Why Multifamily Is Down 30% (And How To Make Millions From It) w/ J SCOTT

**J Scott** (0:00)
A lot of people are really down there, like, I don't want to be investing right now because it just feels like things are so bad. The reality is, this is the bottom. Today's the day to be buying because we're going to look back in five years and we're going to wish we bought everything.

**Brian Luebben** (0:11)
All these companies that have lasted 100 plus years were all founded in recession. And then we're complaining about there being a recession.

**J Scott** (0:17)
The reality is, we are going to have a recession. I don't know if it's today, six months from now, five years from now. On average, we have them every four, five, six, seven years, and we're now overdue by about a decade.

**Brian Luebben** (0:27)
And we're seeing mass layoffs across the board. We have AI paired with tariffs. Our members that are making $200,000, $300,000 a year, nine years in a position, all of a sudden, it's gone.

**J Scott** (0:38)
There's so many benefits that real estate investors get when it comes to taxes. We haven't paid taxes in five years.

**Brian Luebben** (0:43)
If people could understand this, it's literally going to your income and adding 37%.

**J Scott** (0:48)
It is.

**Brian Luebben** (0:49)
To your income. What's some closing advice you would give them in this economy?

**J Scott** (0:52)
We know what's going to happen five years from now, seven years from now, 10 years from now. And that is.

**Brian Luebben** (0:58)
All right, Mr. J Scott, in the flesh, how are you?

**J Scott** (1:01)
How's it going, Brian?

**Brian Luebben** (1:02)
I'm excited to have this conversation today, man. I want to start this off with a quote. That's one of my favorite quotes that I got from one of my nine-figure mentors, which is, every single day that you spend in a bad market or a down market is one day closer to the next good market.

**J Scott** (1:18)
It's true, but there's another way to look at this. Everybody's always, they want a good market. They want things to be great. Here's the thing. What's investing about? It's buying low and selling high.
I know it hurts your brain when things are bad, when the market's down. I'm in the multi-family space. We've lost 30, 35% over the last couple of years in values and multi-family. A lot of people are really down there like, yeah, I don't want to be investing right now because it just feels like things are so bad, but the reality is this is the bottom.
This is the time to be investing. Buy low, sell high. This is low. So if we can get in today and get our heads out of that mindset that things are so bad, yeah, things are bad today, but they're going to be good in a year or two years or three years or five years. Today's the day to be buying because we're going to look back in five years and we're going to wish we bought everything.

**Brian Luebben** (2:09)
I think it's funny because one of my team members, Kaitlin actually sent this to me last night where I'm like, I'm freaking out my business. Like right now we're not in multi-family, but it's just a season of growth. You're in the messy middle. You go through seasons in business and I was just like, this is so much.
There's so many new things, new situations, new scenarios, new interest rates are being thrown at us with investments. And I don't know how to push through this. And she goes, your breaking point is God's building point. And I thought, wow, how funny that we ask for growth. And then the prerequisite to growth is discomfort and friction. And that's what yields growth. But then we say we want this thing and then we complain and bitch about the friction and the stuff that's associated with it. And that's how I feel about a down market. We're like, oh my God, I want to be a multimillionaire. I want all this equity. I want to build empires. All these companies that have lasted 100 plus years were all founded in recessions. And we're complaining about there being a recession.

**J Scott** (3:06)
Yeah, what I challenge everybody out there to do is try and put aside for a day or a week or even just a couple hours the emotional component. Stop thinking about all the things that can go wrong. Stop thinking about all the distress in the market, especially again. If you're in commercial, if you're in multifamily, things have been really bad for a couple years. And it's real easy to get up in the morning and just not be motivated and just feel like, why am I doing this? I mean, I've had those warnings where it's just like, I have properties that I'm managing from that I bought a couple years ago. And it's just like, I just want this to be done and I just want to move on.