80% of Listings have Price Drops. What is Going on? Seller FOMO is Real, The Market is Changing NOW

Video Closed Captioning:

good morning good afternoon good evening

folks michael zuber one rince atlanta

time back with the one and only adrian

hernandez how you doing what’s going on

happy wednesday happy wednesday

so the first thing we’re going to talk

about probably for the next year or so

as we do our weekly series is the market

uh you obviously are in orange county

then you invest in the inland empire two

very different markets i’d be very

curious what’s going on because it feels

like california is slowing down but what

are you seeing

the brake lights are on right

in some cities you’re seeing the hazard

lights right in some cities you’re

seeing hazards but for the most part

we’re seeing breaking

in some cities it’s not a full break

right it’s like

you’re off and on but the biggest thing

i’m seeing if you just look at orange

county in general we are seeing a

massive amount of price reductions i

will say that 80 of the listings that

are hitting the market or having to do

price productions

which is interesting and it’s telling us

that these

um i don’t want to say just sellers

because even us for flippers you know

we’ve put houses on the market i think

everyone is still in the mindset that

we’re gonna get 10 15 offers we’re gonna

get uh above list we’re gonna get not

20k but 50k over the w the way we were

and that’s not happening as we all know

so everybody’s having to do price

reductions we’re having i had to do a

price reduction on one of my flips

because i was like whoa perfect we can

go in right out you know the tip of

where it’s at that didn’t work we had to

come off come back on um so i’m part of

one of those price reductions so that is

very interesting so i just want to

because again as i’ve been telling

people the slowdown is coming it is here

in many markets not all

but it really starts with sellers

including yourself

kind of still looking back that’s the

big thing about sellers right most

sellers adrian have one house most

and and they’re like my neighbor got x

so they put their house on the market x


and that’s it’s just not that market

anymore it’s just not

yep so you know i think all of us are i

don’t say all of us but especially you

know homeowners i understand it we talk

about it so now you know we’re we’re not

coming in at

the highest price we’re coming in right

at what that median is and if we can

build build it up great if we can’t uh

then it’s cool we’re you know we’re

still going to make money but i think

some of the sellers are thinking well

i’m going on regardless you know i’m

going to get this price and if i don’t

get this price i’m not selling and for

all of us listening do not list that

property do not take down that property

if you are going to get that deal under

contract even if it’s a wholesale deal

don’t get it under contract because the

likelihood of you getting a price

reduction is like one percent because

it’s all based off of what they want

right which is money

it’s not a good enough motivation yeah

i’m trying to get people to realize like

we’re seeing a listing explosion fear of

missing out is clearly transitioned to

sellers oh absolutely clearly

but not all sellers are the same i think

lots of sellers want what i call wish

pricing and you’re seeing that

some of them will come to the

realization uh that the thing’s not

going to sell and they’ll be like if i

can’t get my wish i’m out you’re so re

agent hear me now don’t take that


give that listening some other noob

agent because what do you do during


you spend money


will be wasting time and you’re going to

get yelled at why do you want to sign up

for that heartburn right

yeah so you know and

i i think

when you look at all markets you know

you see orange county going through

massive price reductions

you look at

san bernardino county where we flip and

you’re seeing some areas that are still


what you know

not just what they want but more i had a

listing going to contract this week in

fontana california 30k over what we had

it listed at but now here’s the kicker

it’s 600 000

2800 square feet in an area that is


uh you know when you look at the average

price point it’s about 600 000


when you look at the median price in

some markets they’re still moving i

think those higher end markets people

are getting a little bit smarter and the

lower end markets i was actually you

know having this conversation with omar

on the lower end markets

they’re already seeing a massive you

know as you as you guys talked about

yesterday they’ve already seen a massive

increase in listings right which is only

going to trickle down to

it’s going to guarantee we’ll be having

that same conversation in three weeks

yeah no i hope people watch omar’s

session because we we really got into it

in his first video i’m like the high


is the canary in the coal mine for all

california markets if you’re going to

look at one market as the first mover it

always moves first yep is the high


if you can figure out what’s going there

it will ripple through it’ll go north

it’ll go west

it’s coming it’s coming so knowing that

right when i talk to an orange county

seller that’s something i’m bringing up

hey guys we need to be aware of what’s

going on in the high desert because it’s

just a matter of time before it’s here

right so agents wholesalers you can use

that as you’re speaking to your clients

but i think overall right we’re we’re


we’re seeing what you called three years


the slowdown is real it’s it is here

yeah yeah so transact again these

i guess the one question i have about

orange county 80 of listings needing a a

price drop

when does that happen i’m cur and the

reason i’m asking is because my business

model is to buy great deals i have i

adrian i have stopped looking at first

day listings

i will only today i’m only looking at 15

days or older but i’m not sure if that’s

right in orange county when do the price

drops occur is it in the first 15 days

or is it 30 days out when does it happen

no you’re seeing it pretty you’re seeing

it pretty quick i think they’re noticing

within the first two weeks i’ve seen it

within the first two weeks 14 15 days on

average yeah so that’s what i’m doing so

that’s what i i still feel like that’s

the right number because this is again

it’s it happens the same way ever you

you take a listing you have an open

house crickets

you tell the agent wow that’s weird

that’s never happened before i used to

have 10 offers by now let’s do an open

house next weekend as well crickets

then you can have a conversation well

it’s got to be the price


okay so two weeks is still the right

number i imagine again just full

disclosure telling everybody what i do

sometime probably by august

i’ll actually move that back 30 days

because this wave of inventory has just


transactions went down 11 last month

just this morning

i want to be accurate i think it was a

21 drop in mortgages to purchase

this crash that i’ve been calling for is

here and it’s

for me as a buyer who only needs to do

two or three deals i am super excited

because adrian i’m gonna fish for the

seller that has to sell

i’m not gonna fish for the one that

watched wish pricing were like nor you

i’m going to look for mo it’s going to

be awesome

all the way around right but we need to

you know the sales people on the floor

that are out there you guys that are

looking for deals that are also buying

deals we we have to

don’t look at this as a today value we

have to look at this as a what’s going


60 90 day value right that’s it’s yeah

the other thing i just want to be very

clear why i love what we’re talking

about every week is i’m trying to skill

up right i built a great portfolio

buying out of the mls with cash or

private money certainly still have that

skill but i’m looking to add

pre-foreclosures i’m looking to do

direct marketing for seller financing

i’m going to add all these other avenues


i’m just going to take advantage of

what’s coming it’s going to be kind of

two years of every deal i do adrian will

be better than the last it’s going to be

amazing yeah now and i’m excited for it

i hope all of you guys are excited for

too nonetheless i really really hope

that you are

not just hearing what is on

you know michael’s channel

what he talks about but really

implementing it and really studying

what’s going on guys i you know they

they say

knowledge without execution is nothing

more than you know a bunch of

hallucinations right

and and i think it’s true but i i want

to bring this up because you know i’ve

been listening to the art williams just

do it uh talk you ever heard that yeah i

have yep yeah and uh you know it’s

interesting because i hear a lot of

people saying well i i want to buy a

unit or you know i want to find a great

deal but i never see them taking action

on what it is that you know

that that they say they want to do or

declare they’re going to do so for all

of us guys we know that there’s

something changing we can all feel it

changing study the numbers really look

at your numbers today take what michael

what he talks about every single week

look at your market data look at it 30

days ago see the change and you can kind

of get an idea of what’s going to occur

in the next couple of weeks and i

challenge you guys to do that all for

your own market because

on the numbers will always tell us a


right and one thing i love about what

you do i was actually talking to

stratton yesterday about this is you you

you’re able to put these numbers into

really great stories to help all of us

understand what’s about to happen right

and and for all of you guys go look at

your numbers go look at your market get

an idea see how many price reductions

are taking place and as michael said

look on the mls at the deals that are 15

days over 20 days over see the

difference there are right now

properties on the market 50 60 75 days

properties that we would have never seen

on the market 50 60 75 days yeah i want

investors to be excited it does take

work you have to take action uh you know

my course how to get started one rental

at a time at 320 is a stupid price it is

out there for people that want to do the

work it’s not easy it’s not going to

come to you tomorrow i believe real

estate investing is a skill

because it’s a skill it can be learned

but it takes work action 20 minutes a

day focus buy box all this stuff we talk

about every week either get ready or

stop talking about it that’s all i got

to say any closing thoughts just just

take these videos seriously guys and do

it put in the work this is you know it’s

easy it’s interesting i was having this

conversation yesterday this is really

easy work you’re on the mls looking at

numbers you’re not standing in the

middle of the street with the jackhammer

breaking concrete okay that’s hard work

this is easy work right you’re an ac

building so come on let’s get to work

guys we have a great opportunity in

front of us there’s a great opportunity

coming and if we can shift with this if

we can pivot the right way implement

what we need to implement you’re going

to dominate in this industry we believe

in you i just hope you believe in

yourself where can people find you at

adrian hernandez instagram youtube

adrian hernandez appreciate your man you

got it

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