Mauricio Umansky on “Rentvesting” a Bullish Real Estate Market and Where to Buy

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Money Rehab with Nicole Lapin 45 min 1 speaker 8 chapters transcribed 1 month ago
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What is the current state of the U.S. real‑estate market – buyer’s or seller’s?

Mauricio Umansky 0:00
No matter where you buy, but even if you buy in a peak and you hold out ten years, there is not one time where your property is worth less than ten years later. There's not one ten year cycle that's ever been lower than the peak.
Nicole Lapin 0:12
Mauricio Umansky built the agency into one of the most powerful luxury real estate firms in the world. He has personally done billions in real estate sales and has represented some of the world's most noteworthy properties, like the Walt Disney estate, homes that were owned by Michael Jackson, Michael Jordan, and Prince. Today he takes us behind the scenes in the real estate market right now.
Mauricio Umansky 0:34
There's amazing deals out there right now to be had, and so I think we're in the transition and we're moving from a uh bear market into a bull market.
Nicole Lapin 0:41
He gives us his take on rent vesting, the strategy where you rent where you live but buy where you rent.
Mauricio Umansky 0:48
I think right now it's a great opportunity to be a tenant in California. Insurance is super high. And so being a tenant right now is not a terrible place to be. And then building equity through somebody else's rent. And potential cash flow. Oh, and it builds equity.
Nicole Lapin 1:02
Where he buy right now.
Mauricio Umansky 1:04
A lot of money and people flocking to Miami. Florida, great tax haven. Texas, great tax haven.
Nicole Lapin 1:10
And whether we'll be calling him Mayor Umanski any time soon, I've thought about it a lot. I'm Nicole Latvin, the only financial expert you don't need a dictionary to understand. It's time for some money regain.
Nicole Lapin 1:31
Mauricio Yumansky, welcome to Money Rehab.
Mauricio Umansky 1:34
Thank you, Nicole. It's good to be here. I'm excited to talk money.
Nicole Lapin 1:37
I'm always excited to talk money. So I'm glad to have somebody who shares in that. I have to start with where is the real estate market right now? I I know everybody asks, is it a buyer's market? Is it a seller's market?
Mauricio Umansky 1:50
We are in a Great time right now. We're in a transitional time. Um we've been in a three year, three and a half year low. Um it's been a very difficult market. And when I talk about the market conditions, I talk about transactions. Um there's two different types of market conditions, right? One is price, is it you know maintaining price or is it you know uh depreciating um or in or appreciating? Um so but right now I'm gonna tell you, you know, about transactions because I own the agency, which is a uh real estate brokerage firm with a hundred and seventy offices around the world. And so I care more about transactions than I care about price. Um, and we are in a three and a half year low of transactions.
Mauricio Umansky 2:39
It's been a very, very difficult three and a half years.
Nicole Lapin 2:42
Can you give us because I've heard you talk about this a lot, but can you give us like a comp? So when you say it's a low, where have we been? Where are we now? And why should individual buyers and sellers care about that number, even if they're not part of the agency?
Mauricio Umansky 2:56
Great question, because it affects the market. That's the fast answer. But just to give you an idea, um, a typical twenty I I look at when I analyze the real estate market, I analyzed twenty nineteen and I kinda just get rid of the whole twenty twenty COVID world because it was an anomaly on every part. Um for the first three or four months there was nothing and then it was like, Holy cow, it was everything. Right. Yeah. So So I take those that year and a half or whatever and I just throw it out because it's outlier. Outlier. It's an outlier. It will never happen again. Free money was giving me like you know.
Nicole Lapin 3:32
It better not happen again. It better not happen again.
Mauricio Umansky 3:33
Um I look at twenty nineteen and then I look at post-2022, right? Um, and then I look at the history. But a typical year in transactions is somewhere in the neighborhood of 5.6, 5.7 million transactions in the country. Um since the 1994 savings and loan crisis, we were gener you know, we were even in 2007.
Mauricio Umansky 4:04
But a typical somewhere around five point six, five point seven million transactions. During COVID, we went up to seven million transactions. Right now we're at three and a half million transactions. Okay.
Mauricio Umansky 4:22
What's occurring? High interest rates.

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