How do you feel about the current inflation and real estate market?

Hey there. We’re here with my good friend Jerry Dinh, we’re talking about real estate investing today. And I want to talk about the current inflation and the real estate market and how you feel it affects the market. And are you nervous?

I am a little nervous about it, but like I said, I think with any real estate investing, I think it’s one of the stronger points because everyone needs a place to live. Everyone needs a place to to be in. Right. And, you know, I still hear a bunch of my friends family and they’re still moving to Dallas.

You know, everybody’s still going to Dallas. So and you know, I know right now the housing prices might seem like it’s pretty high. But, you know, again, with California, people like they sell the house over there. I mean, I was just talking to Scheiner, like, you know, my house over there is like 900,000. But and then, you know, you sell it, you can the equity and come over here and it’s like.

You know, and you bought it, what, a couple of years ago, two years ago, 600.

600 and now is worth 900,000. Yeah. And it’s small, it’s 1600 square feet.

Yeah. I mean it’s nothing compared to here in Dallas. I was just looking at a house here with Shawna here where it’s like, you know, 4000 square feet and it’s like $1,000,000, like I can afford.

This house is for sale, Jerry. We’re gonna be moving soon, so I’ll take you on a tour after this.  

So, I mean, overall, I say I mean, I know it’s going to be a little bit difficult, but I think with the Dallas market the way it is, it’s going to be pretty strong where like people always say, like you can’t keep waiting to try to build up and try to save and stuff because the market is just going to way outpace what you’re trying to save.

So I always tell people that, you know, just you can’t afford it, just come in, buy it and just, you know, you might struggle for a couple of months or years, but, you know, eventually your income or whatever will come up and catch up to wherever you’re paying.

And with inflation and the interest rates going up, there could turn more people into being renters. But they may not want to live in an apartment. They really want to transition to a home. So that’s where I think you’re going to you’re going to reap the benefits there of being able to have these two homes that you can provide. And you do have long term tenants in in both that.

Yeah, I mean that’s actually one of the stronger points because you know, with the way the inflation is going, renters don’t want to move, they like where they are. And so you can like, you know, for me, like I’ve been trying to keep the rent a little bit, but just adjusting for that tax valuation.

That’s a whole other story. Yeah.

So, you know, as long as adjusts to the, the market and the tax and whatever, I charged my renters, then they actually, like most of them, actually signed two years, almost three year leases because they just like, you know, they’re scared of how the inflation is working. So they just want to keep it where they’re at.

And that’s you know, that’s a great landlord from your perspective to be able to do that for them. Right. And you’re not getting greedy, but you’re to have a consistent, stable tenant in there, I think far outweighs the.

Oh yeah.

You know, the the multiple move outs.

Well because you know with when you have a property because you know, like I said, I’m not from California. I have my my property manager handles stuff. And whenever a tenant moves out, I mean, they charge you, you know, they got to do the cleanup. Then you have to find a finder’s fee.

So that takes away a month of your rent. So, you know, you can keep them in there and they’re good tennis and they pay every month and, you know, they keep the house clean. I mean, you definitely want to try not to be greedy because it costs you more.

In the long run. It does. And it’s important to also, if you’re not going to be the manager to have a good property manager and plug out to Brandon Hearn, you know, he has Bronze Star properties and we introduced them, you know, when you when you got into the business and they’ve helped you out. So so yeah.

So basically inflation, you’re not worried about it, you’re not wanting to cash out of your properties. You’re just going to.

No, actually, I mean, whether anything.  

Whether the storm here.  

I want to keep it longer because they said we had a really good interest rate for our thing and you know, we keep it longer. And, you know, I think people become a little bit more scared. It actually makes the market a little bit better. Another one. Yeah. Okay, great. Thanks

Episode Links

California, Dallas,Jerry Dinh, Shana Acquisto , TNT 

Episode Recorded Live on YouTube 02.17.22

This & That

View all posts