Will Real Estate Prices Drop In 2020?


What is going on with real estate home
prices? Can they just keep going up and up and up? Or is there going to be a drop in
2020? My name is Kris Krohn. I have purchased thousands of real estate deals.
And I’m here to share with you my predictions on what’s gonna be happening
in just the next 12 to 24 months. I pay over $100,000 every year to hang out
with some of the brightest, smartest financially incredible people on the
planet trying to understand timing of the next recession drop. What’s happening
in the economy? When it’s coming back. And right now. With as much as real estate
prices have been going up, you should be nervous and you should be scared. When is
the price drop going to happen? Is it going to be 2020? What I want to do is before I
actually make a prediction, at the end of this video I want to start by actually
sharing with you where this actually comes from. You need to understand in the
game of real estate that first and foremost, you can always buy real estate
successfully no matter what is happening in the market. When 2008 hit, there was
blood in the streets, banks were going out of business, houses were getting
foreclosed on like crazy. And I remember that period of time it was one of the
greatest periods of abundance in my entire life. I just need you to
understand this that when 2008 hit, guess what it meant? It meant that people were
losing their homes like crazy. It meant also that it was the best time in the
game of real estate. And most people didn’t know that. Consumers, terrified.
Expert investors, greedy. Why? Think about it. I went into Phoenix in Vegas
homes. They gone up from 150, 200, 225, 250, 275, 300, 300 thousand dollar home.
Brand-new built 4 or 5 years ago and I actually picked that home up for
under $100,000. Now, why would I be buying when everyone is actually selling? The
time to buy is when everyone is selling. And the time to sell is when everybody
is buying. Do you understand that? We’re counter cyclical. That’s how you’d
be really successful. I’m going to show you the science of how markets move and
unlike the stock market real estate is far more predictable. And it’s actually
super easy to read. And I’m going tO show you how to do that so that at the end of
this video, you can be a little bit more of a an economist ninja that can have
confidence in your buying decisions and what you should be doing. Because by the
way, up until the moment when that market hits its peak, guess what I’m going to be
doing? Let me buying homes every single day. And you’re like, “Why would you do
that? Why would you buy real estate in the worst time?” Check this out. 2008 hit,
2009, 2010. When in started buying hundreds and then thousands of homes in
some of the most distressed markets. 5, 7 years later,
guess what? Those markets bounce right back up and we made a lot of money. So,
you need to understand this. This is like I’m going to actually go into the science
of what’s going on here. Check this out. I want you to understand that the way real
estate moves is that there’s a recovery period, okay? And then after recovery,
there’s an expansion period. Then there’s a hyper supply of too much and then the
markets going to tank. And this is when you hit the point of maximum growth. This
right here was 2008 and boom. And by the way, the market based on the K wave, Kondratiev cycle that you can see actually here in this image, real estate will
actually hit a peak in a valley. This circle right here. Boom, boom, boom. You can
actually witness this happening every 12 to 20 years on average.
15 years, 18 years, sometimes 12 years. And so, it’s predictable it means that
between every 1 and 2 decades that that market is actually going to
course-correct. And if you know what you’re doing, you
can win here, you can win here, you can win here. After this I’ve shot a video
for you showing you how to win in any market. What I want you to understand
though is is that when 2008 hit, prices steeply dropped and we entered from a
peak to a trough. Now, in that trough, that is the most profitable time to buy real
estate. It’s when you’re gonna pick up your biggest gains in the shortest
period of time. Why? Let me ask you this: When everyone stops buying real estate,
does population go down? No! People don’t die more or less than recession. Maybe a
couple of rich dudes that lose all their money and throw themselves off of
buildings. For the most part. Listen, people out time in their hands. They
making babies like population is going to continue consistently doing what it’s
doing. So, during these period of times, we’re building nothing. And with the
population remaining constant, guess what happens? During the trough, when we build
nothing, we actually build up a pent-up demand that every year gets worse. It’s
like, “I’m tired of sharing a bedroom with my in-laws. We’re all scrunched in
together.” The renting market goes up really high and all the sudden after
3-4 years, the market says pop. We can’t do that anymore. TThe market is
forced to come back because we keep making babies. Because population grows.
If we’re talking America, America is very far from the principle of economic
winner. Economic winner is when people are not making babies.
And your geopolitical climate, you don’t have people wanting to migrate and move
over there. America is still to this day. It is like the land of opportunity.
People are still trying to flood here from all over the world because they
want what we have. They want their slice of the American Dream. And that means
that population and migration are going to continue building a strong population. So
by the way, at the end this video, when I tell you when I think this is going to
happen, am I excited? Yes. My biggest regret from 2008 is that I
didn’t go in and buy thousands more homes. I would have way more money. And
that will always be a regret. You’ll always say I wish I’d done more. Even if
you’re aggressive. You say “The next time I’m going to be more aggressive.” Problem is
you only get to see this maybe two or three times during your working life. 2
times probably. Maybe 3. And your working life is when you’re amassing
assets. Which means you only have 2 or 3 opportunities when this happens. By
the way, you’ve got one right around the corner. So whether you’re young, whether
you’re old, screw it. It doesn’t matter. You can act on this. You can do something
about this. The thousands of people that I helped buy homes for 100 grand, 120
grand, 150 grand. When they bounced up to 200, 250 and sold them.
Guess what they did? They amassed a crazy ROI, they made a lot of money and now
they go back into real estate and they expand even more. Ups and downs are some
of the most important things. What I want to share with you today is what you can
do to be prepared and how you can actually keep on investing no matter
whether we’re in a recession or whether in an expansion period. When
the market recovers is when you recapitalize on all of that money.
There’s one more thing I want to layer on here. There is a cost to build real
estate. Right now, if you take a look at this line, there is an average cost to
build a home. When a home sells for more than it costs to build, people enter the
market and do spec building. This is where they’re saying, “I want to basically build
a house and sell it and create a positive arbitrage. I want to get this
juicy money.” People do not build during a trough because they’re going to sell it
for below. Remember, a house is worth what? A house is worth what somebody is
willing to pay. When no one’s willing to pay, there is no value. So, the value goes
down and down and down and down until someone like me comes along and says, “Hey,
that was selling for 300. I know you built it for 250 hoping to sell it for
300 make 50 grand. But now you lost it to the bank.
And now I’m cleanup crew. I’m going to pick this up and then I’m going to rent it out.
and in five years I’m going to sell it.” And I’m going to capitalize on all the money
that you hoped you would have made because you didn’t get timing. So,
question is where are we at in this process? Now, before I answer that and
recommend this video that’s going to really explain the rest of this, I want to help
you understand another principle it’s really important. How is it that I buy
real estate all the time? I’ve got rules. You’re going to want to write these down.
Rule number 1, I always buy real estate below the median. The national median is
around $230,000. My average purchase price based on this document that shares
my track record on my last 4,000 transactions. My average purchase price
is $143,000. Guess what? In the million dollar
home range, this goes really high and this goes really low. In the median home
price range, it’s more mild. When you’re buying in the 143 range and you’re
almost 80 plus thousand plus below the median, it moves like this. Which
means I’m in the safe zone. I can buy real estate in the safe zone, my strategy
works and make my 25, 30 percent of my money and then the moment
the market tanks, guess what I do? I swoop it into the most distressed out of 300
markets. I find the 1 or 2 that built the most aggressively. They tanked
hardcore. I set up shop. I’m going to buy as many homes as I possibly can. And I might
even include you in on it. I’m actually going to share that with you here
shortly. As far as when this is going to happen next,
are we at our peak? Personally, I believe that we are somewhere approaching our
peak right now if you look at prices and what they’ve done. We’re going to see a
drop-off. Are we gonna see it in 2020? The answer is it could be 2020, it could be
2024. It’s going to happen sometime. It’s been right now almost 12 years since our
2008 fallout. And so, statistically, sometime in that 14, 15, 16, 17, 18 year
mark is when we’re going to have our next correction. We’re going to see prices
continue to go up. And by the way, when the market drops, it’s going to happen
sudden. It’s going to happen fast. Within 6 months, we’ll know the markets that we
want to work in. So, what you need to do right now is you got to get yourself
ready. Because this really, literally be right around the corner. And this is
for you. For the next 2 decades, this is the most important era for producing the
most money that you can in the game of real estate. If you’re young, partner up
with a mom and a dad or a friend or I get out there or cultivate some people
that have some assets. So that you can take advantage of this. Because when the
market drops, there will be fear; there will be panic; people will be nervous.
They’re going to call it a recession. People are going to want to hold on to the money
but guess what? There’s a reason why the rich get richer and the poor get poorer.
It’s because consumers and investors are on opposite wavelengths. And if you’re
thinking like a consumer, you’re going to be driven by fear. You’re going to say going
down is bad. And if your investor, you’re going to say “Going down is good.” And frankly
it’s an opportunity to clean up the economy. Because the government’s not
going to do it. There’s going to be no bailouts. Someone has to come in. It’s
always the investors. They pick up all the pieces, they rent out the homes. 5-7 years later they saw them and they make a grundle of money. That should be
you. Now, there’s a way to successfully buy real estate with 25% returns
right now. And not have this exposure. And if you want to learn how to do that and
then learn how to be ready for the trough, I want you to check out the video
series. I create a little mini series here. It’s all about partnering with me. I
have a team of 200 experts. We go out into the market every single day and we
put our hands on the very best deals that are out there in existence. And
we’re winning about an amazing deal every day. We comb through thousands of
deals to find them. And I buy these homes myself and I buy them with my partners.
My partners are found through YouTube. And it’s a pretty rigorous process to
figure out who we want to partner with but if you’ve got a little bit of money
sitting around in a 401k or an IRA and your saying like, “Man, I don’t feel like this is
really doing anything for me.” I want you to check out this partner series. So,
click over here, click on the video. And if you like that first video, watch the
next couple. You’ll learn exactly what it looks like for us to actually link up
arm-in-arm and start giving you access to the most elite investments on the
planet. Thank you so much for watching today’s video. Can you do me a favor? Can
you please smash that like button? The only way that YouTube is going to promote
this and share it with more people as if you hit that like button. So, you can help
me break the algorithm and crush through and if you got value out of this,
that’d certainly give value to me. I have a goal here. I want to have 10 million
subscribers. And I want to be touching a lot of lives a lot more than I
currently I’m right now. You could be the means of doing that. The meantime, join me
on this next video we’re going to give you everything that you need to know about
how to profit during the peak and profit especially through the next trough. It is
on its way it is looming it is coming. And so I’ll see on the next video.

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