Gearing up for a Generational Buying Opportunity

When even the bears are bullish and the city is the wind in your sail!

I believe that a fantastic time in Real Estate history is upon us. The best buying opportunity of a lifetime.

There are more younger developers listing their prized jewels that they were planning to build their way into their Aventador’s only to realize,

“Shit! This was much easier when the market was going up. If I hang onto this I’m fucked.“

I’ve seen many properties for sale lately that my spidy senses told me more than a year ago that they would be in trouble if my instincts were right and the tides would start to turn.

Most don’t realize this, but I have been waiving my hands and trying to warn everyone that I felt the wind shifting the minute that I heard that EVERGRANDE in China was in trouble. People would make fun of anyone that called it a “Lehman Moment”. It turns out it was the first of many “Lehman” sized moments.

I learned the hard way from getting destroyed in the Real Estate market in 2008-2009 that if I didn’t pay attention to what was going on around me with regards to the rest of the world I would get my ass handed to me again one day. So when I heard about EVERGRANDE in China I called my partners and said,

“Boys we are fucking selling now. I don’t care what we thought we could get. I’m not hanging on to this property if all hell is about to break lose. Worst case is I’m wrong and we are still happy. “

The last few weeks I have been in a very aggressive buying mode. I have been making many offers on many properties. Its not easy to put a deal together right now for multiple reasons.

1. Sellers price expectations are way out of line with reality right now. (they will tell you its the buyers.)

2. Without a shit ton of cash it is impossible to get anything to pencil out right now.

Most people were telling me I was the only buyer out there. That I was crazy.

“Why would you want to catch a falling knife?” they would ask.

Yesterday I called to enquire about a property listing that came across my desk and the agent told me that he had 7 offers.

The market is confused and scared. Even if you pride yourself on understanding the real estate market it is very confusing right now. You can hear it in peoples voices and you can see it in peoples actions. I have seen this first hand as my neighbor tried to get ahead of the plunging market, and “dumped” her home for well under the current value. (what I paid for mine) Her husband died recently and she just wanted to get out and count her cash. I don’t blame her, even though I hate her now.

The MEGA PERMA BEARS that I have known for years and that have literally depressed to the point of needing a therapist on multiple occasions throughout the years, with their pessimism and great arguments for a housing crash, it turns out that they are BULLISH AF right now.

Someone I trust and I look up to always answers the same way no matter when I ask him.

“What are you thinking these days? Are you waiting?” I would ask.

“I’m buying. If I can borrow the money I am a buyer.” he would always say.

I truly believe that we are entering into one of if not THE BEST BUYING OPPRTUNITIES OF MY LIFETIME. The bold and courageous that can manage to put great deals together in this environment will be creating Generational wealth for their families and partners. This is the time that everyone has been warning us about.

When people are scared they make scared decisions. More often than not, scared decisions are not well thought out and are impulsive. Trust me. This was one of my strong suits for years.

We now have the municipal and provincial government in unison with the federal government making it clear that they plan to flood the market with more buyers and they will be the wind behind the developers sails with new policies geared towards pumping out more homes faster.

If you can push through the fear it looks like there is about to be a lot of blood in the streets and I have my dry powder and my mop and bucket ready to go!!!

Wish me luck. I’m going to need it.