How the real estate market is changing and how to adapt to it

The past years have seen a confluence of different factors affecting the real estate market: a global pandemic and government's responses to it; the following economic environment, with record inflation, hikes in interest rates, and significant migration; and social unrest around the world. All of this is occurring in an already extremely competitive market. So, how do you keep up with it all? How do you continue to grow your portfolio, protect your assets, or even minimize your losses? In this episode, Emil and Michael will share their insights how to adapt, grow, and prosper in the current environment. --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Emil: Hey, everyone, welcome back for another episode of the Remote Real Estate Investor. My name is Emil Shour and today I'm joined by…   Michael: Michael Albaum.   Emil: And on this episode, we're going to be talking about adjusting your expectations as the market changes. So something that's probably on a lot of people's minds, and we want to address it on this episode. So let's hop into it.   Emil: Michael…   Michael: Emil…   Emil: Tell me, is this something that you get a lot in the academy, like people come up to you and say, hey, you know, a couple years ago, I was shooting for an eight to 10% cash on cash and now it's just not really possible with how property values have gone up and rents are growing, but not as quickly? What do I do?   Michael: Yes, absolutely. I get the question regularly in the sentiment regularly. And my response is usually quite similar. And it's either you're looking in the wrong market. So what you're looking for exists, but just not where you're looking for it. You aren't looking hard enough. So maybe it exists in your market, but you're only looking at the MLS and maybe you need to go off market or wholesalers or change the avenue which are looking for those properties. Or maybe you just need to adjust your expectations. Maybe what you're looking for doesn't exist. And so those are usually the three options.   And the three suggestions that I give to people to go try. And and so I think it's it's absolutely, the market has changed the conversations we were having a year ago, just we're having different conversations now and so you can't go, you know, it's like when a sport that's go to a sporting event, and the rules have changed, you can't keep trying to play the same game, because you're not going to do well. And so I think we absolutely have to adjust expectations for the current conditions. What are you seeing man? Are you are you hearing similar sentiment and kind of the circles that you're running in?   Emil: Yeah, I mean, you know, I'm a less active more maintenance real estate investor currently. So I haven't been making offers or anything recently. But you know, I follow a lot of real estate guys on Twitter, including you. And it is it's either you two things happen. You either just say I'm done doing deals, or you adjust your expectation. And I think Michael Zuber talks about this a lot, our old pal from one rental at a time, he says you have to stay active in your market to know what's going on in your market. Maybe five years ago, you were doing 10% cash on cash returns, but markets change. Maybe a good deal now is a 7% return, right. And it's it's about finding the good deals in your chosen market versus like just arbitrarily finding a number and scouring to find that.   Michael: Yeah, I totally agree, I totally agree. And I think it is like you and I and Michael Zuber we talk about hyper hy