AAA335 Think Real Estate is Overpriced? Think Again!-Bob Fraser

In this podcast, you'll learn 6 metrics to check if the market is looking strong right now: Mortgage Rate It will stay low for an extended period of time it is primarily driven by the global money flow. Money is Global Money flows. Its driving down global bond rates and US interest rates All interest rates flow together Inflation. Are we at the peak? For the largest markets right now prices are at the peak Smaller markets prices are right above the peak Price to Rent Ratio Price to rent ratio are 25% below the peak. The best way to buy a real estate is called a discounted cash flow basis. Look at the cash flow that you're going to receive from the investment and that determines the price you will pay. Supply and Demand Multifamily massively recovered since the crisis and above where they were pre crisis Single family homes shortage. It never recovered from the crisis. There are fewer single family homes. Consumer Debt Services US consumer's debt service is lower than anytime in the last 30 years The percentage of their income are used to pay their debts Consumers are in great shape today! Mortgage Underwriting In 2006 only 50% of origination are above 700 FICO score Today 80% origination are above 700 FICO score Underwriting is still very conservative Having been to many crisis, people are now very aware and concern of not repeating the last crisis "The way to make money is to buy when blood is running in the streets" - JP Morgan To connect with Bob, visit https://aspenfunds.us/creative-real-estate/ Sponsors: (https://thinkmultifamily.com/podcast/) (https://SyndicationPro.com) Use code: Adam Adams. First month for free! *And please go to iTunes to leave us a rating and write a review. Each review helps us reach a larger audience with your episode (https://podcasts.apple.com/us/podcast/creative-real-estate-podcast/id1285094279)