Episode 512

Seizing Opportunities in the Declining Real Estate Market with Bob Diamond

Bob Diamond is a seasoned investor who has witnessed the ups and downs of the real estate market firsthand. He first realized the unpredictable nature of prices when he wasn't yet involved in the industry. However, it was during the 2008 crisis that Bob truly understood the extent to which prices can plummet. Learning from this experience, he adopted a strategy favored by investors: waiting for prices to hit rock bottom before making any purchases. Bob firmly believes in not catching falling knives and emphasizes the importance of allowing prices to stabilize before making any investment decisions.

In addition to his observations on market fluctuations, Bob also discovered that tumultuous times present the best opportunities for savvy investors. After witnessing the aftermath of the crisis, he was amazed by the abundance of lucrative prospects that emerged. This realization motivated Bob to urge others to accumulate cash in preparation for seizing these golden opportunities when the timing is right.

Bob Diamond's story is one of resilience and a deep understanding of the real estate market. His experiences have shaped his investment approach, emphasizing caution during market downturns and anticipating the extraordinary potential that follows. With Bob's wisdom and expertise, many aspiring investors can navigate the unpredictable world of real estate with confidence.

Connect with Bob Diamond: theriseofoveragestoday.com

Key Points and Bullets:

Investing in Real Estate and Making Profit

  • Paying $130,000 for a property would result in a break-even situation after making adjustments for taxes.
  • Paying $175,000 for a property would not be a good deal.
  • In 2009, the speaker was able to purchase properties in Las Vegas for $80,000 each, including the cost of repairs.
  • These properties were rented out for $1,300 each.
  • The speaker was able to easily find and make offers on multiple properties, with a high success rate in getting accepted offers.
  • The speaker advises listeners to gather cash and have "dry powder" ready to take advantage of the market when others are out of cash.
  • Monitoring the days on market (DOM) statistic and the differential between listing price and selling price can provide insights into the state of the market.
  • The speaker has made a lot of money in the past by taking advantage of declining prices and buying properties when banks dump them.
  • They believe that a similar opportunity will arise in the future, but the exact timing and location are unknown.
  • The speaker recommends accumulating cash and preparing for the right market timing.

Government Actions and Financial Impact

  • The speaker criticizes certain states like Colorado, New York, and Illinois for allowing the sale of someone's house and keeping the money.
  • The speaker believes this issue will be resolved this year, mentioning a case from South Dakota that should overturn the states' ability to keep the money.
  • The US government intentionally creates inflation and continues to print money extensively.
  • The speaker predicts that the Federal Reserve will continue to raise interest rates, and they do not foresee a decrease in the near future.
  • They suggest that the government aims to maintain inflation in the range of 8 to 10%.
  • The speaker expresses concern about the mistreatment of the poorest individuals who lose their homes at foreclosure auctions, criticizing the government for taking advantage of them.

Media Influence and Advocacy

  • Both sides of the political spectrum are being used by the advertising machine, exploiting outrage to attract a larger audience.
  • The speaker mentions Fox News and Tucker Carlson as examples of media outlets and personalities using provocative statements.
  • People in a disadvantaged position struggle financially and cannot pay their taxes or afford legal representation.
  • They often give up and settle for subpar living arrangements.
  • Such individuals are not equipped to navigate bureaucratic processes.
  • The speaker's business involves obtaining lists of people owed money and convincing them of a genuine opportunity.
  • The speaker believes in helping small business people succeed and advocating for control over the government.
  • They express satisfaction in getting money back from the government as a form of revenge for being bossed around and having their money taken.
  • The speaker wants to teach others how to retrieve the money owed to them.

Impact of Economic Factors

  • Borrowing money today and paying it back in the future becomes easier with inflation.
  • The speaker asserts that the government intentionally creates inflation and continues to print money extensively.
  • The speaker believes that the real estate market is heading into a downturn, but the exact duration is unknown.
  • They recommend accumulating cash instead of buying new inventory for flipping.
  • The focus should be on finishing up existing projects and getting them flipped.

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Real Estate Investing with the REI Mastermind Network

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About your host

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Jack Hoss

We gather amazing stories from leaders in Real Estate Investing. In each episode, our guests will tell you what they are doing that works, what they tried that failed, and best of all you'll learn actionable steps to take your real estate investing to the next level.