Right? And so people now, not only do they, this is one more reason why people can and will for the long term, be able to work from home and not have that commute, which will add to.

Long term demand for living in the suburbs. Which again, for you as an investor, maybe that’s a good reason to not consider as much on the multifamily side. Not consider as much on the commercial side because some of what used to be the demand required in commercial is moving to the suburbs. Yeah.

Because people can go and live there and work there and employers are going, Wait if I can save money on rent? Cause I don’t have to have all my employees in one. Well now all of a sudden, I mean, look, you guys get it. Okay. We don’t have to, We don’t have to beat a dead horse. But the reality is, right now it’s not.

I don’t think it’s any kind of an understatement to say that it is the perfect time. To invest in single family residences. Steve, any closing thoughts as we wrap up this episode? I would just refer back to, what’s that statement by Warren Buffet? Oh, he says you shouldn’t, Something to the effect of you shouldn’t consider a stock for 10 minutes, that you aren’t gonna.

Owned for at least 10 years or something like that. Is that the one? That’s one of them. Oh, you’re talking about the supply? I think I know which one you’re talking about. You’re talking about It’s the one that’s, that’s the counterintuitive one, right? Well, nope. And it’s not that one . That’s a good one too.

Okay, I’ll, I’ll basically try and paraphrase. Okay. He basically, uh, several years ago he said, this was during the great recession, he said, He said, if I had the ability to go out and buy single, like if I could go out and buy a hundred thousand single family homes, if I could leverage at a 20% down and I could take advantage of these interest rates, is that I would go and do it.

It wasn’t feasible for him because like the infrastructure to be able to do something like that, it’s not like buying stocks. Right. Right. However, if you’re somebody like you or like me, or like many of our clients, if you could go out and you could find a way to buy a few of these, Maybe not a hundred thousand of them.

He’s like, Warren Buffet said this could be the single best investment you could ever make. This was back during the great recession. That’s right. I figure that’s right. I feel like this is one of those times again, where there is this sense of urgency to act today because of the convergence of all of these different factors that we’ve been talking.

All the way from supply and demand to interest rates, to the upward pressure on pricing and on rent, and that the massive, you know, exos from high density to low density, all of these things converging together, this literally could be the single best, uh, opportunity for single family homes since the great recession.

So this would be the call to action. Okay, listen. I don’t care where you’re at. I don’t care what fence you’re sitting on, I don’t care what is going on. You need to do the research to find out if this is a good fit for you right now. And Kevin, one last thing. Sorry. I know you’re trying to No, this is great.

Okay. The, yesterday you and I had what I thought was an amazing conversation cause you’re in the middle of purchasing a single family home. Like you’re another primary reside for you. Right. And, and you are, you’re looking at selling your existing home. Right. And we had this conversation, I was like, Dude, do not sell your current.

Yeah, exactly. Because, and, and we went through, I, I won’t, I won’t take the time to go into the conversation, but we had about a 30 minute conversation and it switched the entire, I could see the, the, the switch in your mind, and it’s nothing that you don’t already know, Right. But having the opportunity to talk to somebody and just kind of bounce ideas and thoughts back and forth, you came up with a better plan based on today’s current conditions.

That will will lead to the opportunity of you adding three additional properties to your portfolio right, without coming up. An additional single scent. Yeah. Like from other sources. Yes. Like from your, from what’s already there. Yeah, exactly. And, and so part of the invitation, I think is that whether you call us or talk to us or you talk to somebody else who, who you can kind of, you know, bounce some of these ideas off of talking to somebody with experience, talking to, to somebody who can kind of give you.

You know, an additional perspective to whatever it is that you’re thinking may be very useful. Yeah. And you know, cuz here’s the deal. I, I shared this with Steve yesterday. I used to sell shoes and, and I used to sell running shoes. And, and I would, uh, sell all these marathon runners, all of these shoes. I, you could come in as a marathon runner and I know what shoe you need and, and what would be the best for you based on how you run.

But when I went to go run my first marathon, I froze up completely. I didn’t know what shoe I should buy. I tried on 20,000 different pairs and I was like, I don’t know. And there’s something about when we get out of our head, and it’s the whole mastermind concept that Napoleon Hill was a big fan of. When we get out of our head and we bounce ideas off somebody, even if we’re taking the existing knowledge base that we have, but we put it into a convers.

With somebody that can just view our situation from outside of our situation. It changes the perspective, and that’s what happened with Steve and I yesterday. Everything we talked about was stuff that I already know. It’s the kind of conversation that I have with people every single day that are considering investing.

But because I was in my own head about my own, Stuff. I hadn’t even given myself the right kind of income replacement estimate plan the way that I would somebody else, because there’s just something that happens when you’re in your head and you’re trying to figure it out on your own. So rely on somebody that can give you an outside perspective and that can give you some ideas, and that’s the invitation.

If you want, go to dfy dash real estate.com. There’s plenty of ways on there. You can call us. You can chat with us online. You can also just click a little button that says, Hey, do you got some questions? Here’s some answers. We could jump on the phone. We can have a phone call, whether it’s us or somebody else.

Get somebody who you trust and somebody who you feel like you can have a conversation with, and explore the ideas here. See where you’re. See what the potential is. See if you can’t take advantage of this perfect storm that exists right now in order to grow your real estate portfolio or begin your real estate portfolio with the powerful thing that is single family residential investment real estate.

Done this way in the right market with the right set of conditions so you can take your next couple steps towards income. Well said, Ki awesome. K, everybody, thank you so much for joining us. Awesome episode. We’re so excited to continue to chat with you. Let us know how we can serve you and help you, and we will see you next week.

Take care. Thanks for joining us on Replace Your Income with Kevin and Steve. Do you wanna learn more about our company done for you real estate and to see if you qualify right now today to begin replacing your income? Simple and conservative real estate investing done for you. Visit DFY intro.com.

Click the orange button, watch our super quick webinar, and fill out the little form on the right side of the page. You’ll know within 60 seconds if you qualify to begin replacing your income. Right away. As always, please rate, review and share the podcast with friends and family. And until next time, just remember income replacement for you and your family may only be one property away.

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