I think there's a lot of confusion right now in the safes that folks really
don't. Rates went up in prices a specific down. We have a really
seen that. And our level here in the New England area, well,
what you're starting to see is the mind is temporary of a little bit.
So we're really in that in that situation where the market's a little confused.
Normally you see prices plummet, they have it, and normally you see buyer
demand plumb it has it. So it's it's really just kind of a stalemate
that we've seen the last few years. You're listening to Carrie Let's's Financial Survival
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Survival Network now more than ever, and welcome you are listening to the Financial
Survival Network. I'm your host, Carrie Letz. It's ten eleven twenty three.
Well, you're gonna want to hear from this person if you have any
interest in real estate and hard asset investing, any of that. This person
was designated as the Wall Street Journal's number one realtor nationwide. His name is
Kyle Sievith. Kyle, it is great to have you on the show.
Hey, how did the Wall Street Journal love figure out that you're the number
one real turn So this was done. It was in twenty nineteen, and
it was done via transaction side. So in twenty nineteen, I did the
most transaction sides in the Higher Country and the beauty of that was, you
know, one person, I know every single one of my clients, and
yeah, it worked out well. All right? So was that mostly commercial
or residential or a bit? So when you say transaction side, that just
means whether it's one unit or fifty units, that's one side. So that's
only one side, right, Okay, So, hey, what's your take
on the real estate market now? As well as we got an expert and
obvious expert on the line here. Yeah, I mean, I think the
real estate market is very confused. I think there's a lot of confusion right
now in the sense that folks really don't rates went up in prices are specific
down. We haven't really seen that. And our level here in the New
England area well, what you're starting to see is the may of this is
temporary of a little bit. So we're really in that in that situation where
the market's a little confused. Only you see prices plummet they have it,
and only you see buyer demand plumb it has it. So it's it's really
just kind of a stalemate that we've seen the last few years and rates.
Everybody's talking about rates set a reserve we got you know, PPI number comes
out today a little bit over what they would have liked. How big a
factor is rates in this market now? If they were to cut rates,
say by a third of where they're at now, would that result in a
huge push for the market or would it be greedy with indifference sy that again,
I'm saying, if the Federal Reserve were to start ratcheting rates back,
cutting rate and do you start seeing the raids ky, you're going to see
a massive influx of uyres back into this market. It will be insanity.
It'll be insanity. I think if you do see that, they expect that
demand goes through the rule because people we stand you're going to miss out again
on any sort of interest rates spite that you're going to see hat okay,
And I mean, I know we've got a lot of other things to talk
about, but I think the market review for somebody boots on the ground is
really important because many of you out there don't have any idea what's really happening.
But we still see like in certain states markets like Florida, the raid
ikes haven't seemed to do much other than to cut back on supply. It
because you've got all these people with three percent mortgages who'd love to you,
you know, to move, but are like locked into their properties. Now
all right, correct, I mean I did. You've got again a lot
of people that are they have those super low interest rates that they had for
the last few years, and they don't want to go out of those rates
and you know, lose that rate and against some higher But at the end
of the day, it's up if it's a rule you need for your family,
or if it's a wogle you need for your well being or so on
and so forth, it's it's definitely something that you should not let interest rates
become the be on end all. I think it's importing that buyers understand and
seller to understand you can always refinance down the road, and at the end
of the day, you can always refight us down the road. That allows
you to, you know, decrease your rates or rates come down as payment
and the money makes sense. Now it's only going to make more sense down
our own right, So hopefully rates will accommodate that that strategy. I guess
you never really know. Hey, so your keys to success? Basically,
I'm reading here it says that seven ninety percent of your decisions you don't have
to make anymore. How did you pull that one off? Yeah? I
mean I delegated at a lot of the past things that come across my desk
on a day in the day out basis, And I think, what that's
not that it's allowed me to just actually just make decisions versus having to hit
in the weeds and be involved in all on my new shut and I think
that's been very helpful. So I think that that's one of the things.
Is really delegating anything that's not being comproducing has been more of the keys to
my success. Yeah, that does make a lot of sense, And many
successful people have told me similar things, because you can't do everything yourself,
and if you try, then you wind up missing opportunities because you're too busy
handle the day to day, nine to five stuff, correct, exactly.
I think that's the part where that separates not only a leader, but a
successful person. You know, a successful person out starting wow, the will
prom a person that's not as successful. Right. So, somebody looking to
get into real estate, now, would you tell them forget it and put
it it's too dangerous or do you take the plunge? I would tell them
that it's important that we understand why they're looking to get into real estate,
and with that right, have a good have a good understanding of what's important
to you and what is the purpose and what's your why? But I think
that's the most important, right. And so obviously commercial real estate office buildings
in a state of period apparently terminal decline. How do you see that market
being able to be turned around at some point or is it past the point
in no return? I think commercial real estate, depending on what segment of
commercial is, is certainly something that's been you know, impacted, specifically office,
and I think they are right now. We're at such a housing crisis
that I think the moves or the wards residential in all those commercial spaces,
I think is important. I think that's what you're starting to see. These
are starting seatboats that are that are converting a lot of these commercial buildings need
to residents well, like in New York City, the older buildings and in
the Northeast Ire ad Venture, to say, the older buildings lended that lended
themselves to conversions because the proportions, et cetera just made conversion very easy.
Like in Manhattan's Financial District those buildings as they weren't ultra large inside. But
these modern office buildings have you know, one hundred and twenty thousand square foot
floors with not a lot of windows, a lot of it's in the close
to the core or it doesn't really lend itself to conversion so much doesn't.
No, it does, and so there's only certain buildings and certain locations that
would lend to that. And I think that's another important factor there that some
of these buildings that the secondary tertiary use is going to become very interesting and
go qual it. Yeah, I was just wondering if you had any insight
into other potential uses because it's it's like nobody knows what to do with them.
Do you just knock them down? They caut billions to put up.
I think other uses would be really you know, you kind of got to
look at it almost making like an AIRB and B office type slash workspace where
people can rank out smaller office versus having monster offices, right, so you
almost consolidate. That's one option. Another option, you know where where oh
story. I mean, there's just there's not a ton to do with these
things besides you know, possibly, like you said, knock them down.
Hey, And that leads to the next question of like malls. You know,
there's a contraction in the mall space. There's that mall outside of the
New York City in New Jersey. I think it was like going to be
the largest one in the country. And they're also in a state of terminal
decline and there's really nothing to do, no way to repurpose those structures more
or less, they got to be raised and the property used for another application.
Yeah, I mean, I think mall we're seeing it here in the
Northeast as well. I mean they were built and you know, during the
nineties and early two thousands they were at the hot topic. But right now
these malls are again when I'm trying to see is converting to residential, or
converging into elderly housing, or converging to some sort of housing that I think
makes sense. Yeah. Yeah, Well, let's you see these ghost malls
around the country, and the high end ones are doing doing better. I
wouldn't say they're doing right, but they're sustaining, and the outlet balls seem
to be doing okay. But everything in the middle, even in Florida here
is getting crushed. Yeah. I mean, that's that's pretty more you done.
You really have definitely started to really build that spread, you know,
the high to the lower ring and then the middle class or the middle the
middle part of the which the word I'm looking for. The middle part of
the retail space has really been flobbered by Amazon. I mean you don't really
have that same touching that that's not needed anyway, Yeah, Amazon and every
other online retay right right. Yeah, So so there's a realignment taking place.
But when it comes to residential, basically you might move from city to
city. Certain cities might be declining, but others were expanding. So that's
really where the real estate business is going to be out for the foreseeable future.
Definitely, for sure. So you mentioned housing shortage. How acute is
it? How bad is really? But it's pretty significant. It's pretty significant.
And I think what you're seeing is reds are going through the little it's
it's unless you have right control underway. Uh, They're just there's significant reaches
the reds. And I think what's happening there is uh, you know,
you need to so you need to have more supply. And the mad is
there supply, this isn't there. So it's just a function of how many
new builds or how how much saturation there is potential for in the future.
And I think that's important that you know, we figured that out, you
know, as a as a country, especially in New England Northeast where there's
a lot of density, we definitely have a significant problem. All right,
Well, hey, so just some advice for someone getting into real estate again,
just your top three things that you should do when you're looking at a
deal, whether or not to go or not. The advice I would give
folks for real estate if you're looking at a deal and you're looking at making
a you know, making a deal or or making something happen, I think
you just got to always look at the market, is at the tile of
deal where you think it'll be in six to twelve months, like there's potential
or any short of death contern then you've got a factor in a clintingency point.
I think that's the biggest fact, the biggest back of that. I'm
seeing that people need to pay attention. So is it ten percent dout the
twenty percent out? What's that number that has to make sense? Right?
Okay, Hey, what timeframe you think people should be looking more short term
intermediate than longer term now? Or do you look longer term to kind of
like mitigate got it? Sterm play all right now? And you've got to
definitely be a long term player. I think you've got to look at things
and say, we're at the top of the cycle. So I during this
little short term I think instead natively impact you. So you've got to be
long term by hold, and you've got to be able to sustain it.
Hey, what's your favorite geographical region within the country? Now? I love
the South. I love Florida area. I just like the weather, and
I think that's how it makes you happy when it's sunny. So I like
the beating of the silence. So yeah, it's not sunny, right,
now at least where I am in Palm Beach County, but that could change
in a minute, so we're not worry dat right right, all right?
Hey, well, hey, we want to if you want to connect to
how do people find you? So he certainly social media? You know,
Facebook, on Instagram, I'm all over that shop. You can definitely find
you. All right. You got a website we can put cone. You
can also go to see Theteamholmes dot com. All right, hey, we'll
put a link to that in the show notes. This interview on Financial Survival
Network dot com. Got a question for Kyle and myself, shoot me an
email Klahcarrielutz dot com and Kyle appreciate you coming on. Good continued luck of
the Wall Street Journal rediscovers you again. Thank you certainly, well, thank
you so much. Have a wonderful day. Thanks for listening to Carrie Letz's
Financial Survival Network, your solution to today's trying times. For the latest,
go to Financial Survivalnetwork dot com. Financial Survival Network now more than ever,