Ep. 29 – How Do I Time My Home Purchase If A Recession Is Coming? 

 November 3, 2019

HBH 29 | Effects Of Recession

What is a first time home buyer to do if they know we have a recession coming? Wait, time the crash? What are the real chances of the huge 2008 housing crash happening all over again? David Sidoni, the How to Buy a Home Guy, answers all these questions and tons more in this fact-filled and data-driven episode, breaking down all the numbers and helping anyone thinking about trying to buy their first home avoid the scary financial pitfalls. We all want to make the right move, especially for something as financially huge as buying a home. Let David summarize what the experts say and get you the information you need to confidently find your perfect timing.

How Do I Time My Home Purchase If A Recession Is Coming?

What’s The Best Strategy To Buy My First Home With A Recession Coming?

What if there’s a recession coming? How is that going to affect the housing market? Should I wait to buy a home? Let’s talk about it.

Bulls And Bears

Let’s talk about the recession. We’re going to talk about numbers. We’re going to do math. It’s very exciting. How is the recession going to affect housing? Let’s start by explaining what the recession is and how it is definitely coming? We’re in the year of a bull stock market. Bulls and bears, bulls are good, bears are bad. I found out that term comes from the fact that it’s the way the animals attack. Did you know that? Bulls thrust up and bears swipe down. The bull thrusting up means the market’s going up and the bear is the reverse. We’re in the first longest time period of a bull market. This is the longest bull market in history.

We’re in the second-largest growth bull market in history. The average length of your bull market is five years. We a few years overdue. The crash is coming. The difference between a correction and a recession is that a correction happens when the market drops between 10% and 19.9%. That’s what a correction is. Corrections happen all the time. There’s an interesting fact. Did you know that a correction has happened every year within one month of every year for the last 116 years? We are a few years overdue. Everybody’s freaking out over the last few years every time we hit a correction, but the key is that those corrections are only below 20%.

[bctt tweet=”Without the perspective and understanding the history of all these facts and figures, you’re doomed to repeat the same mistakes.” username=””]

If you’re thinking about buying a house, I don’t know when you started paying attention to economic news. It was probably only within the last few years. At the beginning of this bull market, maybe you weren’t even thinking about buying a house. Maybe you were still in high school, but the odds are if you’re reading this many years ago, it wasn’t on your radar. They didn’t talk about it for a few years, but a few years ago, they started having those corrections. Everyone starts freaking out and talking about the upcoming recession that is going to happen. As we found out, the sky was not falling because they happen once a year for the past 116 years and the data show that 80% of those corrections never turn into a bear market.

We have to be realistic. We have to take a good look at the length of this bull stock market. Those bear markets are going to happen every five years or so. We’re many years into this one and that means our stock market’s going to be dropping 20%. That’s got to be bad for housing. Most bear markets when they hit, they only last about a year from their beginning and the stock market will then correct by about 33%. In two centuries of American business, every single bear market, that 33% drop, gets made up of an immediate bull market. That bull market makes up that 33% in the next five years. The bear markets only last a year. Within five years, those losses are gained back. If you are reading this and you haven’t been paying attention to economics in a historical fashion, you probably remember 2008. That was a biggie. That was different.

Two Big Things To Remember

Back in 2008, people lost 50% of their assets. Even though people lost 50% way above that 33%, the bear market that follows gave 69% returns, going back up in a very short period of time. We’re still going on this long market. “David, that’s the stock market. What about housing?” The stock market ups and downs and the housing ups and downs are not as tied as you think. We’re going to get to that in a bit. This is all going to tie into your burning question, but you have to remember, you don’t know what you don’t know. Without the perspective and understanding the history of all these facts and figures, you’re doomed to repeat the same mistakes. That’s something that I stole from someone else in the past who was way smarter than me. I don’t even remember who that person was. I’m going to try to give you the big picture with all the facts, all the data and all the information that you need. It’s very important that as we’re taking all this data in that we remember two big things.

Number one, trying to time the market is impossible. Warren Buffett, one of the smartest investors in the whole world, who has tons of money and still lives in his original house in Omaha. He says that when he’s listening to all the economics shows, he’s listening to all the prognosticators and all the people that are attempting to predict the market. He says that their entire purpose for people who are listening to them is to make the fortune-tellers look good. Your best ally is time in the game. Don’t try to time the game. Get yourself time in the game, not on the sidelines. Get in whenever you can and time’s going to be your friend. Remember, paying rent is always worse than owning over as little as five years and ten years for sure. That’s a fact. That dates all the way back to the Revolutionary War. The only time that it didn’t reach that goal within that decade was during that crash in 2008, which we’re not going to repeat.

HBH 29 | Effects Of Recession
Effects Of Recession: Your path is not only purchasing a home but purchasing a home with the maximum amount of purchasing power so you can get the best deal out of the situation.

How does time work? You got to play the game to win. Theodore Johnson worked for the UPS way back in the 1950s. I Googled that just to find out that UPS was around in the ‘50s. It turns out, they were founded in 1907 in Seattle. Theo never made more than $14,000 a year. Yet, when he retired, he was worth $71 million. While he was still alive, he donated $35 million of that $71 million before he even died. He had that much money early in his life. You may ask, how did he do that? Einstein called it the eighth wonder of the world, compound interest. Theo had a friend who said, “I’m going to make you rich.” Theo said, “How? I only make $14,000 a year. Are you nuts?” His friend said, “I’m going to give you a 20% tax.” Theo said and I’m paraphrasing, “Are you off your rocker? I can barely pay my bills. You touch my money and you’re cruising for a bruising.” This was the 1950s. His friend said, “What if the government decided to up your taxes by 20% what would you do? I know you would whine, scream, yell and freak out, but eventually, you would pay it.” That’s what he did. The compound interest of that invested self-imposed 20% tax made him over $70 million on $14,000 a year.

The second thing to remember is these are general thoughts and ideas for building your own personal wealth and dealing with what could be a financial change in our economic landscape. These are general thoughts and you are you and your unique. Your own situation is unique. Buying a home is a very broad concept. There are some basic general ideas. A lot of which we’ve put out here on the show. Basic fundamental financial foundations backed by historical data do exist, but you have your own variables that are going to affect how this economic downturn changes, how these changes are going to affect you.

If you’re 2 to 3 years out, you run with the very basic principles. As you get closer, let’s say you’re 2 to 3 months out, the very specific individual data, your data changes daily. The things that affect you. Mortgage rates change throughout the day. Those are going to be the deciding factor as you get closer to this. They’re going to decide exactly how you best proceed. While you’re doing that, never lose sight of the big picture. Your path to not being a renter is your own path. Your path is not only purchasing a home but purchasing a home with the maximum amount of purchasing power so you can get the best deal out of the situation that you individually in at the time that you’re ready to buy. That’s important because doing this is building the foundation of your financial freedom, your safety, your wealth and your happiness. The path to get there is going to be yours.

Let me remind you this, why are you driving without a map? Get yourself a guide. Your Yoda is out there. Get a guide, call, text or email so you can get your unicorn realtors that guide you on your specific journey. Trying to do this on your own can cost you tens of thousands of dollars, sometimes hundreds of thousands of dollars. Go back to the other episodes where I talk about the driving from LA to Nashville, the metaphorical land of Nashville where you buy a house, driving without a map. I’ve got my other favorite travel metaphor right now. A plane flying from Los Angeles to New York City is off course 90% of the time. The only way to get back on course so it gets where it’s going is it has a guidance system that is correcting it 90% of the time. I can give you some overall principles, but your journey is going to be unique like you. You’re all special and unique. Your journey needs a guide. That starts by reaching out and let’s get you a unicorn.

[bctt tweet=”You got to play the game to win.” username=””]

What Home Buyers Are Thinking

Let’s get back to economics. Let’s find out what people thinking about buying a home are thinking is on the horizon? A survey of potential home buyers discovered that 53% of first-time buyers and people who were buying their second and third homes believe that a recession is going to happen in 2020. They are still in the market for buying a home. They still think it’s a good idea. Fifty-seven percent of the people surveyed think that we’ve got a recession coming in and it’s going to be worse than 2008. Most economists don’t, but the point is 57% of home buyers still do and they still want to buy. In that same survey, 55% of the people said they would cancel their plans if the recession hits. I totally get that. That makes sense. Logical self-preservation is a normal thing.

Here’s why the people who do this for a living think that the housing market is not going to get shafted with the upcoming recession that we all know is coming. Here’s the historical data. Let’s discuss how housing markets have been affected by recessions in the past. Since 1980, we’ve had five recessions. We’ll go back to 1980. Three out of those five recessions, home prices went up. Why on earth does that happen? Let’s break it down. When a recession happens, usually what the government will try to do, the banks and the people who are lending the money is interest rates will go down. Interest rates are a large part of any home-buying equation. If they’re going down, that’s good for you. Ask your parents or your older friends about how the government bailed us out in 2008 by keeping interest rates low. It happened. The truth is, they do this every time. They’ve done it in the past before. It was just much bigger than the last time. The Fed reduces the interest rates, which affects the lending rates, which affects the mortgage rates. Low rates mean lower payments and more houses you can buy.

As I said, 3 out of 5 times, the housing’s not affected. In 2008, that was very unusual. Most of the time, those 3 out of 5 times when a recession hit, the investors pulled their money out of the stock market at that time. Maybe they want to put it into something safe. The number one thing they put it into is housing. If all this economy talk is making your head spin, think about that. That’s the biggest takeaway you should get. The investors who understand and comprehend all this stuff think housing is a safe bet when the economy started to tank. They considered it conservative even. How do those last five recessions breakdown? We’ve got three times when the prices in housing went up during those recessions.

We start in 1980 where home prices appreciated 6.1% even though we had a recession. We had this crazy recession again in 1981. At that time, home prices appreciated 3.5%. The next one took place in 1991. That’s when we had a small home price drop off. The home prices fell by 1.9%. That was one of the ones where we dropped. Ten years later, in 2001, another recession hit. This was the great dot-com crash when all the Silicon Valley nerds lost a ton. Don’t look now, but Blue Apron, DoorDash, Grubhub, even mighty Uber, all those guys that invested in internet stuff and got all their VC money first are starting to figure out they might have unsustainable models too like the dot-com crash. Back in 2001, that dot-com crash was huge. Stocks fell by 25%, but home prices went up by 6.6%. Before 2008, people were talking about 2001 as almost as bad as the depression, but the housing went up 6.6%. The big one and the reason why people are so scared is because this one’s in most people’s memory. In 2008, we had a recession that was caused by the housing market. Therefore, we had the housing meltdown and prices drop 19.7%.

HBH 29 | Effects Of Recession
Effects Of Recession: The four major factors that continually affect the housing market are jobs, interest rates, population, and consumer confidence.

What Experts Are Saying

Obviously, that’s a massive drop. Why is that not going to happen again? Why is it not going to be 2008 all over again? Let’s start with some experts who are looking at all the global macroeconomics, the trade warriors. Everything’s going on with the global economy and they are thinking about the pending recession. What are they saying? Let’s see what they think compared to our survey of consumers that were considering buying. How do the experts see housing being affected by this inevitable and looming recession that we know is coming? There are stats from six nationally recognized nerd groups that analyze housing all day long. This is what they do. They analyze housing numbers. They are the Home Price Inspection Survey, Mortgage Bankers Association, Zelman & Associates, Freddie Mac, National Association of Realtors and Fannie Mae.

They all see us finishing 2019 somewhere between 3.4% and 5.4% appreciation. That’s going to be pretty spot-on for 2020. This is October 2019 and the prediction for 2020 from all six of these groups is somewhere between 2.8% and 3.5% appreciation. A couple of them predicted beyond that. A lot of them don’t make predictions more than a year or two out. A couple of them did predict that in 2021 and 2022, the numbers would still be going up at 2.5% and 3% appreciation. There’s another company, the Arch Mortgage Insurance Company. They do a housing and mortgage market review that’s revealed by their arch risk index. A lot of big fancy words say these guys analyzed risk. They estimate the probability of home prices being lower in two years. They estimate it in these goofy economic terms. They talk about a strong possibility, a minimal possibility and a moderate possibility. They didn’t have one state for 2020 and 2021 even having a moderate probability of home prices lowering. In fact, 34 of the 50 states had a minimal probability. That sounds good. That’s great.

Four Factors Affecting The Housing Market

These people say that but let’s dig deeper. Let’s find out why else do they not see this as a 2008 crash? Why do they see it as a regular old stock market crash or a stock market recession of which in the past, 3 out of 5 times, housing has gone right along with it and had not been a problem? Four out of five times, three out of five, it went up. One time it went down a little and the fifth time is in 2008. I listened to Dr. Lawrence Yun, who is a no-nonsense economist. He doesn’t sugarcoat things and he is the guru on housing economics. He points to four major factors that affect housing no matter where we are, bull market, bear market. When we’re looking at them in 2019, the outlook on these four major factors that continually affect the housing market are pretty good right now.

Number one are jobs. This is the unemployment rate, which we have the lowest jobless rate in 50 years. It was at 3.6%. I’m not quite sure where it is right now. Anywhere hovering below 6% is incredible. The overall stat is that our nation’s economy is at full employment. Everybody who wants a job has a job when the unemployment rate is at 6%. We’ve been between 3% and 4%. Item number two that they look at is interest rates. That’s simple. Mortgage interest rates are ridiculous. It is 3% to 4%. Go back and talk to your parents. Many of them bought a home at 18% interest. The third thing they look at is the population. This one’s pretty simple. We keep making more people. People need three things: food, shelter and clothing. It’s a simple supply and demand.

[bctt tweet=”News outlets make their money by getting you to click and subscribe and follow and be there.” username=””]

The population numbers are staggering. In 2000, we had 282 million people in America. In 2018, that jumped to 327 million people. We had a 45 million increase in many years. You wouldn’t think so with all the news you hear about households having less kids, but numbers don’t lie. A fun fact about this whole people keep making people thing, this also increases rents. That we’ve definitely seen. When it comes to where we’re going to house these people, we’re in a serious housing shortage and the news is not great. The construction was down by 4% in 2018, but a housing shortage means that there’s to be a demand for housing. We go back to supply and demand, which means that the housing market will probably remain good because all these people that are being made by other people need a place to live. The people who are trying to build the houses while they’re being over-regulated by the government. It makes it more difficult for them to make any profits. They’re not making as many houses as they used to. That is simple supply and demand.

Number four economic, indicator on where the housing market’s going is consumer confidence. In another survey, 53% believe that the economy is improving. Optimism is highest with those earning over $100,000 a year and those in rural areas. Some of you might be asking, “That’s weird, $100,000 and above in rural areas. Why rural areas?” This is an interesting thing. The theory is that they have less access to the media. They’re not hearing all the fear-mongering noise and clickbait that’s out there. All the headlines that are trying to get you to click. This is still how the news outlets make their money, by getting you to click and subscribe and follow and be there.

The people that don’t have as much access are in the rural areas. They’re not being bombarded with all this crap all the time. They’ve got less access to the fear-mongering. They’re not buried in their social media. People boohoo and freaking out all day long. They remain a little more confident because in their own area they noticed that most people have jobs and things are going all right. When it comes to the Millennials, they’re willing to buy a home. How many Millennials are saying in surveys, “I would like to buy a home?” They are buying home at rates higher than any other group coming into that homeownership age in history. Every generation gets a label. “Those crazy beatniks. Those stupid hippies. Those weird disco people.” Everybody gets called the generation before them and they think they’re not responsible.

What they’re saying is that a lot of Millennials are more committed to their lifestyle. Eventually, they figure out and realize that their rent is a regular payment that they make. The best way to fund their lifestyles is to stop throwing that money away. They get into the safest investment in economic history which is homeownership. The indicators are jobs, interest rates, population and consumer confidence. How are all four of those things looking? They are pretty good but is that going to be a big news story? Is that going to be the thing that you hear about all the time? Is this actual factual data filling up your newsfeed? Fear and misery are out there. That’s what sells. Some of you guys probably aren’t old enough to remember this, but we used to watch local news before we watch Hulu, Netflix and Amazon Prime.

HBH 29 | Effects Of Recession
Effects Of Recession: No one’s going to be able to accurately predict when the next recession is going to occur.

The local news had this great thing they would do every single time. They get ready to go to commercial. Right before they go to commercial, they put up a teaser and they say something like, “Is your laundry detergent killing your family? We’ll tell you right when we come back.” Fear has been the way. The news job is selling to you, getting clicks and getting the followers. They magnify the thing. They try to make it more interesting. If you’re one of those people that thinks that you aren’t interested in all that fear-mongering, the scandal, the misery and all the stuff that the news people are putting out there in the headlines, that’s great. I’m glad that you aren’t. Good for you, but you are in the minority.

Go to the grocery store and look at these things they have there called magazines. They’re all crap and they’re still selling. No one buys magazines. Go flip on daytime television and watch The Talk, The Real, The Chat, The View, The Josh and Gab, The Bitch Fester or whatever they call it. Think about it this way, fail. That’s one of the biggest things on YouTube. People dig pain, misery and fear. Most experts believe that if there is a recession that comes along, it’s not going to resemble the 2008 recession. Dr. Lawrence Yun told us what the economic indicators are, but there are some major factors as to why this is going to be the same as 2008.

The Next Recession Versus The 2008 Recession

Zillow economist, Jeff Tucker explained the difference in what will be the next recession versus the 2008 recession in the housing market in an article entitled, Recessions Typically Have Limited Effect on the Housing Market. He said, “As we look ahead to the next recession, it’s important to recognize how unusual the conditions were that caused the last one and what’s different about the housing market now, rather than abundant homes. We have a shortage of new home supply. Rather than risky borrowers taking on adjustable-rate mortgages, we have buyers with great credit scores taking out predictable 30-year fixed-rate mortgages. The housing market is simply much less risky than it was several years ago.”

George Ratiu, a senior economist at Realtor.com, weighed in the subject and said, “This is going to be much shorter recession than the last one. I don’t think the next recession will be a repeat of 2008. The housing market’s in a better position.” No one’s going to be able to accurately predict when the next recession is going to occur. Expecting one could possibly take place in the next 18 to 24 months. That’s understandable based on the data. We’re the longest one in history. It’s important that we realize the bottom line, it’s not going to be like 2008. It’s not going to affect housing. This is some basic information that maybe you don’t know about, but I was living it. It’s way more difficult to get a loan than it was before the crash of 2008. We used to say, “Fogamir, get a loan.” Fogamir means if you have breath and it was scary. The banks have clamped down hardcore to the point where it’s pissing off my people trying to get loans. I don’t care. I think it’s a great thing.

[bctt tweet=”The safest investment in economic history is homeownership.” username=””]

It never should have been that easy. I know a guy who bought a $700,000 house. When he told his gardener how easy it was for him to make this home purchase, his gardener went to the lender and bought the house right next door. I’m not kidding. It was greed. Banks were acting like there was no tomorrow. Loans were not verified at all, no income, no assets and no nothing. You used to get a stated loan. It sounds fancy. “I got a stated loan.” It’s not fancy. You simply stated to the loan officer, “This is how much money I make.” He said, “That’s great. Wrote it down on the application, then you got a loan.” There was no verification. If you’re wondering how on earth that can happen, go watch the movie The Big Short starring Brad Pitt, Christian Bale, Ryan Gosling and Steve Carell. It’s a great film. It’s directed and written by Adam McKay who won an Academy Award for Best Writing Adapted Screenplay. Adam McKay is a comic writer. He wrote Ant-Man. He wrote for SNL forever. He wrote Anchorman and Talladega Nights with Will Ferrell and Mark Wahlberg. That’s what a joke housing was back in early 2000.

“I hear you, David, the sky is not falling. I have a big question. Eventually, housing is going to go down again. If it does and prices go down someday, I’m going to wait until they hit the very bottom.” Here’s an answer to that question. Logically, I see why people think it and why it makes sense. As you can tell, I probably have a lot of pent up rage about this question. I’m going to answer this question with the rage that I have and then I’ll get back to talking to you about the real numbers. I’m going to even skew these numbers in favor of these people who come to me and think that they know what they’re talking about because they read one article on Facebook. I’ll give you the insane accurate numbers for them. When the economy tanks and all the millionaires and billionaires invest in buying real estate because it’s a nice safe, solid thing. When did you get smarter than them? They have millions and billions. You’re trying to figure out how to buy a $225,000 condo and you want to wait eight years to do it. Let’s run the numbers.

You rent for $2,000 a month. That’s $24,000 a year. You want to buy a $300,000 home at the end of 2020. You want to wait a year. Let’s say you save up for a year. Right before you get ready to buy, we have the huge Halloween 2020 stock market tank. We’re in a recession. Good job, you waited and you timed it. You’re stoked. You’re super proud of yourself. You think you’re a massive baller. The part of this crazy new recession that we’re making up. Let’s say it does something that the housing market never does. First of all, no one thinks the recession and the housing market are going to drop with this recession. Let’s say it does. Let’s say it drops by 10% in 30 days. The Halloween recession happens and then the apocalypse. The housing market crashed by 10% in 30 days. Let’s say it did. It is your time to pounce. Let’s take 10% off that $300,000 sales price that you were thinking about. Your $300,000 homes now discounted by $30,000 in those 30 days. To save that $30,000 to get your impossible scenario discount, you have been spending $2,000 a month, $24,000 for the whole year for your rent. You lost a $5,000 tax benefit that you would have gained. This $30,000 massive ball or discount, you got your $30,000 and you put $29,000 into it to get it. You have $1,000. That’s the way that it works.

I forgot something. You don’t even have $1000. The home has appreciated at the time while you were waiting. Let’s give you 2% appreciation at the same time. Right before your possible one month, a 10% drop that happens a year later during your fear recession that you’re going to know how to beat and be a champ. While 2% of the appreciation that you missed out on is a $6,000 return on the money that you spent for a year, the money you already spent on the first of the month, every month. That’s $6,000 you lost. You were up to $1,000 but you lost $6,000. That means congratulations, you timed it perfectly, but you’re down $5,000. Even though you somehow magically timed the greatest economic 30 days, 10% housing crash in history.

HBH 29 | Effects Of Recession
Effects Of Recession: Living your best life takes planning and a little perspective and understanding of the history.

Even if you disagree with the experts that the housing market won’t be heavily affected by this recession, let’s say you take that negative, but not totally insane prediction of the housing market dropping in 2020. You think it’s going to be normal at 3% to 5%. That might last 3 to 5 years maximum. Now, you’re looking at that $300,000 home. It’s going to start in 2020 or 2021 to go down. We’ll give it the full 5%. Let’s say that home is going to go down 25% in the next few years. During that time, even though your home has gone down 25% or $75,000, that’s big. You want to wait for that. Let’s say, I’ll even give it to you in five years. Let’s say it’s $75,000 off this home in the next five years.

If you are paying your rent. Your rent is $24,000. That’s $2,000 a month plus we’ve got the $5,000 tax benefits. That’s $29,000. You gained $75,000 for waiting five years to time the market, but you lost $145,000 loss. That’s a $145,000 loss for what could potentially be, if you time everything perfectly, a $75,000 gain. I’m not the smartest guy in the world. I look like an idiot right now, but I even know that $145,000 loss for $75,000 gain, so you can time the market is not good math for you. The numbers are far worse than that because I didn’t even include the 5% to 10% increase because rent always goes up.

It’s numbers, it’s not opinions. These numbers are conservative. They’re skeptical cautious numbers according to the experts. It doesn’t matter when you’re buying a home unless it was 2007. In the worst housing meltdown in history, Americans had been winning for decades anytime they buy their first home. With the rents being high and going much higher every year, there is no math that beats a fixed-rate mortgage. It’s all about time working the system. Is your money going into something? Is it going out to nothing? The sooner it gets in, it has more time to leverage and work the investment system. All investments take time to grow.

Unsexy Stuff

Do you remember Theo? Our $70 million UPS guy from the ‘50s, he had to get started. You can’t win if you can’t play. More time equals more return. I get it. This is unsexy stuff. You’re not going to get rich quick. You’re not going to have your Instagram feed showing you some super hottie killing it, living your best life. I’ve got news for you. There are people out there that I know of that are trying to tell people they’re entrepreneurs. They’re jumping fences at airports to take photos with private planes. There are people that are planning their entire vacation based on where they can get the best Instagram photos. If you care about what they think or if you want other people to see you in images that people are trying to project, you might feel like a winner now. You might get a bunch of likes. That’s fantastic. In the long run, the unsexy world we’re discussing, you’re going to be a hundred times more stable, content, happy and free.

[bctt tweet=”Time is money, especially with housing.” username=””]

That’s what money is. It’s freedom for you to have all the Yolo you want later on in life. You can live on your own schedule. You can live a life filled with experiences, not responsibilities and commitments to others because you spent all these years fronting so you could get the immediate gratification of likes, clicks and shares. You want to feel rad about other people’s random opinions of you and your current status. These numbers don’t lie. Don’t let your desire to be a baller right away help you skew those numbers into some negative look at where the economy is going because that fits your current real desire. That is to go out there, be an IG star and get all your clicks. It’s not sexy. The numbers are not going to be something you’re going to post and you’re going to talk to people about it.

It’s not going to make your Instagram stories, but it will make the real story of your life way better in the long run with a safe, stable and truly happy ending. That’s living your best life. That takes planning, a little perspective and understanding of the history. Fortunately, you happen to know a super dork who’s going to do all the work for you because, in my whacked out mind, this is me living my best life. Sitting here at 5:00 in the morning at my house doing a show. Helping people learn the best way to get this stability started as quickly as possible. My passion and living my best life is sitting here talking to you and helping you break this down and get this started as soon as possible.

I learned from a guy who helped summarize stuff for people. His name is Brian Tracy. He read and studied self-help stuff for years. I saw him the first time when he was in his 50s or 60s. What he did was he did an eight-hour seminar breaking down all the best of the best from all the years of research that he did. He summarized it to help us. I’ll never forget that. A lot of other great people did it too. Napoleon Hill did it for twenty years with some of the greatest minds in one of the largest growth periods in American history. He wrote a book about it called Think and Grow Rich. I figured if it’s good enough for them, it’s good enough for me.

Books About Economics And Marketing

I’m constantly gathering and trying to find stuff so I can get you the best information. When you’re taking a run or you’re on your commute, you might be listening to music, checking your social media or watching YouTube. I ended up spending all my time listening to audible books about economics and marketing. I listened to podcasts about super nerdy stuff, past and present economics and the best practices for the consumer. This is me taking it altogether. It’s everything you read. It’s me listening to Think and Grow Rich, The E-Myth Revisited, Rich Dad Poor Dad, The Richest Man in Babylon and tons and tons of books that I’ve consumed. Not to mention the current stuff with podcasts that I listened to Adam Carolla and Dave Ramsey every once in a while. The Theo story, the UPS guy, the $71 million man, I got that from Tony Robbins being interviewed by Gary Vaynerchuk. Tony was plugging his book Unshakeable that he wrote with Peter Mallouk. He’s some economic phenom voted number one independent financial advisor in America by Barron’s, which is the bible of investors and stuff. He was voted that for a number of years. Anybody who thinks about Tony Robins’ motivational stuff, he’s spot on when it comes to money because what he does is he listens to very savvy and smart people. He takes all their information and tries to dole it out to us.

HBH 29 | Effects Of Recession
Unshakeable: Your Financial Freedom Playbook

What he did was he interviewed 50 of the smartest financial people in the world for his first book, the one that was before Unshakeable. He interviewed people like Warren Buffet, Steve Forbes and all those guys. Not only, did he take the time to categorize, summarize and disseminate the information from the brains way bigger than his, not only did he do this passion project to help people like you and me, but he donates money from all the books to feed each book. He feeds 100 million people. His goal is to feed a billion hungry people in a decade. I was shocked to hear all that, but that’s the stuff that I can learn when I’m out and about listening to this stuff.

Time Is Money

I want to pass it on to you, dumbing down all this economic nerd talk and packing it in with some motivation so that the regular person out there can relate and prosper. I’m hoping that I’m doing that with you in this little niche of buying your first home. Time does equal money. It does, especially with housing. The longer that you rent, the more money you’re not putting into the unsexy plan of buying a home. The home that’s going to equal the foundation of your finances, stability and security. The longer you wait on that, the longer you’re not paying yourself, the longer that you are not getting the tax benefits of homeownership. There are countless ways that you’re losing money by not getting this started as quickly as you can.

This is why I started the show. We are at 83 first time buyers and two more closings coming up. Six people have purchased homes through the unicorn nation throughout the country. Before I started giving these show referrals out to people, I sent at least a dozen to other unicorns that I knew all over the country. The reason why I started this show is those people that I referred, the 83 first time buyers that I’ve had, every single one of them said to me, “I should have done this sooner.” They said if they’d found this information sooner, if they weren’t afraid to research it, if they weren’t afraid to find the information, if they hadn’t asked a friend or a family member who thought they knew and no offense, they were trying to give their best advice, but they weren’t an expert.

They’ve all told me, “David, I’ve lost thousands, tens of thousands, even hundreds of thousands of dollars because no one teaches this stuff.” They’re right about the fact that they lost the money. They were right that no one teaches this stuff because it’s not lucrative. The dinosaurs in the real estate industry don’t want to take the time for you. They don’t want to talk to someone 1 to 4 years out from buying. Now, someone does and that is me. I got unicorn nation who are as of October 2019, they’re helping 50 people on their plan. They have closed six of them. The goal is for you to reach out right away so that you can be one of those planners as well. Remember, time is money. This is your journey. The only way to navigate your individual variables of buying your first home is to have an expert guide who not only sees the big economic picture that we’ve discussed, but also your individual economic picture. A true caring and professional unicorn.

If you’re getting any value out of this, share this show. Let’s get it out to more people. Let’s get more people to find the unicorn nation. Check it out on Facebook, look for DavidSidoni.com. Also @DavidSidoni on Instagram. The fact that you’re taking the time to still be here at the end of this brutal economic class is more than enough for me or a member of the unicorn nation to know that you are serious. You will get a fantastic service that you deserve because we think you deserve your path to happiness. We will work for you and guide you. We’ll help you in your massively unsexy journey, saving, scrimping and sacrificing. You can be the beginning of a whole new generation of first time home buyers who don’t come back to me and say, “I lost much money because I never talked to anyone.” You’re here, you’re good and you’re on the path. Time to get yourself a guide. You can do this.

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This podcast was started for YOU, to demystify things for first time home buyers, and help crush the confusion. After helping first timers for over 13 years, I knew there wasn’t t a lot of clear, tangible, useable information out there on the internet, so I started this podcast. Help me spread the word to other people just like you, dying for answers. Tell your friends, family, and perhaps that random neighbor you REALLY want to move out about How to Buy a Home! A really easy way is to hit the share button and text it to your friends. Go for it, help someone out. And if you’re not already a regular listener, subscribe and get constant updates on the market. If you are a regular and learned something, help me help others – give the show a quick review in Apple Podcasts or wherever you get your podcasts, or write a review on Spotify. Let’s change the way the real estate industry treats you first time buyers, one buyer at a time, starting with you – and make sure your favorite people don’t get screwed by going into this HUGE step blind and confused. Viva la Unicorn Revolution!


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You Might Also Be Interested In:

Ep. 235 – Interview With First-Time Home Buyers – Shopping In Seattle And Buying In Tennessee
Ep. 234 – Interview With Yadi and Victor – Dreamed Of Homeownership And Found A Way
Ep. 233 – Interview With Stephanie Who Had 200K In Student Loans, And STILL Bought A Home!
Ep. 230 – NAR Lawsuit – The New Rules For Real Estate And How To Buy A Home – PART 1