BiggerPockets Real Estate Podcast

BiggerPockets Podcast 188: Using 20+ Years of Studying Market Cycles to Buy Low & Sell High with David Gudmundsen

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Is the real estate market about to collapse? Do we have 10 more years? What’s the future hold? While no one can definitively answer these questions, today’s guest has some keen insight into timing the market, allowing you to “buy low and sell high.” Today, we’re excited to introduce you to David Gudmundsen, an investor who’s been in the game more than 20 years and who’s seen numerous peaks and valleys — and who has learned how to ride the wave. With more than 250 deals under his belt, David is an incredible resource for anyone looking to grow their portfolio — or preserve it — during times of uncertainty. Unless you know exactly where the real estate market is headed next, don’t miss this powerful and entertaining episode!

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This Show Sponsored By

We just waRealtySharesnted to give a shout out to our podcast sponsor on today’s show: RealtyShares. RealtyShares is a crowdfunding platform that allows you to invest in professionally managed properties without leaving your living room!

Learn more by visiting RealtyShares.com/biggerpockets!

Fire Round Sponsor

PATLive-LogoWe just wanted to give a shout out to our podcast sponsor on today’s show: PATLive. PATLive's team of superstar receptionists will always leave your customers delighted. Every agent goes through a rigorous training course before they can answer calls, and we've got quality assurance down to an art.

Learn more by visiting PATLive.com/biggerpockets!

In This Episode We Cover:

  • Why David chose real estate and his first property
  • How he got his first property by assuming a loan
  • How he reached a level of buying a property a month without a college education
  • How Monopoly inspired him to invest in real estate
  • How to balance learning and actually making deals
  • What exactly a wrap is
  • Thoughts on contracts for deeds
  • How many deals he has made
  • What you should know about seller carry back
  • What walking the mortgage is
  • Insight into market cycles and crashes
  • How to read the signs of market cycles
  • What we can learn from the boiled frog analogy
  • What “buying right” really means
  • The importance of not always doing the things others are doing
  • Why it’s important to join real estate club meet ups
  • A couple of his worst and greatest deals
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Tweetable Topics:

  • “I can never win at Monopoly unless I roll the dice and I buy houses.” (Tweet This!)
  • "A good borrower can make a bad loan good, and a bad borrower can make a good loan bad." (Tweet This!)
  • “Forget location, location, location. It’s all about buy low and sell high.” (Tweet This!)
  • “You just look at what exactly the herd is not doing.” (Tweet This!)

Connect with David

Show Preview

Real strategies that work for real people seeking to build wealth through real estate investments. Co-hosted by Brandon Turner and David Greene, this podcast provides actionable advice from investo...
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    David Krulac from Mechanicsburg, Pennsylvania
    Replied over 3 years ago
    David, Great name and podcast. What’s the name of that 20% book? David Krulac
    Denny Robert Rental Property Investor from St. Louis, MO
    Replied over 3 years ago
    Man this is an incredible podcast! So much gold in here. Now I’ve gotta go find a seller carry-back VA assumable mortgage on a single family to walk over to a storage unit. : )
    Andrew Syrios Residential Real Estate Investor from Kansas City, Missouri
    Replied over 3 years ago
    Very interesting discussion, definitely some good food for thought!
    Katie Rogers from Santa Barbara, California
    Replied over 3 years ago
    comment: “There are a lot of agents that don’t know what they’re talking about.” guest response: “Agents have their own agenda.” Right, agent’s RARELY tell you it’s time to sell.
    Saurabh Pahuja Investor from Austin, Texas
    Replied over 3 years ago
    The guest talks about a mathematician that tracks the real estate data. Can we get his name so we can get access to that data? Thanks
    Michael Trizzino from Long Island, New York
    Replied over 3 years ago
    I could be wrong, but I thought he was referring to the guy who runs calculated risk http://www.calculatedriskblog.com/
    Tyler Sherman Chemical Process Engineer from Chandler, Arizona
    Replied over 3 years ago
    He was referring to the Cromford Report by Michael Orr who had been director of the Center for Real Estate Theory and Practice at the ASU business school until the end of last year. PS – Loved the podcast. I will be actively looking to connect with Mr. Gudmundsen since I am born and raised in his bread and butter of Arizona!
    Michael Trizzino from Long Island, New York
    Replied over 3 years ago
    Thanks for the correction, Tyler.
    Kevin Koone from Cabot, Arkansas
    Replied over 3 years ago
    Great episode guys!
    James P. Hill Realtor from Holly Ridge, NC
    Replied over 3 years ago
    Great podcast!
    Kary Gould from Pawleys Island, South Carolina
    Replied over 3 years ago
    Great show! One of the best I’ve heard.
    Ugwu Uche from Atlanta, Georgia
    Replied over 3 years ago
    Great podcast, I find it interesting how when people talk about the state of the RE industry in the past, you see policies and systems that you would love to be able to take advantage of today (i.e. no doc loans, assumptions, etc etc) I wonder if ten years from now we will be talking about today’s market the same way. Looking at how low the interest rates are or being a sellers market or whatever advantage you can think of today. Maybe they will regulate wholesaling in the future and we will talk about how it was so easy then (although today it doesn’t seem easy). I would love to learn more about market cycles on a national and local level. Being an agent I guess the mls and market reports are the best place to study. Anyone have any tips on keeping current with market trends or how to spot highs and lows. I imagine like Josh said it is probably similar to trading securities.
    Ashley W. Real Estate Agent from Miami Beach, FL
    Replied over 3 years ago
    Such an informative podcast. It’s always nice hearing from people that have been in the game for a long time, but not stuck in any one way on how to do things. That’s one of the drawbacks of the older “gurus”, they are set in only ONE WAY being the way to go, whether or not it fits your criteria. Thank you Mr. Gudmundsen!
    Jeb Brilliant Rental Property Investor from Long Beach, CA
    Replied over 3 years ago
    Such a great episode, I am curious about one thing. Dave, what do you do with your 60 properties? You said you sold a bunch but still have 30 or 36? Do you sell them all and then live off of what??? Or do you keep the ones you don’t owe anything on? I was just thinking… Keep the dumps that pay rent every month but will never appreciate and sell the B class that has appreciated and make your money to use during the next down turn.
    Tek Chai from Podunk, Washington
    Replied over 3 years ago
    Thanks David for the great insight on real estate timing and your analogy of the frog in boiling water. That brings to mind of another great book, “Eat that frog” by Brian Tracy.