THE REAL ESTATE MARKET IS DYING: Who Survives ?

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Michael Zuber (1:00)

All righty, folks, everybody is quitting real estate. You can't make money in real estate anymore. All the gurus are losing millions and millions of dollars in investor capital. Nobody is buying. Nobody is selling. It's a complete disaster. We're going to talk to Jason Pritchard and Ty, who have both been in the business with me, included over 50 years.

So, guys, I don't know what you're thinking about. Are you going to go become a Starbucks barista or you're going to go open a restaurant or sell some peptides or something? What are you guys doing these days? Ty, you go first. You were first.

Ty (1:30)

I am working my ass off.

SPEAKER_2 (1:32)

I'm working harder for less.

Ty (1:34)

Yeah, I'm working for less, but with a big smile on my face, man. I love this game, and I love that these tough markets are tremendous opportunities if you have the right focus, the right attitude.

Michael Zuber (1:46)

Yeah, Jason, you and I are both in the same market. Obviously, you are the unicorn, the legend in that market running the biggest business. I'm curious, you probably have the most up close and personal, because you ran the big meetups, all right, all of that back in the day.

What, I don't know, what percent of the wannabe investors have quit real estate, the wholesalers, flippers, all those folks?

Jason Pritchard (2:07)

I mean, it's a big number, and I think the longer that this market has drawn out, the more and more people you feel like are just dusting off the resume and going back to work or just realizing, like, hey, it's not as easy as you made it look on social media. I am like Ty, I welcome this difficult market, and it really does show who's been preparing themselves for this type of thing. And so, it does make it a little bit harder on us, to Ty's point, right? We're working twice as hard to make less money than what we're used to.

But I look at this as an investment in the long term, because all of this market share that we're gobbling up, all of the relationships that we're picking up because they're not going with these one-off investors that pick up a deal here or there, when things really do turn around, it's just going to mean better skies ahead for us. So I'm excited for this market and what's ahead.

Michael Zuber (3:01)

Yeah. When I look at the real estate market today, all I can do is smile because I'm countercyclical. I love to invest when everybody else runs away. I love to invest. I love a market that has no buyers.

I've always told people, if I could wave a magic wand, I would make interest rates 12 percent. I mean, because again, I only write deals that make sense to the existing cost of capital. So I mean, I don't give a shit about 31 percent. I just, you know, higher rates are good for me because at the end of the day, you make your money when you buy. And both of you have been in this game for a while, and both of you know that's true.

You know, Jason, we'll go back to you here. Just how is the market different today to buy? We'll get to selling in a minute because it's very different to sell as well. But when you're thinking about your acquisition strategy today and getting discounts and prices, is it much different than 2021? Or what's 26 like versus 21?

Jason Pritchard (4:03)

There's definitely still some challenges. And so I don't want to make it, like, at least for me, our experience, like this last week, our team contracted five properties, which is a big week for us.