All the dots seem to be connecting for another dot com and technology company implosion. That stands to create a lot of real estate buying opportunities. Are you ready to capitalize on it?

The New Tech Bust

Recent bank failures are just the tip of the iceberg. Those liquidity issues are directly impacting the tech world. Especially those highly inflated companies that have grown fast, have weak fundamentals, and need more money. Which is the vast majority of them.

These companies that constantly run at a loss, or are reliant on fresh injections of private and public capital are going to quickly run out of gas.

They may have gotten away with a lot of bad practices and decisions while they were flush with cash can could afford to keep losing money. Yet, these issues will be greatly magnified and compounded without money to hide them.

Most notably including poor customer service, not so intelligent AI, and blatant abuse of their customers and their data and identities. Upwork and Coinbase are just two of the big and obvious recent case studies of these issues.

The Side Effects

When that bubble pops there will be even more layoffs, bankruptcies, and much higher unemployment.

While much of this is currently being hidden in the data by the shuffling of assets and paper debt between banks and other organizations, we can reasonably assume that there are already masses amounts of distressed commercial real estate and related debt hiding in the shadows.

In turn, this hits the residential sector when entrepreneurs, their employees, and local small businesses and workers depending on their revenues end up not being able to pay their bills.

Getting Ready For A Buffet Of Property Deals

There should be no shortage of deals for real estate investors this year. You will only be limited by your goals, marketing, and the financing partners you’ve chosen to align with, or not.

Still, it is wise to watch macro trends in addition to what’s happening in the immediate real estate and economic cycle. They may impact the height and localization of the ensuing rebound.

The British Empire, Rome, Machu Picchu, Tulum, and Detroit seem unlikely to ever regain their glory days. Something which may also be true of some recent financial and business hubs of super prime real estate.

Though the suburbs, tertiary cities, and towns around them, may well surpass them. Offering both better growth, and more downside stability.

These are places, where even if there is never another dot com bust, will continue flourishing, and see property values rising. It’s a win-win for real estate investors.

Following on from other recent runs on banks and stocks, last week saw Bank of America customers alone withdrawing $2.3B they had invested in stocks.

What does it mean for real estate investors?

The Big Withdrawal Has Only Just Begun

Warren Buffett recently said that he believes more bank failures are likely. Based on previous financial crises, when 1,000 or more banks and financial institutions went under, it does seem highly probable that we’ve barely seen the tip of the iceberg of this trend.

Expect more runs on banks. Expect more big sell offs in the stock market. As well as withdrawal requests from other funds, and asset classes. Including sectors like municipal bonds.

That leaves millions of people and organizations with the big dilemma of what to do with their money now.

Expect More Capital To Flow Into Real Estate

It is that time in the cycle when more capital ought to flow into real estate.

Gold is already overpriced and provides no income. Venture capital is suffering after years of pumping billions into companies with no real business model or tangible value.

Real estate makes the perfect safe haven for wealth preservation and down side protection. As well as providing new sources of income for all of those losing dividends and jobs.

It is also far better than holding cash that is devaluing daily due to ongoing hyper inflation that is only being fueled by continued Fed rate hikes.

How To Capitalize On The Shift In Markets

This is the perfect time for real estate investors like you to step up and help people on all sides of this equation, and be well compensated and boost your own finances in the process.

On one side there are many distressed sale opportunities. Some of the best value deals we’ve seen in over a decade.

On the other side there are millions in America alone that need somewhere safer and more profitable to put their money.

It’s all about being the connector to help those selling and buying, and make some very attractive profits in the middle.

Now is the time to ramp up your marketing to end buyers who are looking for new homes, fix and flip deals, and rental properties to add to their portfolios.

There are enormous amounts of money out there searching for a home. So, it’s all about stepping up and making sure they know you are there to help.

A new survey reveals that over half of Americans expect to lose everything in a new recession. Most believe that recession is already here.

While that is tragic for all of those individuals and families, it does create an enormous opportunity of a lifetime for real estate investors to help, and to be well compensated for that.

America Is Going Bankrupt

Big bank failures, and the dollar amounts involved are likely to make the last great recession seem miniscule in comparison.

If the world’s biggest banks can go under so fast, then not only will that have a waterfall effect on other businesses, but most individuals stand little chance of making it.

55% believe they will lose everything in a new recession. Close to 70% believe that recession is already here in 2023. While some at the very top and bottom may be insulated from this, it seems like there are many more who are not in tune with the economy, or do not have a healthy appreciation for just how fragile their financial situation is.

Here are the three main things this means for real estate investors…

Millions Of Motivated Sellers

The US population is estimated at around 336M in 2023. Around 60% of households are homeowners. That suggests at least tens of millions of those individuals who are becoming uber motivated to sell their properties before they lose them.

Some will need to be educated and nurtured through your funnel. Others will require creative solutions. Yet, not even all the banks left standing will be able to buy all of these deals. There is so much opportunity.

Massive Housing Needs

The flip side of this is that all of these tens of millions of households will need somewhere new to go.

Many may have to rent. Many will not be able to due to destroyed credit, and lack of documentation that has now made it harder to rent from all of these corporate landlords than to get a mortgage.

So, there will also be millions needing to buy new homes. As well as other investors looking to load up on supply to meet the booming demand for affordable housing and rentals.

People Need To Make Money

Jobs are being obliterated. Fed monetary policy continues to push toward creating more unemployment to deflate the economy.

Many are losing all of their savings in bank crashes and a tanking stock market or other exotic investments.

This is a great time to build out your own team with the best talent. Including training others how to help you wholesale houses so that you both win.