The elephant in the room

#IzmahShavuot Tal Boiman #Post2
'?…Knock, Knock. Who's There'
hi friends
After many knocks on the door, the elephant enters the room and I want to start with him.
It's an elephant that hasn't visited here in a very long time, it comes to us every few years and it's been doing it regularly for hundreds of years.
Who is this elephant?
That elephant is the recession that has come to visit, the interest rate that continues to climb and the inflation that rears its head.
What do you do when the elephant comes to visit?
Put aside the newspaper headlines, the commentators, opinions, noises and slogans that pop up in every corner, and in their place examine what happened to the American real estate market during the elephant's previous visits, and only based on the data draw conclusions about the future, act accordingly, continue to be profitable - until it is swept away outside.
So how does the American real estate market behave in times of recession?
I'm glad you asked ????
Because if we take the subprime crisis out of the equation (which was unique and grew out of the world of real estate) we will find that during recessions and crises, real estate prices in the US were affected in two ways - they remained stable in place, or they dropped a little and quickly flew like a stretched spring to a higher place High. At the same time, most rental prices have increased or remained stable. (I have attached photographs of graphs)
What about the rising interest rate?
So, historically, the interest rate is completely normal and interest rate increases moderate inflation (which has already dropped to 6.5%).
The thing is that, like many babies who go through weaning from mother's milk to bottles, the whole world has been addicted to the environment of zero interest since 2008, and weaning has never been a simple and easy thing.
Smart investors have been waiting 15 years for this moment...
'Never waste a good crisis' said Winston Churchill, and the interest rate increases in the last year have turned the market from a 'seller's market' to a 'buyer's market' and those of us who understand and understand the matter will enjoy great opportunities to buy good properties at great prices!
'what…? How do we profit if the power has passed into the hands of the buyers?'
Most real estate investors forget that in a seller's market it is difficult for us to reach good deals, because there are always good buyers who jump in and force us to go to war. But when the power goes into the hands of the buyers, it's time for us to go out with poison in our eyes, buy below the market price and cut prices.
It is important to me that you know that there are not many people who do what we do, many people do not understand that a strategy needs to be changed, and many people do not have a long-term vision and an understanding that buying correctly below the market price, along with correct improvement, will lead them to a profitable sale.
This means that if until now you bought at 20% below the market price, then today you will buy at 30% and 40% below the price and it is time to go out, find sellers who are pressed for money, negotiate with them properly and create bonanza deals that were not seen here in - the last 15 years.
And if you want to see how the 'beautiful words' I write for you become a profitable reality in the field
So get to know the house on commodore street 2020 brevard florida and it is just one example from a group of houses we purchase in the area (I have attached pictures of 'before and after' and of the sales contract)
A story about a purchase we made about six months ago, while everyone else is running away from the market, and it seems that only we see great opportunities to buy houses.
'Wait, did I say houses…?'
Because if so, then I meant a 'drug den' that is located in a good neighborhood, in which several drug addicts live and to the innocent observer from the outside it looks like a normal house - and here are the data:

✅ Purchase price - $333,172
✅ Renovation - $45,367
✅ Expected sale price - $450,000
✅ Expected profit (after reducing sales costs) - $42,211
✅ Actual sale price - $485,000
✅ $35,000 higher than the business plan!

And all this at a time when 'the elephant in the room', interest rates are rising, prices are rising and inflation is increasing.
So how does it happen?
This happens thanks to the 7 rules for investing during a recession that I want to share with you.
A. Focus on residential real estate and remember that people always need a place to live
B. A good buy is a buy below the market price and there are no compromises
third. Prepare a plan B for 'Rental' and don't be surprised
d. Invest in properties with reasonable prices - not trash areas and not luxury
God. Improvement potential is not a choice, it is a must!
and. Reduce exposure to levers and aim for short projects and fixed interest rates
G. Focus on new construction (Build To Rent) and take advantage of a decrease in construction costs
History proves that a recession creates opportunities, and among us there are many people who made (and are making) a lot of money with the help of correct adjustments for the period, and wiser people than me have already said 'don't wait to buy real estate, buy real estate and wait'.
'And You Can Take It To The Bank...!'
Friends, we are in a great time for real estate investments! It's only a matter of time but this recession will end, the real estate market will rise, rental prices will continue to climb, interest rates will drop again and we will all run to refinance - and smile all the way to the bank.
And now a few words about tomorrow's post
I called him 'buying below the market price that will save you!' And he will of course deal with the critical importance of buying below the market price. In addition, I'm going to expose you to data and stories about 2 'fresh' projects that absolutely implement everything I say, believe in and implement.
In the meantime, you are welcome to comment here below the post and express an opinion, strengthen and of course also oppose ???? I would be happy to have a lively, interesting, educational and enriching discussion and I would also be happy if you would tell me what is the one thing you take from this post, and what is your strategy for dealing with the elephant in the room.
I promise to read everything and respond.
Tal.