Will The Housing Market End The Year Flat?

Will The Housing Market End The Year Flat?

Episode Transcript

(00:00):
The following is a paid commercial programon ninety four three WSC. The views
expressed by the host of this programdo not necessarily reflect the views of iHeartMedia
ninety four three WSC. It's advertiser, sponsors or management. This is the
Real Estate Show with Rick Willis.I show about home sales, mortgage issues,
investing at everything about the American dream. And I mean the wa that's

(00:22):
someone who enjoys radio and really enjoysyour program. And now The Real Estate
Show with Rick Willis on ninety fourthree telling you SC Hello, Charleston,
Welcome, Welcome to the Rick WillisReal Estate Show. Well, folks,
the real estate market is steady.I think I've been saying that now for

(00:43):
the last number of weeks, probablythe last number of months. But the
good news is that things are verysteady here. And when I say steady,
I interpret that by way of lookingat the number of active listings as
of this morning. And we prerecordthis show that you hear on Saturday and

(01:03):
Sunday, But as of this morning, there's two thousand, three hundred and
seventy one active residential listings. Nowwhat that means is that each and every
week when I gave you that number. Obviously, on a daily basis,
there are new listings that come onthe market, there are sales that occur

(01:26):
that take properties off the active inventorylist, and it's balanced. Now,
don't confuse the word balanced with theentire marketplace being balanced. What I mean
is, as of the last numberof months, the number of people buying
and the number of people putting theirproperty on the market approximately are equal.

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But we've only got two thousand,three hundred seventy one active residential listings,
and according to the experts, sixthousand active residential listings in our Greater Charleston
area would be considered a balanced marketin terms of overall big picture. No,

(02:15):
nothing in favor of the buyer orthe seller. When you've only got
two thousand, three hundred and seventyone active listings, it's balanced in terms
of that given day, that week, that month, But overall there's still
a shortage of listings. What isit that will cause the prices to continue

(02:38):
to rise, which they are herein the Greater Charleston area is a shortage
or lack of number of listings.And you know, it's kind of deceptive
when we talk about it being balanced. Because I currently at the present time,
have several buyers that are looking atevery day at new listings that would

(03:01):
pull the trigger, would buy,but those specific criteria that they're looking for
is not on the market. Sowhat I'm saying is, in my opinion
from somebody who's an active realtor whodoes this radio show one hour a week
and the rest of the time Ihelp people buy and sell, is there's

(03:24):
a great pent up demand from buyerswaiting for the inventory to increase and or
waiting for the interest rates to decrease. So even when sellers start putting their

(03:44):
properties on the market in greater numbers, should that occur, I believe they
will be absorbed into the marketplace rightaway. And again, nobody's counting on
the fact that interest rates are goingto decline anytime soon, and history has
shown us that the number of activelistings is pretty steady. So if you're

(04:06):
in the marketplace to buy, Isuggest you buy if you think rates are
going to decline, no problem.You buy today at an interest rate higher
than you want, betting on thefact that you can refinance the property you
buy when the rates decline. ButI would not hold my breath on prices

(04:27):
coming down here in the Gritter Charlestonarea. And folks, you have to
be careful when you look at thereal estate market because a lot of what
is out there in the literature,be it online or in magazines, newspapers,
or just in the conversation, isthat you know there's going to be

(04:50):
a there's a bubble out there,the bubble is going to burst, etc.
Etc. Well, I don't seeit. And I have an article
that I'm just going to quote fromhere, and the article the headline is
the housing market has outperformed my expectations. Here's my mid year housing recap and

(05:15):
predictions. Now, the author ofthis article the housing market has outperformed my
expectations, is a gentleman who's incharge of research and statistics and analytics for
a company called Bigger Pockets, andthat is an organization that focuses on exclusively

(05:42):
real estate. And he's a personthat gets paid to follow trends and make
predictions. And the first thing hesays in the article is, as we
pass the midpoint of twenty twenty three, it's a good time to take a
look at what's happened in the housingmarket so far. This year and consider

(06:03):
what could happen in the second halfof the year. Now, please remember
that everything I'm about to read toyou and tell you from this author is
real estate nationwide, and in theGreater Charleston area and even in the state
of South Carolina, we are doingbetter than the average of what's going on

(06:28):
nationwide. So what I'm about togive you is the national snapshot, and
the snapshot for the state of SouthCarolina and the Greater Charleston area is better.
The big headline from housing so farhas been the resilience of home prices,
even as mortgage rates have hung aroundseven percent and volume has dropped about

(06:53):
fifty percent from June of twenty twentyone to June of two twenty three.
So the number of sales has declinedfifty percent in the last two years,
interest rates have risen, and nomatter what data you look at, he

(07:15):
says, so far, the callsof a market crash have been incorrect.
So the point is there's people thatstudy this, there's people that live it
every day, and then there's thecasual conversation that you might have with a
spouse, that you might have witha financial advisor who would have a self

(07:38):
serving reason not to have you getinto the housing market as either a homeowner,
occupant or an investor. And thearticle goes on and looks at median
sales prices from two thousand and twelveto two thousand twenty three, and it's

(08:05):
amazing. You know, median pricestwo thousand and thirteen, Now this is
nationwide. You're at just above onehundred fifty thousand in two thirteen, and
here we are in two thousand andtwenty three about three hundred and sixty five
thousand. So in a little overten years, about ten years, one

(08:33):
hundred and fifty one hundred and sixtyfive thousand up to about three hundred and
sixty five thousand. That's more thandoubled. Now, when it comes to
looking at the same line for thestock market, you'll see a whole lot
more fluctuation. But you have toalways remember when you're considering investing the law

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of supply and demand and is ita paper asset or is it a tangible
asset. Housing prices, as withall prices in a market economy, come
down to supply and demand, andfor most people, the expectation has been
that prices would fall in two twentythree because demand left the market. Well,

(09:26):
demand has left the market. Asmortgage rates have surged over the last
eighteen months, fewer people have wantedor been able to afford new home purchase.
Demand can be difficult to measure,but I think the best place is
the Mortgage Broker Association Mortgage Purchase ApplicationSurvey. It measures how many people apply

(09:52):
for a mortgage to buy a newhome, and then it shows you a
graph of number of loan applications fromJuly of twenty nineteen to July of two,
twenty three, and the decline iscommensurate with the decline in number of
people people buying. But the bottomline of the bottom line is it says

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the mortgage applications have been flat forthe last year or so. Said differently,
it's been steady. So why thenhave prices not dropped? The answer
is simple, even though demand hasfallen, supply has fallen at the same
time, which has kept prices stable. So nationwide there's been a relative stability

(10:43):
in housing prices, which obviously,if you're looking at it from a nationwide
perspective, and it's been stable nationwide, that means that there's more people in
some areas of the country. Someareas are doing better and some are doing
worse. We happen to be inthe area that's doing better. Folks,
this is Rick Willis. You're listeningto the Real Estate Show. Reach out

(11:05):
to me. Let's chat about realestate. Call me eight four three three
two seven three zero one seven,email me the letter R Willis Team are
Willis Team at gmail dot com.Please visit my website or Rickwillis dot com
and let's talk real estate. Seeyou right after the break. If you

(11:26):
have real estate questions, or ifyou need a market analysis on your property,
call Rick right now at eight fourthree three two seven three zero one
seven, or you can email themat Rick at Rickwillis dot com. Check
out Rick's bio and access all propertieson the MLS at Rickwillis dot com.
Welcome back, Welcome back, Charleston. Welcome back to the second segment of

(11:50):
today's Rickwillis Real Estate Show. Well, when we took our last break,
I was reading from an article byan expert at a national level who gets
paid to study trends and look atstatistics and numbers of what's happened, what's

(12:11):
happening, and even make predictions forthe future, and we've covered pretty much
in the article what's happened on anationwide basis, and he says here,
if I were to redo my yearend prediction for two twenty three, I
would revise it upward. As ofnow, I think the housing market will

(12:35):
end the year flat on a yearover year basis. And what he's really
saying is that six months ago,end of last year, beginning of this
year, he was predicting a declinein housing prices, and now he's saying
he sees it as a push flat. Now, please understand that when he

(12:56):
says flat, that's on a nationallevel. Obviously, that means there's certain
parts of the country that are doingbetter, certain parts of the country that
are doing not so well. Butwe're in a spot right here in the
Low Country, in the state ofSouth Carolina that's doing better than the national

(13:16):
average, and I don't see thatstopping. So you're in a good spot,
folks, whether you're a homeowner,occupant, or an investor, you
want to trust in and believe inwhat I would call common sense, the
fact that people are going to continueto relocate here to the Low Country.
Existing businesses are expanding, new businessesare relocating here, people are retiring here,

(13:45):
and as people retire here, thekids and the grandkids come and they
like it and they want to comeand get jobs around Grandpa and Grandpa and
be near the beach, and thecycle just keeps keeps on, keeping on.
So you want to put your moneyin real estate, whether you're a
homeowner looking to buy another home,whether you're a first time buyer, or

(14:07):
whether you're somebody that's wondering where isthe safest place to put your money for
an investment? Answer local Charleston areareal estate. Okay, a couple of
creative things that I'm doing that youmight have an interest in or at least
learn about. I am putting onthe marketplace today. Two properties under what

(14:33):
is called a lease purchase situation.Now, these are properties that someone can
rent right now, lease and signa contract to buy them and close at
a future date. Now you mightsay, well, why would a seller

(14:56):
do that and why would a buyerdo that? Well, from seller point
of view, these are properties thatare being fixed up. They're part of
a small subdivision that's going through thesubdivision process. So it's the kind of
thing that even if you wanted tobuy the two houses today. You couldn't

(15:16):
buy them because they are being subdividedfrom a larger parcel and it has to
go through the subdivision approval process.But what you could do, or if
you know of somebody somebody could contractfor the properties to buy them today,

(15:37):
get today's price, and they couldmove into the property, pay rent on
the property, and at a pointin the future they could actually buy it
now. This could be good ifyou like the property and wanted to buy
it just today. At least youhave got a property that you've secured you

(16:00):
don't have to buy today. Orit could be somebody that you know has
got a house to sell in anotherpart of the country. They're moving here
and they're looking for a place tolease. But maybe, just maybe this
particular property would be one that theyor you would want to lease and not

(16:21):
move twice. It's in Summerville,these two properties, and they come with
a larger than normal lot. Inone case there's a one acre lot and
in the other case it's about seventenths of an acre, but there's additional
land around it that if they wantedto have an acre and a half or
even two acres, they could purchase. That a very unique opportunity a lease

(16:48):
purchase. And for those of youthat are listening, irrespective of whether this
property in Somerville that are priced inthe four hundreds would be of interest to
you, if you have an interestin the whole concept of a lease purchase,
reach out to me because we mightbe able to find something else that
meets your criteria lease purchase. NowI mentioned that there were some subdivision going

(17:15):
on here. For those of youthat have an interest in building at home,
there's going to be five lots thatare subdivided from this parcel. And
usually it's everybody's dream is to buya lot and have a custom home built.
Well, this might be the spotfor you, but there's five lots.
Are you a builder, are youlooking for some land to a secure

(17:41):
for new construction, Well, fivelots that are for sale. Reach out
to me and we can present themto you. Nice thing about building a
home is that you get to havewhat you want, providing, of course,
you're willing to pay for it.You can either use a builder's stock
plans and save the architectural fee,or hire an architect and build exactly what

(18:06):
you want. But these are inSomerville, not too far off of Butternut
Road, just about seven a minutedrive to I twenty six, about a
twelve minute drive to downtown historic Summerville, so little commercial there for some properties
that I'm handling the listing of,handling the sale of I want to switch

(18:30):
gears and talk to you about somethingthat I usually talk about on my show,
and that is investing in real estate. Now, my best prediction,
Rick Willis's prediction is that we're goingto see real estate continue to appreciate in

(18:52):
the short term here in the GreaterCharleston area somewhere between three and five percent
a year. And when I saythree to five percent a year, yes,
increase in value, somewhere between threeand five percent. That's my personal
prediction. Now, if you goback and look at a fifty year average
of what have prices done in thestate of South Carolina, it's five percent

(19:18):
a year. Actually, I thinkit's four point eight, four point nine,
let's round it to five for talkingpurposes. And again, appreciation occurs
when demand exceeds supply, and that'sgoing to continue here in the Greater Charleston
area. So if properties would goup three excuse me, yeah, three

(19:42):
to five percent a year. Youmight say, well, gee, I
can get four percent in the bankfive percent, why should I buy a
house? Well, most people arenot tuned into aware of the fact that
there's benefits of owning real estate incomeproducing real estate other than just appreciation.

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But yet that is the one thingthat they tend only to consider. You
see, when you own investment realestate, unlike your house, you have
some other economic benefits. One ofcourse, as we said, is you
do get appreciation. But what ifyou had leverage? What if you put

(20:30):
twenty five percent down? What ifyou put forty percent down? What if
you put fifty percent down? Andfolks, I'm giving you these bigger numbers
than what you have to put down. You see, you can buy an
investment property single family home for aslittle as fifteen percent down, and you
can buy a multi family property fortwenty five percent down. So why would

(20:56):
I even be thinking of talking toyou about putting thirty percent down, thirty
five percent down, forty percent downor fifty percent down. Answer? Because
the interest rates have risen. Becausethe interest rates have increased in order to
get positive cash flow where you're notcoming out of pocket feeding a mortgage every

(21:18):
month. It might be needed thatyou put a higher down payment, but
as opposed to paying cash, youhave another benefit called leverage. Let me
give you an example. If aproperty would normally increase in value four percent
a year, and you paid cashfor that property, you're getting a four

(21:40):
percent return on your money, right. Well, what if the same property
one up four percent but you onlyput fifty percent down. Well, the
answer is you're getting an eight percentreturn on your cash invested, aren't you.
Yes, it's correct. So,folks, it's critical to understand the

(22:00):
principle of leverage when looking at realestate, and if you don't need all
the income from the property, youwant to leverage the property with the least
down payment possible and control as muchappreciating assets as possible. Folks, were
at the end of our second segment, we're going to take a break,
come back and talk more about investingin real estate. If you have real

(22:22):
estate questions or if you need amarket analysis on your property, call Rick
right now at eight four three threetwo seven three zero one seven, or
you can email them at Rick atRickwillis dot com. Check out Rick's bio
and access all properties on the MLSat Rickwillis dot com. Welcome back,
Welcome back to Charleston. Welcome backto the Real Estate Show. Rick Willis.

(22:47):
I'm your host, and we're goingto keep talking real estate here.
Right before the last break, wewere speaking about real estate as an investment.
I believe that property values will continueto increase here in the short term.
When I say short term, let'stalk about the next two years.
I believe they're going to continue toappreciate three to five percent per year.

(23:14):
And I was giving you an examplethat said, if you bought a property
and you put one hundred percent downpayment and it goes up four percent a
year. I don't mean one hundredpercent down payment. If you paid all
cash for the property and it goesup four percent, you're getting a four
percent return on your cash. If, on the other hand, you put

(23:37):
down fifty percent down payment of thepurchase price and the property goes up four
percent, you're now getting eight percenton your cash invested. Because you leveraged
it, you had a mortgage onit. So if we were to wind
the clock back a couple of years, I'd be telling you put the minimum

(24:00):
down and because you could make thecash flow work with the lower interest rates
today, with the interest rates plusor minus seven percent, particularly for investors,
difficult to make the cash flow workputting the minimum down. So instead
of avoiding real estate, and insteadof paying all cash for the real estate,

(24:23):
how about putting fifty percent down.Leverage it on a two to one
ratio. You're going to get agreater return on the appreciation. You're probably
still going to see cash flow.If you're buying the right property in the
right location at the right price point, you'll see positive cash flow, and

(24:48):
you're also going to get income taxbenefits called depreciation. You see, the
tax laws of our country work inyour favor when you own come producing investment
grade real estate. You know,I had an accountant one time say to
me that the Internal Revenue Service doesn'twant you to pay a lot of taxes,

(25:12):
and they offer tax deductions and taxcredits for certain situations, trying to
manipulate you the public to follow theirtax laws, which would serve in your
favor. When you own investment gradereal estate cash flowing investment grade real estate.

(25:36):
One of the benefits is you havea paper loss called depreciation, which
means you can offset paying taxes onordinary income through the ownership of a property
you don't live in. This isnot applicable for your home or residence.
But when you own real estate,the portion of the real estate state that

(26:00):
is considered the building, not theland, you can depreciate and you can
take the portion of the property thatis sticks and bricks, and if it's
rental property, that's real estate that'sexcuse me, residential oriented. You can
divide that value by twenty seven pointfive years according to the IRS, and

(26:23):
for twenty seven point five years,you can subtract that amount off of your
taxable income, which really saves youmoney, genuinely. So if you're looking
for the safest place to put yourmoney, I suggest to you that it's
income producing, investment grade real estate. So we were talking about using real

(26:49):
estate as an investment. I believethe growth of that value of that property
will increase three to five per yearfor the next couple of years, and
then I really believe really that theinterest rates will decline sometime in the next
several years, and the property thatyou buy today at an interest rate that

(27:14):
you don't like compared to what itwas several years ago, you can refinance
that property, have more equity inyour property, possibly pull some equity out
of the property, have a lowerinterest rate, increase your cash flow from
that property, and it will lookbetter down the road after you've refinanced it

(27:36):
than it does today. And I'msuggesting to you that when you include all
the financial benefits of owning real estatecombined with the safety keyword safety, safety,
safety. We're in a volatile timeperiod, folks. You want the
majority of your assets in income producingreal estate. And the number of people

(28:03):
that are looking to buy income producingproperty right now has declined dramatically from what
it used to be when the interestrates are down. Is that because they're
smart or is that because they don'tknow what you might know? Folks,
It's a great time to be abuyer of income property, whether you are
paying cash or getting a mortgage onit. When you combine the appreciation with

(28:33):
the tax benefits called depreciation, andif you have a mortgage, you have
principle paydown, and you have cashflow. And when you combine all of
those elements together, the income youcan generate, the principal paydown should you
have a mortgage, the income taxdeduction, and the appreciation you're going to

(28:57):
be getting if you don't have amortgage, if you pay all cash for
the property, you're going to begenerating a seven to twelve percent annual return
on every dollar invested, seven totwelve percent on every dollar invested. If
you pay cash, no leverage,if you have some leverage with a mortgage,

(29:23):
maybe fifty percent mortgage, you aregoing to be generating up to a
twenty five percent annual rate of returnbecause you're doubling. You're doubling the return
on your cash invested because you dohave a mortgage. So, at the
end of the day, folks,if you have a four oh one K,

(29:45):
you have an IRA, that accountcan own real estate. You can
own it in your LLC's name thatyou create. And for some of you
you're saying, what is he talkingabout? Yeah, right now, let's
assume, for just talking purposes,that you have a retirement account IRA or

(30:08):
four oh one K. Let's makean assumption that that retirement account is with
Vanguard. This is an example,folks. Example only you've got an account
with Vanguard. They are what youcall your custodian. They are making decisions
on where your retirement funds are invested. If you've been looking for. Just

(30:32):
this year two thousand and twenty three, you might say, well, hey,
not so bad. Yeah, Itook a big hit looking back a
couple of years ago, but notdoing too bad. Now, Folks think
big picture. We are in themost volatile of economic times in my lifetime

(30:55):
and your lifetime. There is agreater probability of a stock market decline then
there is a real estate market decline. There's so many volatile things out there
that can cause any given stock orthe whole stock market to crash to decline
big time. And my question foryou is where is the safest place you

(31:22):
can have your money invested? Safestmeaning not lose your principle, and the
best probability of the highest rate ofreturn. So you've got safety number one,
don't lose your money number two,highest rate of return with the safety

(31:44):
and growth, So you've got safety, growth, and income as the three
reasons why you want to have themajority of your retirement funds in income producing
real estate. Now, let mecontinue with this because although I've talked about

(32:07):
it in past shows, a numberof you listening right now have not tuned
into those shows. You can changethe custodian from wherever you now have your
funds IRA four o one K andyou can have what is called a self
directed four oh one K or aself directed IRA. And what that means

(32:35):
is that the person who's currently holdingyour retirement funds, by way of a
third party called a self directed facilitator, transfers your money from the place it
is now in my example Vanguard,and it transfers it to an LLC that

(32:58):
you established that you set up ina local Charleston bank or two banks,
or three banks or four banks,depending upon the amount of money that you
have in your retirement account and witha self directed account. And by the
way, there's no penalty for this. You're not withdrawing the money. This

(33:19):
is critical with your four oh onek IRA, you're not withdrawing your money.
Therefore there's no penalty. You aresimply shifting custodians from some great,
big company that doesn't know you.And you're one of thousands of people that

(33:40):
invests your money in mutual funds,which is the stock market, and you're
changing it to where you as anindividual, get to decide do I want
to continue to invest all are partof my retirement account in mutual funds.

(34:00):
Do I want to own gold andsilver with my retirement account? Do I
want to buy income producing real estatewith my retirement account? And this third
party facilitator allows you to make thechoice, so that if, for example,

(34:22):
you have two hundred and fifty thousanddollars in your retirement account, and
you and I meet and we chatabout, well, what kind of income
or growth could I expect from mytwo hundred and fifty thousand. We will
sit down together and we will lookat what it is you could own by
way of investment grade real estate forappreciation, for growth, for income.

(34:50):
And I promise you, when youlook at it objectively, that's where you're
going to want the majority of yourretirement assets. And I was using an
example of two hundred and fifty thousand. There's people listening that have a million,
there's people listening that have two million, and you still have a high
percentage of your retirement assets in thestock market. For gosh's sake. You

(35:16):
see, when you have it inreal estate, you'll sleep good at night
because you have to think big picture, not just oh this year it's doing
pretty good. And my financial advisorsmaking the right choices on my behalf.
Folks, it's the entire stock marketrecently has been doing pretty good. But

(35:37):
if you can look at the potentialdownside, if you look back a year
two or three, most of youare not where you were several years ago.
Had you put the same dollars severalyears ago in a self directed account
and purchased some income producing property,you'd be in sitting pretty right now.

(36:01):
But it's not too late. Ibelieve there's going to be a tremendous up
surge when these interest rates decline herein a couple of years. The pent
up demand combined with the fact thatthere's still volatility in our stock market and
the whole world is on edge.Folks, Let's have a conversation about how

(36:23):
I can help you. Reach outto me Rick Willis eight four three three
two seven three zero one seven.Email me the letter R. R.
Willis Team at gmail dot com.Visit my website Rickwillis dot com. Let's
have an individual consultation to see howI can help you. And oh,

(36:43):
by the way, I help peoplebuy and sell their primary homes also.
So I look forward to talking withyou and we'll be right back for our
final segment. If you have realestate questions or if you need a market
analysis on your property, call Rickright now at eight four three three two
seven three zero one seven, oryou can email them at Rick at Rickwillis
dot com. Check out Rick's bioand access all properties on the MLS at

(37:07):
Rickwillis dot com. Welcome back,Welcome back, Joston, Welcome back to
the final segment of today's Rickwillis RealEstate Show. Well, folks, we've
talked about the overall market nationwide.We've talked about the market here in the

(37:28):
state of South Carolina and the greaterLow Country area, and we have spent
the last couple of segments talking aboutinvesting in Charleston area real estate for three
reasons. You want to own Charlestonarea real estate as the primary source of

(37:50):
your retirement income. Number One,safety, it's solid, it's tangible.
You want to convert paper assets totangible assets. Now, I hear these
commercials all the time about gold andsilver and precious metals, and I would
guess every time that commercial comes onthat there's millions of dollars that people move

(38:16):
to buy gold or silver. ButI challenge you, the very same people
that are buying gold and silver,which is a tangible asset. Have never
taken a pen and paper and satdown with me and looked at real estate.
You see the difference between something likegold and silver and real estate.

(38:39):
Is that how much income do youget while you own gold and silver?
Answer? None. It has togo up in value and then it has
to be sold, unlike real estate. See you buy the right kind of
real estate with cash or with theright kind of mortgage, on the right

(39:02):
property in the right location, youget income while you own it. And
should you be buying that real estatethrough your retirement account. It's tax free.
The income is tax free, notaxes on it. Now, folks,

(39:23):
let me caution you on something.Don't go to your existing custodian of
your retirement account and tell them thatyou listen to a guy on the radio
say that you can use your retirementaccount and buy properties individually, because he's
going to say, no, youcan't. What he really means is,

(39:45):
my company won't allow you to dothat. You must change custodians to create
a self directed four O one Ka self directed retirement account. Of self
directed are self directed approved by theirs, of course, and this custodian

(40:10):
only puts money where you tell themto put money where right now, where
you have your retirement account, somebodyelse's deciding which stocks to buy for your
portfolio. Folks, convert paper assetsto tangible assets own what can never be

(40:34):
replaced. I'm giving you a formulahere, folks, for how never to
lose your money and how to winevery time. So you convert your four
oh one K your IRA to aself directed You open up an account here
in local banks, and the selfdirected custodian transfer is your money to a

(41:00):
local bank that you have signature controlover. It's a limited liability company here
that you create and have money inthat account, and it's only used for
investing in things that are legally,morally and ethically approved by the IRS that
you can have in your retirement account, of which real estate is one of

(41:22):
those items. And you and Imeet, we talk about the amount of
money that you have available, someoptions and choices you have. Are you
in your twenties, thirties or fortieslooking long term that you know you're not
going to need any income out ofthis. Let's let it grow and compound

(41:44):
and grow some more and compound somemore, or are you at a stage
in your life where you would liketo have income from this respective retirement account,
and the strategy is a little different. What you buy might be a
little different. Nevertheless, we havea meeting where we look at options and

(42:09):
you're going to invest intangible asset thatcan never be replaced? Is what I
just said? What do you meanwillis never be replaced? Well, let's
suppose for just a moment, therewas no more gold that could ever be
mined, and it's just it's gone, There is no more of it,

(42:30):
But there was still a demand forgold. What would happen to the price?
Answer, go up in value.But something like gold and silver has
no inherent requirement. People don't haveto have it. It's a choice they
make. But real estate is different. What if you could own real estate

(42:54):
there could never be duplicated again,never be built again. That you could
real estate at a price that isbelow the cost of replacing it, and
there's still a demand for it,and the demand is a necessity of life.
Housing. You see, where there'sthe biggest opportunity in the real estate

(43:17):
sector is in entry level housing,the lower price tier of the marketplace,
so that the younger folks that don'town a house, don't have equity,
don't have other assets, can getstarted in this process called owning a home.

(43:38):
So in the Greater Charleston area,do you know you can still find
housing in decent areas for under onehundred and fifty thousand? Did you know
that? So you don't have tohave a lot of money to own income
producing real estate. And for alot of you you've got that much money

(44:00):
in your retirement account, just goout and let's pay cash for it.
You don't have to manage it.You don't have to deal with a tenant.
Find somebody else to do that.And that somebody could be my wife
and I. We handle property management. So one of the things that causes
people not to want to own rentalproperty investment grade real estate, as I

(44:24):
don't want the hassle of dealing witha tenant or a hot water heater.
You don't have to right now foryour stock portfolio, for your retirement income.
I know you're aware of this.There are fees that get subtracted from
your balance fees even when there's nomoney coming in, and if your stock

(44:47):
declines, there's fees that somebody's gettingpaid to manage your account. Well,
real estate's no different. You paysomebody else to find the tenant structure,
the lease vet, the tenant manageongoing to make sure they pay, and
if they don't, they're evicted.Any repairs handled by the management company,

(45:10):
you don't have to deal with anyof that. The neat thing is that
you only get to pay somebody elsewhen you actually have money coming in.
Unlike the guy at the brokerage housewho gets paid if your stock declines,
it declines again, they get paidsome more. Not so in this business.
Convert paper assets to tangible assets andmake sure you own what can never

(45:34):
be replaced. That is a necessityof life. Gold and silver are tangible,
but not necessities of life. Food, clothing, shelter necessity of life.
Folks. I'd like to help you, at least have a conversation with
me so we can talk about yoursituation, your assets, and what I

(45:58):
might be able to do to helpyou. Call me directly eight four three
three two seven three zero one sevenCall me right now, leave me a
message. If you don't want totalk today, let's talk another day.
But reach out to me. Emailme. R. Willis Team at gmail
dot com, the letter R Willisteam at gmail dot com, visit my

(46:20):
website Rickwillis dot com, Rickwillis dotcom, and I want you to have
a great weekend and I look forwardto hearing from you