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
plus
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
listing
give that listening some other noob
agent because what do you do during
listings
you spend money
you
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
getting
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
typically
uh you know when you look at the average
price point it’s about 600 000
so
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
desert
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
desert
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
seeing
we’re seeing what you called three years
ago
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
yeah
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
started
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
to
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
and
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
story
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