Latest / Financial Survival Network / Is The Real Estate Market Confused?-- Kyle Seyboth #5924

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Is The Real Estate Market Confused?-- Kyle Seyboth #5924 · Financial Survival Network

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  I think there's a lot of confusion right now in the safes that folks really
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  don't. Rates went up in prices a specific down. We have a really
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  seen that. And our level here in the New England area, well,
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  what you're starting to see is the mind is temporary of a little bit.
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  So we're really in that in that situation where the market's a little confused.
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  Normally you see prices plummet, they have it, and normally you see buyer
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  demand plumb it has it. So it's it's really just kind of a stalemate
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  that we've seen the last few years. You're listening to Carrie Let's's Financial Survival
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  today's trying times. You need the Financial Survival Network now more than ever.
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  Survival Network now more than ever, and welcome you are listening to the Financial
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  Survival Network. I'm your host, Carrie Letz. It's ten eleven twenty three.
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  Well, you're gonna want to hear from this person if you have any
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  interest in real estate and hard asset investing, any of that. This person
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  was designated as the Wall Street Journal's number one realtor nationwide. His name is
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  Kyle Sievith. Kyle, it is great to have you on the show.
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  Hey, how did the Wall Street Journal love figure out that you're the number
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  one real turn So this was done. It was in twenty nineteen, and
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  it was done via transaction side. So in twenty nineteen, I did the
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  most transaction sides in the Higher Country and the beauty of that was, you
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  know, one person, I know every single one of my clients, and
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  yeah, it worked out well. All right? So was that mostly commercial
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  or residential or a bit? So when you say transaction side, that just
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  means whether it's one unit or fifty units, that's one side. So that's
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  only one side, right, Okay, So, hey, what's your take
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  on the real estate market now? As well as we got an expert and
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  obvious expert on the line here. Yeah, I mean, I think the
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  real estate market is very confused. I think there's a lot of confusion right
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  now in the sense that folks really don't rates went up in prices are specific
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  down. We haven't really seen that. And our level here in the New
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  England area well, what you're starting to see is the may of this is
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  temporary of a little bit. So we're really in that in that situation where
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  the market's a little confused. Only you see prices plummet they have it,
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  and only you see buyer demand plumb it has it. So it's it's really
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  just kind of a stalemate that we've seen the last few years and rates.
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  Everybody's talking about rates set a reserve we got you know, PPI number comes
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  out today a little bit over what they would have liked. How big a
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  factor is rates in this market now? If they were to cut rates,
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  say by a third of where they're at now, would that result in a
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  huge push for the market or would it be greedy with indifference sy that again,
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  I'm saying, if the Federal Reserve were to start ratcheting rates back,
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  cutting rate and do you start seeing the raids ky, you're going to see
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  a massive influx of uyres back into this market. It will be insanity.
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  It'll be insanity. I think if you do see that, they expect that
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  demand goes through the rule because people we stand you're going to miss out again
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  on any sort of interest rates spite that you're going to see hat okay,
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  And I mean, I know we've got a lot of other things to talk
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  about, but I think the market review for somebody boots on the ground is
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  really important because many of you out there don't have any idea what's really happening.
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  But we still see like in certain states markets like Florida, the raid
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  ikes haven't seemed to do much other than to cut back on supply. It
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  because you've got all these people with three percent mortgages who'd love to you,
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  you know, to move, but are like locked into their properties. Now
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  all right, correct, I mean I did. You've got again a lot
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  of people that are they have those super low interest rates that they had for
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  the last few years, and they don't want to go out of those rates
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  and you know, lose that rate and against some higher But at the end
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  of the day, it's up if it's a rule you need for your family,
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  or if it's a wogle you need for your well being or so on
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  and so forth, it's it's definitely something that you should not let interest rates
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  become the be on end all. I think it's importing that buyers understand and
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  seller to understand you can always refinance down the road, and at the end
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  of the day, you can always refight us down the road. That allows
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  you to, you know, decrease your rates or rates come down as payment
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  and the money makes sense. Now it's only going to make more sense down
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  our own right, So hopefully rates will accommodate that that strategy. I guess
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  you never really know. Hey, so your keys to success? Basically,
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  I'm reading here it says that seven ninety percent of your decisions you don't have
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  to make anymore. How did you pull that one off? Yeah? I
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  mean I delegated at a lot of the past things that come across my desk
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  on a day in the day out basis, And I think, what that's
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  not that it's allowed me to just actually just make decisions versus having to hit
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  in the weeds and be involved in all on my new shut and I think
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  that's been very helpful. So I think that that's one of the things.
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  Is really delegating anything that's not being comproducing has been more of the keys to
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  my success. Yeah, that does make a lot of sense, And many
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  successful people have told me similar things, because you can't do everything yourself,
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  and if you try, then you wind up missing opportunities because you're too busy
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  handle the day to day, nine to five stuff, correct, exactly.
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  I think that's the part where that separates not only a leader, but a
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  successful person. You know, a successful person out starting wow, the will
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  prom a person that's not as successful. Right. So, somebody looking to
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  get into real estate, now, would you tell them forget it and put
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  it it's too dangerous or do you take the plunge? I would tell them
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  that it's important that we understand why they're looking to get into real estate,
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  and with that right, have a good have a good understanding of what's important
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  to you and what is the purpose and what's your why? But I think
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  that's the most important, right. And so obviously commercial real estate office buildings
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  in a state of period apparently terminal decline. How do you see that market
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  being able to be turned around at some point or is it past the point
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  in no return? I think commercial real estate, depending on what segment of
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  commercial is, is certainly something that's been you know, impacted, specifically office,
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  and I think they are right now. We're at such a housing crisis
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  that I think the moves or the wards residential in all those commercial spaces,
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  I think is important. I think that's what you're starting to see. These
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  are starting seatboats that are that are converting a lot of these commercial buildings need
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  to residents well, like in New York City, the older buildings and in
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  the Northeast Ire ad Venture, to say, the older buildings lended that lended
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  themselves to conversions because the proportions, et cetera just made conversion very easy.
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  Like in Manhattan's Financial District those buildings as they weren't ultra large inside. But
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  these modern office buildings have you know, one hundred and twenty thousand square foot
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  floors with not a lot of windows, a lot of it's in the close
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  to the core or it doesn't really lend itself to conversion so much doesn't.
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  No, it does, and so there's only certain buildings and certain locations that
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  would lend to that. And I think that's another important factor there that some
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  of these buildings that the secondary tertiary use is going to become very interesting and
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  go qual it. Yeah, I was just wondering if you had any insight
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  into other potential uses because it's it's like nobody knows what to do with them.
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  Do you just knock them down? They caut billions to put up.
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  I think other uses would be really you know, you kind of got to
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  look at it almost making like an AIRB and B office type slash workspace where
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  people can rank out smaller office versus having monster offices, right, so you
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  almost consolidate. That's one option. Another option, you know where where oh
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  story. I mean, there's just there's not a ton to do with these
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  things besides you know, possibly, like you said, knock them down.
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  Hey, And that leads to the next question of like malls. You know,
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  there's a contraction in the mall space. There's that mall outside of the
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  New York City in New Jersey. I think it was like going to be
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  the largest one in the country. And they're also in a state of terminal
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  decline and there's really nothing to do, no way to repurpose those structures more
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  or less, they got to be raised and the property used for another application.
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  Yeah, I mean, I think mall we're seeing it here in the
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  Northeast as well. I mean they were built and you know, during the
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  nineties and early two thousands they were at the hot topic. But right now
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  these malls are again when I'm trying to see is converting to residential, or
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  converging into elderly housing, or converging to some sort of housing that I think
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  makes sense. Yeah. Yeah, Well, let's you see these ghost malls
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  around the country, and the high end ones are doing doing better. I
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  wouldn't say they're doing right, but they're sustaining, and the outlet balls seem
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  to be doing okay. But everything in the middle, even in Florida here
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  is getting crushed. Yeah. I mean, that's that's pretty more you done.
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  You really have definitely started to really build that spread, you know,
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  the high to the lower ring and then the middle class or the middle the
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  middle part of the which the word I'm looking for. The middle part of
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  the retail space has really been flobbered by Amazon. I mean you don't really
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  have that same touching that that's not needed anyway, Yeah, Amazon and every
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  other online retay right right. Yeah, So so there's a realignment taking place.
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  But when it comes to residential, basically you might move from city to
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  city. Certain cities might be declining, but others were expanding. So that's
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  really where the real estate business is going to be out for the foreseeable future.
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  Definitely, for sure. So you mentioned housing shortage. How acute is
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  it? How bad is really? But it's pretty significant. It's pretty significant.
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  And I think what you're seeing is reds are going through the little it's
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  it's unless you have right control underway. Uh, They're just there's significant reaches
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  the reds. And I think what's happening there is uh, you know,
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  you need to so you need to have more supply. And the mad is
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  there supply, this isn't there. So it's just a function of how many
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  new builds or how how much saturation there is potential for in the future.
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  And I think that's important that you know, we figured that out, you
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  know, as a as a country, especially in New England Northeast where there's
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  a lot of density, we definitely have a significant problem. All right,
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  Well, hey, so just some advice for someone getting into real estate again,
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  just your top three things that you should do when you're looking at a
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  deal, whether or not to go or not. The advice I would give
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  folks for real estate if you're looking at a deal and you're looking at making
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  a you know, making a deal or or making something happen, I think
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  you just got to always look at the market, is at the tile of
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  deal where you think it'll be in six to twelve months, like there's potential
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  or any short of death contern then you've got a factor in a clintingency point.
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  I think that's the biggest fact, the biggest back of that. I'm
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  seeing that people need to pay attention. So is it ten percent dout the
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  twenty percent out? What's that number that has to make sense? Right?
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  Okay, Hey, what timeframe you think people should be looking more short term
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  intermediate than longer term now? Or do you look longer term to kind of
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  like mitigate got it? Sterm play all right now? And you've got to
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  definitely be a long term player. I think you've got to look at things
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  and say, we're at the top of the cycle. So I during this
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  little short term I think instead natively impact you. So you've got to be
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  long term by hold, and you've got to be able to sustain it.
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  Hey, what's your favorite geographical region within the country? Now? I love
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  the South. I love Florida area. I just like the weather, and
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  I think that's how it makes you happy when it's sunny. So I like
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  the beating of the silence. So yeah, it's not sunny, right,
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  now at least where I am in Palm Beach County, but that could change
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  in a minute, so we're not worry dat right right, all right?
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  Hey, well, hey, we want to if you want to connect to
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  how do people find you? So he certainly social media? You know,
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  Facebook, on Instagram, I'm all over that shop. You can definitely find
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  you. All right. You got a website we can put cone. You
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  can also go to see Theteamholmes dot com. All right, hey, we'll
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  put a link to that in the show notes. This interview on Financial Survival
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  Network dot com. Got a question for Kyle and myself, shoot me an
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  email Klahcarrielutz dot com and Kyle appreciate you coming on. Good continued luck of
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  the Wall Street Journal rediscovers you again. Thank you certainly, well, thank
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  you so much. Have a wonderful day. Thanks for listening to Carrie Letz's
• 14:20
  Financial Survival Network, your solution to today's trying times. For the latest,
• 14:26
  go to Financial Survivalnetwork dot com. Financial Survival Network now more than ever,