– EXCLUSIVE INTERVIEW BY TIM HOUGHTEN –
If you’re in real estate you’ve probably smelled the storm just over the horizon. The question is where it will hit, when it will hit, and just how bad it will be? More importantly, how can your business and portfolio not only survive in the eye of this storm, but thrive?
Meet Bruce Norris
You may already be very familiar with The Norris Group and their exciting hard money lending programs. Leading the company is President, Bruce Norris.
Bruce Norris has been investing in real estate for over 35 years. He’s been involved in thousands of property and financing transactions. We could fill this page with his accolades. Yet, what he is best known and most respected for in the industry is his reports.
There have been others who appear to have successfully called downturns. Others have created names for themselves in good times and betting on the market going up.
What’s unique about Bruce is that he has proven to be able to successful predict both market crashes and upturns. He has been called on by many organizations up to the highest levels to share his expertise and insights on market trends. That includes the California Builders Industry Association, California Association of Realtors and Mortgage Bankers Association.
In our exclusive interview Bruce told Realty 411 that he started out flipping houses in 1981. He admits that like many new investors he knew little about timing the market. He ended up with 7 brand new custom homes that weren’t selling. He learned some tough lessons.
Then in 1995, his son graduates college. He bought him a Honda Civic. Then a few days later found a house for sale in California that cost even less than the Honda. He saw incredible opportunity. Yet, really wanted to dig in and understand the markets, how to time them, how not to lose money, and how to invest his own money in the safest and most profitable way.
This led to his first report that he published in 1996. In 2006 he released a report calling the most recent major housing crash and foreclosure crisis. In 2012, he invested in line with his report and went all in on real estate. The market has gone up 100% since then.
Turmoil: The Coming Storm Of Changes
Now the real estate industry is once again feeling a lot of uncertainty. Perhaps with the exception of Bruce. There has been a lot of talk about a new recession and crash. While many investors keep engaging in the market. This year’s presidential election is no doubt to to bring many more attempts to send us all on an emotional roller coaster ride full of fake news.
Bruce says “There are no real estate I am afraid of.” He’s mastered looking at historical and current charts and overlaying the data, and remains bullish on the market.
What does concern him is a new era of legislation and policies which are wild cards with the potential to be extremely disruptive to investors in some of the most progressive states, like California.
He feels this is such a pressing issue that more investors need to be alert to that he has set up a panel and new event on February 1st, 2020 to equip investors with this critical information.
Major Factors That Could Impact The Market In 2020 & Beyond
One of the big issues today is what things can be changed by popular vote versus by proclamation of state government, regardless of how its constituents feel. This puts residents at danger of rogue actors.
California has certainly become the poster child for aggressive new rules lately. Among them are sweeping rent controls, Prop 13, taxes, and the new ban on freelance workers which has the potential to create massive unemployment.
Then there is also city and state pension issues and the fact that many are not going to be guaranteed the money they were promised, or have already been counting on.
Student debt, health insurance, guaranteed income programs, climate change laws and other major policies could all impact the markets on a large scale. We may see a lot more of this after the upcoming election.
5G is likely to be one of the biggest game changers of the next decade. Yet, the US continues to be behind in this critical technology and factor in global competitiveness.
Other technologies may become more essential for remaining competitive and profitable in this new landscape.
Surviving & Thriving
While these factors could throw some serious curve balls at California investors, and New York is rarely far behind, Bruce is still confident in the US property market.
Looking at the charts he says even California is more affordable than it used to be. He points out that at least for now we’ve been enjoying the lowest unemployment rates in the last 50 years, and interest rates remain low. Put in perspective, he believes the market justifies more sales, more building and higher prices. He says this is even truer of Florida. The Sunshine State which is enjoying great population growth, has no state income tax and isn’t as crazy at enacting these new sweeping rules.
So, what’s Bruce doing with his money?
A look at The Norris Group website shows they are still lending to investors. In addition to their traditional rehab loans and refinancing rentals, they are also now lending to build and flip investors in Florida, and on ADUs for rent in California.
Their investors are getting attractive 6% to 10.5% returns on capital invested in first trust deeds and mortgages without pooling their money. Far better than a lot of operators are promoting today.
Get all the details on these factors, what to watch out for and their potential impact at Bruce’s upcoming event. Then master restructuring your portfolio and making new moves in 2020 with confidence. Register for the event at TheNorrisGroup.com/Turmoil