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Mike Swenson - The $300 Billion Real Estate Opportunity · REL Freedom Podcast

• 0:00
  Mike Swenson: It doesn't mean you know the building's on fire.
• 0:02
  Mike Swenson: It doesn't mean that there was, you know, some landmine that went off.
• 0:06
  Mike Swenson: It could just mean life changed and we've we've got some different problems to solve.
• 0:11
  Mike Swenson: So there you get to step in and help solve a problem and meet a need and hopefully take advantage of a great opportunity.
• 0:18
  Mike Swenson: Uh it doesn't mean that, you know, a person's going into bankruptcy or if they can't sell this property, the whole world's gonna end.
• 0:24
  Mike Swenson: It just means life changed.
• 0:26
  Mike Swenson: You can step in, you can help solve problems.
• 0:31
  Mike Swenson: Welcome to the Real Freedom Show.
• 0:33
  Mike Swenson: We inspire you to pursue your passion to gain time and financial freedom through opportunities in real estate.
• 0:38
  Mike Swenson: I'm your host, Mike Swenson.
• 0:39
  Mike Swenson: Let's get some real freedom together.
• 0:51
  Mike Swenson: Hello, everybody, welcome to another episode of Real Freedom, where we help people build time and financial freedom through opportunities in real estate.
• 0:58
  Mike Swenson: I'm your host, Mike Swenson.
• 1:00
  Mike Swenson: If you want to get started on your real estate journey, check out our website freedom throughrealestate.com.
• 1:06
  Mike Swenson: FreedomThrughrealestate.com is where we put all of our great content, all of our messages, interviews, and other great blogs for you to get started and figure out what you want to do in real estate.
• 1:17
  Mike Swenson: So it's all about taking action, and we want to make sure that we can help you any way that we can.
• 1:22
  Mike Swenson: And today I'm excited.
• 1:23
  Mike Swenson: I've got a cool opportunity, cool topic to talk about.
• 1:26
  Mike Swenson: We're titling this the$300 billion real estate opportunity.
• 1:31
  Mike Swenson: And for those of you listening, you're probably wondering what the heck is this about?
• 1:34
  Mike Swenson: Essentially, I read an article.
• 1:36
  Mike Swenson: It talks about in the next year here, there's gonna be about$300 billion of debt that's gonna need to be dealt with as it relates to multifamily real estate.
• 1:46
  Mike Swenson: So if you're somebody that hasn't invested in real estate before, maybe you just have a regular property, right?
• 1:52
  Mike Swenson: You get a mortgage on that property.
• 1:54
  Mike Swenson: That property is good for about 30 years, right?
• 1:57
  Mike Swenson: Most mortgages are about 30 years, and it's a little bit set it, forget it.
• 2:01
  Mike Swenson: The interest rates drops, maybe you'll refinance, otherwise, you might hold on to it.
• 2:05
  Mike Swenson: For those people that uh were able to get the the twos and the three percent mortgages, you might just hold that mortgage for the next 30 years and not deal with it.
• 2:12
  Mike Swenson: Well, in multifamily, it's a little bit different because you're not gonna get those same terms, more than likely.
• 2:19
  Mike Swenson: You might get something that, you know, it's it's very common that in five years that loan becomes due.
• 2:24
  Mike Swenson: So even if you have a property that maybe is amortized over 25 years or 30 years, the actual term on the loan might be something like three years, five years, 10 years, something like that.
• 2:36
  Mike Swenson: You might have an interest-only period, you might not.
• 2:38
  Mike Swenson: So there's lots of debt that's coming due, and it'll continue to come due.
• 2:42
  Mike Swenson: So even though we're in a great spot and we secured a great mortgage, you might have to go back and deal with that debt.
• 2:49
  Mike Swenson: And as we know, interest rates have gone up over the last couple of years.
• 2:53
  Mike Swenson: So people that have had great rates previously now have to deal with that.
• 2:57
  Mike Swenson: And so I just wanted to talk about what does that look like today and how can that help you find great opportunities in a market that is a little bit tougher to find great opportunities.
• 3:09
  Mike Swenson: And we'll talk about that.
• 3:10
  Mike Swenson: And a lot of the stuff that we'll talk about is stuff that we've had to deal with.
• 3:14
  Mike Swenson: It presents challenges, it presents some strategy changes and things that need to happen.
• 3:19
  Mike Swenson: Because, you know, when we go and we talk to investors and we say, hey, invest in this deal, the way things are two, three, four years down the road, as much as we try to put together our crystal ball and project out what's gonna happen, that's always not the case.
• 3:33
  Mike Swenson: And so things change, circumstances change, timelines change, and now debt changes and we've got to figure out what to do.
• 3:41
  Mike Swenson: So we're gonna talk about that today, cover some important things to help you guys so that you can find good deals and find investors for these deals and hopefully secure some some great opportunities.
• 3:52
  Mike Swenson: First things first, I talked about refinancing, right?
• 3:55
  Mike Swenson: So, you know, let's say somebody bought a property five years ago, you know, here we are, end of, you know, towards the end of 2026.
• 4:02
  Mike Swenson: We bought a property end of 2021, interest rates were awesome, and uh, we got a five-year term, and now the bank's saying, Hey, what are you gonna do now?
• 4:11
  Mike Swenson: Uh, the term is is coming up on this loan.
• 4:13
  Mike Swenson: So it doesn't necessarily mean that something bad happened, you know, it's a uh an extremely uh tense situation.
• 4:21
  Mike Swenson: But if you think about what happens in life, five years is a long time, right?
• 4:26
  Mike Swenson: Things can change.
• 4:27
  Mike Swenson: And so it could be something where you know the owner got their loan at a at a better interest rate and now they've got a higher interest rate.
• 4:35
  Mike Swenson: Well, that mortgage payment's gonna go up, right?
• 4:38
  Mike Swenson: Just if I bought a bought a property, sold it, bought a uh more expensive property, you know, as our family got bigger and maybe our income got bigger, we've got a higher mortgage payment.
• 4:48
  Mike Swenson: So we've got that.
• 4:49
  Mike Swenson: That happens.
• 4:50
  Mike Swenson: The property values have changed over time, right?
• 4:52
  Mike Swenson: We're trying to increase income, decrease expenses.
• 4:55
  Mike Swenson: Maybe we weren't able to do that.
• 4:57
  Mike Swenson: Insurance rates got a heck of a lot higher.
• 5:00
  Mike Swenson: That landscape has changed a ton in the course of five years.
• 5:04
  Mike Swenson: Taxes, operating expenses, property management, growth of the property maybe hasn't followed suit with what you think was actually going to happen.
• 5:14
  Mike Swenson: So, in the course of five years, a lot happens.
• 5:16
  Mike Swenson: Also, when you're in a partnership with somebody, life changes in five years.
• 5:20
  Mike Swenson: If I go back to where I was at five years ago, right?
• 5:23
  Mike Swenson: My kids were much younger.
• 5:25
  Mike Swenson: We just recently got into this house.
• 5:27
  Mike Swenson: I actually wasn't that far removed from uh doing residential real estate instead of being an investor.
• 5:33
  Mike Swenson: Other people in similar situations now they've changed.
• 5:36
  Mike Swenson: And so partnerships might change, people might drift in different directions.
• 5:40
  Mike Swenson: So there's a lot of reasons why five years from or you know, five years ago to now, stuff has changed.
• 5:47
  Mike Swenson: And so it presents an opportunity.
• 5:50
  Mike Swenson: And so, what I want to remind people is you're here to help solve problems, right?
• 5:55
  Mike Swenson: It doesn't mean you know the building's on fire, it doesn't mean that there was um, you know, some landmine that went off.
• 6:02
  Mike Swenson: It could just mean life changed and we've we've got some different problems to solve.
• 6:07
  Mike Swenson: So there you get to step in and help solve a problem and meet a need and hopefully take advantage of a great opportunity.
• 6:14
  Mike Swenson: Uh, it doesn't mean that you know a person's going into bankruptcy or if they can't sell this property, the whole world's gonna end.
• 6:20
  Mike Swenson: It just means life changed, you can step in, you can help solve problems.
• 6:26
  Mike Swenson: And so, like I said, we've experienced this.
• 6:28
  Mike Swenson: So when we've taken over properties, you know, we had somebody moving out of state, we had somebody looking to retire, we had somebody that was in over their head on a property and couldn't handle it.
• 6:39
  Mike Swenson: And so we were able to come in and bring a professional management situation into that.
• 6:43
  Mike Swenson: Somebody looking to scale up into a bigger building, right?
• 6:46
  Mike Swenson: There's people that are growing and we're growing too, but we're maybe a few years behind them.
• 6:51
  Mike Swenson: And so while that person's scaling up to something bigger and better, we're coming into something that's a great size for us.
• 6:57
  Mike Swenson: And so all these can be reasons why people are selling their property.
• 7:01
  Mike Swenson: Partnership, right?
• 7:02
  Mike Swenson: Just changed.
• 7:03
  Mike Swenson: Somebody grew in a different direction, somebody moved out of state, somebody changed jobs, and they're no longer focused on the same things that they're focused on.
• 7:11
  Mike Swenson: And so these are all great reasons why when that opportunity comes up to refinance the loan and and take care of their debt, you can come in and solve a problem and and take care of that and help somebody out.
• 7:24
  Mike Swenson: And so if we're buying a property, you know, a lender's gonna give a loan, let's just say, just for clean numbers' sake, a million-dollar property, right?
• 7:33
  Mike Swenson: Let's say they want 25% down.
• 7:35
  Mike Swenson: So that mortgage, you know, was for$750,000.
• 7:41
  Mike Swenson: And let's say over time, maybe that value hasn't kept up, and maybe the property value went down.
• 7:48
  Mike Swenson: Well, if it went down to say$900,000, the bank's now going to issue a mortgage based on 25% being down of that$900,000 loan.
• 7:59
  Mike Swenson: Well, there might be you have to put cash into the deal to be able to get that next mortgage.
• 8:04
  Mike Swenson: And so there's properties out there where, yeah, they haven't been able to increase the value like they thought they would.
• 8:10
  Mike Swenson: And so presents you with great opportunities to find those circumstances where you can bring value.
• 8:16
  Mike Swenson: We had another situation, I I've talked about this previously, where it was a bad relationship between business partners and they wanted to get out of business.
• 8:24
  Mike Swenson: And so they're not looking to, you know, fire sale the property, they just want to move on to their their separate ways.
• 8:31
  Mike Swenson: So find out what those scenarios are.
• 8:33
  Mike Swenson: And so we'll we'll talk next here on kind of how how to find these deals.
• 8:37
  Mike Swenson: But you're gonna want to ask those questions about, you know, not that not every broker, not every you know, person who has access to a deal is gonna share all that information, but look for ways that you can help.
• 8:48
  Mike Swenson: You know, try to try to get some some information on what's happening with that partnership and what's happening that with that relationship as to why they're selling, and maybe you come up with some creative ways to figure out.
• 8:59
  Mike Swenson: Now, I know when it's small multifamily, a lot of times when I was helping clients sell properties, the agent, the buyer's agent would say, Well, what's going on?
• 9:07
  Mike Swenson: You know, they're they're looking for the fire, they're looking for the bomb that went off.
• 9:11
  Mike Swenson: Um, you know, what are they hiding about the property as far as why they're trying to sell?
• 9:15
  Mike Swenson: And the reality is, is a lot of times that that's not the case, right?
• 9:19
  Mike Swenson: It's just something came up.
• 9:21
  Mike Swenson: And so ask those questions.
• 9:23
  Mike Swenson: So who do we go to to find these deals?
• 9:26
  Mike Swenson: Real estate brokers, right?
• 9:27
  Mike Swenson: So if you you go onto some of these national websites and you look for property, you know, we're just talking about, you know, multifamily here.
• 9:35
  Mike Swenson: Um, if it's small, multifamily, maybe you find somebody with MLS access, find an agent.
• 9:40
  Mike Swenson: If it's larger, you're looking at some national websites to find out.
• 9:43
  Mike Swenson: And what you're doing is you're looking at potential properties, but you're not necessarily looking for that specific deal.
• 9:51
  Mike Swenson: So as I comb through apartment buildings for sale, a lot of times they're they're not fits for what I'm looking for, but I am finding out who's the agent or who's the person that owns that property.
• 10:04
  Mike Swenson: And you can reach out and develop a relationship with them.
• 10:06
  Mike Swenson: So whether it's a broker, it's an owner, principal in the company, whatever that might be, you can find a property that maybe isn't a fit for you size-wise, price-wise, location-wise, whatever that might be.
• 10:19
  Mike Swenson: And then go ask them the question, what else do you have?
• 10:23
  Mike Swenson: Can I get on your deal list?
• 10:25
  Mike Swenson: Can you send me opportunities that you might have down the road?
• 10:29
  Mike Swenson: And so, you know, what's the two best times to plant a tree 20 years ago and today?
• 10:34
  Mike Swenson: So if you haven't been doing that, you can start doing that.
• 10:38
  Mike Swenson: Um, that may not help with a deal if you're looking to purchase something here right away.
• 10:41
  Mike Swenson: However, top of mind is really important.
• 10:43
  Mike Swenson: I've had so many times where I have a great conversation with a broker or somebody who's sourcing me a deal, and for the next month or two, they might send me a bunch of stuff and then they don't do a good job with following up and I never hear from them again.
• 10:58
  Mike Swenson: However, doing that research, doing that that due diligence, reaching out to people can get some deals sent your way.
• 11:04
  Mike Swenson: Reach out to lenders, right?
• 11:06
  Mike Swenson: Lenders have a great idea of what loans are coming due and might have uh some situations that they know where somebody's needing to try to get a mortgage, um, a new loan, and might not be able to, or you know, due to all the reasons why I listed before, circumstances might change.
• 11:23
  Mike Swenson: So you can kind of maybe maybe find out some information from them.
• 11:26
  Mike Swenson: Property managers.
• 11:27
  Mike Swenson: Property managers are great people, they know the timing on stuff.
• 11:31
  Mike Swenson: I've talked with my property managers on our deals, they know when we're looking to sell.
• 11:37
  Mike Swenson: Um, right now we have a property we are looking to sell because we've added value that we expected us to do over the last couple of years.
• 11:46
  Mike Swenson: We've kind of reached that point and we think now might be a time to sell and have our investors uh be able to redeploy that capital elsewhere.
• 11:54
  Mike Swenson: So I'm talking to him about a sales timeline.
• 11:57
  Mike Swenson: They're gonna work on updating the property, maybe some new paint for the doors, maybe some new paint for the windows, make it look good for showings, update some of those things where the the curb appeal is important, but he knows we're looking to sell the property.
• 12:12
  Mike Swenson: So reaching out to property managers and seeing here's the type of property that I'm looking for.
• 12:16
  Mike Swenson: Do you have any that you know of where people might be interested in selling?
• 12:20
  Mike Swenson: They might need to reach out to the owner and get their permission to share that information with you, but that's a great resource for people.
• 12:26
  Mike Swenson: Um, contractors, right?
• 12:27
  Mike Swenson: If I'm looking to update a property to get it ready to sell, I'm gonna hire a contractor to maybe do some work on it uh before we go to sell.
• 12:35
  Mike Swenson: So you find some contractors.
• 12:37
  Mike Swenson: You know, if I'm looking for a commercial building in a certain area, try to go find who are the commercial builders or commercial construction companies in those areas that might be doing work on these properties.
• 12:48
  Mike Swenson: Other owners, right?
• 12:50
  Mike Swenson: They're they're connected to each other.
• 12:52
  Mike Swenson: Find out what else do you have?
• 12:53
  Mike Swenson: Who else do you know?
• 12:54
  Mike Swenson: Those are some great questions to be asking.
• 12:56
  Mike Swenson: Going to networking groups.
• 12:58
  Mike Swenson: So you're gonna do all those things to try to find what these opportunities are.
• 13:04
  Mike Swenson: When you find these opportunities from people, then you're gonna go ask those questions that we talked about before, right?
• 13:10
  Mike Swenson: What's their situation?
• 13:12
  Mike Swenson: How can I help?
• 13:14
  Mike Swenson: And the reason why how can I help is important because you may not need to go get a brand new mortgage, right?
• 13:21
  Mike Swenson: There, there may be some opportunities, even though the debt's coming due.
• 13:24
  Mike Swenson: Maybe they can secure some financing and they might do some sort of seller financing or a seller carry back for part of that.
• 13:32
  Mike Swenson: They might be willing to help with that next situation.
• 13:35
  Mike Swenson: So we've had that happen a couple of times where as we're coming up into bigger properties, people who are more established have the assets, able to continue a guarantee on a loan.
• 13:46
  Mike Swenson: We've been able to take over those loans or work with them uh to be able to secure new financing for loans where we can essentially utilize the experience that they have, utilize that the assets that they have for guaranteeing those properties.
• 13:59
  Mike Swenson: So that's something that you can do, have some conversations with them, and then maybe you put together a plan.
• 14:05
  Mike Swenson: We we had a great uh great opportunity a couple of years ago where yeah, it was a seller that you know was was struggling with a loan, and we put together a new plan of here's how we take this to the next tier.
• 14:17
  Mike Swenson: And by bringing in some new capital, updating some units, it the finances make made sense for us at a higher interest rate than what they had.
• 14:26
  Mike Swenson: But because we were bringing in a lot of value to the property, the numbers worked at that higher interest rate because we were also increasing the occupancy of the property.
• 14:36
  Mike Swenson: So ask those questions, find out that information, build some great relationships, and I think through that you can you can try to try to find some good deals.
• 14:45
  Mike Swenson: Remember now we're talking about commercial multifamily most often here.
• 14:49
  Mike Swenson: So, you know, probably five units plus for some of these loans.
• 14:52
  Mike Swenson: But seller carrybacks are a great thing that you could take advantage of.
• 14:56
  Mike Swenson: So uh maybe they're willing to put together a loan.
• 14:59
  Mike Swenson: So I you know, going back to that example of a million-dollar loan, right, or a million-dollar property, seven hundred and fifty thousand dollar loan from the bank.
• 15:08
  Mike Swenson: So in that situation, I have to come up with two hundred and fifty thousand dollars to be able to secure that loan.
• 15:15
  Mike Swenson: Well, sometimes the bank, you know, they they just want to make sure that$250,000 is secured or is is put into the deal.
• 15:25
  Mike Swenson: A seller might be willing to finance$100,000 of that on a separate loan.
• 15:30
  Mike Swenson: Now, obviously, this all has to be on the up and up with the bank, and we want to make sure that they're aware of these situations.
• 15:36
  Mike Swenson: But if I bring$150, the seller helps finance$100, and then the bank puts together the$750, we're able to take care of that.
• 15:46
  Mike Swenson: And so I only have to bring in$150,000 instead of$250.
• 15:49
  Mike Swenson: Or maybe you only bring in$100 and the seller's able to do a carry back of$150,000 and you work out a separate payment structure with them.
• 15:57
  Mike Swenson: What's helpful for them too is they get to stretch out that payment or essentially that that capital gains over time.
• 16:06
  Mike Swenson: So instead of getting all the money at once, they're financing part of that over time.
• 16:11
  Mike Swenson: And so they stretch out that tax liability there.
• 16:14
  Mike Swenson: So it's advantageous for them.
• 16:15
  Mike Swenson: So that's where I come back to.
• 16:17
  Mike Swenson: We're looking to solve problems, right?
• 16:19
  Mike Swenson: Remember, solving problems is how you can win some of these deals.
• 16:23
  Mike Swenson: And so if I can help solve the seller's problem, it helps for me.
• 16:27
  Mike Swenson: So we've had a few properties where we haven't had to bring a full-down payment uh to the closing because we've had some seller carrybacks.
• 16:34
  Mike Swenson: And so, you know, once again, just taking advantage of people who have been there before, people who are trying to stretch out their tax payments or their gains taxes, and you can help each other out.
• 16:46
  Mike Swenson: So, as we're looking at connecting with people, we are connecting with lenders, connecting with the mortgage side, we're reaching out to our brokers, we're reaching out to our property managers, owners, and things like that.
• 16:57
  Mike Swenson: We need to figure out what does make this a good deal, right?
• 17:01
  Mike Swenson: So just because we're buying it for less than they bought it for, right?
• 17:05
  Mike Swenson: Or whatever that might be, what constitutes a good deal in real estate?
• 17:10
  Mike Swenson: Well, there's a there's a lot that goes into it, and and we're trying to put our crystal ball together and predict the best we can what's gonna happen five years from now.
• 17:19
  Mike Swenson: Because if I get a five-year loan, I got to figure out how are we gonna make this so we don't get into a situation where we're gonna be stuck because of higher interest rates or the value is not there five years from now.
• 17:31
  Mike Swenson: So we wanna find what makes a good deal.
• 17:33
  Mike Swenson: So, real quick, if you if you haven't been analyzing deals, or this is your first one, or maybe you've done a couple or you've you know piggybacked off some other people finding deals and now you're finding your own.
• 17:45
  Mike Swenson: Here's what's important.
• 17:46
  Mike Swenson: Number one, we're looking at the market that we're buying in.
• 17:49
  Mike Swenson: Is this a market where the population is going up or the population's going down?
• 17:54
  Mike Swenson: If it's going down, what what's gonna happen is five years from now, there's gonna be a lot more vacancy in the city.
• 18:00
  Mike Swenson: We've looked at some communities in Minnesota where the population is pretty stagnant or it's going down.
• 18:05
  Mike Swenson: Well, if we fast forward five years, there's a couple of problems.
• 18:08
  Mike Swenson: Number one, there's not as many butts in the seats that are are looking for a place to rent.
• 18:13
  Mike Swenson: Number two, it also puts strain on what we're able to charge for rent.
• 18:18
  Mike Swenson: A big part of the strategy is we want to buy a property, increase the income, increase the rents.
• 18:24
  Mike Swenson: Well, if I'm increasing rents on my building and there's a lot of opportunities for them to live in other places in the city because the population is stagnant or decreasing, they're just not going to pay my rent.
• 18:36
  Mike Swenson: So if I charge, you know, let's just say$600 for a one-bedroom apartment or something like that, or two bedrooms wherever you're living in, um, and I try to increase the rent to$650 or$700.
• 18:47
  Mike Swenson: Maybe I made it look nicer.
• 18:49
  Mike Swenson: Maybe I updated it and legitimately did a good job.
• 18:52
  Mike Swenson: But that person staring at a$600 rent payment or a$700 rent payment, that$100 might be enough where they go walk somewhere else.
• 19:00
  Mike Swenson: They might be living willing to live in a less finished space or a smaller space because the$600 is what's most important to them.
• 19:11
  Mike Swenson: So that's where the population and the market is really important.
• 19:14
  Mike Swenson: So we're looking at populations where there's growth, where there's you know a housing shortage where we can hopefully five years from now see that there's gonna be continued demand there.
• 19:25
  Mike Swenson: So we're looking at who are the employers?
• 19:27
  Mike Swenson: Are those employers likely to stick around?
• 19:29
  Mike Swenson: Or is that person gonna you know farm off some jobs to somewhere else or sell the plant and move somewhere else?
• 19:37
  Mike Swenson: So you've got to be thinking about that because we want five years from now there to be more demand for my apartment building or my unit than there was five years ago.
• 19:45
  Mike Swenson: The property itself, right?
• 19:46
  Mike Swenson: We're looking at the location of that property, where is it located within the city or the community that you're at?
• 19:52
  Mike Swenson: Is it a good spot?
• 19:53
  Mike Swenson: Is it a place where people want to be?
• 19:55
  Mike Swenson: Does it have accessibility to public transportation?
• 19:58
  Mike Swenson: If there's public transportation there, what's the condition of it?
• 20:01
  Mike Swenson: What's the unit mix, right?
• 20:03
  Mike Swenson: Like so it might be a place where a studio apartment is really hard to rent.
• 20:07
  Mike Swenson: Maybe a one-bedroom apartment is really hard to rent.
• 20:10
  Mike Swenson: If it's two bedrooms, you know, that tends to rent pretty well.
• 20:13
  Mike Swenson: And so if I've got a building that's all studios, the numbers you know might work, but it's gonna be harder to rent out a studio.
• 20:20
  Mike Swenson: We've we've got an apartment building right now where all you know a lot of the studios that we have are are vacant.
• 20:26
  Mike Swenson: Now, in this case, the studios, you know, they they don't have a kitchen as much, a full kitchen, so it makes it tougher, right?
• 20:32
  Mike Swenson: So we're kind of scratching our heads trying to figure out how do we get rid of these studios.
• 20:35
  Mike Swenson: So you don't want to buy a bet uh apartment building that's all studios if there's no demand for studios, right?
• 20:42
  Mike Swenson: Um, so that unit mix is really important.
• 20:44
  Mike Swenson: And then the rent potential, you're looking at what can I reasonably charge a year from now, three years from now, five years from now, so that when your five-year loan comes due in five years, you've got a great situation on your hands.
• 20:56
  Mike Swenson: Obviously, net income is important, operating expenses, you know, how much money you have to put down.
• 21:02
  Mike Swenson: But I think the the market is really important, the population, what the appetite is for rent increases, and then obviously the condition of the property.
• 21:11
  Mike Swenson: And then, yeah, come back to once again, kind of why are people looking to sell?
• 21:15
  Mike Swenson: How can you solve their problems?
• 21:17
  Mike Swenson: So I think I've shared, you know, a few good examples from our own properties in terms of you know how we were able to get these deals, how we were able to structure the debt.
• 21:27
  Mike Swenson: And then the reality is for us, we're in the same boat five years from now as these people are today trying to figure out what we're gonna do with that debt.
• 21:35
  Mike Swenson: So uh really important.
• 21:37
  Mike Swenson: So I think uh, you know, as as you're out there looking, we're not looking just for distressed properties, we're looking to solve problems, we're looking to help people with the problems.
• 21:46
  Mike Swenson: And so the opportunity in real estate isn't necessarily finding the owner who's desperate to sell, but more it's about finding the person who's got a problem, figuring out how you can solve it, and create a win-win.
• 21:58
  Mike Swenson: And you know, that's where the real opportunity can be in in these situations.
• 22:02
  Mike Swenson: So find those people, build those relationships, figure out what's going on, find those great deals, and$300 billion in debt coming due, and it creates a great opportunity.
• 22:13
  Mike Swenson: It's an opportunity for you to win.
• 22:14
  Mike Swenson: So if you're listening to this episode, if you've got questions, I also want to remind people I'm here to help.
• 22:20
  Mike Swenson: You listen to the podcast, you move on with your day.
• 22:23
  Mike Swenson: But if you need to reach out to somebody, I'm somebody that's that's always willing to talk and help people out.
• 22:29
  Mike Swenson: So if you're struggling, reach out on our website.
• 22:31
  Mike Swenson: We've got a booking link.
• 22:33
  Mike Swenson: You can book a call, 15-minute call, and I can you know help you out, help you move forward with what might be the next best decision for you.
• 22:40
  Mike Swenson: Um, so if you got any questions, do that.
• 22:42
  Mike Swenson: Otherwise, like I said, check out our website, freedom throughrealestate.com.
• 22:46
  Mike Swenson: Get you started, get you onto your next property, and we'll see you in the next episode and see you with the new deal that you found from taking advantage of what we talked about earlier.