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Why Demand is the Real Metric to Watch

"I was going to buy a house to live in...and I have the money...but because there is no supply I am now homeless living on the street."

...said no one ever...

In discussions about the housing market, supply is often cited as the main reason a housing crash isn't on the horizon.

But this focus on supply alone misses the mark.

The real key lies in the balance of supply and demand.

And more importantly, it's crucial to understand what drives demand: affordability.

Understanding the Balance: Supply and Demand

Let's break it down with a simple scenario:

If you can afford a $250,000 house and the market is flooded with homes priced at $200,000, supply is indeed a crucial factor.

However, if all available houses are priced at $350,000, supply becomes irrelevant because those homes are out of your reach.

This is where demand—driven by affordability—comes into play.

What Affects Affordability?

  1. House Prices: Currently, house prices are at an all-time high.
  2. Jobs/Income: While...
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What Do Crab Fishermen Know About Business That You May Not? Probably More Than You Think.

Let me explain...

This is a powerful lesson that made total sense to me the first time I heard it.

When a crab fisherman sets a trap, they put a little bait in the bottom of the trap.

Then, crabs flock to the trap and eat the bait.

Here’s the crazy part...

Crab traps don’t have a top.

So, when the bait is all gone, do the crabs just crawl back up to the top and leave?

Well, they try.

But they are unsuccessful.

Here’s why...

As soon as another crab sees a crab trying to leave the trap, they reach up and pull the escaping crab back down.

The other crabs will not allow them to leave.

It can even get violent enough that the crabs will tear the legs off the crabs trying to escape if they need to.

It’s an easy catch for the fisherman.

As long as you have two or more crabs in a crab trap, they will never escape.

What does this have to do with you? A lot...

Anytime you try to accomplish anything “out of the ordinary” and leave the “crab...

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A Wholesaler's $3 Million Success Story

In the dynamic world of real estate wholesaling, success stories often emerge from a blend of talent, experience, and continuous learning.

Today, we dive into the journey of one seasoned wholesaler who harnessed the resources of The Deal Lab to elevate his game and achieve remarkable results.

Meet John*, a veteran in real estate wholesaling.

With years of experience and a track record of crushing deals, John's expertise is undeniable.

However, even the most seasoned professionals recognize the value of ongoing education and strategic partnerships.

John's journey took a significant turn when he joined The Deal Lab, an exclusive community designed to empower wholesalers at every stage of their career.

Despite his proficiency, John understood the importance of staying ahead in an ever-evolving market.

He immersed himself in the comprehensive training offered by The Deal Lab, eager to refine his skills and explore new strategies.

What sets John apart is his willingness to adapt and...

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Why Scaling Your Business is More Than Just Making Money

In the world of entrepreneurship, the phrase "scaling your business" often gets thrown around like confetti at a celebration.

It's a phrase laden with ambition, promise, and, let's be honest, a fair share of headaches.

But what does it really mean when someone says they want to scale their business?

Are they simply chasing after the almighty dollar, or is there more to it?

Well, let's peel back the layers of this seemingly straightforward statement.

When someone expresses their desire to scale their business, what they're truly articulating is their aspiration to make more money.

It's a natural inclination for any business owner – the pursuit of growth and profitability.

However, behind this desire lies a myriad of challenges and complexities that often go unnoticed.

First and foremost, scaling a business isn't just about increasing revenue.

It's about optimizing operations, streamlining processes, and maximizing efficiency.

It's about finding ways to generate more...

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How to Thrive in 2024: Turning Cash Buyer Problems into Profit

In the loud landscape of real estate investing, 2023 proved to be a challenging year for many cash buyers.

Investors faced a ton of obstacles, from buyers stopping purchases of wholesale deals to a surge in contract cancellations.

Sellers, seemingly out of touch with market realities, were reluctant to accept offers, leaving cash buyers reeling with diminished profits and dwindling opportunities.

However, amidst these struggles lies a golden opportunity to transform setbacks into strengths and come out stronger in 2024.

For many investors, the root of these challenges stemmed from outdated strategies and formulaic approaches.

Offering low-ball deals based on conventional formulas like ARV (After Repair Value) multiplied by a fixed percentage minus repairs and wholesale fees, proved ineffective in the evolving market dynamics of 2023.

The key realization here is that the problem wasn't the sellers or the market—it was the offers themselves.

The solution?

Embrace innovation and...

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Real Estate Redefined: Join Matt Larson's Community, The Deal Lab

 

 

The biggest struggle most investors have right now and how to turn it into a strength for 2024 and beyond...

I talk to a LOT of investors each week... 

And I always ask..."what is your biggest bottleneck?"

Many of them say the following:

  • Buyers stopped buying my WS deals in 2023
  • I went from multiple offers to no offers on my deals in 2023
  • My contract cancellation rate went way up in 2023 because I couldn't get deals sold
  • Sellers weren't accepting my offers in 2023.
  • Sellers aren't realistic about the value of their houses
  • Buyers are offering me really low prices for my deals and now I am not making as much money 
These are all CASH BUYER PROBLEMS.
 
"Matt, how is a seller that isn't realistic about my offer a cash buyer problem?"
 
The seller isn't the problem...your offer is the problem...
 
You are offering wayyyyy tooooo loooooowwww on your offers...
 
Last year I helped more students than I can count to RAISE UP YOUR...
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