[Music] Hold up [Music] Welcome back to real estate mindset Today's video is going to be absolutely Bonkers and today is another boots on The ground video and where I'm at today Is in Southern California specifically Guys I am in Orange County right now and Not only that you guys I really this is Going to be a very difficult video for Me to make because I don't know how to Put the reality of how Overexposed this Entire area is in just one video Completely completely shocking let me Give you guys a little bit of Information of where I'm at before I Pull up the map and the stats so I'm in An area called Rancho Mission Viejo now The predominant Builder out here is Lennar so most of the building that you Guys are going to see today and I'm Gonna pan around so you guys can see Behind me most of it is by Lennar now TriPoint also owns a few properties out Here as well but predominantly again you Guys I'm in yet another Community am I Finding you guys great communities or What I'm in another community that Appears that Lennar is Foreign [Music] Yet again let me give you a little bit Of background now so far according to
The sales rep they've sold I think about 3 000 houses and currently they have Another 2 000 houses being worked on Right now and they're about to open an Additional phase where they're going to Build another you guys ready 17 000 houses and I'm talking to the rep I'm like where's who's going to buy These houses who's going to live here They have no idea so anyways you guys Rancho Mission Viejo another 17 000 Houses are being built during the down Time in our economy and uh you know this Place you guys this is luxury okay this Is luxury I got I took you guys to Fontana you guys saw Fontana this is Basically the opposite of Fontana even Though Fontana was nice now where I'm Standing right now is what I call the Spider web okay so basically these Builders put you know a lot of money in These sales offices let me pad so you Guys can see okay we got a sales office There by Lennar we got another one over Here I think that's TriPoint we got Another one over there that's also Lennar so there's again you guys I don't Get what happened to the phasing out now I want to just make a point real quick Videos like this you guys are it's just So important I could not have figured All this out online and the other Problem is is we really we can't trust
The Realtors you know and I hope you Guys are I hope you guys are really starting to Understand that we we really can't trust Realtors now look at all the communities If you guys want more information on Specific communities they're all right Here And you guys they're probably they're Not even done with 20 percent Of this development so I think what's Going on here why we really can't you Know trust these Builders or trust these Realtors is they really can't they can't Warn us they're not they can't afford to Be honest their job is to sell houses And I think that's really you know what It's kind of getting out of you know cat Getting out of the bag now is people are Starting to realize what most of the Realtors are good for cheerleading not Warning not data not education But cheerleading I mean why is no one Talking about this let me pan see if you Guys can look up that hill you guys see That hill right there there's an entire Community up there right now I'm Probably not going to go there that's 55 Or plus they're literally building a Thousand to two thousand houses right Behind me that are 55 plus so I'm asking Myself I'm like you just made the Box Even smaller and there's three 55 or Plus old communities over there so I
Mean I can't put into words okay so again you Know a little bit more info uh the Entire master plan Community here is About 23 000 Acres okay 23 000 Acres they have a Long way to go this is going to take Them decades you guys decades to sell Out and again if you're in a position to Where you can hold increase your Purchasing power and wait a bit I'm Gonna call it right now as far as Orange County new construction man show Mission Viejo is going to be one of the Epicenters of the housing market crash Because of the excessive and what it Appears Reckless building so I'm going To give you guys a tour you know I'm Gonna get my drone pilot to get the Drone up here in a minute but Um I don't I don't know what to say I Don't know what to say you guys you Gotta in other words here's what I Really want to say and then we'll begin Okay you've got to do your own thinking Okay you got to figure this stuff up for Yourself I would never have understood The severity of what was happening in Southern California if I didn't find out For myself so I hope you guys understand Oh you guys do me a favor I forgot to Say like this video subscribe if you Haven't already shoot me a comment below And let me know that you want me to
Continue doing these types of videos so Before I pull up the map take a look at The background of this video I mean Where I'm at right now in Orange county Is absolutely stunning you guys it is Absolutely beautiful here uh except for The prices obviously the prices are Still really really bad so let me do you Know let me pull up the map right now Guys and tell you exactly where I'm at Starting in Orange County we're gonna go South on 405 to the 5 South and we're Gonna go all the way down here and we're Gonna exit 74. now when we go up 74 You're gonna see this giant you guys Giant giant massive master plan Community called Rancho Mission Viejo so And the craziest thing about this is These people I believe are so unlucky You guys you see all the construct look At this Look at this We don't have enough inventory Travis we Don't have enough inventory everything Is fine it's not fine for these people You guys What I'm walking through right now would Be my definition of being Overexposed Because it appears what they're you know What they're banking on is people buying These houses so it kind of appears to me That they are incredibly unlucky they Probably started all the infrastructure Here this master plan Community when
Rates were low right and obviously Buying demand was at its Max now that Buying demand has been crippled and most Of these Builders have to refinance into Higher rates we're going to start seeing Them suffer and suffer greatly but again I'm saying right now you guys as far as Orange County look no further than Rancho Mission Viejo do you all see all That I was trying to walk Do y'all see all that Now uh and over here is the completed Ones Now a little bit about this community Now this community again it's a little Bit more luxury so the price points the Lowest price point is with Lennar at Around five hundred thousand dollars so It's still well under the median sales Price top of the chain is going to be About 1.2 to 1.3 million so again if we Can score some of these houses for like 50 cents on the dollar I mean you could stand to make a Tremendous amount of money again but we Need them to get hurt unfortunately and We need them to go down on their prices In order to survive right so if they Fire cell out of survival it's places Like this where people become Millionaires and this is and this is why I get so depressed you guys this is what I missed out on last time look at that If I would have done and made the right
Decisions last time and wasn't forced to The sideline I could have invested in Stuff just like this for pennies on the Dollar and I hope that I'm motivating You to do the same thing so now I'm at The part of Rancho Mission Viejo that's Called Botanica now this area is 55 and Plus and you guys can see some of the Building behind me so a ton of building Going on to the right of me over there Is raw land that they're building on as Well further down the street They are building over there and on the Other side as well so there is a Tremendous amount of building and what I'm really surprised about and I'm not Talking any you know any trash or Anything like that I'm really really Surprised that they're putting three 55 Or plus communities all right next to Each other so it's very very interesting According to the sales rep you know These houses these you know 55 plus Houses are going for anywhere and you Guys can see them behind me Isn't that Cool I mean They're so Overexposed you guys I mean I Was nervous I didn't know what I was Going to step off the plane into right It's very very hard because I'm Following breadcrumbs but I'm just I'm Just really happy I can show you guys This and again I'm trying the best I can To really show you the severity there's
The sales offices right there three Different communities 55 plus Communities in this section of Botanica Really really amazing stuff and I'm not Sure how well y'all can see the Background and the hills and the grass Do y'all see that I don't know if you Guys can But this is this is luxury you guys this Is very very luxury so what I want to do Now is kind of just put things in Perspective I'm going to throw up some Stats as far as Orange County's medium Sales price inventory and things like That now starting at median sales price You guys the median sales price in Orange county is a whopping 952 000 that's why people can make so much Money flipping houses in California when There's a distressed housing market when There's a flipping housing market Because the houses are so much money now Here's the thing that's down from one Million and seventy thousand dollars Which means which county is down a Hundred and twenty two thousand dollars Right now or double digits you guys 11.4 percent so the median sales price Decline that's happening right now in Orange county is exceeding is exceeding You guys the pace of 2008 and 2007 and Yet No one's talking about this why are People blind I don't understand why
People are keeping their head in the Sand about what's going on I understand Some markets are tight I get it but the Housing market is full of housing Markets and you know going to different Cities gives me the advantage of seeing Additional red flags and understanding Of you know a potential additional Systematic error so I'm actually walking Up here I'm going to show you guys a Different part of this community right Now just so you guys understand how much New construction is actually going on Right now and just remember you guys I Went into the sales office None of these have contracts none of This has contracts 17 000 homes on the Way do you guys really feel like well Anyways here's the thing it's going to Take 20 30 Years it'll take 20 30 years To build this out and what's going to Happen is this initially they're going To do some massive price cuts to stay in Business now after the massive price Cuts more than likely a giant Community Like this is just gonna hold right so More than likely they'll take a hit at First and then they'll stop the bleeding And then they'll hold and they'll start Phasing out very slowly that's what Irvine did during the last collapse Properties in Irvine basically Communities sat there for probably seven Eight years before they finish them
Because when the housing market was in Distress they stopped they didn't want To lose money so again that's probably What's going to happen here they'll take Their initial hit now here's smaller Houses right here guys do you all see That And I just walk right down the street a Whole another Community right here I Just walked down the street now that's Active construction existing inventory Is right here Okay that's the existing inventory look At that What inventory problem anyways you guys Let me keep going through the stats so We went over median sales price let's go Over now sell so right now you guys Sales are down in Orange County 28.7 and also days on the market are up 28 days so the buying demand there's no Question buying demand is broken and Buying demand has taken a massive hit Inventory is now at 2 290 homes okay and Again that's the entire Orange County And just this subdivision they're Building 17 000. there's 2200 active homes right now In Orange County in this small area They're building 17 000 homes You guys think anything can go wrong Here I think so inventory is up from 1347 units for a total of a 70 percent Increase in inventory I know that we do
Have historically low inventory but Nevertheless what people are refusing to Do is understanding the trajectory of The trend so even though we do have low Inventory the trends are all going up So that means what's happening right now You guys is working And this coming to places like this it Just makes me think the collapse is just Right around the corner I mean this is the same exact thing that Happened in 2008 but let me show you let Me talk to you guys about the rental Market here in Orange County I just Wanted to point out that as you can see Here a one bedroom home rents out for Two about two thousand dollars and What's very interesting guys that's down Year over year 16 talking that's the Rental market this entire area across The United States you guys the entire Economy the entire housing market it's Crumbling apart it's just it's just Happening differently depending on the Area because it does take time Understand that but going back to rent Two bedroom right now is up actually You're over here two percent so two Bedroom is renting out for two thousand Eight hundred and forty seven dollars This is what I'm thinking I'm gonna tell You guys what I'm thinking if I have Enough liquidity I'm coming back here if These houses get 50 cents on the dollar
If these houses get 50 cents on the Dollar I'm buying I'm holding for as Long as I have to and I'm reselling at You know quarter million dollar profit All right that's what I see here that's What I'm trying to say guys now Obviously you guys got to make up your Own mind but that's just that's what I'm Seeing through my eyes right now I mean Completely completely amazing you guys This is so amazing but anyways guys let Me take you to a different area of this Community now so right now I'm walking Down a trail in Rancho Mission Viejo This place is absolutely gorgeous they Have put so much money in here now Obviously they have to set up Lennar Tri-point has to set up the Infrastructure before they start selling So they have everything you guys see as Far as infrastructure is probably alone It's probably an expense to them and It's really astonishing because I was Thinking about this they're basically Selling out one of the absolute worst Times they can possibly be selling Interest rates are high you know home Value hasn't gone down that much but This place They they did a they put a lot of money I mean look at the trail you guys see Behind me look at those clouds it has Been raining on me I'm gonna keep Walking up here I'll pan to the right
There's actually a clubhouse over there So they have a lot a lot of money Wrapped up and these are the payments Right any loans that they have those are The payments that they're going to Continue to have to pay and in order to Pay them they have to be receiving money Obviously now a couple things about this Area now obviously as I've mentioned This is a 23 000 acre master plan Community now there's also a few Incentives and Orange County really Doesn't offer incentives but Lennar is Offering incentives I was able to find a Few incentives at about 10 to 15 000 off And I also talked to uh TriPoint and They said the same thing they're Offering about ten thousand to basically Do whatever you want with here is what I'm really really shocked at and this is My you know my case in point here of why We have to figure this stuff out for Ourselves when I go on to lennar's Website they show they have about 14 Houses available and that they're Building about 20 houses but I can tell You guys just the houses that I've shown You right now Far exceed that number in other words What I'm trying to say is we cannot Count on not only the Realtors we also Can't count on the new Builders to Really explain and show us what's really Going on they can't afford to do that
They're not in the business of telling Us the truth right it's just a system That we're in you guys need to Understand that again that's why I'm Here and wait until I get to the end Here I'm gonna pan and I'm gonna show you Even more houses that are being Constructed and this is so there's a Wildlife sanctuary right here oh you Guys I want to live here I really want To live here I'm going to show you where My foreclosure was because you guys Remember I actually had a foreclosure But right now this is called Ranch Camp Loop so this is really cool if you live Here but look at behind me guys you see All that construction right there so all That construction is going on as well You can see sticks over there let me pan This other way so you guys can see the Other see that right there So multiple multiple pockets of new Construction going on I am so enchanted Right now I mean I'm looking I'm walking Through what appears to be some pretty Nice houses although they are cookie Cutter it is Southern California so you Get no backyard but look at this is your Backyard This is your backyard and let me show You guys You guys can kind of see over there kind Of see those houses over there that's
Where I had my foreclosure over there And guess what the community was maybe Not as it wasn't this nice okay it was a Really nice Community it was nice houses Like this and I lost everything and was Trapped uh because of my bad decision of Purchasing just right there Can you guys believe that So I've gone full cycle right so this Time around I'm prepared I have Spectacular credit I have no Consumer Debt I have liquidity and I'm being Patient although I'm frustrated because I'm renting and I don't like it but I'm Being extremely patient because this Right here Is my dream right this is where I want I Want to live in somewhere like this it's Beautiful it's kind of TurnKey it's all Isolated but I want to purchase houses Like this for 50 cents on the dollar I'll be watching this as we move on Through the years but this is going to Be something that is going to be around For decades I can almost guarantee you That no way that they can sell out and Complete because remember they got Another 17 000 houses that they're about To complete now I'm going to pan so you Guys can see actually this hiking trail A little bit better because I really want to take you here this is a Really You know enchanting and Charming place
In Orange County and this is probably Not what you guys would expect for Orange County you'd probably expect you Know high density Mercedes everywhere People you know shoulder to shoulder but Look at that I mean it feels freeing here I just I Really love it I miss home you know California you guys know I'm from Southern California it's absolutely Gorgeous it's absolutely beautiful here But it's just overpriced and you know I Don't like most of the people here a lot Of people are rude obviously and you Just you know I don't want to be married To my house payment if I have enough Patience and I buy at the right time I Can live the rest of my life at a Sanctuary just like this I'll conclude The video in a minute but I wanted to Point out the more affordable housing That's well under the median sales price So the houses that you all see around Y'all see that this is about half the Median sales price so comparatively to Me it's still really really overpriced But comparatively these houses are Actually priced uh you know Priced Right In as far as what's comparable to the Median sales price so these are a lot More affordable y'all and I'll pan Around I'm actually walking through a Neighborhood now look at the neighbors Here okay
Y'all see that construction do y'all see All of that they do something really Weird in California they put a tarp Around the construction you see that Look at that tarp that's all new Construction there and then and then They block off the phases so I've not Seen that before that's probably just a California thing but literally Everywhere that I'm walking is new Construction and new building going on Right now which again is just gonna Magnify the hardship to the builders and Unfortunately you know here's the thing With the existing owners and that's why I'm kind of walking down here as well Now other people's mistakes is going to Be our opportunities so long as we Continue to increase our purchasing Power continue to improve our mindset Our expertise on various housing markets And really stop using our emotions it's Really hard for me to talk to just Anyone because this whole situation is Very complex and usually I can make Progress with a lot of people and then They start getting frustrated or their Emotions start happening and then you Know you really can't talk about the Data I'm not saying you know people are Capable of understanding what's going on What I'm saying is there's just so much Going on it's even hard for me to Understand so I really hope that you
Guys are getting things like that in These videos and you're really you know Leveling your game up Levering your Comprehension up but this is going to Conclude it guys this is my Orange County California Southern California Orange County boots on the ground data I Hope you guys loved it I try to work Really really hard and again it's just Impossible to show you the magnitude and The size and scale of this mega mega Community and I just wanted to point Also to the left you know it's mainly Lennar okay so it's mainly the narn here Totally Overexposed but right behind me You guys can see Pulte so we have Pulte Tri-point and mainly Lennar you guys see The building behind me let me pan see That it's just it's just everywhere if It's me I'm selling what I have first Right I'll sell what I have first and Then I'll phase out that's what Builders Should be doing so I don't I just don't Understand this I just don't understand This you're not as a builder you don't Want this to happen this was the lesson They learned back in 07 to 2011 is if You're Overexposed and you're over Billed odds are you going bankrupt odds Are you suffering are pretty extreme you All see all that Anyways I hope you enjoyed it this is an Absolutely beautiful I really hope you Guys look at this as the Hidden Gem of
Orange County I think it's going to be An epicenter do you also I mean do you All see why I think that you know let me Know that you enjoyed this boots on the Ground video shoot me a comment below Let me know your feelings about this Area obviously I can't afford it You know I can't afford a 1.2 million Dollar house I can afford some of the Houses you know in front of me because They're lower price point but Absolutely enchanting so if you're in This area you know my advice is you know You know my recommendation is keep your Eyes on this area keep watching the Prices and strike when the opportunity Presents itself now other than that guys I really hope you guys got some value Insights and perspective from today's Video if you're out there investing in Real estate I wish you luck and I hope You win
