Transcription
If you're currently on the market trying to sell your house, let me be real. This sucks. And I literally mean this sucks. Not with the baby in the car. Language. Well, well, well. I guess, um, what is that saying that realtors always say? Uh, I think it's like, "Bait the rate, marry the house." I, I guess that wasn't sound advice.
Well, guys, listen. If you guys haven't been paying attention, you know, the housing market is, is, is not looking so good right now. And sellers, they're trying to put their houses on the market and they're saying to you guys, "Why aren't you buying? Why aren't you doing what you were doing a couple of years ago?" Remember when there were bidding wars? Remember when people were doing eBay tactics? Remember when people weren't even going into the houses to even look inside to make sure it was what they wanted, and they were still overpaying? Those days are gone. Bye. See you when I see you. Goodbye.
And sellers are saying, "I, I can't believe I bought this house. My real estate agent, he lied to me." It's a different day. And today, we're going to go over what sellers are saying about this housing market. And listen, they're not too happy, guys. They're losing tons of money and they want to transfer their problems over to you. But listen, you don't have to take my word for it. That's the reason why you need to watch this whole video because you will see that you could have been in this position. Mhm.
My name is Orlando. Welcome to the channel, guys. Make sure you hit that like and subscribe button. It really does help out the channel. Also, too, I have a newsletter. I know, I know. And guess what? It's free. How can you beat free? You can't. You have no power here. And also, if you need any type of financing that deals with investment properties or commercial properties, I am your guy. I've been a lender for almost 20 years and I can assist you with that. That information is in the pin comment in the description. Guys, let's jump straight into it.
Listen, I, I know home sellers, they're not going to like this video. They're going to be like, "Orlando, you, you don't understand. It's, it's hard out here. Orlando, you don't understand. I'm going to lose $50,000. My value of my home hasn't even went up. Orlando, my value of my home has went down. This isn't a great market for us." And I would say, listen, it's your turn. It's your turn. I try to warn individuals. I did. You can't say I didn't because all you have to do is go look at the catalog. Yeah. Go look at the back catalog because I showed you guys step by step by step by step what was going to happen. And people didn't want to listen. They were like, they were like, "What are you talking about? Prices will continue to go up. My real estate agent told me. He told me this is a hot city. This area is super hot. Do you know the school districts and this and that and the other? Prices will continue to go up." Oh boy, here we go. And I always used to scratch my head and said, "So you're telling me that prices have doubled and you could, you think they're going to continue to double forever? Why, you crazy?" Because your real estate agent told you.
What if I told you your real estate agent took a multiple-choice question to be a real estate agent and his last job was a DoorDash driver? That's the guy you hired. That's the woman you hired and they are telling you the market's going to be hot forever. Some of these real estate agents coming to your appointment, coming to sell your biggest investment of your life, they're changing clothes inside of the car. Huh? Yes. They're putting on that nice suit, that nice dress in the car because they're coming from their primary job. You crazy. What if I told you that? You guys would be like, "What? He told me he was a professional. He was an expert. Oh, they all do that." I know. I know. I get the beef all the time. I get it all the time. Real estate agents hit me up and they say, "Orlando, that's not fair. That's not fair. I, I have to get the experience somewhere." Well, you're not going to get it on me. Oh, boy. This is my biggest investment. This is my biggest purchase of my life. And you think I'm going to let you use me for experience where I lose? You first. You first. I, I'll follow you. I'll follow you. You go ahead and you give it to them first. Let me tell me the results.
So, update on the house. The realtor just told us I thought that we would be. So, we bought this house for 350. I thought we'd be able to sell it for 4. Sorry, I just drank some carrot juice. We put so much money into renovations into this house. Thousands and thousands, tens of thousands of dollars. M I thought that would be able to go towards the house, but we could only sell it for 355. So, I basically lost my inheritance. My dad left me like $40,000 and I put it all into the house and that's about how much money we're losing. So, and the blows keep coming in. They won't stop coming.
Somebody said something along the lines of like, "Hey, um, prices are continuing to skyrocket. Maybe you want to sit this one out. Maybe it's better if, um, you sit on the sidelines with a purpose. You wait till these prices come down because, as we know, it's just not houses, guys." This same advice could be used for anything. When things are super hot and people are willing to pay astronomical prices for things, do you still go out and buy them? Let's just do an example. What if I told you a new Toyota, which used to cost $30,000, $30,000, is now $200,000 because it's so hot? Everybody wants a Toyota. So now you have to pay $200,000. But then you're scratching your head and you're saying, "Well, won't the price come down?" But then the car salesman tells you, "No, no. The, the, these Toyotas, even after you've used it for multiple years, guess what? It's going to be worth $400,000." Sure, sure, sure.
I am selling my house and losing probably about $20,000, maybe more, but let's hope not. I'm sharing this with all of you because I have heard, "Oh, that never happens. People never lose money on the sale of a house." That's not true. Especially if you purchased your house in 2022 or 2023 at the height of the market. I think if you're selling your house right now, dependent on what market you're in, you might be facing something similar. And I've seen a lot of people talk about that. But buying a house in 2023 or building a house like we did was what we thought was the best decision. We were paying a pretty high price for rent in the area that we lived and it just made sense to build a house and have a mortgage that was a little bit more expensive. Home prices at the time were very inflated. There were a lot of houses that had multiple offers on them with people competing and paying well over asking. Hindsight, boy. Hindsight is, is a killer. It's a, look, you, you look back and you go, "What was I thinking?" You, you, you hear this lady and she's saying, you know, people were paying over price. They were bidding like crazy. People were not doing inspections. What was I thinking? What was I thinking? I'm losing money on a home that someone told me would continue to go higher. But even when I call my realtor now, today, he's not answering the phone.
Who are you and why should I care? Come to find out, Jacob isn't even in the industry anymore. Jacob said, "Uh-huh. It was just a summer job. You know, I was just trying to make some extra money. It was hot during it. It was one of these hustle jobs. And, you know, listen, I just, I just need some extra money. So, uh, so I told you what you needed to hear to close the deal. You've been bamboozled. You can't come after me because I didn't make you sign the documents. I just told you my opinion." That's what real estate agents are telling you guys now.
And we were also under a bit of a time crunch for locking in a mortgage rate that was at or below 5%. Because we knew that mortgage rates were going to continue to go up and they have. We heard from every single person that it's never a bad investment to buy or build a house and that is simply not true in the time that we're living in. So now here we are in 2025. Mortgage rates are very high. Home prices have stayed the same, but not as many people are buying. And unfortunately for us, we thought worst-case scenario was we would break even. And that is not realistic. Not realistic.
I'm super happy that she's come around. She now understands that going into a recession or being in a recession will bring down prices. Hm. Isn't that a crazy concept that going into a recession will make people not buy things? I just want you guys to think about that. Are you telling me that when people don't have enough money, when people, when prices of everything goes up, when electricity, utilities, gas, insurance, taxes all go up? And in some instances double, triple. People don't have enough money to afford it. People think to themselves, "Uh, this is getting ridiculous." Yeah, I was willing to buy that at 2, 3% but at 6, 7, 8, 9? Mm. No, no, thank you. I can't even afford that.
Sellers are upset for a couple of reasons. I think they're upset with themselves because they think to themselves, "What was I thinking? Why did I make all of these bad rash decisions in a time frame and allow a person to push me, push me into making a decision super, super fast with no research, with no nothing, just because there was a line around the block?" And then they're also mad because they cannot get rid of this. They were hoping, and this is the truth, guys. I, I, and listen, listen, and it's nothing against the sellers because people always look out for themselves or they should. They should. You should always put you and your family first. I say it all the time. Make sure you do that. So, I'm not blaming these sellers for trying to get the most money. I'm not, I'm not trying to blame them because if you were a seller, you would try to do the same thing. I get it. But here's the thing. A lot of sellers, they want to put you in their place. They want to be like, "Woo, I escaped that. I gave that to Daryl. That's Daryl's issue now. We, family, we escaped. We almost lost $50,000." But Daryl, he bailed us out. He bailed us out. It's his issue now. He's going to lose the $50,000. He's going to lose the $20,000. Oh, that $150,000 that I paid that I overpaid, man. Jennifer, sorry. That's what they're mad about. Wow.
In 2022, we purchased our first townhome and it's 2025 and our home has not gained any equity. Nothing. No, nothing at all. We, I could go into this. I'm still so mad at myself about this. I was, I actually got my real estate license and I was going to be a realtor. Anyways, I was the one that was the realtor for our purchase. My broker was not helpful at all. Not at all. I made such a big financial mistake. I mean, clearly, right? We have no equity in our home. We overpaid completely. Broker didn't care. She got a nice cut off of our, our sale. So many things went wrong. Like, so many things. I still can't get over it. I obviously I'm talking about it. It's 2025. I'm still not over it. I could do a whole series of like this, but it's insane. How about, um, anyone have any advice on how to get over these things because I don't know how to forgive myself for this financial mistake.
Don't worry. Don't worry because you're going to pay for it. But I just want to be clear about this. Did you hear what the, what she said? She said she was a real estate agent. So here's the thing. Here is the thing. A real estate agent blaming another real estate agent for their mistakes. Are you're the expert, right? Listen, listen. The jokes write themselves. I listen. Don't shoot the messenger. I didn't say this. She said it. She said, "I'm a real estate agent and I overpaid." Come on, man. The other real estate agent, my broker who I was working for, high-fived me and said, "You're making the right decision." Because they wanted the commission. No honor among thieves. You, you can't make this stuff up. You cannot make it up.
I mean, at the end of the day, it proves my point. It proves my point that yes, you guys were getting advice from these part-time or hobbyists, whatever you want to call a real estate agent, that this isn't their primary job. This isn't something that they take serious. We all know what happened during the pandemic. The industry of selling real estate got flooded. Everybody in their mom, everybody in their mom became a real estate agent. And you guys thought, "Well, these guys are all experts." You guys said, "Oh, listen. No, no problem. I'll go ahead and and give them my $300,000 home." That's a great idea. I'm with that. Or my $400, $500 million home that I'm trying to purchase. Yeah, I'm going to give it to them because they know what they're doing. But let me tell you this. Did you know? Did you know that there were more real estate agents, more real estate agents than houses to sell? You were jumping into a market where there were more people willing to sell you a house than houses available. Don't be a fool.
But what is happening now? What are real estate agents saying now? Now that all of them have mostly quit, you can't even call your old real estate agent. You can't even call up and say, "Hey, remember that house you sold me? It sucks. The price dropped. That increase you told me I was going to get, it's non-existent. It's gone." I'm here to tell you right now, we don't care. Let me tell you, we don't care. But listen, it, it gets worse than that. You know, real estate agents, they will never, and I get it. Listen, real estate agents, they're not going to let a good crisis go to waste. They're not going to let a situation where, where people need them in a sense go to waste. They're not, they're not going to do that. Don't. So, now real estate agents are coming back around and saying, "Well, um, you'll see. Y'all got to watch out on these builder homes."
I got a call from a sweet couple that want my help to sell the builder home that they bought two years ago and purchase a new home. For this particular floor plan, they paid the highest price per square foot than anybody else in this specific neighborhood. Now they're needing a miracle to get out of this home and get it paid off and move into another home. My heart hurts for them and I'm going to try to do whatever I can to help them out of this situation. How sweet of you. She's going to help them out. And you know how she's going to help them out? Ma'am and sir, um, your house is overpriced. You're going to have to drop that price and you're going to lose $100,000. I'm sorry. There's no other way to tell you this. Um, you're gonna have to drop it $100,000. But guess what? I'm still gonna get my five, six percent commission. I'm sorry. I, I don't, I know I don't know what to tell you. That's the miracle I was talking about. The miracle is drop the price, sell the house, lose $100,000, still pay me my commission. Sounds like a good gig, right? You get to double dip. You get to tell people, "Hey, your house is going to go up in value." But then it never goes up in value. But guess what? I get to sell the same house at a lower price. Still make a commission.
What do you do? You get another brilliant idea. And see, listen. I know. I know people are saying, "Orlando, come on, man. Come on. These poor sellers, these sellers, they didn't know what they were getting into. They were only being guided by real estate agents." And listen, I, I listen, I, I can, I can understand that a professional or expert tells you or person that you think is an expert, right, is telling you you should do XYZ. But come on, let's, let's throw some common sense in here. Let's throw some common sense in here. You knew that your limit was $300,000. So why did you buy a $500,000 home? You knew you never went inside the house to go take a look at the house. So, how can you complain that the roof is leaking? That the inside of the basement has water damage. There's mold all in the house because you never got an inspection. You never went inside the house. You started gambling because this is what that is. You gambled and said, "Oh, the real estate agent told me this house is going to go up from $300,000 to $600,000 in 3 years." The real estate agent told me, "Don't worry about the inside because you'll be able to give this to the next fool." Not realizing, he said, "The next fool." So, who is the current fool? I'm just saying. I'm just saying you have to take accountability. You have to take accountability and said, "Look, um, I made a mistake and guess what? I'm going to have to pay the piper fat. And that price is going to be hefty. That price is going to be in the tens of thousands of dollars. Some people are going to have to pay hundreds. Hundreds of thousands." I know that boggles your mind, right? You're like, hundreds of thou? Who would do that? These people.
Now, home sellers, you're not going to like this next clip. I'm, I'm sorry. You're not going to like it because this real estate agent, this real estate agent is gonna, is going to tell you some bad news, some bad news that they didn't tell you before. If you are a home seller, it's got to peeve you off. It's got to make you mad that the narrative has now changed. The narrative has now changed to not, not much I could do, but you don't want to hear from me. Let's hear what she says.
A lot of the phone calls I get a day aren't from all clients. It's a lot of realtors right now looking for advice on how to navigate this market. Prices have not stopped correcting, guys. There's more price reductions each day than sales. There's more expired listings each day than sales. Houses are not selling for what the sellers wanted originally. If your expectation doesn't meet the market value and you can't accept market value, you're not moving right now. We don't determine the market. We don't. I don't. My sellers don't. And let go of the idea that yours will be the exception. Nobody is immune to this market. It is happening everywhere. Prices are falling and activity is going to continue to fall. I'm sorry. I didn't say it. I, you heard it. It's very unfortunate, guys. Honestly, on a serious tip, it really is something that I've been trying to get my message across to let people know the fundamentals of the economy, fundamentals of real estate, fundamentals of just how the market will work. You cannot have a market, guys. Listen, you cannot have a market continue to go up and up and up forever. And I know that some of these guys tricked you into believing that. And you saw a lot of social media, you saw on the on the news that, oh, prices in Seattle went up 20, 30%. In Boston, they're up 50%. In Florida, they continue to go up. Texas, California, all of these guys told you that. All of these guys told you that. And you know, unfortunately, these news outlets, these real estate agents, they were just going with the hype. Media needs eyeballs on their shows. Real estate agents need commissions to live, to make a living. So, they will do whatever is necessary to sell a home. These ain't opinions. These are facts.
You have to know how to do math to buy a home correctly. If you cannot add and you cannot subtract, don't buy a home. Now, if you have math and common sense, you wouldn't have bought the home. Again, I want to just say, listen, I'm not a, you know, I know it's going to happen in the future. I just follow the patterns. I look at what happened in '08. I look at the markets. I use my experience of doing millions and millions and millions of dollars of deals. And I'm just using my experience to get the information over to individuals that need it to say, uh, please be cautious. Please be cautious before you jump into buying the biggest, the biggest, let me say it again, the biggest purchase of your life.
Anyway, guys, you know I can talk about this all day long, but if you love content like this, please, please join the Patreon. I do exclusive videos over there. You will love it. And then also, too, guys, you won't get all of your information from this one video. I did. You watch this video right here. Yes, this one right here. It will give you information on the housing market, financial news, and get you into your first rental property. I will see you guys in the next one.