The REAL ESTATE Market; Buy Dirt

JASON BREIDINGER, SENIOR MORTGAGE BANKER, NMLS #1020123 MORTGAGE AMERICA

Country music star Jordan Davis released a song in the year 2021 titled ‘Buy Dirt.’ In this song, Davis illustrates the flashback of an 80-year-old's advice to a youngster who is planning and trying to get ahead; I’m "chasing a dollar," says the young boy to the old man. The elder replies, “If you want my two cents on making a dollar count, buy dirt.” In the song, this advice pours out while drinking a cup of coffee on the front porch. It goes on. Don’t get stuck climbing rung after rung on the ladder. Rather, spend time “finding the things that matter, finding the one you can’t live without, do what you love and call it work. And…Buy Dirt.” If you listen to the entire song, the mores, and folkways of the elder’s approach to how that’s achieved may align or differ from yours or mine. That’s to be expected. The principles he speaks of, however, are principles that are a part of the American Dream we all share. Finding what matters in life, sharing life with those you enjoy, finding a career that is gratifying, and owning Real Estate are the very ingredients that go into what we all use to define wealth.

In the first class taught by every real estate instructor, the definition of Real Estate is issued. Real Estate is defined as land ownership. Along with that land ownership comes its permanent improvements. A house, for example. I/we/they bought a ‘house.' It is in the definition of Real Estate that we find the simplicity of the elder’s advice. Buy Dirt. In other words, get started. Don’t just get on the ladder; find a place to put the ladder and climb with confidence and purpose. Real Estate remains the main ingredient of wealth for us all. A place to live, grow and achieve the dreams we define. It’s the foothold of personal achievement, not the pinnacle. Real Estate has value in a market. Markets rise and fall. Many get lost in the details of whether that market is rising or falling. Countless times we look for a balance. Over my 25 years of experience, balance has been found only while the real estate market is approaching an increase or approaching a decrease in values. Overall, though, the real estate market does fall near its previous value cycle over a cycle. What does that mean? It means it retains an overwhelming percentage of its gain. Yes, we need a place to live. Our place... from the moment the Magna Carta was signed.

It means that over time you’ll be glad that you bought dirt - not a car, not a motorcycle, not a boat, not a camper, and not a timeshare… D I R T.

I’ve been amazed at how smart my father seems to have become as I’ve grown older. My guess is that he hasn’t changed much; I have. If a youngster can listen to an elder early enough, they’ll learn what I’ve learned. New generations face the same struggles as the older generations. It’s just that those struggles personify themselves differently while the tools at our disposal constantly evolve. Time-honored principles are our best, and only tether as that world swirls around us. Snake oil sales on the back of the wagon have been replaced by YouTube videos. The question that comes to mind after drawing such a parallel is how lucky could we be to learn earlier rather than later? Stay principled, buy dirt, and hang around awhile. You’ll enjoy the result. We can easily agree that the Real Estate market in the past handful of years has been tenacious. Especially if you’re a buyer. Those that have taken the advice of the elder and bought dirt, aren't they the beneficiaries? Those who benefited most decided to buy, and for a period of years, not getting rich quick. Living in the mindset of long-term appreciation, not a short-term rental. Getting rich quickly is just chasing a dollar, and that can be done in many other places. Bitcoin, for example. As is with all tension, we find good solutions to real problems. New financing programs allow buyers to receive unprecedented levels of assistance toward down payment and closing costs, annual federal income tax credits, and business practices that are more trustworthy than ever. The silver lining. These improvements will last for a very long time and will be there for you when you need them. You’ll experience benefits those that came before you couldn’t have contemplated. That’s not an argument for waiting for the next great thing. It’s good growth. The type of growth benefits all who operate in the real estate market. An argument to grab your ladder and start looking to place it in your own dirt. If you have not purchased Real Estate, don’t worry; your time is coming, and it's safe to assume the time-honored principle of owning Real Estate will outlast any current market condition. If you’re looking