a Friends and family broker
Enrique
Greetings!
I’m so happy you’re here.
For the past 20 years, I’ve been blessed to offer my real estate services to the greater Houston area, and I’m excited to now offer services in East TX (ETX) as well.
My expertise in real estate ranges from property management, residential, commercial, relocation, and consulting.
Cultivating relationships with current clients and their referrals has led to the growth of Real Estate Brokerage Group today. Thank you!
Through this successful system, my hope is to continue serving in real estate for another 20 years and on into the next generation.
If you are an existing client, or have been referred here, please reach out with any of your real estate needs or concerns. I’m always happy to hear from you.
God bless,
Enrique Lima
Opinions and beliefs ...Remember everyone has them
Interest Rates
Would it not be better to be prepared either way... high or low, rising or falling, even negative.
I mean to say that when you commit to building wealth, generational wealth, then your sense of headwinds and tailwinds must widen, your perspective has to stretch. If for no other reason you must in a manner of speaking tend to the farm at all times, in good and bad weather, there is always something to do.
Thomas Jefferson had some wonderful quotes on those who labour in the earth, this is a link from the Thomas Jefferson Monticello website, enjoy.
https://tjrs.monticello.org/archive/search/quotes?keys=&field_tjrs_categorization_tid%5B%5D=2179
I'm reminded of a book, The Wealthy Gardner by John Soforic. It is an insightful read if you have an opportunity to receive the wisdom offered.
There is a reference in the book about interest rates. As I recall the reference offers a description about what seemed like high interest rates in the United States (US) at a moment in time and the relationship to what many consider a safe investment, such as a Certificate of Deposit (CD) or the like.
Mr. Soforic challenges his audience to reflect on the difference between such an action and the less comfortable measure of avoiding mediocrity.
It seems clear to me opportunities exist either way, it also seems logical to consider that when the cost of money is higher or rising there are likely to be less buyers to compete with.
Remember that when money is relatively low cost you will find all kinds; sometimes you are competing with other individuals, sometimes with well funded institutions, some times with wildcatting unicorns, and when money is cheap you are often competing with overleveraged deal chasers willing to overvalue and underperform so long as they get out before they think the music has stopped. Yes, when the cost of money is high the barrier of entry is also high.
My observation is that no matter what the interest rate is, was, or might be (often times defined as the cost of money); one might best do all they can to be prepared and run their race.
"... Therefore, stay awake! For you do not know on which day your Lord will come. ..." from The Holy Gospel according to Matthew 24:42-44 https://bible.usccb.org/bible/matthew/24
Primarily no matter the market or interest rate; write out what makes financial sense for you and avoid playing with over leveraged numbers.
Of course there are many more variables than interest rates.
Often the slow grueling decline offers a pretty good indication when there are deals to be had; Inventory (supply) is high or growing and demand is not keeping up.
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Yes! I'd love to help you prepare. Call or Email anytime, except Sunday please. Better yet try the chat icon, I was shocked at how easy it is for you and I to use.
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I also have seen that historically, those who wait on rates will react to shifting values and make decisions they didn't expect to make.
Question for you, aren't you going to buy with everyone else when rates come down? ...what about doing the math and working a deal that makes sense while everyone else is waiting. Read my 1984 comments below on some numbers you might be interested to remember.
You might enjoy following the link, there are some quotes from John Soforic's book The Wealthy Gardner
https://www.goodreads.com/author/quotes/18470824.John_Soforic
1984
In 1984 the yield on a CD was 10.365%
according to the Federal Reserve Bank of St. Louis (FRED).
Welcome to follow the links after references made.
https://fred.stlouisfed.org/graph/?id=IR3TCD01USA156N,
FRED also tells us the median price of a home in
1984 was $79,950
and in
2024 it was $418,975
https://fred.stlouisfed.org/series/MSPUS#
The NASDAQ index valuation in 1984, according to FRED was
248.891,
in 2024 the market capitalization weighted index was
17,247.449
https://fred.stlouisfed.org/graph/?id=NASDAQCOM#
During the Great Recession,
as it is referred to in the Federal Reserve History article found here https://www.federalreservehistory.org/essays/great-recession-and-its-aftermath
Back to FRED's data, Commercial Real Estate (CRE) Prices in the US dropped
-11.29648%
in the Q4 2008 Year over Year (YoY) data released
on the same graph you will see that
CRE Prices in the US dropped -13.38887%
in the data release for Q2 2024 YoY.
https://fred.stlouisfed.org/series/COMREPUSQ159N#
For those of us that survived the Great Recession it is worth learning that as painful as the period was for many people... there are more than a few investors who's preparation met opportunity.
Some quick back of the napkin observations of FRED's CRE Price information:
- It took fourteen (14) quarters, that is over three (3) years to find the bottom during that period.
- It recovered in four (4) quarters, just one (1) year from the bottom.
- If we agree that commercial real estate values dropped an approximate 40% in the grueling 14 quarter decline, then you might appreciate that commercial real estate values recovered 30% in about two (2) quarters. That's a whopping 75% recovery in just half of the time it took to get it all back
- Not to mention that the break neck speed at which values returned was less than a third of the time it took to endure the long grueling decline
If you could go back and seize the day what would you do...
- How many deals could you work
- How might you deploy capital to maximize your return
- Would you make better decisions in the more than three (3) year period it took before finding a floor ...can you imagine having all the time in the world to work on your deal(s) while quarter after quarter they (government, forecasters, professionals representing other peoples interest (PROPI) give you more time by holding all the unprepared wannabes at bay by paying lip service that recovery is just around the corner
- Or are you so well funded and calculated that you make all the deals you want in the comparative nano seconds it would take over one or two quarters.
Let's ask a Did You Know...
Did you know
- that you could of bought the same deal on the decline with the seller desperately trying to get out of the long grueling three year decline vs competing with the smartest most well funded ruthless competition in the nanoseconds it took for them to lock up billions/trillions worth compared to your peanuts.
Did you know
(Sorry one more, probably for another post but I got excited)
- that those high prices paid by a prepared, ready, willing, and able investor probably secured a CAP rate favorable enough to recapture capital, pay off debt, and raise rents or re-leverage (conservatively) for the next ten (10) years in an almost effortless manner (if they engaged a competent manager) before COVID came around and gave them the opportunity to do it again.
Please do the work to eliminate doubt and say no a lot, that is not the same as saying be afraid to make a financial decision that has consequences.
The one doing the work and is prepared, runs into the streets when there is blood or however you'd like to remember the Barons Rothschild quote
https://www.goodreads.com/quotes/9049015-the-time-to-buy-is-when-there-s-blood-in-the
I don't know if you are ready to invest in Real Estate, let alone buy a house. I just know I'm good at what I do and the scars only make me better to serve.
Thank you for walking with me.
May God bless you and your family