It's a unique situation we are in, but I am thankful for it.
The real estate industry is a quirky space especially most recently with its striking headlines, limited inventory, high interest rates and rising rents. Chances are, it affects you.
If you've read any of the recent headlines about the billion-dollar judgment against REALTORS® and all the disruption to the real estate industry, then you will know why I feel compelled to write about why and how the real estate industry will continue on despite the drama. If you decide not to click on the link above to read the NY Times article about judgment, that is okay. I will recap it for you below without being all pundit-like. Although fuzzy, my crystal ball may have the answers.
This article is being written during the Thanksgiving holiday, so I am grateful for so much, including this quirky time of the unknown for the real estate industry. It’s because creativity can thrive out of this uncertainty, and money can be made.
Hi. I am Paul Dizmang, a real estate investor and property manager in Springfield, Missouri.
Perhaps we have met and currently work together or have had some time together in the past. Maybe you’re one of the 1000+ tenants that my management company rents to. It doesn’t matter. My clients and tenants are important to me, as are any of the readers who stumbled upon this post.
My niche is real estate investments in single-family residential property. My goal is simple: help others win. So, I have decided to talk about it here and provide this guide to what’s happening in the industry and how to find property and manage it. I have seen this real estate industry cycle up and down. When I got started in 1989, historical mortgage interest rates were 10.32%. Then, we saw a beautiful decline, and things got fun in real estate until a recession hit in 2008. A few years later, it got fun again. It was an exciting ride until the pandemic hit, and now we are in that pit again, ready for the fun parts to come back. I have learned through these ups and downs that consistency, strategy, and perseverance make a stronghold and the reasons why I am still here over 30 years later. I have seen the real estate industry cycle.
I’m good at being consistent. I am good at negotiating. I’m good at advising and coaching clients on buying property. And I am good at waiting it out and playing the long game. But you shouldn’t have to tell people you're good if you’re good, right? So I will show you through these newsletters.
What the crystal ball is saying about the real estate market.
As I mentioned, the crystal ball has been fuzzy because so much change is on the horizon for our industry, but here is the gist of what I am seeing.
If you’re a seller or buyer of real estate… know that the commissions paid are negotiable. Let’s be willing to talk about this upfront before we go down any representation roads in a real estate transaction. If you want help or suggestions on how to negotiate the commissions you pay, I can help you. Even if I am not your REALTOR® - although I wish I were. 😎 If you’re buying real estate right now, you can expect to pay a higher interest rate on a mortgage, but all indications are that the rates will be coming down over the next few months. According to Business Insider’s site, “they” say that the Fed could be cutting rates as soon as May 2024. There are numerous programs out there, I can show you your best options so you don’t have to wait until the Spring to sell or purchase.
If you’re an investor… embody a whole lot of patience and understanding in addition to realistic expectations. The market is still wobbly, and not because of the headlines I mentioned above, and inventory is still low. The market is wobbly because of higher interest rates, a strange economy, and general unrest, plus building costs are still way up. But like everything, what goes down must come back up. Real estate is always a great investment and the rates of return are still good, even in down markets! So, let’s brush up on your investment knowledge and pair it with my skills. Let’s plan now, get your financing in order, and be ready to go when the right property pops up.
If you’re a tenant… stay where you are just a little bit longer. If you have a situation where your property is clean, safe, habitable, and close to your work, stay put. I suggest this because rents are still trending upward (but will eventually cool down). Nationwide, rents jumped 20% higher in the previous two years. Stay put if you’re in a property that keeps your rent payment around 30% of your monthly paycheck. But also, now is the time to start preparing to purchase your next property, and I can help you with that. Start doing this by building/repairing your credit, if needed, and also ensure that all your bill payments are made on time. This is the first step to repairing your credit if you need to. I have a few other tips and will cover them in this newsletter in the coming months.
Crystal ball or not, I will keep an eye on the market for you and keep you posted.
Let’s identify the better investment.
Each month, we will play a little game, “This or That?” I will show all of my readers two properties side-by-side, as shown in the picture above. We will compare and contrast and learn to identify which one is a suitable investment property. This will help you learn how to assess the properties you find quickly and analyze them for purchasing.
For my Pro subscribers, I will give you all the formulas for quick calculations. You can see a sneak peek of what that looks like on this link. It’s the secret sauce to investing in property wisely. So you may want to consider subscribing to this newsletter— especially if you want to be a savvy investor, help others invest in real estate, or maybe you want advice on how to be a great property manager.
**ATTENTION CURRENT DIZMANG INVESTORS** You are already subscribed to the Pro account, don’t subscribe. Dizmang Properties, Inc. values our committed clients and includes a complimentary Pro subscription to each investor. 🎉
But where do I find the properties?
The MLS (Multiple Listing Service) often has these gems. You’ll likely need a REALTOR® to help you access that database of properties. Again, please let it be me.
But there are also multiple other places, and you just have to play the long game. Here are a few ideas.
Build a network. Join clubs, societies, and associations, or volunteer at a place where you meet people.
Find the auction. Then, learn how to work the auction. There’s an art to it.
Make friends with the trust attorneys in town. They often know people who want to unload property.
Once we are fully launched in 2024, this is the content you can expect from this channel. I will show you how to do this.
Once you find the properties, you will need to learn how to analyze them. That’s where we will play the “This or That” game we mentioned above. I will show you how to analyze the property so that you can make a wise, informed decision on whether it is a good investment.
Pro Subscriber Accounts Starting in 2024.
Accommodating the numerous requests that I receive asking for the secret sauce in this industry. I want to share how to manage properties, calculate the magic formula for investing in real estate, or find the hidden gems on the market. Finally, our board of directors has decided to open the secret formulas and show you how to make them profitable for yourself.
Just kidding, we don’t have a board of directors.
This is raw Paul Dizmang philosophy and experience on investments that has been passed down for multiple generations. In 2024, you can have access to it by subscribing to the Pro account on this Substack. It will include handouts, downloads, podcasts, and videos, all to show you how to make money in this unique environment. For my current investors also on this mailing list, if you haven’t received your special code waiving the subscription fee, call me this week.
Either way, there is a lot more coming your way.
Want to talk about it more?
Maybe your situation is also unique. If you want some guidance, I am here to help you.
My current investors always have access to my premium services. However, even if you’re not an investor with Dizmang Properties, I will secure quality time and attention to discuss your specific situation and offer guidance. (Yes, even for other REALTORS® and Property Managers who offer the same types of services that we do.) I have 30+ years of experience backing me up, which I am willing to share. Book me on your own time. The spots are limited, but you can sign up on my website at this link—
This is not me telling you how to do it; this is me showing you how I did it.
In continuance of being grateful and thankful… I am thankful for you. See you next time.
Paul Dizmang, Broker/Owner
(417) 887-0501 | paul@getpaul.com
Missouri Broker License #1999019792
Oklahoma Broker License #178172