Chris Prefontaine is a 3-time bestselling author who has been through several real estate cycles. He understands the challenges of real estate investing and is ready to give us clarity on how we can successfully navigate the constantly changing real estate investment environment.
Episode Highlights Here:
Chris
So how about if you just go out and accumulate properties over the next year to 24 months run with and you’re getting interest rates? well below market? You can’t get a better situation than that.
Brett
You know, Chris, since we’ve already had you on the show before, and we can’t tell you not to really dove into your story. I think I want to just dive straight into the topic at hand. Right? So what’s the number one secret you believe about buying real estate right now? should investors be buying it? What are you seeing, what’s your feeling? After 31 years of being in seen multiple market cycles? Should real estate investors be buying real estate right now? Yeah,
Chris
there’s never been a better time, frankly, I was saying you off air 31 years, right and going on my 32nd. Year, there’s never been a better time. I say that for a few reasons with no particular party or that cup, top of mind would be things like we have for the third time. Third, only in 50 years, you have an affordability problem right now. And that’s with interest rates. Not quite, they might be I haven’t checked in the last week or so at our 50 year average of like 7.7, or 7.75. So if that ‘s already an affordability issue, what’s going to happen if and when rates creep a little higher. And sadly, you’ve got hundreds of 1000s, I don’t know the number of buyers that have been pushed to the sidewalk that Brett you and I know like a year ago, nine months ago, they were ready to buy, they thought, Oh, these are cool rates. And all of a sudden, boom, they’re out of the market, if they were on the cusp, you know, qualification wise. So there’s just this, this massive amount of buyers that all of a sudden can’t get a home, therefore demand is starting to come down with all the sellers. And that just screams loudly to creative financing. And think about this. You’ve got rates out there. We’re buying homes right now with rates of like 2.75 to 4%. And we’re buying them by simply one of our methods, which is subject to existing financing. So how about if you just go out and accumulate properties over the next year to 24 months with the end you’re getting interest rates well below market, you can’t get a better situation than that. And sellers that were nine months ago, wanted nothing to do with it six months ago, I’m not going to do this because they could sell like hotcakes. They’re calling now. Like they come out of the woodwork now. And some people are in trouble. So I can go on and on. And that one piece is driving creative real estate through the roof.
Brett
So make sure I capture that. Right. So for the third time in 50 years affordability is an issue along with a massive amount of buyers that have now been sidelined. Yeah. And so what you’re saying is with creative financing, do you know what you obviously know what you’re doing know how to do it. Sellers are finally now willing to be more likely to do that now? Is that what you’re saying?
Chris
Yeah, it’s like it was, you know, all the way until just when COVID Gutten made the market go crazy, right? Because even at the beginning of COVID cells were more prone to they just got a little happy when the market went crazy. And so we’re back to that point, we have to talk to a lot less people. That’s all it is. It’s not good real estate. Great. Always. It’s just that we have talked to a lot less people now and people need us a lot more than ever. They need a guide right now.
Brett
Got it. Okay, so. So step one is understanding, understanding the opportunity, right? understand there’s a lot less buyers that are competing for deals, because they’re, they’re just kind of out of the market, what would be kind of step two, to to understanding that, now’s a great opportunity to buy in 2023.
Chris
You know, I talked with this on the show yesterday, this is so important. I don’t know if we hit this last time, but especially now where you have a potential to operate your business as an entrepreneur, okay, if you have a W two now we’ll show you how to escape that. But you have a chance in the next 24 months to parlay some serious, like a decade worth of wealth. If that’s the case, if I’m saying that, would it not behoove you to make sure you find a niche that suits you, in my case, creative real estate and not so naive to think it’s for everyone, but find a niche that suits you and then find someone that you alluded to earlier? That’s been through different market cycles. I’ve been through several and so again, if that fits for you phenomenally but if not, there’s other people that have been through all those cycles. The scary part is people see the opportunity here, they hear about it and then they say great and then they stumble upon a product that doesn’t offer them anything because people can market and or they stumble on something that’s just new to real estate and lasts five years. That’s a scary formula. So just make sure that step by step to the Find someone to latch on to put the blinders on for a few years and make a nice run here out of this market. These are the stories you hear about in like four years with a guy you know they amassed this fortune. Yes, because they took action when the media was screaming the opposite. That makes sense, right? Absolutely.
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About Chris Prefontaine
Chris has been in real estate for over 31 years. His experience ranges from constructing new homes in the 1990s and owning a Realty Executive Franchise to running his own investments (commercial & residential) and coaching clients throughout North America.
After the crash of 2008, Chris reengineered his entire business to weather all storms and economic cycles. Understanding these challenges, he helps students navigate the constantly changing real estate waters.
Today Chris and his family and team run their own creative financing business and are still in the trenches every day. Their main focus is helping students across North America plan their escape from their W-2 jobs by getting in the trenches and doing deals with them. They’ve completed over $100 million in transactions.
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