In this episode, Matt discusses the growing trend of tiny homes and accessory dwelling units (ADUs) as a response to the housing affordability crisis. Major retailers like Amazon and Home Depot are now offering these solutions, which provide affordable housing options. The conversation explores the historical context of mail order homes, the legal considerations for building ADUs, and the potential impact of these units on the housing market. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Today, Matt explores the growing influence of corporate landlords in the housing market, their impact on affordability, and the ongoing debate about their role in communities. He highlights the statistics surrounding rental properties, the political implications, and the varying perspectives on whether corporate landlords are beneficial or detrimental to housing markets. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

When you start investing in real estate, you’re often driven by the promise of financial windfalls and impressive returns. Initially, the hustle and bustle of acquiring and managing properties can be thrilling. But as your portfolio grows, you might find yourself stuck in a never-ending cycle of dealmaking, problem-solving, and even property management—feeling like you’ve just created another job for yourself, leading to burnout and frustration. If you’ve ever felt overwhelmed by the demands of your investment activities, you’re not alone. This is a common issue among investors who haven’t yet found a balance between their time and investments. Keep reading the article here: https://www.biggerpockets.com/blog/calculating-return-on-time-can-transform-your-investments Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

For several years now, a passive real estate investment club has met monthly to discuss and vet hands-off investments. Every month, they go in on a new passive investment together so we can each invest small amounts without becoming a landlord. While they historically focused on syndications, they've increasingly focused on private partnerships. We go in on deals together with smaller investment companies that don’t raise capital from the public. Here’s what a Co-Investing Club looks for when we explore private partnerships to invest passively in real estate deals. Keep reading the article here: https://www.biggerpockets.com/blog/why-our-team-is-passively-investing-with-private-partnerships Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s no secret that affordable housing is becoming harder to find for many young professionals, especially those who recently graduated from college with a pile of student loan debt. However, more young professionals are discovering a path to homeownership while kick-starting their real estate investing portfolio: house hacking. Keep reading the article here: https://www.biggerpockets.com/blog/best-markets-for-first-house-hack Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

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We know evictions can be costly for both landlords and tenants (both financially and sometimes emotionally). But did you know that it can actually hurt landlords just as much? Landlords go through the costly process of evicting, and tenants go through the costly process of losing the place they called home. Here's what the costs look like when broken down. Learn more about your ad choices. Visit megaphone.fm/adchoices

Fed Chairman Jerome Powell has been praised for his efforts to keep the economy from dipping into a recession, therefore accomplishing the long-awaited "soft landing." But does Powell rank among the best of all time? Here's why that's not the case. Read the Bloomberg article here: https://www.bloomberg.com/opinion/articles/2024-10-15/jerome-powell-is-not-the-greatest-fed-chair-ever Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Whole Foods and Chick-fil-A spend millions of dollars each year looking for the best locations for their stores. Data suggests that housing prices tend to appreciate where these stores are located, so is it worth following their lead? Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Proposition 33 is on California's ballot this election. The vote is for whether local governments should have the power to make rent control laws. Currently, the state has the sole authority, but Prop 33 could soon change that. Here's what you need to know about what could happen if it's passed. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

People have much to say about real estate investors, but not all of it is positive. While we can understand where some of the complaints come from, such as those about institutional investors, real estate investors play an integral role in the modern housing market. There may be valid criticisms out there, but by and large, investors—especially individual investors—play a significant role in maintaining the health and viability of real estate at large. The truth is that real estate investment benefits both the individual and the market, influencing local and national trends. Here’s how investors influence the market the most. Keep reading the article here: https://www.biggerpockets.com/blog/five-ways-investors-impact-a-housing-market Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

DOJ investigators discovered a multiyear scheme regarding fraudulent loans that led to an $18 million loss for JLL. Here's the full story and the implications it might have. Keep reading the article here: https://www.biggerpockets.com/blog/fraudelent-scheme-leaves-jll-with-a-18-million-dollar-loss Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Rental prices cooled, leading to an increase in concessions offered by landlords, according to data from a couple of months ago. What does this say about the real estate market? And does the increase being driven mostly by corporate landlords matter to the small investor? Keep reading the article here: https://www.biggerpockets.com/blog/rental-market-report-july-2024 Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

After declining in anticipation of the Federal Reserve's rate cut, mortgage rates have ticked back up all over again, now around 6.5%. It threatens to put a seal on the latest signs of renewed housing activity, and we have the data to prove that. In today's show, we'll talk about what the data is saying and what to expect in the coming months. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

A new Redfin survey shows that after the latest hurricanes, people are beginning to take a second look at where they live. Will this change the housing markets we consider hot? Or is this just post-hurricane fear? Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

We're less than one month from the highly anticipated presidential election, and both candidates have sounded off on housing. But does history suggest executive policies make a difference? Keep reading the article here: https://www.biggerpockets.com/blog/can-the-president-have-an-impact-on-the-housing-market Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Heard of driving for dollars? Wondering if it’s worth pursuing? We say yes! But don’t do it all yourself. Instead, build a high-quality team of motivated, dedicated deal finders. You’ll enhance your property sourcing and potentially gain access to leads you won’t find elsewhere. Where do you find deal finders? It’s easy: They’re already all around your neighborhood.In this episode, we’ll discuss the benefits and methodologies of recruiting local drivers and scouts to uncover high-potential real estate opportunities in various markets. Keep reading the article here: https://www.biggerpockets.com/blog/building-a-team-of-deal-finders-in-real-estate-investing Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Inventory levels are a measurement of supply, and we're starting to see some real upward movement in markets across the country. In today's show, we're going to talk about the latest trends and what the projections are through 2026. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Property inspections are essential to figure out what’s wrong with a property before you buy it. But they’re also a critical negotiating tool. Don’t skip them or neglect their importance. They can often be worth thousands or even tens of thousands of dollars. Keep reading the article here: https://www.biggerpockets.com/blog/dealing-with-resolutions-of-unacceptable-conditions Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

It might be autumn, but housing could be getting hotter and hotter now that mortgage rates are starting to decline. What should you expect in the coming months? Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Hurricane Helene just ravaged Western North Carolina and some coastal communities in Florida. It's an example of why property insurance providers are raising prices or pulling out of states entirely. However, where else are rates subject to change, and how should we expect property insurance to change going into next year? Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Property management is one of the major keys to success in real estate investing, but oftentimes, it requires an investor to outsource the work to a professional property manager. In today's show, we go over when and how you should let go of a PM who's just not cutting it. Keep reading the article here: https://www.biggerpockets.com/blog/how-to-deal-with-a-bad-property-management-company Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

The Fed cut rates, but did anything actually change? Well, surprisingly, mortgage rates actually went up along with bond yields. In this show, we go over what's actually changed and what to expect in the future. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

California's AB 1033 was passed late last year, but San Jose was the first city to fully adopt the measure in July. It's a game changer in the California housing market and has opened up a major investing window for investors and homeowners alike over the next few years. That's what we'll discuss today. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Investors get a lot of flak sometimes, and there are a few reasons cited for why. Are they based in reality? Or is it a frustrated overreaction? In this episode, we discuss the key complaints people have about investors and why those might be outright wrong or if there's a point to it. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

The affordable housing crisis in the U.S. is getting worse, according to a new report from the Joint Center for Housing Studies of Harvard University. While many factors are to blame for the increase in cost-burdened homeowners and renters, experts agree that constrained supply is keeping housing costs elevated. Many point to the strict zoning ordinances in most cities as the primary barrier to new housing construction. The YIMBY (“Yes In My Backyard”) movement, which has support from both sides of the political spectrum, aims to relax zoning laws in cities across the nation. Will it create r? Keep reading the article here: https://www.biggerpockets.com/blog/how-building-codes-have-impacted-the-housing-crisis Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

If there were any question about the current popularity of “unique” short-term rentals, the fact that Airbnb has links to listings of “tree houses,” “tiny homes,” and “omg!” right in its top nav should answer it. One-of-a-kind, unusual rentals are having a moment—but they come with their own set of considerations. Here’s what to keep in mind before converting your backyard ADU into a pirate ship. Keep reading the article here: https://www.biggerpockets.com/blog/using-treehouses-houseboats-and-tiny-homes-as-rentals Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Home prices have been pretty stable over the last year, but as the housing market begins to shift again, things could start to change. We pulled data from various sources and zeroed in on the metrics most capable of predicting home prices. In this episode, we'll give you the results, as well as extra information and tips for your own research. Keep reading the article here: https://www.biggerpockets.com/blog/cities-with-income-growth-show-where-prices-are-expected-to-rise Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Baselane's 2024 Investor Survey paints a clear picture: investors expect to have a better 2025 than 2024, and especially better than 2023. In this episode, we'll go over the highlights of the survey and get a sense of what's really happening in the housing market through the lens of investors. Keep reading the article here: https://www.biggerpockets.com/blog/baselane-real-estate-investor-survey-2024 Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Home insurance rates are skyrocketing across the U.S., with some areas increasing over 20% since last year. According to data from the National Real Estate Insurance Group, these states and cities are the worst places to invest in, based on claims. Keep reading the article here: https://www.biggerpockets.com/blog/the-best-and-worst-places-to-invest-based-on-home-insurance-costs Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

The Homes Act of 2024, proposed in Congress, sets out to create permanent affordable housing for low and very low-income households. In today's show, we talk about the bill, the issue it's trying to solve, and the cost it would have if passed. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

In this episode we're diving into into the recent interest rate cut by the Federal Reserve (FED) and its significant implications for the real estate market. We'll analyzes the Fed's previous approach to inflation and discuss how the current economic climate is influencing housing trends. Will the housing market recover?, What are the effects of declining mortgage rates? Tune in to stay informed on how FED decisions impact your real estate investments! Keep reading the article here: https://www.biggerpockets.com/blog/federal-reserve-cuts-rates-for-first-time-since-2020 Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

According to real estate data company ATTOM‘s second-quarter 2024 U.S. Home Equity & Underwater Report, American homeowners are sitting on a pile of home equity. 49.2% of mortgaged residential properties in the U.S. were considered equity-rich in the second quarter of 2024 after years of sitting on the refinancing sidelines amid high interest rates. ATTOM’s definition of equity-rich means the combined estimated amount of loan balances secured by the property was no more than half of their estimated market values. Keep reading the article here: https://www.biggerpockets.com/blog/half-of-american-homes-are-considered-equity-rich-q2-2024 Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Downsizing after a divorce was painful but financially smart. I decided to house hack, opening my Victorian Brooklyn brownstone to Airbnb guests and hoping to bring life to my cash-starved bank account and a spark to my stately home.  Well, I got more sparks than I bargained for.  Keep reading the article here: https://www.biggerpockets.com/blog/my-tenants-were-airbnbing-my-apartment-without-me-knowing Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

The federal funds rate was just cut by 0.50%. Now, some, including Fed Chair Jerome Powell himself, have suggested that by the end of this cut cycle, rates could fall to as low as 3% by 2026. If that happens, it could set the stage for a national construction boom. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

40-year mortgages could be the next big offering for real estate investors to take advantage of, but is that a good thing? In this episode, we cover what 40-year mortgages could look like in practice, the pros and cons, and if the numbers make sense for an investor. Keep reading the article here: https://www.biggerpockets.com/blog/40-year-mortgages-wont-be-as-bad-for-homeowners-as-i-originally-thought Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Rental costs have gone up, up, and up. Everywhere we look, we see headlines about the exorbitant cost of renting, whether an apartment or an STR.  Small real estate investors must strike a balance. They’re torn between raising rental amounts to account for inflation, high property prices, taxes, and rental demand, plus the tension of sustainability. After all, higher rental prices without a rentership experience that justifies it might drive good residents to look elsewhere.  Keep reading the article here: https://www.biggerpockets.com/blog/6-ways-to-raise-rent-while-respecting-your-residents Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Running a rental business is about more than just collecting rent; it’s managing your properties carefully and professionally. Many investors, especially new ones, often cut corners to save time or money. However, making informed decisions when setting up your business can help everything run smoothly and avoid expensive problems down the line.  Here, I’ll discuss how to structure your rental business, manage finances, comply with legal requirements, and handle property management effectively. I’ll also go over why reliable banking is important and how it can impact your business. https://www.biggerpockets.com/blog/key-steps-for-running-a-successful-rental-business Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

The streets of San Francisco may be known for Dirty Harry, movie car chases, and the birth of the hippie movement, but they will no longer be associated with rental price-setting software. That’s because the Golden Gate City is in line to be the first in the U.S. to ban the tech tools allegedly associated with landlord price fixing. The San Francisco Board of Supervisors unanimously approved an ordinance introduced by its supervisor and mayoral hopeful Aaron Peskin that bans landlords from using specific software and algorithms to set rents. The measure will still need to be approved by the mayor next month before it can be enforced. Keep reading the article here: https://www.biggerpockets.com/blog/san-francisco-leaders-approve-measure-to-ban-price-fixing-software Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

You’ve found what appears to be a great property, and you just received the inspection report. It listed many defects, most of which are typical, and the cost to correct them is well-defined. However, a few items are disconcerting because the report listed symptoms rather than specific defects, such as mold, Kitec plumbing, China drywall, aluminum wiring, roof leaks, settlement, etc. These ill-defined problems are red flags because remediating them is not “fixed.” For example, suppose mold was detected. What would it cost to correct the mold?  Learn more about your ad choices. Visit megaphone.fm/adchoices

Trying to predict the next hot real estate market is like catching an eel with grease on your hands: The moment you think you’ve got a handle on the next hot spot, everyone else has the same idea. Inventory shrinks while prices shoot up, and what once looked good suddenly cools. However, if you’re prepared to be specific in your search, you can pinpoint the next great investment opportunity for different market segments. Keep reading the article here: https://www.biggerpockets.com/blog/the-next-wave-of-markets-set-to-boom-in-the-coming-years Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

For first-time and aspiring house hackers, avoiding mistakes early in your investing career is crucial in speeding up your momentum when building your foundation.  Right now, competition is high, and investors are finding themselves in markets where great deals are becoming rare. It could not be a more important time to sharpen your skills, round out your education on your strategy, and learn from those who have made mistakes so you avoid starting your investment journey on the wrong foot. Keep reading the article here: https://www.biggerpockets.com/blog/tips-from-my-house-hacking-experience Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

With the housing crisis being one of the major issues Americans face today, politicians have recently offered various ideas on how to combat it, from President Biden’s rent hike cap to the latest bill from Massachusetts Senator Elizabeth Warren, who has proposed investing $500 billion in an attempt to make housing more affordable over the next decade. Keep reading the article here: https://www.biggerpockets.com/blog/senator-warrens-new-bill-targets-private-equity-and-looks-to-incentivize-affordable-housing-development Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re looking to diversify your investment portfolio in 2024, investing in ATMs should definitely be on your radar.  We all know that economic conditions for real estate investors have gotten tougher in the last few years. Tighter margins, smaller ROIs, and fewer investment opportunities are a reality. Not so in the ATM industry. ATMs are a remarkably resilient, though still often overlooked, source of long-term, steady cash flow, with minimal active involvement, minimal risk, and a ton of opportunities for diversification within the industry.  Keep reading the article here: https://www.biggerpockets.com/blog/why-investors-are-turning-to-atm-investments-for-diversification Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

When you’re competing for ranking on VRBO or Airbnb, playing by the rules of the algorithm is everything. Take too long to get back to a tenant question, and watch your placement slide.  But how important is it to update your short-term rental’s headline? The truth is, the best intel we have is not directly from the listing sites. Just like with Google ranking, these sites don’t want you to “game” the algorithm by telling you exactly how it works.  Keep reading the article here: https://www.biggerpockets.com/blog/how-often-should-you-update-your-airbnb-listing Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

The New York real estate industry is fuming. New legislation might force landlords to pay the hefty broker’s fees that tenants have traditionally paid to real estate companies.  Should the law pass, many landlords might skip brokerages to preserve their cash flow. They won’t get much sympathy from tenants, though. With soaring New York rental prices and the city caught in an affordability crisis, renters are struggling to pay the sky-high fees brokers charge—usually 10% to 15% of the annual rent, not including a security deposit and first month’s rent.  Keep reading the article here: https://www.biggerpockets.com/blog/new-nyc-law-would-end-broker-fees Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

On June 11, the city of San Jose became the first municipality to update its zoning code in accordance withCalifornia Assembly Bill 1033, which went into effect at the beginning of the year. The law allows for local ordinances that permit homeowners to sell accessory dwelling units (ADUs) as condominiums, but cities must opt in.  "Keep reading the article here: https://www.biggerpockets.com/blog/is-californias-adu-law-the-beginning-of-a-new-era-in-housing Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com" Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s one thing to attract a tenant to your rental property. It’s another thing entirely to retain them. Here, we provide guidance on how to retain tenants and the financial results of doing so.  "Keep reading the article here: https://www.biggerpockets.com/blog/how-to-retain-tenants Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com" Learn more about your ad choices. Visit megaphone.fm/adchoices

Most people drift along life’s current. They work 9-5 jobs, live within 30 miles of where they grew up, and don’t change careers often, if ever.  There’s nothing inherently wrong with any of that—if you’ve considered all your options and then intentionally chose that lifestyle. The problem, of course, is that most people living that lifestyle just fell into it.  "Keep reading the article here: https://www.biggerpockets.com/blog/the-freedoms-that-make-the-perfect-life Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com" Learn more about your ad choices. Visit megaphone.fm/adchoices

Landlords can expect two things to be true: The profit potential is exceptional, and tenants will have complaints.  Homeownership comes with natural ups and downs, with the ongoing hassle of maintenance issues, frustrating neighbors, and even occasional financial hardship. As a landlord, you get to handle these issues as they arise for your tenants, so knowing how to handle tenant complaints and concerns is essential. "Keep reading the article here: https://www.biggerpockets.com/blog/how-to-deal-with-tenant-complaints Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com" Learn more about your ad choices. Visit megaphone.fm/adchoices

As you start to explore real estate investing, one of the first things you’ll hear about is the importance of finding deals. It’s a topic that dominates articles, BiggerPockets forum posts, YouTube videos, and conversations within the industry—and for good reason. Finding deals is the lifeblood of real estate investing.  Here are four key reasons why a successful real estate investor focuses so much on finding the deal. Learn more about your ad choices. Visit megaphone.fm/adchoices

The Fair Housing Act (FHA) ensures any person can buy or rent a house or apartment wherever they want regardless of their race, ethnicity, gender, religious preference, disability, family status, or national origin. In 2015, the United States added discrimination based on sexual orientation or gender identity to the list of protected classes.  As a landlord, you should be familiar with the FHA and what it covers. Both federal and local governments have rules regarding fair housing, and you need to understand these requirements to protect yourself and your property. Knowing the details of this legislation can prevent legal issues with tenants for violations involving discrimination. It can also help guide your marketing strategy so you avoid using language that can be construed as discriminatory. Learn more about your ad choices. Visit megaphone.fm/adchoices

Not all tenants work out the way we hope. Maybe a renter is habitually late paying rent, disruptive to other tenants, or engages in illegal activity. Whatever the reason, you may be wondering: “Can a landlord break a lease?” The short answer is—it depends. Before you break a lease agreement, make sure you have a valid reason and that you follow all the legal requirements. Learn more about your ad choices. Visit megaphone.fm/adchoices

For landlords feeling the pinch of high interest rates or would-be investors wondering how they can cash flow, there’s some good news: Rents will continue to rise. However, for rent-burdened tenants, the outlook is not so rosy. “We’re gonna build 600,000 apartments this year,” Barry Sternlicht, CEO of Starwood Capital, an investment firm specializing in hotels and market-rate multifamily housing, said recently on CNBC about America’s construction of apartments, “and 400,000 the year after and 230,000 the year after that.” Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate is typically an excellent choice for long-term investment. However, as with any investment, there are potential pitfalls to consider. One is ensuring you make adequate plans to handle the complex web of property tax regulations. The tips we’ll share here will help you make smarter decisions about your property tax strategies to maximize your returns. Learn more about your ad choices. Visit megaphone.fm/adchoices

The question is asked all the time: How can I estimate average rehab costs? Well, there is no average rehab cost because there is no average rehab. Some properties will need major structural modifications; others just a lipstick approach. Some may have a recently remodeled kitchen, and others may have a 1950s galley kitchen. But since this is such a popular topic, let’s see if we can try to make it at least (a little) feasible for a newbie to the construction world. Learn more about your ad choices. Visit megaphone.fm/adchoices

I think we can all agree that the economic outlook is uncertain. You can pick almost any economic indicator (inflation, labor market, real GDP, etc.), and find conflicting and confusing signals.  As investors, this can be daunting. How can we make wise investing decisions when the economic climate is so murky? Here are four tips on how you can continue to invest successfully in an uncertain economy.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Morgan Stanley real estate analyst Laurel Durkay appeared on CNBC recently to deliver the financial behemoth’s latest housing outlook. It was great news for property owners and a call to action for potential buyers sitting on the fence, waiting for rates to fall.  Such is the shortage of inventory; in the next decade, 2 million homes will need to be built to satisfy demand. This means the rental market is set to soar. Learn more about your ad choices. Visit megaphone.fm/adchoices

You put a lot of time, money, and effort into finding the right tenant. From writing a rental property listing to showing the property, the process can require a lot from you. But that’s OK. The end result is well worth it.  With a tenant lined up and a move-in date scheduled, it’s time to take the next step: prepping the property. This move-in checklist for landlords will keep you on track from start to finish.  Learn more about your ad choices. Visit megaphone.fm/adchoices

A lease is a binding legal contract that includes protections for both the landlord and tenant. Just as you are required to uphold your end of the agreement as the landlord, tenants also have certain obligations they are required to uphold. You have discretion in determining what to do when a tenant violates the lease. It doesn’t always have to lead to an eviction. It depends on the severity of the violation and other factors, like a medical emergency, temporary job loss, or something else. Learn more about your ad choices. Visit megaphone.fm/adchoices

HomeRise, a nonprofit housing developer that has received more than $200 million in grants and loans from the city of San Francisco, declares on its website that its mission is “to help people experiencing homelessness secure housing and become self-sufficient.” However, in April, an independent audit revealed questionable spending of the organization’s funds. While the scope of inappropriate spending was not clear due to incomplete record-keeping, the audit found that most of the grant money went toward staff salaries, including large bonuses that violated the city’s grant agreement. Learn more about your ad choices. Visit megaphone.fm/adchoices

As of June 28, Freddie Mac CFO Christian Lown will resign from the government-sponsored enterprise (GSE) mortgage provider to join CoStar, the behemoth real estate listing and data and analytics company valued at around $30 billion.  Usually, when someone leaves a government job for the private sector, there’s a tacit understanding that the new position comes with less public scrutiny and more—much more—money. There’s little reason to doubt that is the case here. Learn more about your ad choices. Visit megaphone.fm/adchoices

Maybe you’re looking to diversify your investment portfolio, or maybe you’ve done your research into real estate investing and just realized you don’t have the time and energy required. Real estate investing is almost nevertruly passive, and it is not immune to problems like reduced cash flow during between-tenant periods.  Whether you are a seasoned real estate investor looking for additional revenue streams or you’re looking for opportunities that are less hands-on but still lucrative, these are the top alternative investments to consider in 2024.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Raise your hand if you got burned by real estate in 2008. You can’t see it, but I’m raising my hands, feet, and even the hairs on my neck. United Wholesale Mortgage (UWM) recently made news by launching a 0%-down mortgage program. And it reminds many real estate analysts of the subprime mortgage frenzy that helped fuel the market collapse back in 2008.  So, as you scope out the new program, what’s the potential impact on real estate investors?  Learn more about your ad choices. Visit megaphone.fm/adchoices

Over the past 16 years, I’ve worked with nearly 200 first-time investors. From my experience, until they go through our training, most are completely focused on ROI and cash flow.  Here are some key points new investors must keep in mind: You’re not buying real estate—you’re buying a lifelong income stream. Vacancy costs can be a killer, so estimating them is critical. ROI and cash flow only predict a property’s performance under ideal conditions on the first day of a lifetime hold. They tell nothing about future performance. They say “you can only count on today”—Is it true? Learn more about your ad choices. Visit megaphone.fm/adchoices

Last week, the federal government announced plans to block medical debt from credit reports, which are used to evaluate a borrower’s financial fitness for large-ticket items, specifically mortgages and car loans. This would make it easier for folks to acquire more debt and not be “judged” for it.  All things being equal, it’s not a good idea. Let’s ignore for now whether this is right or wrong and try to exclude all political thoughts. Let’s just look at the facts. Learn more about your ad choices. Visit megaphone.fm/adchoices

A housing cartel? No, not in a lawless narco-state, but in major American cities, where corporate landlords have been accused of conspiring with Texas-based real estate software company RealPage to drive up rents.  Most recently, Atlanta-based Cortland Management, one of America’s largest landlords, was served a warrant by the FBI concerning an ongoing antitrust investigation into multifamily housing price-fixing by the Department of Justice (DOJ). According to Cortland Management’s website, the company is worth $218 billion and manages 85,000 units in 13 states. Learn more about your ad choices. Visit megaphone.fm/adchoices

Buying your first rental property is an exciting time. You’re taking an important step that could transform your financial future. But before you invest in a property, it’s a good idea to make sure you are prepared to help you avoid costly mistakes and to maximize your chances of success. Before You Start Renting There are some things you must take care of before you advertise your property. Getting your property ready for tenants will help minimize your liability and ensure you are prepared for unexpected expenses. Learn more about your ad choices. Visit megaphone.fm/adchoices

On June 11, Amazon announced that it would be contributing another $1.4 billion to its Housing Equity Fund.Amazon created the fund back in 2021, initially giving $2.2 billion “with a commitment to create or preserve 20,000 affordable homes in the Puget Sound, National Capital, and Nashville regions—three communities that Amazon calls home,” according to a report by the company. The three areas are all places where Amazon has major corporate hubs. The new pledge will have a substantial focus on Arlington, Virginia, where Amazon has its HQ2. Amazon says it exceeded its target and delivered 21,000 affordable homes instead of the promised 20,000. The new funds will deliver a further 14,000 affordable homes for low-to-middle-income people in the target regions, according to the internet gi Learn more about your ad choices. Visit megaphone.fm/adchoices

Just as there is a move-in checklist for landlords, there’s also a move-out checklist to guide you when the time comes. Taking the right steps now will make it easier to market your property and ensure a seamless transition to a new tenant in the future. Communicate to the Tenant Their Responsibilities It’s your responsibility to communicate to the tenant their responsibilities. These are the essential items to include in this section of your move-out checklist. Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you a new college graduate (or a concerned parent) wondering if it is possible to buy a house? Spoiler alert: It is absolutely possible! It may be easier for someone further along in life, with a more established financial situation, but that does not mean you have no chance of qualifying for your first mortgage right out of college. There are many tactics that college students can actively pursue to improve their financial position, and they can continue the momentum into what I believe to be the best driver for long-term wealth: real estate investing.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you a new college graduate (or a concerned parent) wondering if it is possible to buy a house? Spoiler alert: It is absolutely possible! It may be easier for someone further along in life, with a more established financial situation, but that does not mean you have no chance of qualifying for your first mortgage right out of college. There are many tactics that college students can actively pursue to improve their financial position, and they can continue the momentum into what I believe to be the best driver for long-term wealth: real estate investing.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The pursuit of financial independence (FI) is a journey that promises freedom, security, and the ability to live life on your own terms. However, this path isn’t always straightforward—nor without pitfalls.  It’s tempting to focus solely on financial freedom, but obsessing over it can have unexpected downsides that affect your overall happiness and well-being. We’ll discuss the true journey to financial independence and the risks of fixating on it, as well asexplore other ways to lead a balanced, fulfilling life. Learn more about your ad choices. Visit megaphone.fm/adchoices

As we all know, one of the main advantages of investing in real estate is the tax benefits. Many of the investors who I meet for the first time are broadly aware of depreciation, expenses incurred through renovations, and operating costs. However, many don’t know about the steps they need to take to maximize their deductions or about costly mistakes that could attract the unwanted interest of the IRS. Learn more about your ad choices. Visit megaphone.fm/adchoices

Success in real estate does not require securing “great deals.” It requires great fundamentals: location, a reliable tenant segment, and properties that attract those tenants. A Personal Case Study Let me share my own experience. In 2016, my partner and I bought a three-bedroom, two-bathroom, one-story townhome. We paid the asking price of $180,000, which was then the fair market value.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The good news is that the inflation rate is on the decline. The bad news is that it still exceeds the Federal Reserve’s target rate of 2%. As a result, the Federal Reserve announced last week that it will maintain the current interest rate of 5.25% to 5.5%.  In a statement, the central bank noted: “Economic activity has continued to expand at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. In recent months, there has been modest further progress toward the Committee’s 2% inflation objective.”  The Fed now predicts just one rate cut for 2024, a disappointing decision for investors expecting multiple rate cuts for the year. Learn more about your ad choices. Visit megaphone.fm/adchoices

Guru programs are notoriously difficult to assess in terms of quality or outcome for their students. Some students rave about their gurus, while some complain about how they got ripped off by a fake guru. There are a few patterns that raise yellow and/or red flags that I want to call out that are concerning and should make you skeptical when deciding whether to spend thousands (or sometimes tens of thousands) of dollars on guru training. Learn more about your ad choices. Visit megaphone.fm/adchoices

Since first being introduced in 2023, Florida’s Live Local Act—the $711 million package offering developers tax breaks and bypassing local zoning restrictions to create more affordable and workforce housing—has been a lightning rod for controversy. Local municipalities and residents argued that the increased height of buildings would ruin the character of neighborhoods and that the affordable housing component could cause residents to head to the suburbs.  Not surprisingly, it is back in the headlines. Florida Governor Ron DeSantis recently signed bill SB 328, revising the original Local Live bill. The original bill gave tax breaks to developers who create multifamily and mixed-use residential properties with at least 70 units in any area zoned for commercial, industrial, or mixed-use. At least 40% of those units had to be set aside for affordable housing—defined as people making 120% of the local area median income (AMI)—and would be enforceable for up to 30 years. Learn more about your ad choices. Visit megaphone.fm/adchoices

A lot has changed since New York City began strictly enforcing Local Law 18, which effectively banned short-term rentals in the city. But it’s unclear whether improved housing affordability, the goal of the crackdown, is one of those changes. An Airbnb analysis released in January found no evidence that the new rules had impacted rent prices or rental inventory, even amid new construction completions, and the city hasn’t reported any changes in housing affordability metrics attributable to the law.  An Airbnb analysis released in January found no evidence that the new rules had impacted rent prices or rental inventory, even amid new construction completions, and the city hasn’t reported any changes in housing affordability metrics attributable to the law.  Learn more about your ad choices. Visit megaphone.fm/adchoices

After a decade of relative stability in mortgage rates, the last few years have seen unprecedented volatility and changes in mortgage rates. Interest rates are often a key concern for real estate investors, as mortgages are often the difference between a cash-flowing deal and a dud.   Since spring 2022, when the Federal Reserve embarked on its latest rate-hiking cycle, interest rates on the most popular loans for real estate investors, DSCR loans (part of the non-QM loans category), have moved at unprecedented rates. Many months of rates moving at most a few basis points a week morphed into dramatic, massive movements—with bigger changes sometimes happening in one day than had occurred in quarters or years prior. Learn more about your ad choices. Visit megaphone.fm/adchoices

The BiggerPockets Real Estate Podcast is about to hit a huge milestone—our 1,000th episode! Real estate has changed quite a bit since we started this podcast, so we’re making some changes, too.  We’re bringing on new guests and new formats while focusing on investing tactics and strategies that work in TODAY’s housing market. Oh, and did we mention fewer ads, too? We’re still delivering the time-tested knowledge, inspiration, and news you expect from the BiggerPockets Real Estate Podcast so YOU can work towards financial freedom, no matter the market conditions. Join Dave Meyer, our new host, for our 1,000th episode, and tune in on Mondays, Wednesdays, and Fridays to learn how YOU can reach financial independence through real estate! Learn more about your ad choices. Visit megaphone.fm/adchoices

Home prices are rising across the country, but luxury home prices are skyrocketing. According to data from Redfin, luxury home prices rose twice as fast as non-luxury homes in the first quarter of 2024. But even as prices jumped, sales are still rising, even as prices for non-luxury homes have declined. The median-priced luxury home sold for a record $1.225 million in the first quarter of 2024, up 8.7% year over year. At the same time, sales of luxury homes were up 2%, compared to a decline of 4% in non-luxury homes, which sold at an also-record median of $345,000.  Learn more about your ad choices. Visit megaphone.fm/adchoices

You’ve probably heard of the term “lipstick on a pig.” In house-flipping parlance, it means doing basic cosmetic upgrades that camouflage the underlying issues beneath the paint and Sheetrock.  California house flippers will have to put their makeup away and bring out the heavy machinery because a new law—Assembly Bill 968 (AB-968), effective July 1—mandates a comprehensive disclosure of repairs and renovations from sellers who flip one-to-four-unit properties within 18 months of buying them. The intent is to protect buyers from undisclosed and unseen property conditions.  Learn more about your ad choices. Visit megaphone.fm/adchoices

For any real estate investor, understanding current market conditions is crucial. Right now, most investors are finding themselves in an environment where great investment deals are more scarce while competition is high. In practice, this means that as a real estate investor, you will miss out on many deals on properties advertised on the open market.  To try and mitigate the effects of tough competition, you have two options: One is to try and generate more leads and somehow react faster than your competition. The other—much more feasible—approach is to look for off-market real estate deals instead.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Now is a great time to be in the vacation rental business. According to short-term rental data and analytics website AirDNA, travelers are spending big on luxury vacation rentals—the more unique, the better. Recent occupancy rates for well-furnished homes increased from 49.1% to 55.9% between 2019 and 2023, with the overall STR market generating a groundbreaking $64 billion in revenue in 2023.  While long-term rental landlords might balk at those occupancy rates, it’s worth remembering that vacation rentals often double as medium-term rentals in the off-season, which might not register on vacation rental sites. Learn more about your ad choices. Visit megaphone.fm/adchoices

We identified a seemingly great target property in Sherman, Texas, which is about an hour north of Dallas in the high-growth path-of-progress area along Interstate 75 on the way up to Oklahoma. There were two structures in the deal, including 13 apartments—a mix of studios, one-, and two-bedrooms. We did the underwriting, looked at the full financials, and saw that the vacancy rate was low and that all tenants were on a year lease.  With very little leverage, we would net about $4,000 a month from day one (with room to grow). Solid! I knew I didn’t want to buy anything I hadn’t seen with my own eyes. (Yes, you can do this sight unseen, but we didn’t want to. This is a million-dollar investment for us and our first big apartment building.) But we had a chicken-and-egg decision next: Do we go to Sherman and see the property first? Or get an inspection done first? Each task would set us back about $2,000.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Want to invest in real estate but don’t want the headaches of landlords, financing, renovations, renters, permits, inspectors, direct mail campaigns, and all the other hassles that come with a real estate investing side hustle? Me too. I’ve owned dozens of single-family rental properties, but today, I only invest in real estate passively. Passive real estate investments include notes, funds, real estate syndications, and real estate crowdfunding investments. None is inherently better or worse than the others, or even than active real estate investments. They just come with different pros and cons.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Turnkey property investing can be a great option when you are just starting out on your real estate investing journey or when you want to cast a wider net with your investments beyond your local area. When done right, turnkey investment can be a part of a long-term real estate portfolio-building strategy. However, with turnkey investing, the same things that make it an attractive investment formula are also those that can make it challenging. The most significant challenge is dealing with potential issues that can arise from investing in properties long distance. The one question most people ask when they consider turnkey property investing is: “How do I confidently invest from a distance and still make sure my property performs well if I am not there to oversee it directly?” Learn more about your ad choices. Visit megaphone.fm/adchoices

Mortgage payments are decreasing, which has some house hunters returning to the real estate market. According to the latest data from Redfin, for the four weeks ended Dec. 31, 2023, the median mortgage payment was down 14% compared to October’s all-time high. Meanwhile, the weekly average rate in early January 2024 was at 6.66% for a 30-year fixed-rate mortgage, compared to 7.79% in October. This means homebuyers are finally getting a break from skyrocketing interest rates. And as rates start to dip, some house hunters are taking advantage of an uptick in listings. Redfin’s Homebuyer Demand Index, which measures requests for tours and homebuying services, was up 10% at the end of December from the previous month to its highest level since August, although it was down 6% year over year. Learn more about your ad choices. Visit megaphone.fm/adchoices

As a real estate investor, you must always remember one thing: every type of investing strategy involves risk. With that in mind, it’s good practice to learn more about low-risk real estate investing strategies. You may come to find that these provide the perfect balance of risk and profit potential.  Learn more about your ad choices. Visit megaphone.fm/adchoices

In November 2023, Fannie Mae implemented a game-changing reduced down payment requirement of just 5% for two-to-four-unit properties for conventional loans.  This presents a golden opportunity for house hackers looking to purchase or refi a two-to-four-unit property. However, few sources have broken down what this means for investors. Here, I’ll look at this new product, compare it to alternatives, and discuss what this means for real estate investors.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Home sales fell to one of the lowest levels on record in May as high prices, elevated mortgage rates, and a housing shortage continue to keep buyers on the sidelines. According to data published by Redfin, there have only been two months in the past decade with fewer home sales: when mortgage rates jumped to a 23-year high in October 2023 and in May 2020, during the early days of the pandemic. Learn more about your ad choices. Visit megaphone.fm/adchoices

The U.S. housing market is facing an affordability crisis. The combination of high home prices, high mortgage rates, and decreased spending power has driven housing affordability to its lowest level in decades. As such, it is difficult for investors and homebuyers alike to identify cities where they can afford to buy property.  But, there are still great opportunities to buy real estate, even on a budget. I’ve done the research and have identified the 10 most affordable markets for real estate investors. Below, I’ll explain how we arrived at the current situation, my criteria for selecting these markets, and then give you some data about the cities. Check out the list below and determine if any of these cities fit your investing goals. Learn more about your ad choices. Visit megaphone.fm/adchoices

With mortgage rates and home prices high, more homeowners are staying put, according to a report by Redfin. The number of homeowners looking to move to a different metro area started to decline in the fall of 2023, dropping to 23.9% in November 2023. That marked the lowest share in a year and a half and below the 26% seen last summer. While some of it also has to do with remote work becoming less popular with employers, the rate of mobility among homeowners has steadily been decreasing since the 1980s as older Americans have decided to age in their current homes. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate investing can be a one-and-done deal or a strategy with more work but potentially higher profits. If you’re an investor looking for ongoing passive income, the BRRRR method may be a good option. The BRRRR method means you buy, rehab, rent, refinance, and repeat. It’s a cycle to build a robust real estate portfolio by purchasing undervalued properties using the equity of an existing investment property, renovating the new property, renting it out, and repeating the process. Learn more about your ad choices. Visit megaphone.fm/adchoices

When my husband and I got married, we bought our first place—a brand-new, 1.5-bedroom condo—in Bedford–Stuyvesant, Brooklyn. At the time, the Bed–Stuy neighborhood was rough—for example, a biker gang that loved to throw huge all-night parties was headquartered at the end of our block, and there were abandoned buildings every few feet, often rustling with the sound of homeless inhabitants. Back in the early aughts, this ZIP code was not for the faint of heart. But at $375,000, a solid C-/D neighborhood was what we could afford in NYC, and our place was new and huge (for Brooklyn) at 1,200 square feet. Plus, I had a hunch. When we first toured the apartment, I went up on the roof and looked out over the neighborhood. From that vantage point, I could see three luxury buildings going up within a few blocks of us. I knew this neighborhood was about to change. Learn more about your ad choices. Visit megaphone.fm/adchoices

Remember the container ship that got wedged in the Suez Canal in March 2021? Within days, hundreds of ships halted. In less than a week, 12% of global trade halted.  This is merely one simple example of volatility. A tiny event in some remote corner of the world made life perilous and unpredictable for a billion people. The shockwave reverberated across the Earth.  There are many more examples like this. COVID-19 spawns in Wuhan, China, and creates a once-in-a-100-year worldwide pandemic. Or more theoretically, one butterfly flapping its wings spawns a hurricane on the opposite side of the globe. Learn more about your ad choices. Visit megaphone.fm/adchoices

Since 2006, my team and I have delivered almost 500 Las Vegas investment properties (> $130 million). The properties had an annual appreciation of 15% and annual rent growth of 7% (2013 through December 2023), and our average vacancy rate stayed below 2%, including during two major economic turmoils: 2008 housing crash: Zero decline in rent and zero vacancies. COVID pandemic eviction moratorium: No impact. So why did our clients’ properties perform when most others did not? Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you want to get started in real estate investing but don’t have the funds to purchase an entire property? Fractional real estate investing may be the answer you’re looking for. Fractional investing offers lucrative opportunities to own part of a property rather than an entire one. Fractional real estate ownership can be affordable for startup investors who want to enter the real estate market. But what is fractional investing? And is this the right investing model for you?  Learn more about your ad choices. Visit megaphone.fm/adchoices

A December report issued by staff of the U.S. Securities and Exchange Commission (SEC) discusses several potential modifications to the accredited investor definition, as suggested by sources like the Investor Advisory Committee and the Small Business Capital Formation Advisory Committee.  The Dodd-Frank Act of 2010 requires the SEC to review the definition every four years in light of changes in the economy. The goal is to maintain sufficient protection for unsophisticated investors while providing for investor participation in exempt offerings that play an important role in innovation and economic growth.  Learn more about your ad choices. Visit megaphone.fm/adchoices

There may be a real estate underinvestment crisis looming in the coming decades, thanks to baby boomers.  According to a joint study from Morning Consult and home improvement company Leaf Home, 55% of baby boomers plan to age in their 40-year-old-plus homes and have no intention of selling or renovating. That means when millennials inherit homes, they may be faced with a mountain of deferred maintenance that may prove costly and lead to a potential construction and supply crunch. Meanwhile, empty nesters own twice as many large homes as millennials with kids, contributing to the housing supply crunch across the U.S. Learn more about your ad choices. Visit megaphone.fm/adchoices

At the end of January, the House passed legislation that would extend some of the provisions of Trump’s 2017 tax bill and expand the Child Tax Credit (CTC), along with other tax reform measures.  If passed by the Senate and signed into law by President Biden, the Tax Relief for American Families and Workers Act of 2024 would allow real estate investors to continue to claim 100% bonus depreciation, elect to expense depreciable business assets up to an increased limit, and potentially deduct business interest up to a higher limit. The Act would also restore domestic research or experimental costs expensing.  Learn more about your ad choices. Visit megaphone.fm/adchoices

One of the questions we see on the BiggerPockets forums over and over again is, “Where do I find a good lease document?”  When people ask that question, they really don’t mean that they want a good lease document. What they mean is they want a free lease document. The truth is that leases are really the most important investment you’ll make when starting your career as a self-managing real estate investor. The free leases that self-managers share are likely to be the most expensive option you’ll find in the long run.  Learn more about your ad choices. Visit megaphone.fm/adchoices

In the ongoing quest for happiness, a recent Empower poll disclosed that around 60% of Americans believe money can indeed buy happiness.  However, the dynamics of money’s role vary from person to person. For 67% of respondents, happiness hinges on the ability to pay bills on time, while more than half prioritize living debt-free and enjoying luxury without financial worry. Another 45% see homeownership as integral to their path to happiness. Learn more about your ad choices. Visit megaphone.fm/adchoices

You can’t scroll through your daily news feed these days without seeing story after story about the impact of generative AI on virtually any and all industries. It’s here, and the good news is it can be an incredibly useful tool in real estate.  According to a recent analysis by McKinsey Global Institute, “In our own work with AI, we have seen real estate companies gain over 10% or more in net operating income through more efficient operating models, stronger customer experience, tenant retention, new revenue streams, and smarter asset selection.”  Learn more about your ad choices. Visit megaphone.fm/adchoices

In 2005, I decided to start an investor services business. I reviewed all the popular investing literature. What I found were self-professed experts offering opinions and no processes. As an engineer, opinions hold little value. I shifted my research focus to the commercial sector, where I found rigorous processes that resonated with me. I discovered that retail store location selection and stocking methodologies are excellent guides to systematic residential investing. Here, I will explain how I use methodologies from national retailers to select properties that generate reliable income. Learn more about your ad choices. Visit megaphone.fm/adchoices

In case you missed it, Scott Trench, CEO of BiggerPockets, wrote this thoughtful article: Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why. Scott and I have been discussing this topic offline anyway, so I thought I would take him up on his invitation to debate the subject online. Healthy debate is what BiggerPockets is all about, right? I will start by saying I agree with most of what Scott wrote. I agree with most of his facts, the challenges facing the multifamily space, and especially the problems with many operators who have run into problems of late. Learn more about your ad choices. Visit megaphone.fm/adchoices

Virtual house flipping can be an exciting, lucrative way to get involved in real estate investing. But as with as any type of investment, it’s important to understand the finer details to determine where you fit in.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Three years ago, I opened the doors of my guest room to travelers on Airbnb to offset my mortgage. What started as a way to supplement my living expenses evolved into a passion for creating 5-star guest experiences and led me to start Stay Peachy Homes, a short-term rental (STR) property management company that helps homeowners and investors maximize their property’s performance and remove the management hassle. However, like many first-time hosts, I made my fair share of mistakes in that first year. These errors not only taught me valuable lessons but also helped me fine-tune my approach to managing short-term rentals. Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you enjoy filing your taxes? Of course you don’t. But there’s a silver lining.  Doing your taxes can be fun (or at least tolerable) when you understand how to make the best of your circumstances. Savvy investors know the power of taking advantage of every last deduction—within the limits of the law.  This leads to an important question: How much mortgage interest can I deduct on my taxes? Learn more about your ad choices. Visit megaphone.fm/adchoices

As most house flippers or BRRRR landlords will tell you, paying for hard money—with high interest rates and points tacked on top—can take huge chunks of profit out of a project. For landlords, extra expenses are involved in making monthly payments and paying to refinance into a regular mortgage, further eroding the bottom line. It’s generally a big pain and a reason many would-be-flippers and landlords stay on the sidelines or prefer to find private lenders, content to get paid once a deal sells or secures long-term financing post-rehab. Learn more about your ad choices. Visit megaphone.fm/adchoices

Many investors assume that ownership is inherently safer than debt. I currently own equity in thousands of units and have invested six figures in real estate debts. I can tell you firsthand that it’s not—at least not always.  Still, real estate equity and debt investments serve different purposes in your portfolio. Before parsing the risks of equity versus debt investments in 2024, it’s worth reviewing the roles each plays. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate investors are usually most concerned about rental income and property taxes. They seldom discuss home insurance. Many assume that home insurance is a standard fixed price in most parts of the country and give it scant regard, but you could be making a big mistake if you are one of those people.  According to insurance.com, the average cost of home insurance nationwide hovers around $2,800 per year, which equates to $231 monthly for $300,000 in dwelling coverage and liability and a $1,000 deductible. However, this number fluctuates throughout the country. As a real estate investor, it’s important to note that the numbers quoted are for owner-occupied homeowners insurance. Landlords should add another 25%. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’ve been reading our stuff for the past year or so, you know we’re bullish on preferred equity. And we believe there is a short window of opportunity to achieve this asymmetric risk/return opportunity.  Investors are asking a lot of questions about preferred equity, so we thought you might be interested in some details on the most recent preferred equity opportunity our fund invested in.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Insurance premiums are skyrocketing across the U.S., with no end in sight to annual increases that may just make you rethink investing in real estate in several parts of the country. At the very least, anyone investing in 2024 needs to be aware of the states where insurance premiums are rising the fastest—and factor these changes into their costs.  According to a recent report by the insurance comparison platform Insurify, home insurance premiums are set to rise by 6% in 2024 after already jumping by 20% over the past two years. And that’s just the average. Many states will see double-digit premium increases this year thanks to a perfect storm (excuse the pun) of factors, most notably extreme weather events and high home repair costs.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Whenever I hop on a conference call, someone asks, “Where are you located?” And then their eyes widen when I respond, “Lima, Peru.”  But back when I invested in rental properties, I did so in my hometown of Baltimore. It was only after I moved abroad that I discovered just how much I had subsidized those properties with my own labor.  When people ask me today what I would do differently if I were to start investing in real estate all over again, I have an answer ready—because I did start over again.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Five years ago, on the BiggerPockets forums, the name Western Wealth Capital (WWC) started to appear. With offices in North Vancouver, Canada, and Phoenix, they were well-known syndicators with a solid reputation, doing deals nationwide.  A competitor, Sam Grooms of White Haven Capital, stated: “They’re solid underwriters and performers. Janet [LePage] (Western Wealth Capital CEO) is known to not budge on her criteria and price. I doubt she’d overpay for a property. We’ve competed against them on properties here in Phoenix. Their model is similar to most syndicators right now, underwriting a cash-out refi.” Learn more about your ad choices. Visit megaphone.fm/adchoices

Growing old is a fact of life—even for Keith Richards—and while it’s doubtful you’ll see world-famous rock stars or aging screen stars in a residential assisted living (RAL) facility, for the rest of the population, they serve as the last stop before our final elevator ride. This is why, after a pandemic pause, senior housing communities are back to making a roaring trade.  “People put off moving in for an extended period of time during the pandemic,” Lisa McCracken, head of research at the National Investment Center for Seniors Housing & Care (NIC), told the Wall Street Journal. “Now those needs have been amplified because of that delay.” Learn more about your ad choices. Visit megaphone.fm/adchoices

Mortgage rates recently rose above 7% for the first time this year, bringing an already glacial housing market to a standstill. The news has hit investors like a horror movie jump scare after we’d thought the worst was behind us.  A robust economy is partly to blame. During the pandemic, when U.S. citizens feared rationing and mass unemployment, predicting our current economy would have been almost unthinkable.  Learn more about your ad choices. Visit megaphone.fm/adchoices

  In our first sotry today, California ADU laws have been softening for several years in an effort to increase housing space and availability. ADUs are often used as rentals, which can help alleviate some of the pressure on rental supply. However, what it doesn’t do, is increase general housing supply, as ADUs are considered a part of the primary residence, where only one person can own it. However, Assembly Bill 1033 was passed in California last October that changes everything, and presents investors a huge opportunity.   Our 2nd story highlights that rents were on the rise during the peak pandemic years, only to come back to normal growth trajectories over these last couple of years, with a few pockets of decreases and increases depending on the market. Spoiler alert: The same is going to continue, but at least we are confident enough to say it’s guaranteed. At least according to Barry Sternlicht, CEO of Starwood Capital, who said that with widening supply gaps and a lack of construction, we’re guaranteed to see rents continue to grow for the next two years Learn more about your ad choices. Visit megaphone.fm/adchoices

As a rental property owner, there’s no better feeling than a tenant signing a lease. This puts you on track to generate a positive return on investment (ROI).  Unfortunately, things don’t always work out as planned. For example, a tenant not paying rent can turn your profit upside down.  Should you find yourself in this situation, there are several key steps you must take. Learn more about your ad choices. Visit megaphone.fm/adchoices

Pittsburgh has the hottest housing market in the country. Who knew? According to Redfin, Pittsburgh housing prices were up a mighty 22% from February 2023 to February 2024, making it the city with the fastest-growing house prices in the country.  Formerly the heart of the Rust Belt, the city has recently reinvented itself as a tech town, welcoming major players like Google, Facebook, Amazon, Uber, Apple, and Microsoft. It’s not by luck. The city’s Carnegie Mellon University boasts one of the country’s most coveted computer science degrees, which turn out some of Silicon Valley’s top tech talent. Learn more about your ad choices. Visit megaphone.fm/adchoices

When discussing rental properties, it’s common for people to refer to multifamily residences. How many times have you heard someone say something like, “I have 20 units under management,” most of which are probably spread across just a few buildings? This investment approach is logical from an economic standpoint. Having four units under one roof versus just one, four rents instead of one—you get the point.  Learn more about your ad choices. Visit megaphone.fm/adchoices

During much of the year, this short-term, two-bedroom rental in Indio, California, a lovely, quiet, desert town about 35 minutes past Palm Springs, hovers around $172 a night. That is, until mid-April every year when thousands of revelers descend on the world-famous Coachella music festival, the listing says it is a 17-minute walk away. During those weeks, this very same rental commands $808 a night. That’s more than a 369% increase, and it’s the same for every rental in the area, in every price range—for example, $410 goes to $756; $2,300 goes to $6,386, etc.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Simply investing in any metro Sunbelt market is not a recipe for success. To catch a cresting wave of appreciation and cash flow, you’ll need to dive deep into the metrics to examine where people are moving to, how property and rental prices are increasing, and what the unemployment rate is like.  The good news is that we’ve done it all for you! So stop throwing darts at the map, examine our findings, and pick markets like the savvy, switched-on investor you are. Learn more about your ad choices. Visit megaphone.fm/adchoices

With home prices and interest rates still at record highs and inventory squeezed, homebuyers and real estate investors may be better off purchasing a fixer-upper in some cities.  At least that’s according to a report from StorageCafe, which found that fixer-uppers cost an average of 29% less than homes that are ready to move in. And in 20 of the largest 50 cities, they can cost 50% less than a regular home. Learn more about your ad choices. Visit megaphone.fm/adchoices

You can’t eliminate all risk from investments. After all, the zombie apocalypse could strike tomorrow and probably wipe out your entire portfolio. But you can reduce risk, even among high-return investments. In fact, these are precisely the investments you want to minimize risk for—your Treasury bonds don’t need it.  I love real estate syndications as high-return investments. They’re completely passive: You don’t have to worry about financing or contractors, permits or inspectors, tenants or property managers. You don’t have to become a landlord, yet you still get all the benefits of real estate ownership, including cash flow, appreciation, and tax advantages.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The pandemic swept through the U.S. housing market like a tsunami. Radical price hikes and all-time low inventory accompanied massive migration away from pricey big cities. Four years later, the housing market still hasn’t fully recovered. If you plan to invest in real estate or scale your existing portfolio in 2024, it’s worth keeping these six things in mind for a clearer perspective on today’s market movement. Learn more about your ad choices. Visit megaphone.fm/adchoices

Effective rental property management is essential to your long-term success. Without a defined strategy, there’s a greater chance of making mistakes that cost you time and money. Here’s a property management checklist that tells you two things: 1. What needs to be done 2. When it needs to be done Learn more about your ad choices. Visit megaphone.fm/adchoices

Depending on the college, students nationwide looking to live at school have recently found themselves staying in luxury hotels, trailers, on friends’ couches, or Zooming in to class from their parents’ homes. That’s because available student housing is becoming as rare as a full-ride acceptance letter from an Ivy League university. The shortage has created a massive opportunity for private developers and landlords, who know that housing doesn’t have to be paid for out of pocket but can be borrowed, along with student loans that cover tuition and food. Learn more about your ad choices. Visit megaphone.fm/adchoices

I don’t invest in Bitcoin because I am betting on the continuation of Western civilization, not its collapse or decline. If I did believe my government would collapse, I’d invest in guns, ammo, and canned corn. And if I believed that Bitcoin could peacefully replace my country’s currency, I’d still rather own real estate, businesses, stocks, or other alternative assets than a currency like Bitcoin. At $1.3 trillion in market capitalization as of April 2024 and a price of $65,000 per Bitcoin, enthusiasts of the cryptocurrency, who I will refer to going forward as “Bitcoin Maximalists,” may think that they have another conclusive proof point validating their thesis. Learn more about your ad choices. Visit megaphone.fm/adchoices

I don’t invest in Bitcoin because I am betting on the continuation of Western civilization, not its collapse or decline. If I did believe my government would collapse, I’d invest in guns, ammo, and canned corn. And if I believed that Bitcoin could peacefully replace my country’s currency, I’d still rather own real estate, businesses, stocks, or other alternative assets than a currency like Bitcoin. At $1.3 trillion in market capitalization as of April 2024 and a price of $65,000 per Bitcoin, enthusiasts of the cryptocurrency, who I will refer to going forward as “Bitcoin Maximalists,” may think that they have another conclusive proof point validating their thesis. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you haven’t heard, Henry Washington and I are doing something special in honor of the 200th episode of On the Market. We are competing in a Flip/Off, battling against each other to see who can score the highest return.  We described our deals on the podcast and what we hoped to achieve, but I want to keep everyone up to speed on how my flip is progressing. So, every week, I’ll update this diary so you can see how my property transforms into the high-cash-flow deal I know it will become. Learn more about your ad choices. Visit megaphone.fm/adchoices

This year’s hurricane season is expected to be one of the busiest on record, with a potential for 25 named storms. How much risk is your property at? Meanwhile, home prices fell in 7% of markets, but some stand out as cities that, on paper, shouldn’t be showing declines. Is this indicative of a larger trend? Or is it just an outlier? https://www.biggerpockets.com/blog/14-cities-facing-highest-property-damage-risk-during-hurricane-season https://www.biggerpockets.com/blog/crash-or-correction-home-prices-are-falling-in-these-cities Learn more about your ad choices. Visit megaphone.fm/adchoices

With median house prices in the U.S. inching towards half a million dollars and mortgage rates back over 7%, homebuyers and investors alike are getting choked out of the market. Although there are several cities in the Midwest and South where you can still buy homes for $100,000, they tend to be the exception rather than the norm.  Despite the shortage of houses, according to Realtor.com, there are several markets where you can buy a quality home in a good neighborhood for under $300,000.  Learn more about your ad choices. Visit megaphone.fm/adchoices

A record 300,000 migrants entered the U.S. through the southern border in December. Rather than trying to sneak past border agents, many surrendered to apply for asylum.  Overwhelmed immigration courts take years to process these claims, and migrants are protected from deportation in the meantime. They hope to stay, work, and build a life here. But achieving legal status in the U.S. is a complicated process. Meanwhile, some Americans are fearful of the impact of increased immigration rates on U.S. citizens and communities, which has led politicians to consider immigration policy reforms.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Taxes and regulations impact your bottom line as an investor—and not always in direct or obvious ways. Unfortunately, as soon as you start talking about either one, the average person closes their mind, circling the wagons around their existing worldview and only hearing data points that support it. Look no further than this Yale study, which shows that people perform worse on math problems if the correct answers conflict with their political ideology.  I’ll get it out of the way now: I find both major political parties reprehensible and hypocritical. I’ve voted for each roughly equally over my life. Learn more about your ad choices. Visit megaphone.fm/adchoices

Before you find and hire a property manager, there’s something you need to know: Not all property management companies structure their costs the same way.  Knowing how much property managers generally charge—including their fee structure—allows you to determine if it’s the right fit for you.  Learn more about your ad choices. Visit megaphone.fm/adchoices

A Wave of Zoning Law Changes Could Have Huge Impacts for Investors and Housing—Here’s What You Need to Know  The U.S. is facing a housing deficit of about 3.2 million units, and the situation is especially dire in urban areas like New York. It’s one of the reasons prospective homebuyers are finding it increasingly difficult to find affordable homes.  That’s led many cities and communities to consider changes to strict single-family zoning restrictions, which are correlated with high home prices, surging rents, and fewer housing starts. Many see the reversal of pervasive restrictions on multifamily construction across cities as a solution to the affordable housing crisis.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you sitting on the sidelines in this market? Many investors are. There’s a lot of fear and caution. But we’re not. And you don’t need to be, either.  Of course, I recommend staying in cash if you can’t find the right investment opportunity. But we are finding them on behalf of our investors, and they’re the beneficiaries. I’ll tell you about one here. Learn more about your ad choices. Visit megaphone.fm/adchoices

For real estate investors, the question of cash flow versus appreciation is as old as time. However, in an era of high interest rates, buying properties for cash flow isn’t easy. That doesn’t mean investing should be off the table, as there are many advantages of owning rentals other than immediate cash flow—appreciation and tax advantages being the most obvious.  Whether to keep buying or stay on the sidelines comes down to some specific decisions. Let’s dig deeper. Learn more about your ad choices. Visit megaphone.fm/adchoices

In a recent episode of the BiggerPockets Real Estate Podcast, I had the privilege of chatting with Mindy Jensen about my journey to financial independence. One burning question arose: How did I manage to lower my expenses without sacrificing quality of life?  Well, fellow FIRE enthusiasts, let me share six of my key insights into how I transformed my financial landscape by embracing strategic hacks that allowed me to live life to the fullest (no cutting out lattes here!) without breaking the bank. Learn more about your ad choices. Visit megaphone.fm/adchoices

We are less than a month away from listing our Brooklyn, New York condo, which we bought for $375,000 back in 2004, the same week we got married. 20 years, two kids, and one chocolate lab later, we are selling the condo for something close to $1 million and then flipping the profits into a new investment via a 1031 exchange. (New here? Catch up on the last few monthly missives!)  As a reminder, we haven’t made much cash on this property over the past 20 years. The growth has been all equity—and now’s the time to cash in! Learn more about your ad choices. Visit megaphone.fm/adchoices

Why does mindset matter most? The answer is quite simple, yet surprisingly hard to believe: Mindset matters most because having the right one allows you to have the proper focus, work ethic, and decision-making skills to grow your company and your business. What Is Mindset, and How Does It Allow Me to Do All That? Mindset = mind + set. Mind = The element of a person that enables them to be aware of the world and their experiences, to think, and to feel; the faculty of consciousness and thought.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Commercial real estate is in for a terrible 2025 as high interest rates and high vacancies force big-time landlords to cut their losses at 50-80% discounts. Meanwhile, South Carolina passed a new law that effectively puts an end to wholesaling as a practice in the state. https://www.biggerpockets.com/blog/high-interest-rates-are-forcing-big-time-investors-to-sell https://www.biggerpockets.com/blog/new-south-carolina-law-would-severely-crack-down-on-wholesaling Learn more about your ad choices. Visit megaphone.fm/adchoices

There’s a critical lack of affordable housing. This housing shortage began following the 2008 financial crisis and worsened during the pandemic, and now, not enough homes have been built to meet current demand. Inventory is slowly rising in Q2, which is helpful, but more inventory alone doesn’t solve the problem. The government has plans to help create more affordable housing inventory and keep large-scale investors from taking homes away from middle-income Americans. The White House released a budget in March that included plans to support Biden’s Housing Supply Action Plan. Items like significant tax credits for first-time homebuyers and for homeowners who sell their starter homes were created to directly reward and incentivize consumers to move.  Learn more about your ad choices. Visit megaphone.fm/adchoices

. What were you doing on the morning of Jan. 17, 2020? While the world was learning about a strange new virus approaching our shores, my business partner, Ben, and I were visiting Louisville, Kentucky. We were meeting our largest operating partner, Mike (not his real name), to walk through a mobile home park his firm was acquiring. Our fund would be the largest investor.  This park looked like many we had invested in, but larger. There were 315 lots, but about 50 were vacant. We saw a typical range of cars—from junkers to Jaguars. People walked their dogs, kids boarded buses, and a maintenance man shuffled around with his coffe Learn more about your ad choices. Visit megaphone.fm/adchoices

A mayor in handcuffs, a bankrupt city mired in poverty, unemployment, and soaring crime: 10 years ago that was Detroit’s legacy. Today, it is a real estate success story.  Early investors—to quote one of Motown’s most famous songs—are dancing in the street. Developers are pouring billions of dollars into its business district, luring the likes of Ford, Quicken Loans, Blue Cross Blue Shield, and more to take up office space. There’s even a Gucci store—the city’s first. The spillover has resulted in booming residential home prices—up 40% since 2020—and revitalized neighborhoo Learn more about your ad choices. Visit megaphone.fm/adchoices

Gearing up for your first rehab? Whether it’s a flip or BRRRR, I’ve got earth-shattering news for you that will change everything you thought you knew about value-adds in real estate: If you’re trying to build equity for leverage or to cash out and want to get the best bang for your buck, forget the roof, new furnace, kitchens, or bathrooms. You need to take it outside and spend some real money on landscaping.  But everyone knows kitchens and bathrooms are where the big money is made, right? Don’t get me wrong—you should update kitchens and bathrooms, but we are talking return on investment (ROI) here. Kitchens and bathrooms are high-expense, high-return areas. Landscaping is a low-expense, high-return prospect. You’ll get a better return on landscaping than you will any other rehab expense.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The real estate market is ever-evolving, and there has been a growing trend toward ground-up construction. With existing home inventory remaining at historic lows and no improvement in sight, new construction will be one of the solutions to the current housing crisis—and savvy investors will reap the rewards, with an average of 10% to 20% gross profit on projects done right. For builders, a successful project is one completed on time and within budget. But that is no easy feat these days. According to the Construction Management Association of America, 98% of construction projects go over budget. To put it another way, that’s 9 out of 10 projects, according to the International Journal of Innovation, Management and Technology.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Juggling 0% interest business credit cards is like juggling torches in a hay-covered barn. Drop one, and the whole place goes up in flames. However, if you are disciplined and know what you’re doing, they could be a great asset in helping you kick-start your real estate investing career. Getting a 0% Business Credit Card There’s lots of information online regarding 0% APR business credit cards. Most offer 0% interest for 12-18 months. This makes them well-suited for real estate projects that can be refinanced or sold, allowing you to pay back the cards before interest starts to kick in. These cards are relatively easy to get, provided you have good credit and a business entity. Learn more about your ad choices. Visit megaphone.fm/adchoices

What’s easier to find, a unicorn or a rock star contractor? If you asked most value-add real estate investors, the answer would be obvious: “Unicorns, of course.” We all know the inherent value contractors bring to any real estate investment. A great contractor can help you reduce costs on renovations, save money on holding costs with quick turnarounds, and manage the project with limited guidance. The end result, of course, is a beautifully renovated property that gets finished on time and brings in a big payday. Learn more about your ad choices. Visit megaphone.fm/adchoices

As real estate investors, your emergency funds are a critical line of defense against unexpected costs. It prevents you from dipping into your budget to handle them. But what should you really use an emergency fund for? And how much money should you keep in your safety net? Here’s everything you need to know. Learn more about your ad choices. Visit megaphone.fm/adchoices

From the moment we take our first steps, we’re handed a blueprint for the American dream. Grow up. Get educated. Land a job. Buy a car. Tie the knot. Purchase a house. Raise a family. Clock in for 40 years while diligently stashing away funds in a 401(k).  It’s the classic tale of success, promising a life of stability, security, and financial freedom. But what if I told you that beneath this facade of prosperity lies a lurking threat to your wealth journey? Learn more about your ad choices. Visit megaphone.fm/adchoices

If you read traditional financial independence/retire early (FIRE) bloggers, many of them reached their goals by simply pairing a high savings rate with a standard portfolio of stocks and bonds. There’s nothing wrong with that. It works, and anyone can replicate it.  But my wife and I follow a different path to FIRE. You do need a stable financial floor—but that’s just the beginning. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you dream of becoming a real estate investor but work at Walmart, you could well be on your way to realizing your dream much sooner than you think. This comes with one important caveat: You’d need to manage a Walmart store to enjoy the financial benefits that could set you up with the cash needed to invest. Walmart U.S. announced last week that it would be giving its store managers stock grants in the company. The announcement comes after Walmart also made the decision to raise managers’ salaries and introduce a new bonus structure that will allow store managers to earn up to 200% of their salary in annual bonuses.  Learn more about your ad choices. Visit megaphone.fm/adchoices

When evaluating deals in the competitive world of house flipping, as showcased in my current project, featured in my Flip/Off battle with James Dainard (you can also read about his weekly progress), I consider several key factors to ensure both a strategic purchase and a profitable sale. These components are crucial to the success of the flip and are designed to resonate with a broad range of potential buyers, especially those entering the market for the first time. But before I share my recipe for success, let me give you some background on my project. Learn more about your ad choices. Visit megaphone.fm/adchoices

Breaking news: Direct mail is still a key factor in real estate marketing, and it has the potential to be bigger and better than ever before. That’s because the analog marketing technique is being supercharged by digital tools.  The days of the one-size-fits-all approach are gone. We all remember those days: stacks and stacks of the same advertising leaflets delivered to hundreds of local mailboxes, only to be discarded by uninterested (and often annoyed) residents. The cost of printing was, in many cases, unjustifiable, given the lackluster performance of this marketing method.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The notion that investing in multifamily is always better than investing in single-family is false. The goal of real estate investing isn’t to own a particular type of property but to secure a reliable income. The reliability of this income doesn’t depend on the property type but on the tenant who occupies the property. To show you what I mean, I will compare the financial performance of a typical fourplex in Las Vegas to the kinds of properties we’ve targeted over 16 years. Learn more about your ad choices. Visit megaphone.fm/adchoices

In his recent article, BiggerPockets CEO Scott Trench did a great job enumerating all the reasons why multifamily is in the difficult position it’s in. If he had written these same things a year ago, I wouldn’t be writing this rebuttal—I would have simply said, “Ditto.”   But I don’t believe that the picture he has painted is an accurate reflection of where things are headed. Here’s why. Learn more about your ad choices. Visit megaphone.fm/adchoices

Most investment strategies touted by gurus involve first buying a course to learn their strategy to get rich in real estate. While subject-to deals, wholesaling, syndicating, BRRRRing, Airbnb arbitrage, and fix and flipping, when done correctly, have undoubtedly been ways to make money, they all involve an element of risk or hard work to find deals.  There’s another way. This blueprint is for the risk-averse, those working full-time, interested in the tried-and-true investing methods, and satisfied with growing their portfolio and wealth over time. Learn more about your ad choices. Visit megaphone.fm/adchoices

If, like me, you check mortgage interest rates like an expectant parent checks their wife’s contractions, you doubtless will have analyzed every type of loan product in an attempt to inch the currently high rates down.  Famed financial guru Suze Orman recently appeared on CNN extolling the virtues of an adjustable rate mortgage (ARM). But to many American homebuyers, mentioning an ARM is like the Ghost of Christmas Past returning to haunt us once more: Weren’t ARMs partly to blame for the 2008 financial crash?  ARMs were derided in 2008 because many Americans got into financial trouble. Once their interest rates adjusted upward after three, five, or seven years, borrowers could not refinance down to a lower rate and fell into foreclosure. So why is Orman—whose monetary advice tends to be conservative—suggesting we go ice skating on a financial frozen lake? Learn more about your ad choices. Visit megaphone.fm/adchoices

There is no right or wrong way to invest in real estate. All that matters is that you’re comfortable with your strategy and positioned to generate a positive return on investment (ROI). However, it never hurts to compare all your options—and that means taking a closer look at short-term vs. long-term real estate investing.  Learn more about your ad choices. Visit megaphone.fm/adchoices

When you’re talking to real estate investors, they’ll often tell you how many doors they own, meaning how many rental units they have in their portfolio. Stating door numbers, however, can often be misleading. Generally, the real metric to keep track of is cash flow because, after all, profitability is what counts in any business, right?  Sometimes, though, the two can get conflated, and on occasion, owning just a few doors, irrespective of cash flow, can be a good strategy for building long-term wealth.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Get ready for the ultimate real estate adventure as the BiggerPockets Conference (BPCON) 2024 heads to the tropical paradise of Cancun, Mexico, Oct. 6-8. International travel is always exciting, but knowing it can also be tax-deductible really takes things up a notch.  Traveling outside the United States for business can be a little tricky when it comes to taxes, but don’t worry—we’re here to guide you through everything you need to know. Learn more about your ad choices. Visit megaphone.fm/adchoices

The biggest hindrance to building a real estate portfolio that allows you to leave your job and become financially free is getting past the hurdle of covering your living expenses. Decreasing your costs by living overseas could be the most logical way to build a real estate portfolio in the U.S. quickly. Why the Cost of Living in the U.S. Makes Saving So Difficult According to the Bureau of Labor Statistics’ Consumer Expenditure Survey, the average household earned $94,003 in 2022 before taxes and spent $72,967 (just over $6,000/month) on total expenses. Of that number, $24,298 accounted for accommodation, which amounted to around $2,000/month on rent or a mortgage. Learn more about your ad choices. Visit megaphone.fm/adchoices

My first investment property was a C/D-class multifamily in Houston. I selected it primarily based on perceived cash flow.  According to my calculations, the return on investment (ROI) was between 12% and 14%. And with a multifamily, even if one unit is vacant, I still have cash coming in. How could I lose? And then I got hit in the face (wallet) with reality: It was an older building, and maintenance was continual and expensive. Plus, the tenants and others almost continuously vandalized the property. Rent delinquencies and evictions were frequent, and the process was lengthy and expensive. And I was left with a damaged property that needed hundreds or thousands in repairs before it could be rented again. I ended up losing thousands of dollars each year despite doing almost all repairs and maintenance myself. This was completely different from the calculated 12% to 14% ROI. Learn more about your ad choices. Visit megaphone.fm/adchoices

Owner financing offers buyers and sellers more opportunities with real estate transactions.  Before entering this type of transaction, it’s important to know what owner financing is, how it works, who benefits, and who pays property taxes on owner financing. Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s common to have questions about your property taxes, but one is more important than all the others combined: Why did my property taxes increase? There’s no individual answer to this question, as it can depend on a variety of factors.  Here are 19 frequently asked questions (FAQs) to help you understand property taxes as a whole, and with that, determine why your taxes have increased. Learn more about your ad choices. Visit megaphone.fm/adchoices

Working for a company is the most common way people in the United States earn their living. As an employee, your earnings are reported on IRS Form W-2, and federal, state, Medicare, and Social Security taxes are withheld every time you are paid. Although there are benefits to being an employee—like simplified tax preparation—you may pay more in taxes than self-employed individuals or business owners because you can’t claim certain deductions. That doesn’t mean you don’t have options, however. You may be able to supplement your income, grow your net worth, and reduce your tax obligation by investing in real estate. Learn more about your ad choices. Visit megaphone.fm/adchoices

Setting up an emergency fund is one of the fundamental pillars of financial well-being. And yes, saving can be hard, especially in 2024. According to a recent poll by Bankrate, many of us are saving less, with the majority (63%) saying that recent high inflation means they’re able to save less than before. As of 2024, only 44% of Americans could pay for an emergency expense of $1,000 or more from their savings. The majority would rely on credit cards, payment plans, or cutting spending elsewhere. However, not everyone’s situation is quite as dire. About a third of us (30%) report having more savings this year than last year. And millennials are not doing so badly, with 35% of this generational group saying that they have more savings than they did a year ago. So, some of us are on the right track.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Denver’s housing market is on fire—at least according to a U.S. News analysis of December 2023 data from the U.S. News Housing Market Index, which includes multiple indicators of housing supply and demand, along with financial health measures. A healthy job market, low rental vacancy rates, and a low housing supply that keeps rents from falling may make Denver an attractive market to investors as well, U.S. News reports, despite its high home prices relative to the national median.  Several more of the top 20 housing markets ranked by U.S. News were also located in Colorado, and three were located in North Carolina. Multiple markets in Texas and Florida also made the list, consistent with recent migration trends into these states.  Learn more about your ad choices. Visit megaphone.fm/adchoices

When buying rental real estate, where you buy now matters just as much as getting a great deal. Matt Myre, managing editor of the BiggerPockets Blog , shares today’s Headlines about states that are becoming unapproachable for investors due to their politics and what you should look for when trying to avoid bad policies. There are really two main points that contribute to the issue with these states.high taxes and stringent regulations. Meanwhile, other markets are looking to improve zoning, making a big difference in how cities have developed, and how they are currently priced.When choosing a market to invest in, these are major considerations for new and experienced investors. Learn more about your ad choices. Visit megaphone.fm/adchoices

Berkshire Hathaway CEO Warren Buffett’s much-anticipated annual letter to investors is out. As is customary for the maverick investor, it’s peppered with headline-grabbing statements about Buffett’s disdain for investment advisors and unearned wealth.  But setting the flashy statements aside, Buffett’s latest letter contains some very valuable information. It’s worth paying attention to, even if you are at the very beginning of your investment journey because it concerns the future of one of the biggest, traditionally most profitable segments of the investment market.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Purchasing a home is an extraordinarily expensive process, especially once you add up the down payment, closing costs, and potential relocation expenses. And once you’ve acquired the home, you still need to consider the ongoing taxes, mortgage payments, and associated costs like HOA fees, insurance, and home maintenance costs. Many people understandably wonder what costs and expenses could be tax-deductible and what additional taxes they may need to pay as part of the homebuying and ownership process.  Learn more about your ad choices. Visit megaphone.fm/adchoices

I love telling people that I have been a Brandon Turner copycat when it comes to my real estate investing career. While our backgrounds in finding real estate are a bit different, our stories are quite similar because I followed what Brandon coined the “stack method.” The stack method is self-explanatory: First, you buy one property, then two, four, six, and eight more, but you start small and scale up gradually over time. In the hopes that you can avoid (or at least laugh at) some of the mistakes I made, here is how I utilized the stack method and my biggest failures along the way. Learn more about your ad choices. Visit megaphone.fm/adchoices

There’s a lot that goes into house flipping. You need to choose the right market, negotiate a competitive price, work with the best contractors, and get an agent to help you sell for a profit.  On top of that, a defined accounting strategy for house flipping is critical to your long-term success. Here’s how to create one. On top of that, a defined accounting strategy for house flipping is critical to your long-term success. Here’s how to create one. Learn more about your ad choices. Visit megaphone.fm/adchoices

Subleasing was frowned upon for a long time, but in today’s era of Airbnb popularity, it’s making a solid comeback and can be a great real estate investment strategy.  Airbnb arbitrage allows you to rent properties to tenants that you rent from a landlord. You act as the middleman between the owner and tenants and take a piece of the pie without the need to own physical real estate yourself. Learn more about your ad choices. Visit megaphone.fm/adchoices

A home inspection doesn’t take long, and understanding the process means it won’t take longer than necessary. But why is a professional home inspection so vital in real estate investment? Here, we’ll explain the home inspection process and answers the essential question: How long should a home inspection take? As the adage goes, you cannot judge a book by its cover. Successful real estate investors know why it’s wise to avoid judging a property by its paint job. Below the seemingly pristine surface is an incredible array of risks and potential issues. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re looking to elevate your real estate investing knowledge, expand your contact list, and gain powerful insight into 2024 real estate trends, then you need to be at the places that can make it happen.  Real estate conferences are the top resource for meeting like-minded people who share your goals. You’ll walk away feeling empowered to make your dreams a reality.  While we know there are tons of amazing real estate investing conferences going on in 2024, these are the ones we think you’ll want to attend. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate investments are available in many shapes and sizes, including industrial real estate investing. This is not the most common form of real estate investing, but it has a lot of potential when done right, and can be a great opportunity to diversify your investments. Understanding Industrial Real Estate Investing in industrial real estate involves purchasing, managing, and eventually selling properties. Like residential real estate investing, the goal is a great ROI, but you’ll cater to industrial tenants versus people looking for a place to live.Many renters looking for industrial space need distribution space, but not all do. The key is understanding the demographic where you plan to invest and their pain points. Learn more about your ad choices. Visit megaphone.fm/adchoices

HBO’s seminal series The Wire put Baltimore’s plight on the map, with crime and urban blight running amok. Now, 16 years after that show ended, it seems little has changed from the city it depicted. The situation has become so desperate that the city is selling off dilapidated buildings for f $1. However, before you dig out the loose change in your pocket to snag a townhouse, remember there are caveats. There were almost 15,000 abandoned homes in Baltimore as of 2022, blighting the landscape, and Mayor Brandon Scott—as first reported in Bloomberg—is offering up 200 of them virtually free to encourage investors to help transform the beleaguered city. It echoes an initiative that helped change Baltimore in the 1970s.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Why rent when you can buy? Luxury retailers are booming and using their extra cash to buy up highly coveted retail spaces across the U.S. and Europe.  Prada bought the building where its Fifth Avenue store is located for $425 million, while LVMH is said to be in talks to purchase the building where Bergdorf Goodman, a men’s store, is located.  Meanwhile, Gucci and Balenciaga’s parent company, Kering, bought a property on Fifth Avenue for $963 million, expanding its real estate portfolio, which already includes landmark properties in Paris and Tokyo. Learn more about your ad choices. Visit megaphone.fm/adchoices

Home foreclosures are on the rise. Is this the start of a housing collapse and the buying bonanza for real estate investors touted for the last two years, or a mere blip?  Foreclosure rates have steadily risen since interest rates increased in conjunction with the home affordability crisis. According to Redfin, only 15.5% of U.S. home listings were accessible financially to U.S. households in 2023. This has led to an 8% increase in foreclosure filings, according to a new report by data company ATTOM. Learn more about your ad choices. Visit megaphone.fm/adchoices

On any given day, depending on who you ask, we are either years away from the faintest possibility of a recession or about to enter one. Economists have made several dizzying U-turns in their predictions over the past couple of years, with the latest narrative claiming a recession is highly unlikely in 2024 and subsequent years.  That’s a stark change in tone from only a year ago. A poll of 70 economists by The Wall Street Journal in January 2023 put the odds of a recession at 61%. Yet at least one independent economist, James F. Smith, dissented and put the odds of a recession at a minuscule 1%. We already know who was right in 2023, but what was the reasoning behind the confident 1% prognosis? Learn more about your ad choices. Visit megaphone.fm/adchoices

The location (city) where you invest is your most important investment decision, not the properties themselves. Why? The goal of real estate investing is financial independence. But financial independence isn’t just replacing your current income. It’s about having the necessary funds to maintain your present lifestyle throughout your lifetime.  Learn more about your ad choices. Visit megaphone.fm/adchoices

After multiple lawsuits, the National Association of Realtors (NAR) has agreed to a settlement with home sellers amounting to a payment of $418 million and a few monumental rule changes for multiple listing services (MLS) and how real estate agents conduct business. The changes will go into effect in July. This has led to an array of responses within the real estate industry, from panic and complete reworking of real estate practices to others claiming it’s no big deal and business as usual.  Learn more about your ad choices. Visit megaphone.fm/adchoices

After multiple lawsuits, the National Association of Realtors (NAR) has agreed to a settlement with home sellers amounting to a payment of $418 million and a few monumental rule changes for multiple listing services (MLS) and how real estate agents conduct business. The changes will go into effect in July. This has led to an array of responses within the real estate industry, from panic and complete reworking of real estate practices to others claiming it’s no big deal and business as usual.  Learn more about your ad choices. Visit megaphone.fm/adchoices

According to ATTOM Data’s latest Q1 2024 Single-Family Rental Market report, average gross rental yields on three-bedroom single-family homes are projected to rise by 7.55% this year. As ever, though, the devil is in the regional details. While some markets are offering landlords great rental margins—over 10% in some areas—others offer lackluster and/or declining returns.  Let’s dive a little deeper into which markets the report identifies as hot—and which ones should give investors pause, based on their projected 2024 performance. Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s headlines cover the recent Federal Reserve meeting that ended with Fed Chairman Jerome Powell announcing that rates would be higher for longer. Bond yields rose in response, sending mortgage rates back into the 7-8% rage. Meanwhile, Matt assesses whether the pandemic ever recovered from the pandemic by looking at prices, rates, and inventory. https://www.biggerpockets.com/blog/why-the-housing-market-still-has-not-recovered-from-the-pandemic https://www.bloomberg.com/news/articles/2024-04-16/powell-signals-high-rates-for-longer-due-to-persistent-inflation?srnd=economics-v2 Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’ve ever dipped your toes into the world of personal finance, chances are you’ve heard of Dave Ramsey. He’s a household name in the realm of financial advice, known for his no-nonsense approach to getting out of debt and building wealth. One of the cornerstones of Ramsey’s philosophy is cutting expenses to the bone, often focusing on small, everyday luxuries like coffee and dining out. While slashing these expenses can certainly free up some cash in the short term, I’m here to tell you that it’s not the path to true wealth.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate and franchising are two popular investment options offering significant financial returns. Both allow you to earn passive income, enjoy tax benefits, and benefit from regular cash flow. However, a real estate franchise and real estate investing each have pros and cons to consider. If you are considering investing in the housing market, which business model is best for you? Long-term wealth through property appreciation and regular rental income that real estate offers? Or the opportunity to own a tried-and-tested business model with instant brand recognition? We’ll discuss whether investing in real estate or starting a franchise is best for your financial goals. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate investors accounted for 26.1% of low-priced home purchases in the U.S. during the fourth quarter of 2023, a record-high share, according to a new report from Redfin. Investors bought only 13.6% of mid-priced homes and 15.9% of high-priced homes sold during the same period.  Redfin defined low-priced homes as falling into the bottom third of local sales prices. The median price investors paid for homes in the fourth quarter was $453,271, above the national median, according to Redfin data. That may be due to an increase in investor home purchases in several California cities, where many expensive homes fall into the low-priced tier relative to local prices.  Learn more about your ad choices. Visit megaphone.fm/adchoices

2024 will be a crucial year for the U.S. economy, particularly around what the Fed will do with interest rates. But for the Fed to lower rates, they have to see signs of slowing growth. What reliable signs are there that the economy is moving in either the recessionary or the growth direction? There has to be a better way to tell than using the Super Bowl Indicator (it doesn’t work, folks).  Learn more about your ad choices. Visit megaphone.fm/adchoices

Disability benefits provide important lifelines to those who are unable to work due to various medical conditions. Although your ability to work while on disability will be limited, you may still be able to earn income from certain passive investments. Whether flipping houses while on disability will affect your benefits depends on your degree of involvement in your properties. Learn more about your ad choices. Visit megaphone.fm/adchoices

Investing in forest land can be a great way to diversify your portfolio. Because tree growth doesn’t rely on economic factors, consistent biological growth can create more stable returns than other financial investments. When you invest in forestry, you invest in a lower-risk asset that provides environmental benefits. This is often opposite what’s true for residential and commercial land, which is more prone to market disruptions and other market risks. Learn more about your ad choices. Visit megaphone.fm/adchoices

Yes, many pundits are still warning about a recession in 2024.  Here’s one example. Richard Duncan did a Macro Watch fourth-quarter update. He pointed out that between 1952 and 2009, all nine times total credit (adjusted for inflation) grew by less than 2%, and the economy went into a recession.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Last week, Realtor.com published another version of its ‘‘magic number’’ forecast. The number in question is the mortgage rate number low enough to ‘‘unfreeze’’ the real estate market.  We know that the market has been in something of a gridlock for over a year now: Home prices are very high and keep rising. Mortgage rates are high and aren’t showing much of a downward trend. There aren’t enough homes to go around, especially those that are remotely affordable. Something has to give.  Learn more about your ad choices. Visit megaphone.fm/adchoices

I moved around a lot when I was younger. And I’m not talking from state to state or city to city—I moved a few doors down from wherever I was living. I never knew why, and frankly, I never asked my parents. All I knew was that I was with my family, so I went wherever they went. It wasn’t until years later that I realized my parents were fixers and flippers. Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s headlines cover the erosion of landlord rights as squatters racked up a series of victories in recent months, culminating in the arrest of a landlord in New York City who attempted to evict a person living in her vacant home without a right to. We’ll also cover why recession predictions are always wrong, and if they even matter to real estate investors in particular. Learn more about your ad choices. Visit megaphone.fm/adchoices

In simple terms, a mobile home—also known as a manufactured home—is a dwelling built in a factory. While these homes are used as primary residences by many, they can also make for a good investment.  So, Are Mobile Homes a Good Investment for Rental Property? Yes, mobile homes can be a good investment for rental property when approached correctly.  While there’s no defined strategy for success, key considerations include understanding the unique market demand for mobile homes, analyzing location benefits, assessing the condition and age of the mobile home, and understanding the legal and zoning regulations that apply. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate investors seem to be taking it from all sides these days. Not only are interest rates, property taxes, and construction costs up significantly from a few years ago, but more and more legislation is being passed to make investing in and managing real estate more difficult, arduous, and expensive.  And, of course, it should come as no surprise that most of this legislation will not only hurt real estate investors but will make the problems that need solving all the worse. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re looking to break into real estate investing but need to figure out what it takes, consider house hacking. You might wonder, though: Is house hacking legal? Is House Hacking Legal? House hacking is legal when you do it right. For example, renting a spare room in a single-family home or a unit in a multifamily home is legal.  However, renting a garage space not meant for living isn’t considered legal. Follow your city’s zoning laws, and house hacking can be legal. Learn more about your ad choices. Visit megaphone.fm/adchoices

When it comes to maximizing profit on your investment property, you’ve likely considered quite a few rental strategies. If long-term doesn’t pencil out, you could always consider revenue from medium-term or short-term tenants if your market supports it. But there is another successful, profitable rental strategy you should add to your arsenal: renting your property “by the room.” Also referred to as a boarding or rooming house strategy, renting by room is not a new concept. But these kinds of arrangements are not as common as they were at the turn of the 20th century. Renting by room fills an important market gap, though, creating opportunities for renters who may not be able to afford an entire apartment on their own in a time of extreme housing shortages. In aggregate, you also stand to make a ton more money than if you just housed a single tenant.  Learn more about your ad choices. Visit megaphone.fm/adchoices

In the ever-shifting world of real estate, you find yourself at a crossroads: Do you buy now or wait for more favorable market conditions?  The housing market witnessed unprecedented shifts during the pandemic, with home prices soaring and mortgage rates experiencing volatility in 2022 and 2023 due to the Federal Reserve’s attempts to curb inflation through rate hikes. The combination of these two situations leaves aspiring investors grappling with the decision of whether to lock in stable leverage today or wait for “the next cycle.” Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re a real estate investor in 2024 or planning to be, your list of investment property criteria probably has the qualifier ‘‘affordable’’ right at the top. And you’re certainly not alone.  The latest Redfin investor home purchases report shows that investors snapped up 26.1% of low-priced homes sold in the U.S. during the fourth quarter of 2023. That’s the largest share of such purchases ever recorded, up from 24% in the fourth quarter of 2022.  Learn more about your ad choices. Visit megaphone.fm/adchoices

There are plenty of different financing options to consider when you’re ready to invest in real estate. You can leverage your own funds, for example, or receive loans from established organizations or private lenders. There are even options to partner up with someone with the funds to help you carry out your vision. Learn more about your ad choices. Visit megaphone.fm/adchoices

In recent years, a sizeable amount of criticism has been leveled against what many see as endless sprawl and “lifeless” suburbia that surrounds many American cities. In fact, it happens so often that I’m actually a bit surprised that while the difficulty and opportunity of rural investing comes up fairly often, there isn’t a large amount of discussion regarding the merits and challenges of urban versus suburban investing (although there is certainly some in the BiggerPockets forums). Learn more about your ad choices. Visit megaphone.fm/adchoices

The year-round sunshine, the convenience of direct flights, the incredible food and culture—there’s a lot to love about Puerto Rico. As an American citizen, all the same rules apply for buying investment property in this balmy, seaside U.S. territory as they do on the mainland.  The Market Details According to short-term rental tracking company AirDNA, it should come as no surprise that Puerto Rico is a booming and profitable short-term rental market. The capital city of San Juan gets AirDNA’s top score of 100, with average occupancy rates of over 60%, average nightly rates of over $200, and average annual revenue of over $45,000 (up almost 10% YOY).  Learn more about your ad choices. Visit megaphone.fm/adchoices

The year 2024 can feel like a confusing space to inhabit for rookie investors. You have the cash, you have the plan, and you’ve done your research. There remains one big issue: Interest rates that are currently much higher than the historically low rates we had pre-2022.  If you’ve done your research into investment financing, you know that investors pay even higher mortgage interest than regular homebuyers (typically between 0.75% and 1.5% higher). Right now, that is a daunting prospect, with regular mortgage rates still hovering just under 7%.  Learn more about your ad choices. Visit megaphone.fm/adchoices

There are plenty of hedge funds investing in real estate in 2024. As an investor, you can learn a lot about the real estate market—including where to invest—by closely following these hedge funds and their performance.  Now, let’s examine the hedge funds investing in real estate this year (and likely beyond). Learn more about your ad choices. Visit megaphone.fm/adchoices

Imagine one day living in a luxurious, spacious house with everything you could possibly want in life. Now contrast that with red and blue lights filling your home, with officers yelling and sirens blaring. Then, envision a SWAT team ripping you away from your parents.  Although it seems far-fetched, this actually happened.  By all accounts, John was living a charmed “trust fund” life, but that was quickly all taken away from him. At age 10, that left John Mansor a ward of the state—orphaned and alone, with only his brother, David, alongside him. He’s spent the last 15-plus years climbing back to the top. Learn more about your ad choices. Visit megaphone.fm/adchoices

As insurance premiums climb, property owners need to grasp how economic conditions and natural disasters affect the insurance market. These insights provide practical guidance for real estate investors navigating a dynamic, unpredictable market.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Love it or hate it, the financial independence, retire early (FIRE) movement has changed the conversation around financial planning. And any change that provokes new discussion and a fresh perspective is a good change—even if you ultimately side with the traditionalists.  Today, I’ll convince you that you don’t actually need or even want to retire early. You want the freedom, flexibility, and intentionally designed life that financial independence offers.  The best part? You don’t even need to reach financial independence to achieve all that. Open your mind for a fresh way to look at FIRE. Learn more about your ad choices. Visit megaphone.fm/adchoices

After a winter slump, the real estate market is starting to look a little brighter in time for spring. More homes are entering the market, and buyers are starting to consider buying again after staying on the sidelines, according to the latest numbers from Redfin.   For the four weeks ending March 3, new listings were up 13%, the biggest increase in three years. That uptick helped bring the total number of homes for sale up 1.7%, marking the first time in eight months that supply has increased. Meanwhile, asking prices had their smallest increase in two months, with around 5.5% of home sellers dropping their asking price. Learn more about your ad choices. Visit megaphone.fm/adchoices

Poor air quality has been in the headlines about U.S. climate change, especially on the West Coast and in Southern states. Increasingly devastating wildfires are becoming a sad fact of life in California, Texas, and Arizona, with many states added to the list of those impacted or at high risk of fire damage each year.  But one specific wildfire-related factor is affecting the West more than in any other region in the country: smoke pollution. According to recent research from First Street Foundation, the West now has nearly double the maroon air days than it did 20 years ago. The maroon classification is the worst air quality grade there is, defined as ‘‘hazardous’’ to the general population by the EPA.  Learn more about your ad choices. Visit megaphone.fm/adchoices

When people start investing in residential real estate, one of the biggest mistakes is neglecting the importance of solid property management.  We’ve said it before: Your property management team is your first line of defense. They are the best tool for maximizing your property’s performance and value. Without them, even a good investment can turn sour.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The National Association of Realtors (NAR) announced Friday that it finally reached a settlement with the various homeowner groups that had been suing the trade group since 2019. The NAR will pay $418 million in damages and end some of its practices, including the language around commission sharing. https://www.biggerpockets.com/blog/national-association-of-realtors-to-pay-418-million-and-remove-commission-standards-as-part-of-settlement  https://www.biggerpockets.com/blog/the-housing-shortage-will-get-worse-in-2024 Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s that time of year when you’re either super happy that your team made it to the big game, or you’re frustrated with your team’s performance throughout the season (such as my Panthers) or still recovering from a playoff blowout (I’m talking to you, Cowboy fans). Or you could be an Eagles fan and question your existence after what’s happened over the last 365 days (much to my delight). At any rate, life goes on, and only one team can win the trophy. What we do have more control over, though, is where we place our money in real estate. Learn more about your ad choices. Visit megaphone.fm/adchoices

What if we told you that you could use a credit card to pay the mortgages on your investment properties? And that you could earn points while doing so, which you could then use for free travel, down payments, or even for improving your ROIs? This is what the Bilt Rewards Mastercard could soon allow you to do. (We promise this isn’t an ad.) Bilt recently announced that the company raised an additional $200 million from investors, putting the company’s valuation at an impressive $3.1 billion. Bilt said in a recent statement that the fresh investment money ‘‘will fuel further expansion of the Bilt Rewards Alliance across multifamily, single-family, and student housing sectors nationwide.’’ More specifically, the company ‘‘plans to venture into mortgage payment rewards.’’ Learn more about your ad choices. Visit megaphone.fm/adchoices

The multifamily and commercial real estate crash is in full swing. As much as $2.7 trillion in wealth has been wiped out with a historic surge in cap rates and plummeting asset values in the commercial real estate world, with multifamily and office leading the charge with estimated 30% and 35% peak-to-trough declines in asset value and even larger percentage declines in equity value. Learn more about your ad choices. Visit megaphone.fm/adchoices

The multifamily and commercial real estate crash is in full swing. As much as $2.7 trillion in wealth has been wiped out with a historic surge in cap rates and plummeting asset values in the commercial real estate world, with multifamily and office leading the charge with estimated 30% and 35% peak-to-trough declines in asset value and even larger percentage declines in equity value. Learn more about your ad choices. Visit megaphone.fm/adchoices

The multifamily and commercial real estate crash is in full swing. As much as $2.7 trillion in wealth has been wiped out with a historic surge in cap rates and plummeting asset values in the commercial real estate world, with multifamily and office leading the charge with estimated 30% and 35% peak-to-trough declines in asset value and even larger percentage declines in equity value. Learn more about your ad choices. Visit megaphone.fm/adchoices

The significance of earning passive income in today’s economy cannot be emphasized enough. Steady, reliable passive income serves as a cornerstone for achieving financial independence, offering a multitude of avenues for growth and prosperity.  A plethora of new passive income generation opportunities offered by innovative digital platforms have emerged in recent years. From real estate short notes to high-end art, the landscape is ripe with prospects waiting to be explored. Learn more about your ad choices. Visit megaphone.fm/adchoices

Choosing a real estate investment strategy can be challenging. There are risks no matter what avenue you choose, but understanding all options, including a ground lease, is important. A ground lease can be a good option for landlords or property owners who want prime locations, but not understanding what a ground lease is and how it works can be detrimental. We’ve broken down everything there is to know about the ground lease and what landlords and tenants must consider. Learn more about your ad choices. Visit megaphone.fm/adchoices

Rental properties have been one of the largest real estate industry sectors to be hit by the increase in interest rates. Investor purchases of single-family homes tumbled 29% in 2023, according to the Wall Street Journal, citing data from Parcl Labs, a real estate data and analytics firm. Realtor.com concurred that last year saw the largest annual drop in investor buying activity in at least 20 years.  However, for those who can buy with cash or hold their nerve (and pay the mortgage) during the current cycle, now is an ideal time to strike a deal with sellers stranded by high rates. When rates eventually fall, investors will flood back to the market and prices will increase, allowing intrepid investors to refinance, looking like financial geniuses.  Learn more about your ad choices. Visit megaphone.fm/adchoices

At the beginning of 2023, we reported on the advent of #Airbnbust, a term coined by Amy Nixon and amplified by vacation property operators on social media to describe falling revenues per host due to a rapid increase in the supply of rental homes. Last July, we also dug into conflicting data that sparked a viral debate on whether the short-term rental market was crashing or reverting to normal.  Did the trending term correspond to an industry-wide shift in vacation rental performance that would put most rental property owners out of business? Or did it merely reflect the sentiment of eager, inexperienced hosts who fully expected the rapid growth in demand and average daily rates (ADRs) to keep pace without any impact to the supply side? Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’ve been paying attention to news in the real estate sector, you will know that new construction has faced many challenges since the beginning of the COVID-19 pandemic. From rising prices of construction materials to labor shortages and, most recently, high mortgage interest rates, the homebuilding industry has had more than its fair share of hard knocks. Indeed, homebuilder confidence dropped for three consecutive months in 2023.  And yet one of the most respected, successful investors out there invested in three big construction companies last year. Warren Buffett’s Berkshire Hathaway disclosed investments in D.R. Horton, Lennar, and NVR, with a total investment of $814 million. And that’s against Berkshire’s overall wait-and-see approach.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Pittsburgh-based investor and house flipper John Walker of Turnkey Investment Properties and his business partner, Jim Auten, usually have around 10 flips on the go at any time. When rates were low, and business was booming, that number doubled. However, high rates and low inventory have seen many of their fellow flippers exit the market.  “It’s a case of the last man standing right now,” Walker says. According to recent Bank of America research, it’s a scenario played out across the country, with sellers staying put for fear of sacrificing a low mortgage interest rate. About 80% of outstanding U.S. mortgages are at interest rates below 5%. Learn more about your ad choices. Visit megaphone.fm/adchoices

In the ever-changing landscape of the sharing economy, the concept of home sharing has undergone significant transformations. With the rise of short-term rental platforms like Airbnb, travelers and hosts alike embraced the idea of unique, short-term stays. However, the question that now looms large is whether the Airbnb dream is dead. While challenges persist, the evolution of the industry tells a different story—one of adaptation and innovation. Real estate investors, in particular, are exploring new avenues, with a growing interest in mid-term rentals. Learn more about your ad choices. Visit megaphone.fm/adchoices

I often hear new investors ask: “What types of properties are the best? “What should I look for when evaluating rental properties?”  They are starting at the wrong point. As with any major venture, real estate investing starts with clarifying your goal. And every investment decision you make must align with your goals. Learn more about your ad choices. Visit megaphone.fm/adchoices

A new report from Redfin finds that 26% of investor purchases in Q4 2023 were in “low-cost” properties, up significantly from previous years. The increase comes as housing prices remain elevated and mortgage rates stay locked around the 7% range. Meanwhile, a new bill has entered committee in Congress, where senators are deliberating whether to set on track a new law that would tax real estate investors at a graduated rate on every new property that they purchase. We’ll cover both of these stories and why investors must pay close attention to this bill. https://www.biggerpockets.com/blog/how-the-affordable-housing-and-homeownership-protection-act-will-impact-investors  https://www.biggerpockets.com/blog/highest-share-of-investors-on-record-are-buying-low-value-homes Learn more about your ad choices. Visit megaphone.fm/adchoices

“You’re making too much money.” That’s what echoed in Missouri native Ryan Haywood’s ears after his boss decided to slash his commissions—a “sales haircut,” as it’s bitterly known in the industry.  This notion of being penalized for success was perplexing for Ryan. Out of all the downsides of his job—the after-hours calls from his boss that he was expected to answer, dealing with poor management, and working up to 80 hours a week—this pay cut was the last straw. He didn’t realize it at the time, but this setback was about to unveil a path that would lead his family toward the future that Ryan and his wife Megan had dreamt about. Learn more about your ad choices. Visit megaphone.fm/adchoices

As everyone knows by now, rising interest rates and low supply have been the most significant factors shaping the real estate market since 2022.  The Federal Reserve began raising key interest rates in March 2022 in response to skyrocketing inflation. Following the pandemic-era sharp rises in the cost of materials and products across several industries, inflation in the immediate aftermath shot to its highest levels in 40 years. To tackle these high inflation rates, the Fed raised rates 11 times between March 2022 and July 2023, from almost zero to 5.5%.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Should you aim for diversification in your real estate investments? What about your stock investments? Oddly enough, many real estate investors never bother to ask that question. They just assume that all real estate investments require a lot of money and that each niche requires so much skill that you can only master one. They’re wrong on both counts, and it adds risk to their investment portfolio. Learn more about your ad choices. Visit megaphone.fm/adchoices

House hacking is often one of the first strategies that many new real estate investors use because it’s a simple way to live for free while your renters cover your mortgage payments. House hacking involves buying a single-family or multifamily property and renting out the units or rooms you aren’t occupying. If you are considering dipping your toes into real estate investing with this strategy, it’s important to consider the tax implications so you will know how much profit to report. Underreporting rental income on your taxes could cause problems for you later if you are audited. Learn more about your ad choices. Visit megaphone.fm/adchoices

Flipping houses can be extraordinarily profitable, which is one of the reasons why it’s a popular real estate investment strategy. You go in with a competitive bid, invest some funds making repairs and sprucing up the place, and then sell. It’s rewarding, and when done well, it can be extremely lucrative.  And while many people know about the potential expenses and risks that come with the actual acquisition, remodeling, and sale of house flipping, some investors are surprised to learn about the taxes involved. Learn more about your ad choices. Visit megaphone.fm/adchoices

The U.S. real estate market appears indestructible, with home prices nationwide continuing to increase. The latest report from analytics company CoreLogic shows impressive growth of 5.2% year over year in November 2023. It’s not an anomaly, either—home prices grew 4.7% year over year in October 2023. CoreLogic’s projection is a steady home price growth throughout 2024, forecasting a 2.5% year-over-year increase in November 2024 compared to November 2023.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate offers plenty of strategies to avoid taxes. However, many require you to jump through hoops, hire third parties to help you, and otherwise make your life harder.  This is why I use the “lazy 1031 exchange” strategy: no hoops, no hassles, no hiring custodians.  But before explaining what a “lazy 1031” is, let’s make sure we’re all on the same page about how standard 1031 exchanges work. Learn more about your ad choices. Visit megaphone.fm/adchoices

Commercial real estate has had a few rough years, and it seems like things won’t be getting better anytime soon. The sector is set for a potential rise in defaults, as higher interest rates have increased the costs of refinancing.  And with $2.8 trillion due between now and 2028, more landlords could be feeling the crunch. According to data firm Trepp, commercial debt maturities are expected to balloon in the next few years. While many loans were extended or refinanced, the clock is slowly ticking for the CRE sector as those extensions are coming due.  Learn more about your ad choices. Visit megaphone.fm/adchoices

In a recent CNBC article, it was revealed that more than half of Americans earning over $100,000 a year live paycheck to paycheck. This eye-opening statistic highlights a fundamental truth: The road to wealth isn’t solely about income but depends significantly on transforming financial habits.  In this guide, we’ll debunk the oppressive notion of budgeting, offering a transformative process to fix money leaks, cultivate strategic spending habits, and execute consistently for financial improvement. Learn more about your ad choices. Visit megaphone.fm/adchoices

Running a rental business comes with its fair share of headaches, but one upside is that just about every rental activity associated with buying, maintaining, and operating a rental property is tax-deductible. We’ll walk through a checklist so you remember to keep track of your actual expenses and get the maximum tax benefit.  At the end of the day, the logic is that you should only have to pay taxes on your profits, which is your rental income minus all of your expenses. That’s the number that will be entered on Schedule E when you file your taxes.  Learn more about your ad choices. Visit megaphone.fm/adchoices

This week's headlines cover the growing trend of investors switching their strategies from short-term rentals to medium-term rentals as Airbnb shows signs of instability and growing competition on the platform that’s eating away at occupancy rates and overall profits. We’ll also talk about the multifamily real estate market, which has faced a $1.2 trillion loss in valuations since its peak. We’ll cover the full story on multifamily and how the market got to this point, plus the silver linings that could make sense for the right investor to deploy their capital. https://www.furnishedfinder.com/stats Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’ve been on TikTok recently—and perhaps even if you haven’t—you may have heard about the viral new concept of a ‘‘silent depression’’ that’s apparently overwhelming younger people in the U.S.  No, we’re not talking about the country’s mental health crisis. We’re talking about what a few TIkTokers are referring to as the dire economic reality facing ordinary people trying to make ends meet.  The term ‘‘silent’’ refers to the fact that, on the surface, the U.S. economy is doing well. We are not in a recession; unemployment rates are low. And yet, people struggle to afford the basics more than they did in the past. Learn more about your ad choices. Visit megaphone.fm/adchoices

Drawing from my background in regulatory compliance for global financial institutions, I have developed an appreciation for the intent of regulations that strive to safeguard public interests.  Regulations are not limited to finance—as you may be aware, short-term rental (STR) laws are a hot topic. As cities aim to refine STR laws to suit their unique community needs, the landscape and laws continue to evolve.  In this article, I will share my experiences and offer actionable advice for navigating these changing regulatory environments. Learn more about your ad choices. Visit megaphone.fm/adchoices

Before discussing how to calculate the number of properties needed to replace your current income, understand that retirement is not a one-time event. Retirement requires rental income that will enable you to maintain your current standard of living for the rest of your life. Learn more about your ad choices. Visit megaphone.fm/adchoices

Much recent news in real estate has centered on home prices, which appear to still be rising. But what about the profits from home sales?  The latest Year-End U.S. Home Sales Report from ATTOM paints a less rosy picture of what’s going on in the real estate market. In fact, it’s showing that home sales profits dropped for the first time in a decade in 2023. So what are the figures, and what do they mean for investors? Learn more about your ad choices. Visit megaphone.fm/adchoices

Got kids? Then, eventually, you’ll (most likely) also have college bills. And spoiler alert: They will be big.  While it’s certainly not a parental requirement, footing the college bill (or any part of it) and allowing your kids to graduate debt-free is an enormous gift—one of the biggest you can give your children. Conventional savings vehicles, like 529s, are amazing tax-free-withdrawal vehicles, but they’re not the only way to get to the finish line. You can also use your real investing superpower to build the college trove, and you don’t need to have started saving in utero (although that always helps) Here are two ways to fund college with real estate, whether you’re starting early or a little later. Learn more about your ad choices. Visit megaphone.fm/adchoices

Choosing between commercial and residential real estate is a big decision for investors. If you choose the wrong strategy, you could be in over your head and potentially lose money.  We’ve created an investing in commercial real estate for beginners guide to help you understand what it means to invest in commercial real estate and what it requires. Learn more about your ad choices. Visit megaphone.fm/adchoices

With house flipping activity remaining high across the country, many investors are wrestling with this question: Is house flipping ethical? There are two sides to the argument, both of which we detail here.  The Quick Basics of House Flipping There is more to house flipping than what you see on television. It takes money, knowledge, and expertise to flip a home for a profit.  What is house flipping? House flipping involves purchasing real estate at a low price, renovating or refurbishing it, and then selling it for a profit. This process typically aims to complete these steps quickly to maximize return on investment. Learn more about your ad choices. Visit megaphone.fm/adchoices

As an investor, you have many options when it comes to where you put your money. Day after day, whether you are driving to work or watching your favorite reality TV show, you’ll see advertisements telling you to invest in gold, stocks, digital currency, mutual funds, etc.  And because of those ads, people have become familiar with those types of investments. But very few people are familiar with trust deed investing, although it’s a form of investing as old as money itself.  Learn more about your ad choices. Visit megaphone.fm/adchoices

As part of its goal to increase affordable mortgage access for homebuyers in the United States, Fannie Mae announced in December that it would accept attorney-opinion letters (AOLs) in place of title insurance with more mortgages. While AOLs have been allowed by the government-sponsored enterprise on select mortgages since 2022, the decision expands eligible mortgages to include condo units and properties with homeowners association (HOA) restrictions, potentially assisting more first-time homebuyers with the high costs of homeownership by trimming about $1,000 off their mortgage closing costs.  The Community Home Lenders of America expressed support for the alternative as a way to tackle homeownership affordability challenges. But the American Land Title Association (ALTA), the nation’s largest title insurance trade organization, has consistently pushed back against attempts to allow title insurance alternatives, citing gaps in protection for homeowners and lenders.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Goals provide us with direction and purpose, acting as the foundation for every significant endeavor. Your goals should be written down, but they don’t need to be lengthy or complex.  How to Get Started You can start with just the following items: Current situation: What is your current or anticipated financial capacity within a reasonable time frame? Get preapproved for an investor loan to determine your accessible credit limit. Financial end goal: Typically, this refers to an income goal, like earning $10,000 a month in today’s dollars. Time frame: The less time you have to reach your goal, the more initial capital and credit you will require. However, goals by themselves are not enough. Goals without an action plan are merely daydreams. Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you searching for your next big wealth-building strategy? Looking for ways to strengthen your portfolio? If so, it may be time to add passive investments to your portfolio if you haven’t already, specifically through turnkey.  Turnkey real estate is an increasingly popular option with a range of benefits, making it an appealing choice for individuals seeking passive income and long-term wealth accumulation. Typically speaking, a turnkey property is fully renovated and ready for immediate rental or occupancy, often managed by a property management company, either affiliated with your turnkey partner or a trusted third-party vendor.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Despite recent challenges in the commercial real estate space, one area has become surprisingly popular among institutional investors: retail. As demand for office space has declined, retail seems to have picked up, despite a tumultuous 2023. According to the Wall Street Journal, private investors snagged $1 billion more in retail assets than they sold in the third quarter of last year.  Predictions for retail over the coming year are strong, with many expecting retail to be a bright spot in an otherwise lackluster CRE space.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Cash-out refinancing is pretty common in real estate investing. An investor will cash in on the equity they have on an existing property and then use those funds toward a down payment on their next property. Rinse and repeat. That complicated process may soon be unnecessary thanks to a new fintech company. Downpayments, a Miami-based financial tech startup, has come up with a way for investors to tap their existing property equity to buy new properties—no refinancing required. Here’s how it works and what investors need to know about it. Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s been nearly four years since COVID-19 burst onto the global stage. We’ve returned to normal, but “normal” just doesn’t mean what it used to.   Domestically, Americans are feeling worn out. Social tensions are high and have been for a couple of decades. Conservatives and the right wing waste no time in blaming it on the commander-in-chief. Meanwhile, the left repeatedly insists not enough is being done by the government, pointing to healthcare, education, and housing as some of the issues where further intervention is needed. However, both parties largely fail to grasp the full scope of the issue, including its root cause: money, and specifically, global money. Learn more about your ad choices. Visit megaphone.fm/adchoices

The 70% rule in real estate can be helpful when comparing properties and making a final determination on which one is the best investment. Understanding the ins and outs of this rule is imperative to using it to your advantage.  What Is the 70% Rule? The 70% rule is a formula commonly used by real estate investors as a barometer when purchasing distressed properties for a profit. The formula calculates the maximum amount to pay for a given property once two key factors—the after-repair value (ARV) and estimated repair costs (ERC)—are considered. Learn more about your ad choices. Visit megaphone.fm/adchoices

ATTOM’s Year-End 2023 U.S. Foreclosure Market Report shows that foreclosure activity increased last year from 2022 levels, but is this a cause for concern for investors?  The ATTOM report shows that foreclosure filings, which include default notices, auctions, and repossessions, stood at 357,062, up 10% from 2022 and 136% from 2021. These figures look much less alarming, however, when set in the context of pre-pandemic foreclosure levels. Foreclosure activity in 2023 was still 28% lower than it had been in 2019 and down a massive 88% from its peak in financial crisis-ravaged 2010.  Learn more about your ad choices. Visit megaphone.fm/adchoices

In my previous article, we delved into the essential elements of development zoning. We explored key zoning designations such as R or C, critical parameters including setbacks, FAR, and building heights, strategies for enhancing density via affordable housing, the role of neighborhood ordinances, and the distinctions between by-right and discretionary review processes. In this article, we’ll delve into the crucial task of determining the development zoning for your project—an essential step to undertake before acquiring any development project. Mastering the intricacies of development zoning necessitates a strategic methodology, and we’ll unveil three pivotal strategies. Learn more about your ad choices. Visit megaphone.fm/adchoices

I’ve encountered the question “Should I buy or hold?” on several websites for several years. All I have seen are opinions such as “only hold a property for X years.” Here, I propose a simple process for deciding whether to sell or hold. First, what should you base your decision on? That’s simple: your investment goal. Learn more about your ad choices. Visit megaphone.fm/adchoices

Buffalo, New York, will be 2024’s hottest housing market, according to a recent analysis by Zillow. While you may mainly know Buffalo as the place that regularly gets snowed in during the winter, it turns out that the city’s current combination of affordable homes, a thriving job market, and a multibillion-dollar federal regeneration project has produced market conditions every real estate investor should note.  Zillow’s report uses several metrics to determine which housing markets are currently on the rise. In a nutshell, it looks at two of the most powerful draws for new residents—affordable home prices and the number of new jobs—and then zooms in on how these favorable conditions translate into moving patterns. Once it’s clear that people are actively moving to an area to buy homes and form households, you have yourself a perfect housing hot spot.  Learn more about your ad choices. Visit megaphone.fm/adchoices

What is important for Real Estate investors to know this week? Managing Editor of the BiggerPockets Blog, Matt Myre is here today to share the top 3 headlines that Real Estate investors need to know about to make better investing decisions. We’ll cover a House bill that was passed last week that could potentially bring back 100% bonus depreciation if made into law, the “Silent Depression” that TikTokers are battling with economists over, and what the SEC is proposing for new accredited investor minimum qualifications and what that impact could mean for real estate investors. Learn more about your ad choices. Visit megaphone.fm/adchoices

A traditional home refinance involves replacing an existing mortgage with a new loan to secure better terms or a lower interest rate. This process can reduce monthly payments, change the loan duration, and/or provide access to home equity for other expenses or investments. What Is a No Closing Cost Refinance? A no closing cost refinance is a type of mortgage refinancing where the lender covers upfront closing costs in exchange for a slightly higher interest rate on the new loan.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Things are shaping up for homebuilders. In fact, one big name in the industry is projecting that 2024 will mark the “golden age” for homebuilding, thanks to falling mortgage rates and frozen existing home supply, among other factors. David O’Reilly, CEO of megalith developer Howard Hughes Corp., told CNBC last week, “We’re going to have the golden age of new home construction” in 2024, even calling the new home market “extraordinary” in its current form. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’ve been reading the BiggerPockets Blog for any length of time now, you’ll have noticed that the Midwest has often been named as one of the best places to invest in real estate right now. It offers reasonable home and rental prices and stable job markets in major cities. The result is a buoyant housing market that has so far avoided the post-pandemic slump seen in other areas. But what if we told you that, while all this is true, the Midwest is also the most at-risk area for flood damage over the next 20 years—with all the related consequences: abandoned communities, dropping house prices, and rising insurance costs that will make homes less attractive for both buyers and investors? Learn more about your ad choices. Visit megaphone.fm/adchoices

Well, 2023 has been another wild year in commercial real estate. The headlines continue to scream trouble for CRE. Many are getting increasingly fantastic.  Some friends are asking me, “So…I hear it’s pretty tough in commercial real estate right now. How are you doing?” You may have wondered the same thing.  Learn more about your ad choices. Visit megaphone.fm/adchoices

I’m really a pretty nice guy. I’ve met hundreds of you in person and spoken to a few thousand more prospects/investors by phone or on Zoom. So, hopefully, most of you agree.  But as I write this, I’m a bit miffed. You see, our Wellings Capital team is like family. We love and care for each other. So, I hate to see anyone on our team taken advantage of. But it feels like that’s what happened here.  Our team recently spent over five weeks heads-down on what should have been a straightforward preferred equity investment. I did the due diligence trip in the fall. It was a beautiful mobile home park, and we were eager to add it to our investment portfolio.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The commercial real estate market has been faced with headwinds for years, and 2024 may not be any different. With weak growth in the sector and a high interest rate environment that has pushed the cost of ownership to new heights, the CRE space is expected to continue falling in value this year. In fact, property values could fall another 10% after falling 11% last year, according to Capital Economics’ deputy chief property economist Kiran Raichura. He sees growth softening “as the industrial rent boom gives way to more ‘normal’ growth rates and apartment rents flatline,” he wrote.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The commercial real estate market has been faced with headwinds for years, and 2024 may not be any different. With weak growth in the sector and a high interest rate environment that has pushed the cost of ownership to new heights, the CRE space is expected to continue falling in value this year. In fact, property values could fall another 10% after falling 11% last year, according to Capital Economics’ deputy chief property economist Kiran Raichura. He sees growth softening “as the industrial rent boom gives way to more ‘normal’ growth rates and apartment rents flatline,” he wrote.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Investing in real estate can be a great way to generate wealth, but it isn’t for everyone. For one, the term ‘‘passive income’’ really does not describe real estate investing accurately.  Becoming an investor is a much more hands-on process than just buying a house and renting it out. All the maintenance and potential issues with tenants will become your responsibility. And if you want to grow your portfolio to multiple properties, the responsibilities will grow exponentially.  The time and effort required simply isn’t realistic for someone who already has a full-time job, for example, or existing family commitments. On the other hand, some people would like to invest in real estate but just don’t have the cash. Learn more about your ad choices. Visit megaphone.fm/adchoices

You’re undoubtedly wondering what the answer to this question is. I was, too. As a due diligence partner for over 800 investors, we think about risks all the time. Since our default is to say no, we probably think about risks more than most people do.  In The Road Less Stupid, author Keith Cunningham says (I’m paraphrasing):  Rookie investors: “How much can I make?” Seasoned investors: “How much can I lose?” Professional investors: “Can I afford to lose that much? We believe the best investors think about risk more than return.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Embarking on a ground-up development project may seem like a monumental task, but the opportunity to build something entirely new makes it one of the most exhilarating ventures in real estate. But, at the heart of any successful development analysis lies a thorough understanding of zoning. This guide will dissect the key facets, from general zoning classifications to intricate parameters such as height restrictions, setbacks, unit density, and the critical interplay of community incentives and neighborhood ordinances. Learn more about your ad choices. Visit megaphone.fm/adchoices

The vast majority of real estate investors get into the industry to pursue passive cash flow. Unfortunately, over the last several years, finding deals with strong cash flow has become a challenge. However, there are still plenty of markets in the U.S. that continue to offer cash flow potential.  Below, I provide what I believe to be the top 10 markets in the United States for cash flow. Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you considering listing your property on Airbnb? Understanding how much an Airbnb host can make before listing your property as a short-term rental (STR) is crucial. Factors affecting profitability include Airbnb fees, property maintenance, occupancy rates, and location. With fierce competition in the Airbnb rental market, understanding these factors is crucial for increasing your rental income potential.  Getting started as an Airbnb host can be a great way to earn passive income. While some hosts make substantial profits, regular rental income is not guaranteed. What can you do to run a successful vacation rental business on Airbnb? Here are nine key factors that can impact your income potential.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Redfin’s November rent report is out, showing that median rent prices declined by 2.1% year over year. This is the biggest decline since 2020, and renters nationwide will breathe a sigh of relief. Landlords and investors? Perhaps not so much, although there are regional variations that are worth exploring if you’re planning on investing in real estate in 2024.  Asking rent prices have been dropping steadily since May 2022, when the median U.S. rental price shot up to above $2,000 per month. At that point, rents were growing at a monstrous rate of 15% year over year as a result of the pandemic-induced scarcity of available rental homes.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate investors have many opportunities to invest in real estate and potentially earn a profit. Sometimes, though, you want that guarantee that you’ll be able to sell the home and have an exit strategy. While there are very few guarantees in real estate, a rent-to-own contract may be just what you need. So what is rent-to-own, and how does it work? Learn more about your ad choices. Visit megaphone.fm/adchoices

In 2004, I was living in NYC when I decided to start a new career. To identify potential business opportunities, I thought about some of the more frustrating experiences I’d had. I quickly narrowed the list to buying investment properties. The problem was that all real estate agents could do was send me MLS data sheets for the properties I selected; no analytics, processes, or services. I had to do everything myself. This was time-consuming, and I made frustrating mistakes that cost me time and money to correct later.  So, there was a business opportunity. Now, I need to know where to create this business (not New York or New Jersey). Learn more about your ad choices. Visit megaphone.fm/adchoices

Borrowing a mortgage is a big responsibility. When you’re an investor, lenders take serious precautions to ensure you can afford it, but many borrowers still default. A mortgage default can greatly hurt your credit and future chances of purchasing real estate, even for your own use. So what is a mortgage default, and how does it work?  Learn more about your ad choices. Visit megaphone.fm/adchoices

Knowing what to look for when buying a rental property will save you time and money while reducing stress. In this article, we outline seven considerations that you can’t afford to overlook. Consideration 1: Location Location, location, location is consideration No. 1 when buying a rental property.  Is the property close to amenities such as shopping? How about public transportation? What about local schools? Is the area safe? Is it family-friendly?  Learn more about your ad choices. Visit megaphone.fm/adchoices

When you buy a rental property, you do so with one goal in mind: to generate a positive return on investment (ROI). So, What Is a Good ROI on Rental Property? A good ROI on rental property typically ranges from 6% to 10%, although this can vary with location, property type, and market conditions. In some areas, ROIs over 12% are possible, while in expensive urban locations, a 4% to 6% ROI may still be favorable. Learn more about your ad choices. Visit megaphone.fm/adchoices

Every real estate investor wants to know if there’ll be a housing market downturn in 2024. But perhaps a better question to ask, now and always, is: “Which local markets are most at risk of a downturn?”  Regional variations consistently play a part in any housing market analysis or forecast. And now we have the most up-to-date Special Housing Risk Report from real estate data provider ATTOM.  Learn more about your ad choices. Visit megaphone.fm/adchoices

For all the recent talk about a possible interest rate easing in 2024 and the low likelihood of a severe recession, people are still feeling pessimistic. The Fannie Mae Home Purchase Sentiment Index for November is out, and it paints a general picture of low confidence among both homebuyers and home sellers.  As interest rates began to climb in 2022, consumer confidence in the housing market began to plummet, reaching their lowest levels by late 2022. Confidence stabilized somewhat in 2023 but quickly reached what Fannie Mae is calling a ‘‘low-level plateau.’’ Learn more about your ad choices. Visit megaphone.fm/adchoices

We all occasionally fall victim to fallacies—assumptions or beliefs that just aren’t true.  Consider a deceptively simple logic puzzle known as the Monty Hall problem: You’re presented with three doors, behind one of which is a prize, and you have to guess the door. Before revealing the answer, the game show host makes your life easier by eliminating one of the wrong answers and asks you if you want to change your guess. Should you change it? Most people shrug and say, “At that point, it’s 50/50, so I’d just keep my guess the same.” This is the wrong answer: You should switch your guess because the other door has two-thirds odds of being correct.  Learn more about your ad choices. Visit megaphone.fm/adchoices

What is important for Real Eatate investors to know this week? Managing Editor of the BiggerPockets Blog, Matt Myre is here today to share the top 3 headlines that Real Estate investors need to know about to make better investing decisions. We will cover the Top Cash flow markets in 2024, How Reitement through Real Estate has changed and why, and we will get into how the new Fannie Mae 5% downpayment really impacts investors. Learn more about your ad choices. Visit megaphone.fm/adchoices

Most homeowners bought their homes at mortgage rates that were lower than today’s, and that’s caused what’s known as the “lock-in effect.” Homeowners are hesitant to give up their cheap mortgages, which is suppressing available inventory. Low inventory has kept home prices from falling significantly, even as homebuyer demand fell due to rate hikes.  With mortgage rates down more than one percentage point since their peak in October, the housing market is starting to show signs of rebounding demand. But at what point will the lock-in effect break? And what will happen to housing prices if it does?  Learn more about your ad choices. Visit megaphone.fm/adchoices

Low-cost properties are appealing because you can acquire and generate income with less initial capital. However, they are actually the most expensive way to achieve and maintain financial freedom. Here’s why. What Determines Prices and Rents? Real estate prices and rents are driven by supply and demand. When the number of sellers equals or exceeds the number of buyers consistently, property prices remain low. If prices do increase, the rise will be gradual. Furthermore, when prices are low, more people can afford to buy, leading to fewer renters. This results in stagnant or slowly increasing rents. Learn more about your ad choices. Visit megaphone.fm/adchoices

Inflation broadly impacts the overall economy, causing the prices of goods and services to rise. This can have rippling effects across various sectors, including the real estate market.  Real estate investors, homebuyers, and home sellers need to understand how inflation impacts the real estate market. This can help them make the best decisions when buying and selling real estate.  We’re here to explain what causes inflation, its impact on real estate, and how real estate investors can benefit even when inflation is high. Learn more about your ad choices. Visit megaphone.fm/adchoices

Owning a property doesn’t mean you automatically have rights to it. If someone can claim they’ve squatted on the property for many years and you did nothing about it, they may take possession of it with adverse possession laws. So what is adverse possession, and how do you avoid it?  Learn more about your ad choices. Visit megaphone.fm/adchoices

Did you know real estate investing doesn’t only refer to single-family homes? When done right, investing in mobile homes can be a profitable way to add to your real estate portfolio. Check out everything you must know about mobile home investing to see if it’s right for you. Learn more about your ad choices. Visit megaphone.fm/adchoices

Over the years, a slew of reality TV shows that glamorize the real estate industry have popped up on networks like HGTV and Netflix. But just how realistic are they? To find out, we evaluated eight popular shows that may appeal to investors. While most are focused on redesign efforts and fail to consider the practical aspects of investing, a few offer realistic tips and relatable challenges that make them worth watching.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The Neighborhood Assistance Corporation of America (NACA) offers an incredible mortgage program that makes homeownership more affordable. Eligible borrowers can expect no down payment or closing costs, attractive terms, and hand-holding throughout the entire process. Here’s everything you must know about the NACA mortgage. Learn more about your ad choices. Visit megaphone.fm/adchoices

In March 2021, Federal Reserve Chairman Jerome Powell said, “[T]hese one-time increases in prices are likely to have only transient effects on inflation.” From then on, “transitory inflation” became the phrase of the year in economics, with high hopes that once the initial supply chain shocks and government stimulus after the onset of the pandemic wore off, inflation would return to its regular scheduled programming and maybe even deflate. It turns out, however, that trillions of new dollars in stimulus and slashing interest rates to near-zero for a prolonged period of time did not make inflation “transitory.” Instead, it became a new chapter for the economy. Learn more about your ad choices. Visit megaphone.fm/adchoices

A new law has already taken effect, yet nobody is talking about it. And if you own real estate through an LLC or another entity, it already applies to you. This new law is the Corporate Transparency Act (CTA). But what exactly is the CTA? And what does it require real estate investors to do? Let’s walk through these new requirements. Learn more about your ad choices. Visit megaphone.fm/adchoices

We’re heading into the new year, and the 2024 real estate forecast looks bright. With this promising prediction in mind, here is some in-depth analysis that will unveil the key trends and factors contributing to the positive outlook. If you’re navigating or learning to navigate the evolving landscape of real estate investment and homeownership, join us as we provide the strategic insights you’ll need on your journey.  Learn more about your ad choices. Visit megaphone.fm/adchoices

As the real estate landscape continues to evolve, landlords are faced with the challenge of adapting to the preferences and expectations of the emerging generation of renters: Generation Z. Born between the mid-1990s and early 2010s, Gen Z is characterized by its tech-savvy nature, social consciousness, and desire for convenience.  To successfully navigate this changing demographic, landlords must embrace innovative strategies that cater to the unique needs and preferences of Gen Z renters. Learn more about your ad choices. Visit megaphone.fm/adchoices

As a homeowner, figuring out the best way to access your home equity can be a complicated process, full of complicated jargon, long processes, scary waits for appraisals, and potentially expensive hidden costs.  Here’s a look at the tradeoff between HELOCs and cash-out refinances—the two most common and popular ways to tap into your home equity while maintaining and keeping the ownership of your home.  Learn more about your ad choices. Visit megaphone.fm/adchoices

In 2023, it’s been off to the races as everyone pondered: What will climb higher, faster—mortgage rates or home prices? Typically, the two work inversely and help offset one another, but in an unprecedented circumstance, both mortgage rates hit record highs as housing prices continued to swell. However, nearing the end of 2023, the race’s direction seems to be slowing and taking a turn, as mortgage rates have trended downwards and quickly.  This series of events begs the question: Will real estate still be a worthwhile, inflation-proof investment in 2024? Short of shaking our Magic 8 Ball, we’ll look at informative statistics and review what experts expect moving forward. That way, you’ll be able to make an informed decision about whether to invest in real estate in the coming year. (Spoiler alert: It’s looking good, and you’ll soon see why.)  Learn more about your ad choices. Visit megaphone.fm/adchoices

Airbnb’s 2023 Winter Release is making waves. Promising an improved, more satisfying guest experience for browsing listings and booking stays, the platform is also poised to shake up every host vying for visibility, bookings, and profitability.   The release includes several expected enhancements, plus a few surprises. Some features place the guest at center stage, designed to help consumers understand exactly what to expect before they book. Other tools are built to help hosts improve their listings and better manage their back-end businesses. All are billed by Airbnb as a win-win. Learn more about your ad choices. Visit megaphone.fm/adchoices

When you buy or sell property, a deed transfer takes place. A deed is a legal document that proves you have ownership in a piece of property.  Sometimes, properties may not have a clear title or line of ownership. If a property has any issues with its title, an owner may choose to provide a quitclaim deed. These deeds are also referred to as quick claim deeds because the transfer of property can happen much faster using this type of deed.  This guide will explain everything you need to know about the quitclaim deed. Learn more about your ad choices. Visit megaphone.fm/adchoices

“Foreclosure” can be an ominous word in real estate, and the process can feel a little murky, since it varies from state to state. Savvy real estate investors should understand foreclosures in case they face foreclosure themselves or are interested in the investment opportunity foreclosed properties offer.  This guide will explain what is a foreclosure, steps you can take to prevent a foreclosure, and how foreclosed properties can be part of your real estate investing strategy.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The typical advice investors are given is that the fall-winter season is a great time to buy real estate. The narrative goes like this:  Families are done house hunting for the season because they don’t want to disrupt the school year. The homes that didn’t sell during peak season are likely to be discounted by increasingly nervous sellers.  Shrewd investors can get great deals on real estate.  Does this seasonal pattern really still apply to the current housing market?  If we dig a little deeper into what’s really going on with the post-pandemic real estate market, we’ll see that things have changed. Autumn and winter 2023 will look different for investors for a number of reasons, and this change is likely to be long-lasting. Learn more about your ad choices. Visit megaphone.fm/adchoices

Exploring financial strategies in homeownership often leads to considering a cash-out refinance, among other options. This article sheds light on its potential advantages and pitfalls, helping you make well-informed decisions tailored to your financial objectives. What Is a Cash-Out Refinance? In real estate, refinancing is the process of replacing an existing mortgage with a brand-new one with more favorable terms.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you want to maximize real estate investment returns, diversify your portfolio, and build wealth? The secret is to use leverage in real estate investing.  Leverage is a valuable tool that uses other people’s money to buy property. This strategy allows you to find more lucrative investment opportunities while protecting your liquid assets. It gives you endless possibilities to purchase real estate with little or no money down.  Real estate investment is popular because of its potential for high returns. However, the concept of leverage can be tricky for new real estate investors to learn. And, like any investment strategy, leverage has its benefits and risks. Therefore, understanding how leverage works is key to making wise investment decisions. This article explains what leverage in real estate is and how you can use it to your advantage. This knowledge can help maximize return on investment (ROI) and achieve your financial goals. So, whether you’re a seasoned investor or just getting started, read on to gain a deeper understanding of the power of leverage in real estate.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Housing starts are one of the most crucial indicators for monitoring the nation’s economic health. Understanding the dynamics of housing starts is essential for real estate investors because it offers valuable insights into current market conditions, including how ready people are to buy, build, move, and more. This article delves into the world of housing starts, including their role in the economy, what economic factors influence them, how to monitor them, and their significance to the industry. Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s no secret that housing has gotten extremely expensive in the United States, both in terms of buying and renting. Indeed, the same trend has taken place throughout the Western world. Housing affordability has become one of the greatest challenges facing governments worldwide. And it’s perfectly understandable that people find this issue important and want it addressed. To address the affordability of housing, many restrictions have been passed throughout the United States on landlords, most of which either won’t help or will actually make the problem worse. Unfortunately, one of the proposed solutions is one that has been proven to fail time and time again: rent control. Learn more about your ad choices. Visit megaphone.fm/adchoices

Adding passive income sources to your investments is a key way to grow your wealth.  While investing directly in real estate is a great way to diversify your portfolio, passive investments are key to growing your wealth further. Two commonly compared options are real estate syndication vs. REIT. Understanding the two and their differences is important when deciding how to invest your capital. Learn more about your ad choices. Visit megaphone.fm/adchoices

I recently visited Machu Picchu, and a fellow hiker asked me what I do for work. I explained that I run a real estate investment club and that we pool small amounts of money to collectively buy fractional shares in large apartment complexes. She furrowed her brow and replied, “But why would I need to bother with all that private equity stuff? I’m already diversified into real estate with REITs in my brokerage account.”  I cringed at her use of the word “diversified.” Because for all the benefits of real estate investment trusts—and there are many—they don’t do the one thing that most investors think they do.  They don’t provide much diversification from your stock portfolio.  But I’m getting ahead of myself.  Learn more about your ad choices. Visit megaphone.fm/adchoices

You can add renovation costs to a conventional mortgage, but only when you’re using a conventional cash-out refinance.  If you’re doing a cash-out refinance on an existing home, you can withdraw additional funds on top of your existing mortgage balance. This will give you a new conventional mortgage that replaces your existing one and allows you to access funds from your equity that can be used for renovations.  While you can add renovation costs to a conventional mortgage with a cash-out refinance, there are other options to consider that may be better suited to your needs. Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you have a home warranty? In the world of homeownership, some people want to have peace of mind regarding things like home repairs. Real estate investors can choose whether to carry a home warranty versus something like homeowner’s insurance, which is required. Whether you’re a new real estate investor or a seasoned one, understanding the ins and outs of home warranties can make all the difference in preserving your home’s value and minimizing unexpected expenses.  In this article, we’ll take a look at what exactly a home warranty is, the benefits, and more. Learn more about your ad choices. Visit megaphone.fm/adchoices

Understanding how deeds work is vitally important for every real estate investor. There are several different kinds of deeds, and the type you get when you buy a property may affect whether you have recourse if there are any future claims. A clause in the deed may also limit what you can do with your property or require you to allow other property owners to cross your property to access theirs. Learn more about your ad choices. Visit megaphone.fm/adchoices

Airbnb CEO Brian Chesky has admitted that the short-term rental company is in over its head and needs “to get our house in order.” The company scaled very fast, very quickly, and did not build up its systems to match, he said.   “To use a precise metaphor, it’s kind of like we never fully built the foundation. Like, we had a house, and it had four pillars when we needed to have 10,” Chesky told Bloomberg. The platform recently rolled out several new features to patch up the cracks in its foundation, but will it be enough to keep the short-term rental site going? Or is it a signal of bigger changes to come for the industry that could trickle down to real estate investors?  Learn more about your ad choices. Visit megaphone.fm/adchoices

Title insurance is one of the most important ways to protect your real estate investment, although deciding whether lender and owner policies are necessary can be challenging.  If you end up with a property with a defective title and don’t have title insurance, you risk losing the house and/or thousands of dollars, depending on the situation. We’ve uncovered the truth about title insurance and answered the question, “What is title insurance?” We’re here to help you understand the difference between lender’s and owner’s policies. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’ve paid any attention to the news, it can seem like the world is turning upside down. The war in Ukraine still rages, Israel is now in a full-fledged conflict with Hamas, which is purportedly backed by Iran, and there’s tremendous economic uncertainty still putting investors on edge. While some of these events can feel like they are a world away, one in particular will be felt right here at home and may directly impact your real estate portfolio. And that event is the recent removal of Kevin McCarthy as Speaker of the House. Learn more about your ad choices. Visit megaphone.fm/adchoices

Purchasing property is exciting, but it’s a legal process, too.  A major part of buying a property is taking title to the property. But house titles aren’t the legal document most people think they are. Keep reading to discover what is a house title. Learn more about your ad choices. Visit megaphone.fm/adchoices

As a real estate investor, eminent domain is something you should know about. If you own property in an area that the government needs for a road expansion, fire station, railway, or something else that benefits the public, it may be legally taken from you, whether you want to sell or not. If you receive an eminent domain notice, however, you do have the right to due process. You may be able to contest the offer or demonstrate to the court that there are reasonable alternatives to the taking of your property. Learn more about your ad choices. Visit megaphone.fm/adchoices

The market may not be ideal, but according to a new survey, most real estate investors are feeling good about it as we hurtle toward 2024. RCN Capital’s fall investor sentiment survey shows that nearly three in four investors think market conditions are better or at least the same as this time last year. Another three-quarters believe the market will either improve or hold steady for the next six months. Learn more about your ad choices. Visit megaphone.fm/adchoices

For many years, rental properties have been one of the best (and most popular) ways to generate passive income. However, before you go down this path, it’s important to understand the finer details of investing. The knowledge you collect upfront will improve the likelihood of a positive experience.  So are rental properties a good investment for you? Let’s find out. Learn more about your ad choices. Visit megaphone.fm/adchoices

Every serious real estate investor should know how to find foreclosure and pre-foreclosure listings. If you don’t know how foreclosure and pre-foreclosure work, you could be missing out on some potentially great bargains on investment property.  The first step in finding foreclosure and pre-foreclosure listings is knowing where to look. Use this guide to discover the best places to find foreclosures and pre-foreclosures so you can scale your real estate business by purchasing properties below market value. Learn more about your ad choices. Visit megaphone.fm/adchoices

Residential real estate investing has the potential to be very profitable. But how much do you need to invest in real estate and generate steady passive income?  Unfortunately, the perceived excessive costs involved in purchasing real estate can intimidate aspiring residential real estate investors. However, understanding all the costs of buying a real estate investment property will help you avoid costly mistakes. Buying a rental property, holiday home, or property to flip can yield short-term and long-term financial gains. However, the money needed to start real estate investing depends on several factors. You must establish a contingency fund, pay closing costs, and save for the down payment. Then you have ongoing costs like mortgage payments, property maintenance, and property taxes. Learn more about your ad choices. Visit megaphone.fm/adchoices

Mortgage rates hit their highest point in nearly 23 years last week, and consumers responded accordingly. According to the Mortgage Bankers Association (MBA), mortgage applications to purchase a home were down 27% compared to a year ago, while refinance applications were 21% lower.  “Overall applications declined, as both prospective homebuyers and homeowners continue to feel the impact of these elevated rates,” says Joel Kan, MBA vice president and deputy chief economist, in a press release. “Elevated” is certainly one way to put it. The average rate on 30-year, fixed-rate mortgages hit 7.31%—the highest level since late 2000. At the same time, jumbo mortgage rates hit their highest point in MBA’s recorded history (since 2011).  Learn more about your ad choices. Visit megaphone.fm/adchoices

If you prefer fix-and-flip projects, you know how crucial it is to have money available to grab great deals and cover renovation costs. Most investors need loans for house flipping to ensure they have enough capital to handle the details of flipping houses. Fortunately, there are many kinds of loans for flipping houses, and just like shopping for a mortgage for your primary residence, you should know what to consider when looking at house-flipping loans. Property investors have options to finance fix-and-flip properties, including conventional and even hard money loans. Here’s a summary of the available loan options for flipping houses, including the pros and cons of each, to help you decide. Learn more about your ad choices. Visit megaphone.fm/adchoices

Investing in real estate digitally can seem daunting at first. How can you use tech to build and curate your portfolio? Luckily, we’ve outlined four easy ways you can integrate tech into your real estate business and use digital tools to invest in real estate. 1. Look for Up-and-Coming Markets Online When it comes to learning how to invest in real estate digitally, start off by learning your markets. Whether you’re investing in-state or long-distance investing, you’ll want to understand the market you’re investing in. To do this, start by researching areas you’re interested in on sites like BiggerPockets and listing sites like Realtor.com and Zillow. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you own rental real estate, you must be aware of tax responsibilities on the federal, state, and (in some cases) local levels. With this knowledge, you can ensure that all rental income is reported on the applicable tax returns. Types of Rental Income As an investor, correctly categorizing your rental income is critical for both tax and financial planning. In general terms, rental income can be classified into two categories: Active income: This stems from hands-on activities like short-term rentals or managing properties. Examples include daily rentals or properties where you’re significantly involved in the operations. Passive income: This is generated from long-term leases where you aren’t actively involved in the day-to-day operations. Learn more about your ad choices. Visit megaphone.fm/adchoices

The benefits of real estate investing are mind-blowing. Besides its tax advantages, returns, and opportunities for passive income, real estate investing offers several other benefits that any real estate investor can take advantage of. If you’re considering investing in real estate—or want a refresher on why you did it in the first place—here are some of the most talked-about benefits when investing in real estate. Learn more about your ad choices. Visit megaphone.fm/adchoices

When it comes to the rabbit hole of real estate investing options, the word “turnkey” is among the most commonly used but poorly applied terms around. In fact, many businesses use “turnkey” in their marketing materials just to capture a large audience. Turnkey investing is still a highly valuable investment strategy that offers many clear advantages that would otherwise be difficult to come by. The most obvious reason to use this strategy is that the properties are already livable—you won’t spend nearly as much time on renovations and repairs.  I’ve found that these properties are also more affordable in comparison to building from scratch. Good prices are necessary at a time when property values are increasing rapidly. You won’t need to consider material costs or try to find affordable contractors, which will make it easier for you to maximize your returns.  Learn more about your ad choices. Visit megaphone.fm/adchoices

When you first think of real estate investments, flipping properties, running short-term vacation rentals, or becoming a landlord are the first things that typically come to mind.  Many investors purchase properties and either renovate to resell them or rent them out, but there’s another way to work as a real estate investor without actually needing to be involved in the sales or renting processes. Private money lending is an alternative to active real estate investing that requires more hands-on involvement—and the potential return on investment (ROI) can be exceptional.  Learn more about your ad choices. Visit megaphone.fm/adchoices

A major technological advancement has emerged in recent years, reshaping entire industries and forging new frontiers. The multifamily sector is no exception, as it undergoes a profound transformation, all thanks to the remarkable power of artificial intelligence (AI).  Here, we’ll delve into the compelling reasons why investing in multifamily apartments infused with AI is a savvy choice for investors.  Learn more about your ad choices. Visit megaphone.fm/adchoices

When looking for an investor-friendly real estate agent, you should ask different questions than if you were buying a primary residence. Purchasing investment properties requires different factors, decisions, and calculations that regular real estate agents don’t use. A real estate license isn’t enough to qualify agents to help you with real estate investment purchases. So before you hire an agent to work with you in your real estate investment business, you should know what to ask the agent before starting out. Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s common practice to request a pay stub from prospective tenants for income verification. While this sounds like a simple, straightforward process to verify income, there’s trouble lurking in the form of a fake pay stub. Indeed, some try to create pay stubs online to create fake proof of income.  Simple Signs to Spot Fake Pay Stubs Knowing how to spot fake pay stubs can save you from a lot of hassle in the future. Here are seven signs you should look for to check stubs.  Learn more about your ad choices. Visit megaphone.fm/adchoices

There are three things on investors’ and agents’ minds right now: high interest rates, elevated home prices, and low inventory. With mortgage rates approaching 8% and the median price for a home in the United States over $410,000 (up around 46% from $280,000 in 2020) as of June, fewer people are buying and selling real estate. This trend doesn’t seem to be ending soon, leaving agents and investors wondering when they’ll get relief from this turbulent market.  But what if you don’t need to wait for the market to change to find great leads and continue scaling your business? Learn more about your ad choices. Visit megaphone.fm/adchoices

Most real estate investors understand the need to protect their assets with insurance. If you’re considering renting out property, however, you may not know the difference between homeowners insurance and rental property insurance (also known as landlord insurance).   In this article, we’ll break down what rental property insurance is, why it’s important, and how you can choose the best policy for your business. Learn more about your ad choices. Visit megaphone.fm/adchoices

You can leverage your real estate investments by borrowing money to afford a higher purchase price. Knowing how to calculate a mortgage payment is important to make significant business decisions when adding to your real estate portfolio. Typical Costs Included in Your Mortgage Payment Your mortgage payment involves many costs, not just the amount you borrow to invest in a home. Some variables you may control, but others are fixed monthly expenses you must include in your mortgage payment, such as monthly interest, taxes, and insurance. Learn more about your ad choices. Visit megaphone.fm/adchoices

Have you always had your eye on getting into the real estate industry? Maybe you aren’t keen on working as a real estate agent but know you want to be involved in the industry somehow. You may be a great fit for real estate investment trusts if you have a good mix of real estate and finance expertise. But you might ask yourself, “Is real estate investment trusts a good career path?” They can be for the right people. The key is understanding the personalities and skills that work best for working in the real estate investment trust industry and the pros and cons. All jobs have good and bad sides that you should understand before starting a new position, including those in the real estate industry. Learn more about your ad choices. Visit megaphone.fm/adchoices

Net operating income (NOI) is a fundamental real estate valuation method for real estate investors. NOI helps you calculate an investment property’s potential real estate revenue. The NOI formula is straightforward and easy to calculate, whether you need to predict potential rental income on an investment property, evaluate the purchase of a property, or consider raising rents to boost cash flow. You deduct the operating expenses from the gross operating income (GOI) to calculate a property’s potential rental income. In other words, a property’s NOI is the difference between how much the property costs to operate and the amount of revenue it generates. Learn more about your ad choices. Visit megaphone.fm/adchoices

You spend way too much time on Instagram (and TikTok and Pinterest and…), and guess what—your potential short-term rental guests do too. Why miss an opportunity to get in front of them when they’re dreaming about their next getaway? Why miss an opportunity to remarket to your past guests by reminding them how awesome your place was?  Don’t leave your fate up to the Airbnb algorithm alone. Take matters into your own hands and start building out and developing your own organic audience. While you do need to devote some time to channel upkeep, you shouldn’t need more than a few hours a week once you get going. Track how many people view your bio, and click through your booking link to make sure you’re getting ROI on your efforts.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Although filling out IRS tax forms each year isn’t any fun, it is a necessary part of real estate investing. Thankfully, the tax forms for rental properties aren’t complicated. If you are investing as a member of a partnership or as an S corporation, you will need to report your earnings on Form 8825. Making sure you fill out Form 8825 correctly is vitally important. Accurate financial reporting is required and could help you determine if you qualify for certain tax deductions. Learn more about your ad choices. Visit megaphone.fm/adchoices

Wondering how to find good real estate deals? Let us count the ways! We’ve come up with 30 different methods to find real estate deals in today’s competitive real estate market. As a real estate investor, you’re probably familiar with some of these tips, but we promise many are new on your radar! Those great real estate deals are out there, allowing you to build wealth if you know where to look! Learn more about your ad choices. Visit megaphone.fm/adchoices

An assumable mortgage is when a home buyer takes over the seller’s existing mortgage. When assuming a mortgage, the same terms and conditions from the seller’s mortgage are transferred to the buyer. A mortgage loan assumption means the buyer does not have to apply for their own mortgage. Instead, they “assume” the original mortgage’s interest rate, repayment period, and remaining balance. An assumable loan has pros and cons for buyers and sellers. Therefore, knowing how assumable mortgages work can help you decide on the best type of home loan for your circumstances. Learn more about your ad choices. Visit megaphone.fm/adchoices

The home appraisal is a big part of the home buying process, especially if you need a mortgage loan. Lenders require appraisals to ensure the home is worth enough money to lend to investors to purchase the home. Since investment properties are riskier for lenders, they use the expertise of a licensed appraiser to determine the home’s value. Home appraisals may feel like another obstacle to investing in properties. Still, they help you make the right decision about investing in real estate and ensure you’re making a good investment. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate investing, if done right, can create endless opportunities. Real estate is an awesome income producer with the right investment and jumpstarts your way to complete financial freedom. Many real estate investors become successful through the process of learning. For a beginner investor, the learning experience is often hands-on, like shadowing someone in the field or learning through courses or books. Even seasoned investors will continue to educate themselves throughout their careers to prosper even more. And in some states, there is a continuing education requirement to renew things like a real estate license, so for some, learning is required. This article discusses the best resources to help any real estate professional learn and understand investing from a financial, legal, and market perspective. Learn more about your ad choices. Visit megaphone.fm/adchoices

The Washington, D.C. metropolitan area has one of the strongest real estate markets in the United States. With a large population, high incomes, and a well-diversified labor market, D.C. has a strong foundation for sustained economic growth. And, because the D.C. area is comprised of more than just the capital city and includes parts of Maryland, Virginia, and West Virginia, there are several sub-markets for real estate investors to consider.  Let’s go over the most important information you need to know about the Washington, D.C. real estate market. Learn more about your ad choices. Visit megaphone.fm/adchoices

Throughout the past year, this series of articles has comprehensively covered DSCR loans. We have discussed how to get the best rate and terms, how to use advanced strategies to maximize return, and a long list of FAQs (part 1 and part 2).   Also published was a guide on the full list of documents needed for a DSCR loan and a helpful glossary of terms for navigating the private lending process. We explored specific real estate investing strategies and how DSCR loans stack up when investing in short-term rentals, using the BRRRR method, or diving into small multifamily investing.   Now, we will go over what’s next in DSCR loans—an overview of what innovations or additions to the DSCR loan product lineup may come in 2024, as well as the next evolution of this revolutionary loan product. Learn more about your ad choices. Visit megaphone.fm/adchoices

The tiny homes market is predicted to grow by a staggering $3.57 billion between 2022 and 2026, according to a Global Tiny Homes Market report. While trends like the off-grid and tiny house movement may have caused some to dismiss tiny houses, their popularity among investors is increasing for many reasons. Tiny houses are more accessible to investors with limited capital because they offer a lower upfront investment than traditional houses. Also, the surge in demand for unique, affordable, and sustainable living spaces that use less energy and create less waste has given rise to a niche market for tiny houses as attractive rental options.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Navigating the world of financing rental properties can be overwhelming for even experienced real estate investors. There are tons of terms, phrases, and acronyms that can cause confusion, and real estate finance is also notorious for misnomers and multiple terms that all mean the same thing. To help investors master the world of DSCR loans and know how to effectively communicate and work with rental property lenders, here is a helpful glossary of terms you need to know to understand investment property mortgage lending like a pro. Learn more about your ad choices. Visit megaphone.fm/adchoices

When you have a limited amount of money coming in each paycheck, it can be very easy to have conflicting financial goals, such as: Achieving financial independence. Paying off real estate (such as an investment property or personal home). Asking “Should I pay off my mortgage?” and not knowing the answer is a problem many homeowners face. For many, it’s a difficult choice because the right answer is different for everyone. Decisions are extremely individualized to your specific financial situation. Let’s talk about what might influence this decision of paying down your mortgage for you and your family. Learn more about your ad choices. Visit megaphone.fm/adchoices

How often do you ask the big questions of life? Why am I here? What was I put on the planet to do? Who ate the Outback leftovers that I clearly marked in the company fridge? Semi-boneless ham—does it have a bone or not? This article deals with some weighty life and investing issues. I came across this nifty chart from Visual Capitalist that got me thinking about the different phases of a real estate investor’s life. Let’s summarize the chart first, then we’ll see how we could apply this to real estate. And to you. Learn more about your ad choices. Visit megaphone.fm/adchoices

From inflation to interest rate hikes to low inventory and elevated prices, today’s market can give some real estate investors pause. Industry volatility can set off emotional reactions in investors who haven’t fortified themselves against the ups and downs of the market. Navigating these fluctuations takes knowledge, patience, peer support, and the right set of tools to keep cash flow under control and your head above water.   We spoke with three investing experts about their strategies for building and maintaining a successful real estate investing business—regardless of the challenges the market might present. Here are their best tips.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Tulsa, Oklahoma, is an exciting real estate market featuring strong population growth, job growth, and cash flow potential. The area has an excellent economic climate to support great investing returns well into the future. Here, we’ll cover the following: Home Prices Rent Trends Population, Labor Market, and Income Cash Flow Potential Winning Investment Strategies Let’s get started. Learn more about your ad choices. Visit megaphone.fm/adchoices

As we pass the midpoint of 2023, it’s a good time to take a look at what’s happened in the housing market so far this year and consider what could happen in the second half of the year.  The big headline from housing so far has been the resilience of home prices. Even as mortgage rates have hung around 7% and sales volume has dropped about 50% from June 2021 to June 2023, prices are somewhere between flat and -3% YoY, depending on who you ask.  No matter what data you look at, so far, the calls of a market crash have been incorrect. In fact, recent trends suggest home prices could even be up by year-end.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Short-term rentals continue to be one of the hottest areas of real estate investing in 2023. Despite some market volatility, slow down, and saturation in some areas, smart, professional short-term rental investors continue to thrive, expand, and scale.   What separates the successful STR investors from those facing a personal portfolio “Airbnbust”? It’s simple: Investors who succeed with short-term rentals are those who approach the business professionally—lining up all the moving pieces for success in STR real estate.  Typically, this means approaching it like a business—utilizing a pricing engine; hiring top-notch management or implementing cutting-edge automated systems; developing relationships with the right agents, cleaners, handymen, and accountants; and often, the most important piece: mastering the financing. Getting each of these dialed is often the key to success and scale, freeing investors up to focus on the highest-value activity: finding and closing deals. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re new to real estate investing, you may feel overwhelmed and wonder how to determine which properties to buy. Optimally, you’d like to get a handle on which investments will be the most profitable before jumping in—and you can—by understanding how to calculate cap rate. Calculating the market cap rate, or capitalization rate, is hands down the best place to begin, especially for real estate investors. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re new to real estate investing, you may feel overwhelmed and wonder how to determine which properties to buy. Optimally, you’d like to get a handle on which investments will be the most profitable before jumping in—and you can—by understanding how to calculate cap rate. Calculating the market cap rate, or capitalization rate, is hands down the best place to begin, especially for real estate investors. Learn more about your ad choices. Visit megaphone.fm/adchoices

One of the easiest ways to establish a consistent income stream is by improving lease renewal rates among your tenants. Doing so can help you avoid turnover costs that quickly add up and help you retain tenants you’ve enjoyed renting to. There are various ways to find and keep great tenants, but we outlined the top six ways to increase lease renewal rates. Learn more about your ad choices. Visit megaphone.fm/adchoices

Capital expenditure (CapEx) is a common term for many businesses and real estate investors. Understanding CapEx and how it’s calculated is important for knowing how much rent to charge each month to ensure long-term profitability. It can help you prepare for future maintenance expenses, and it’s also used by lenders when evaluating your business for a loan. What Is Capital Expenditure? Capital expenditure refers to money used by businesses to buy, upgrade, and maintain long-term physical assets. Also called fixed assets, these are items that businesses expect will improve their future cash flow. A capital expenditure project could include buying a rental property or adding a new roof to an existing home. Another term for long-term or fixed assets is capital assets. Learn more about your ad choices. Visit megaphone.fm/adchoices

A real estate attorney is required at closing in many states. Even if your state doesn’t demand that a real estate lawyer appear, having a legal professional representing your interests is usually a good idea. When you’re investing in real estate, finding the right lawyer is essential. Your real estate attorney assists you in navigating every aspect of the process. If legal issues arise in real estate transactions, you have someone who knows real estate laws fighting for you. Learn more about your ad choices. Visit megaphone.fm/adchoices

In the first half of 2023, only 14 of every 1,000 U.S. homes changed hands. That’s down from 19 out of every 1,000 during the same period in 2019 and represents the lowest share in at least a decade. Needless to say, the housing market is experiencing a slowdown, leaving some prospective investors uncertain whether now is a good time to get into real estate. However, with the right strategy, you can make money in any market. In this article, we’ll explore factors to consider before investing in real estate, market trends to watch, and which investment strategies these call for. Learn more about your ad choices. Visit megaphone.fm/adchoices

The loan-to-value (LTV) ratio is a key metric mortgage lenders use to assess their risk of lending you money. Most lenders use the LTV ratio, credit score, debt-to-income ratio, interest rate, and property value when processing your mortgage application. The loan-to-value ratio affects the amount of down payment the lender requires. Simply put—the lower your LTV ratio, the better your chance of getting finance approved at a competitive rate. This article is a complete guide to understanding LTV ratios and how they can help you make wise property investments. You will also find out how to calculate LTV ratios. Additionally, you will get key insights into securing cheaper financing terms. Learn more about your ad choices. Visit megaphone.fm/adchoices

For some of us, the most fun part of the real estate journey is actually furnishing and decorating your STRproperties (Okay, the revenue part is pretty great, too). But purchasing a house worth of furniture in a matter of days or weeks can be overwhelming for anyone.  There are certainly services you can employ to help you, including your property manager, but this task is also definitely something you can tackle yourself. Here’s what to consider as you get started. Learn more about your ad choices. Visit megaphone.fm/adchoices

When investors set out to find a new investment, they’ll likely come across an HOA property. Unless you know exactly what an HOA property entails, you may be left asking yourself, “Should I invest in a property with an HOA?” Investing in a homeowners association property requires significant effort because of the many oversights and restrictions. It’s a challenge, but it has benefits if you’re willing to do the work. From fees to rental restrictions, we’ll dive into what to expect when investing in a property under a homeowners association. Learn more about your ad choices. Visit megaphone.fm/adchoices

When it comes to investing in real estate, securing the right type of financing plays a crucial role in any successful transaction. This principle holds even more truth for investors aspiring to venture into the short-term rental space—a burgeoning sector in today’s real estate industry.  The available options for financing are varied, encompassing traditional loans, hard money loans, or even loans sourced from personal connections. However, in this comprehensive guide, our focus shifts toward an incredibly powerful tool for scaling your real estate portfolio: DSCR loans. Learn more about your ad choices. Visit megaphone.fm/adchoices

When you’re self-managing short-term rentals (STRs), you will eventually need a system. Maybe you can get away with chatting with your guests directly in the native VRBO interface with one or two doors, but as soon as you scale much beyond that, you’ll need to bring in a little help from apps or sites designed to address every stage in the STR rental journey. And there are a lot to choose from out there.  We asked three experienced STR investors and property managers—people who have basically tested everything on the market—to share some of their favorites and the reasons they love them. These lists are not exhaustive by any stretch but offer great insight into platforms they use and trust. Learn more about your ad choices. Visit megaphone.fm/adchoices

Buying a house with an LLC has many benefits for real estate investors. When the limited liability company owns the property, you can access tax benefits and asset protection. You may also find it easier to partner with other investors. However, setting up an LLC can be complicated, and you may struggle to secure a mortgage loan. Are you a first-time real estate investor looking to buy your first investment property? Or do you already own multiple properties and wonder if you should transfer property ownership to an LLC? If so, this article is for you. From setting up an LLC and managing legal and financial considerations, this article will guide you through the process of buying a house with an LLC. You will also learn about the pros and cons of owning an LLC. Learn more about your ad choices. Visit megaphone.fm/adchoices

The BRRRR method of real estate investing continues to be one of the most-used strategies in 2023. With interest rates elevated yet property values remaining resilient, finding cash flow with a reasonable down payment is an incredible challenge.   However, the BRRRR strategy (buy, rehab, rent, refinance, repeat) makes sense for a lot of investors, as value can be created through forced appreciation (renovations) and capital recycled through cash-out refinances. With rates high and competition fierce, nailing the financing piece of the BRRRR method has never been more important.   This article will explore the loan options facing BRRRR strategy investors, with a focus on the all-important third R: refinance. Specifically, we’ll compare DSCR refinance loans to traditional options, namely bank or conventional loans. Learn more about your ad choices. Visit megaphone.fm/adchoices

It might be expensive to buy, but rental prices are also rising across the U.S. While some might think it might be better to rent than own, in some cases, that’s not always the case. Inflation has drastically impacted rental prices, which rose 6.2% year over year in 2022, according to a study by WalletHub. But some areas in the U.S. are better to rent in than other areas. WalletHub’s latest report on the 2023 Best & Worst Places to Rent in America found that many of the best places to rent are in the western part of the U.S. Looking at not just rental prices but also quality of life standards, the study ranks 182 of the top cities across the U.S. for renters based on 21 key measures of rental attractiveness and quality of life. Learn more about your ad choices. Visit megaphone.fm/adchoices

Investing in real estate isn’t something that involves using just one strategy. The best strategy for you depends on the type of investor you are and the current market dynamics. In 2023, build-to-rent (BTR) is quickly becoming the most effective investment strategy for beginners and experienced investors alike.  BTR gives investors the opportunity to purchase new construction properties below market value in growing locations. There are many advantages associated with using BTR to grow your investment portfolio, which include hardly any maintenance, builder warranties, substantial appreciation in growing markets, the ability to attract high-quality tenants, and more financing options. We’ve started using a unique portfolio lender that finances new construction rentals with as little as 5% down, with no PMI (private mortgage insurance) costs. It is creative financing options like this that have allowed us to expand our portfolio quickly in the BTR space, obtaining more properties with less capital down. Learn more about your ad choices. Visit megaphone.fm/adchoices

Foreclosures across the U.S. are on the rise and nearing pre-pandemic levels, according to real estate data firm ATTOM. ATTOM’s midyear foreclosure activity report found that foreclosure activity has been gradually increasing over the last few quarters as COVID-related policies have ended. Across the U.S., 0.13% of all housing units foreclosed in the first half of 2023. Foreclosures are up 13% from the same period in 2022 and up 185% from the same period two years ago. “Similar to the first half of 2022, foreclosures activity across the United States maintained its upward trajectory, gradually approaching pre-pandemic levels in the first half of 2023,” Rob Barber, CEO of ATTOM, said in a statement. Learn more about your ad choices. Visit megaphone.fm/adchoices

Earlier this month, Democratic lawmakers introduced a new bill designed to disincentivize investors from buying up single-family homes. The bill, known as the Stop Predatory Investing Act, would eliminate interest and depreciation deductions for investors who acquire 50 or more new single-family rental homes after the bill is enacted.  The bill allows a couple of exceptions—investors would still be permitted to take deductions on homes built to rent or financed using Low-Income Housing Tax Credits. And those who elect to sell a property to a homeowner or qualified nonprofit would be permitted to take deductions for the year of the sale.  The bill is aimed at increasing housing access and affordability, particularly for first-time homebuyers purchasing starter homes. Proponents of the bill allege that corporate investors outbid families for homes and rent those homes at increasingly high prices, creating too much competition for would-be homeowners amid a housing shortage.  Learn more about your ad choices. Visit megaphone.fm/adchoices

DSCR loans, while still a relatively new product, continue to expand in use and popularity for investors looking to achieve financial freedom through real estate. Throughout 2023, we have published several articles on DSCR loans, introducing the BiggerPockets community to how interest rates and terms are determined, giving answers to frequently asked questions about DSCR loans and talking about exciting new developments and expansions of the product, including DSCR loans for five- to 10-unit multifamily properties. This article will cover another big aspect of DSCR loans–specifically, what documents you will be expected to provide once you have decided to go with a DSCR loan.  One of the most enticing aspects of DSCR loans for investors is the lower documentation, paperwork, and overall “hassle” when compared to more traditional lending, including conventional and bank options. However, DSCR Loans should not be considered “no doc” loans–they do include a well-thought-out underwriting process and meaningful “common-sense” documentation requirements as well. Sometimes people can be misinformed, thinking these are loosely originated mortgage loans akin to the “NINJA” (no income, no job, and no assets) loans that were common in the early 2000s and helped lead to the last real estate crash. Learn more about your ad choices. Visit megaphone.fm/adchoices

In a recent economic outlook by Morningstar, the housing market affordability is currently mimicking the peak of the housing bubble in 2006. This similarity is due to a combination of mortgage rate hikes, rising home prices, and income levels.  In light of this, Morningstar suggests that falling mortgage rates will play a vital role in improving housing affordability by 2025. Here, we’ll shed some light on the various factors that are making an impact on mortgage rates and what it will mean for American real estate investors. Learn more about your ad choices. Visit megaphone.fm/adchoices

As a real estate investor, you should understand the NAICS code that relates to your industry. This article discusses the finer details of this code system and its impact on your business.  What Is a NAICS Code? The North American Industry Classification System (NAICS) is developed by the United States, Canada, and Mexico to classify businesses into industry-specific categories for economic data collection, analysis, and reporting. In some states, providing your NAICS code is optional, but in other states, providing your code will be required. Learn more about your ad choices. Visit megaphone.fm/adchoices

I recently got an unexpected lunch invitation. The most successful real estate developer I know made a beeline for me in the church lobby. He requested lunch as soon as possible.  We met for lunch the next day. We hadn’t even ordered when he started pouring out his heart:  “I’ve got a problem. I’ve been doing business with two banks for decades. One of the bankers has become a close personal friend.”  He paused with a pained, pensive stare at nothing.  “But they’re both acting…weird. They seemed nervous last fall. But now it’s more serious than that.”  He went on to describe how his favorite banker changed the terms and then outright canceled an approved loan days before closing a few weeks before. This deal had been in the works for well over a year. My friend had to make a painful phone call to the seller to sheepishly ask for an extension to a now-uncertain closing date.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Large investors expanding their affordable housing portfolios has recently become a notable trend in the real estate market. Nuveen, the investment management division of the Teachers Insurance and Annuity Association of America (TIAA), made headlines with its acquisition of a substantial 12,000-unit affordable housing portfolio, predominantly located in the mid-Atlantic region, with a significant concentration in New York City.  Nuveen, which manages $1.1 trillion in assets, is now managing a $6.4 billion portfolio of affordable housing. Prior to this deal, Goldman Sachs, alongside the Michaels Organization and the Community Development Trust, purchased $1.2 billion worth of affordable housing across the United States earlier this year. These investments reflect a growing trend among large investors who recognize the advantages of affordable housing investment.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Think big! Accumulate hundreds or even thousands of units. Use economies of scale. Syndicate. Benefit from maximum leverage. In other words: Go big or go home. Aren’t these the messages we hear so often here on BiggerPockets? Aren’t the biggest and the best the ones with the most cash flow, the most flips, and the most rental units? Well, I’m here to tell you that bigger is not always better. In fact, in this article and my new book, The Small and Mighty Real Estate Investor, I plan to show you that smaller and simpler is actually better for many of you. I’m trying to start a new movement. I hope some of you will join me. The motto is “go small or go home.” And the hero is called the small and mighty real estate investor. Learn more about your ad choices. Visit megaphone.fm/adchoices

Think big! Accumulate hundreds or even thousands of units. Use economies of scale. Syndicate. Benefit from maximum leverage. In other words: Go big or go home. Aren’t these the messages we hear so often here on BiggerPockets? Aren’t the biggest and the best the ones with the most cash flow, the most flips, and the most rental units? Well, I’m here to tell you that bigger is not always better. In fact, in this article and my new book, The Small and Mighty Real Estate Investor, I plan to show you that smaller and simpler is actually better for many of you. I’m trying to start a new movement. I hope some of you will join me. The motto is “go small or go home.” And the hero is called the small and mighty real estate investor. Learn more about your ad choices. Visit megaphone.fm/adchoices

Wholesaling is a popular strategy that many real estate investors use to earn money from homes without owning them. They get to avoid dealing with maintenance issues, tenants, and other landlord issues necessary with other strategies. If you are interested in wholesaling but aren’t sure about how to find potential properties, there are several simple things you can do to locate them. Wholesale opportunities come up all the time. With the right marketing strategies in place, leads may come to you. This lets you concentrate on what you do best—closing deals. Learn more about your ad choices. Visit megaphone.fm/adchoices

The internet altered the world, and for the most part, it was a good thing. Most products and services got better, but not insurance—it got lost. Before the internet, the insurance sector centered around an agent-driven business model in which insurance companies manufactured products and insurance agents sold them to consumers: home, vehicle, life, and business insurance. Insurance carriers learned that with the internet, they could sell straight to the consumer through the click of a button—eliminating the local agent’s need for a sales commission. Because of this shift, most insurance agents nowadays lack the knowledge and in-depth understanding of the coverage they provide in the complex 100-page contracts they sell. This results in the slow, agonizing demise of the professional insurance salesperson Learn more about your ad choices. Visit megaphone.fm/adchoices

Many successful real estate investors know the secret of finding and buying off-market properties. While discovering these deals may be tricky, you may stumble upon a great and lucrative real estate investment if you know how to find off-market properties. What is the best way to find off-market sales? Are there advantages to searching off-market property sales for investment opportunities? What should you be careful of when buying a property off-market? This article answers these questions and many more. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate mentors are very powerful allies to have in your corner. They’re real estate industry experts with years of experience and wonderful teachers who can help guide you through the most challenging problems and provide the most relevant guidance when we least expect it. Not only that, but mentors are valuable resources who can provide incredible insights into very specific areas of your personal life as well. It seems like every would-be entrepreneur, whether in real estate or elsewhere, is looking for a mentor—and with good reason. On the other hand, experienced real estate mentors can be seen as advisors who will do a lot of hand-holding through all the possible challenges on the journey to success. That’s not quite the case. In this article, we’ll talk about what a real estate mentor is and how to find one. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re a real estate investor that needs help marketing, you’re not alone. A dedicated real estate marketing plan allows real estate professionals to generate additional leads and revenue. The world of real estate is highly competitive, so having an effective marketing plan to capture the attention of potential clients is important. Many real estate investors are twiddling their thumbs without a marketing plan because they can’t figure out how or where to start. This article will review the top real estate marketing ideas or strategies investors should use to promote their businesses. Learn more about your ad choices. Visit megaphone.fm/adchoices

Choosing between a HELOC vs. home equity loan is a big decision. HELOCs have variable interest rates and home equity loans have fixed rates, but that’s not the only difference. Check out how they compare to see which makes the most sense for your real estate business. Learn more about your ad choices. Visit megaphone.fm/adchoices

Buying a vacation rental property can bring lucrative returns for real estate investors. A vacation home can generate high rental income, provide tax breaks, and give you a second home for your own vacations. However, ensuring a good return on the investment property requires careful research into local markets, calculating your expenses, and understanding the rhythm of vacation rental properties. Investing in a vacation rental property requires a different investment strategy than a typical buy-and-hold property. A vacation rental home typically has more vacancies throughout the year. Also, short-term vacation rentals have higher maintenance costs and experience seasonal highs and lows. This article will guide you through the process of buying vacation rental property. You will learn how to analyze the rental market, find the right vacation rental property, and maximize profits from rental income. Whether you’re a first-time real estate investor or a seasoned pro looking to add to your portfolio, these tips and tricks will help you make a smart and profitable investment in short-term rentals. Learn more about your ad choices. Visit megaphone.fm/adchoices

Multifamily property investing diversifies your efforts in real estate investing. Right off the bat, you use an intensified and diversified investment strategy to buy multiple homes with a single purchase. Owning a multifamily real estate property means you can earn income from multiple rental units in one property versus investing in single-family properties. Learn more about your ad choices. Visit megaphone.fm/adchoices

Multifamily property investing diversifies your efforts in real estate investing. Right off the bat, you use an intensified and diversified investment strategy to buy multiple homes with a single purchase. Owning a multifamily real estate property means you can earn income from multiple rental units in one property versus investing in single-family properties. Learn more about your ad choices. Visit megaphone.fm/adchoices

35% of Americans state that real estate is their most favored long-term investment strategy, compared with stocks (21%), CDs and savings accounts (17%), and gold (16%). However, when considering real estate investing, we often think of flipping houses, short-term rentals, and the BRRRR method. Not everyone wants to put that much effort into an investment, and that’s when passive real estate investing strategies come in handy. Passive real estate investing can be an incredibly effective way to make your money work for you and requires little effort on your part. In this post, we’ll discuss: What passive real estate investing is, and how it differs from active investing The pros and cons of passive real estate investing Types of passive real estate investments How to get started as a passive real estate investor Let’s get started. Learn more about your ad choices. Visit megaphone.fm/adchoices

A home equity loan provides access to the equity in properties you own, using the funds for other purposes, such as increasing your real estate portfolio, paying a significant expense, or even debt consolidation. You have equity in a property when you owe less on any property liens than the property’s value. To calculate the equity, subtract any loan amounts from the home’s current market value. If your properties have equity, here’s everything you must know about a home equity loan. Learn more about your ad choices. Visit megaphone.fm/adchoices

As a real estate investor, there are several different approaches you can use to make some quick cash or grow your portfolio. With so many real estate investment strategies available, it can be overwhelming to determine which option is the best for you. In this article, we’ll explore some of the most commonly used investing strategies and help you determine which aligns with your financial goals and personal preferences. We’ll do this by: Explaining how each strategy works Discussing how much experience and effort is required Determining how much you need to get started and the return you can expect from it Are you ready to figure out which investing strategy is right for you? Let’s get started! You can read through all the strategies below or skip to the ones that interest you the most: House Hacking The BRRRR Strategy The PRR Strategy House Flipping Live and Flip Real Estate Wholesaling Turnkey Properties Mobile Homes Foreclosures Storage Spaces Real Estate Mortgage Notes Real Estate Investment Trusts Land Commercial Property Learn more about your ad choices. Visit megaphone.fm/adchoices

When building wealth, there is no shortage of investment opportunities. Stocks, bonds, mutual funds, ETFs, precious metals, and more all play a role. However, many of the world’s great fortunes are based on real estate investing. Let’s examine why real estate is a good investment and how you might build significant wealth.  Reasons Why Real Estate is a Good Investment Cash flow, passive income, tax breaks–the list goes on. Here are just a few of the reasons why real estate is a good investment: There is a steady cash flow As a real estate investor, you can generate a steady cash flow if your investment properties have tenants. Calculate your cash flow by deducting your mortgage payments, property taxes, insurance, and maintenance expenses from the gross rent. Learn more about your ad choices. Visit megaphone.fm/adchoices

When it comes to managing your tenants and properties, you want to ensure that you’re doing so efficiently. Not only does it help your business stay organized, but it also helps foster a good working relationship with your renters.  Fortunately, you’re not alone when it comes to managing your real estate business. Using property management software can be an advantage when it comes to cultivating a good landlord-tenant relationship and streamlining how you manage your properties.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Over the last decade, real estate investors have used Airbnb to rent properties and meet new people worldwide. The short-term rentals business continues to grow—in 2021, the typical U.S. host made $13,800 on Airbnb, an 85% increase over Airbnb host income in 2019.   Suppose you’re serious about purchasing a vacation rental property and becoming an Airbnb host as a side hustle or full-time income. In that case, you need to understand the service fees involved in using the platform so you can price your property accordingly.  So how much does Airbnb take from hosts for service fees? Let’s break down what Airbnb charges hosts, how other listing platforms compare, and what savvy investors should know to run their short-term rental business.  Learn more about your ad choices. Visit megaphone.fm/adchoices

What Is a Squatter? A squatter is an individual who occupies a piece of real estate, despite having no legal claim to the property. Squatters live on a property in which they have no legal title, rights, or lease agreement. However, this individual may gain legal rights to the property by adverse possession, which is the legal transfer of ownership to a squatter due to continuous land occupation. Squatting Example There’s no shortage of squatting examples, but here are the basics of one of the most common scenarios. You purchased an investment property in 2020 and rented it to a tenant for two years. At the beginning of 2022, you stopped renting the property, which remained empty for several months. Then, you decided to put it on the market. Unfortunately, when preparing the home for listing, you found a squatter living there for several months. Learn more about your ad choices. Visit megaphone.fm/adchoices

“Squatters’ rights” are two words that evoke an emotional reaction in landlords everywhere. Getting rid of squatters can be challenging due to legal complexities surrounding property rights and eviction processes. In many states, squatters may be granted certain legal protections over time, making it more difficult for property owners to evict a squatter without following proper legal procedures, which can be time-consuming and costly. Depending on the local laws, property owners may need to follow specific eviction processes, such as obtaining court orders, to lawfully regain possession of their property from squatters. But that doesn’t mean squatters can act with absolute impunity. Property owners have rights to their property and can take legal action to remove squatters. Here are five creative (and legal) ways for handling squatters that smart investors should know to avoid the stress and financial burden of lost rental income, property damage, expensive repairs, and a painfully long eviction process. Learn more about your ad choices. Visit megaphone.fm/adchoices

A critical yet often overlooked part of the real estate investing puzzle is crafting a comprehensive and detailed Statement of Work (SOW). Whether you’re a seasoned or a rookie investor, you can benefit significantly from this powerful tool.  Your SOW helps keep your project on track and can be instrumental in securing financing for a fix and flip property, particularly from hard money lenders. Let’s dive into why a detailed SOW is critical and how to create one. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re not into traditional budgeting, where you place all of your spending into rigid categories, then the 50/30/20 budget rule might be for you. This financial management budgeting method is broken into three main categories: 50% needs, 30% wants, and 20% savings and investing. It’s designed to take a full picture of one’s monthly living expenses in the simplest way possible and remove the nitty gritty details that can bog someone’s bank account down with complications. So, in theory, if your after-tax income is $5,000 a month, $2,500 should go to your needs, $1,500 to your wants, and $1,000 to your savings and investing goals. Let’s talk more about how this all works. Learn more about your ad choices. Visit megaphone.fm/adchoices

When you’re in the market for a new property, one of the first things you’ll want to do is apply for a mortgage preapproval. This process can help you determine your budget, refine your house-hunting efforts, and give you an edge in a competitive market.  Let’s walk through the basics of mortgage preapproval, how it differs from prequalification, and why it’s important when buying a home.  Learn more about your ad choices. Visit megaphone.fm/adchoices

What’s the number one skill all real estate investors need? It’s how to accurately estimate after-repair value (ARV). This critical skill could help you determine if a property is a good investment or something you should pass on. Knowing the value of a property is essential. Whether you’re a buy-and-hold investor interested in turnkey properties or a fix-and-flipper looking for a property needing serious work, you need this information. “Buy low and sell high” is real estate’s core success formula—but to know you’re getting a good deal when you buy, you need to know how to estimate future value. Here’s how real estate investors can calculate ARV for single-family homes or other small residential properties. Commercial or larger multifamily properties are not covered here because they require a different process. Learn more about your ad choices. Visit megaphone.fm/adchoices

So far, throughout 2023, we have published several articles on DSCR (debt service coverage ratio) loans, a loan product that continues to grow in popularity among real estate investors. These included an overview of how to get the best rate and terms, how to use advanced strategies to maximize returns, and an overview of the new small multifamily DSCR loans niche, which expands the loan product to properties with up to 10 units! In May, we posted 12 Frequently Asked Questions (And Answers) About DSCR loans. This proved very popular and helpful for real estate investors exploring this transformative loan product.  More questions and advanced scenarios continue to flow and get discussed in the BiggerPockets forums, so we have decided to publish another installment to cover more of your questions! Learn more about your ad choices. Visit megaphone.fm/adchoices

Realtors are essentially intermediaries between buyers and sellers, so realtors get paid on commission when you close on a property. But who is responsible for that fee, and how much commission do realtors normally take? This article explains how realtor commission works and when they receive their payment. What Is The Difference Between a Realtor and a Real Estate Agent? It’s very common to use the terms “realtor” and “real estate agent” interchangeably, but there is a difference between the two. Realtors are normal real estate agents and National Association of Realtors members. On the other hand, real estate agents are licensed professionals working in the real estate industry. Both real estate agents and realtors assist buyers and sellers in purchasing and selling real estate. Still, only realtors adhere to a code of ethics set by the National Association of Realtors. Learn more about your ad choices. Visit megaphone.fm/adchoices

Suppose you come across a house or land that interests you but don’t see a for sale sign. You might wonder how to find out who owns a property. Since property ownership records are public, you can access the property data quickly, especially if you have the property’s address. But not all cases are easy; sometimes, it takes some work. Whether you’re considering the home for your primary residence or to purchase as a real estate investor, knowing how to do a property owner search can be useful. Learn more about your ad choices. Visit megaphone.fm/adchoices

Multifamily properties are among the most common types of housing that investors rely on to grow their portfolios. They provide consistent and reliable income, have relatively low vacancy risk, and typically appreciate over time. Working with a multifamily real estate agent is smart if you are considering investing in this type of property. These professionals can help you find what you are looking for in less time and possibly help you save money during the negotiations. Learn more about your ad choices. Visit megaphone.fm/adchoices

PropTech is a relative newcomer to the “Tech” suffix world; you may be more familiar with the more recognizable MarTech and FinTech terms. While this terminology may be trendy and buzz-worthy, what does it really mean to put it to work in your real estate investment business? Keeping your competitive edge, and creating efficiencies across your growing portfolio, requires deft use of technology. Implementing the wrong solution or technology that doesn’t deliver value can be a costly mistake. Understanding which technology can have the greatest impact on your bottom line is essential. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate offers a variety of investment options. Tax lien investing is another method for real estate investors to make money, and while it is a little different than your typical buy, flip, and sell, there are some similarities. Some tax lien investments turn into property ownership if the property owner fails to pay back the property taxes on time. Finding homes with delinquent property taxes is more challenging than looking for a standard investment property. You have more hurdles to jump and factors to consider. Here are the steps to take and the pros and cons to consider. Learn more about your ad choices. Visit megaphone.fm/adchoices

As a real estate investor, buying a new property is a significant personal and financial decision. While the process can be challenging sometimes, it’s all worth it once the transaction is complete.  Understanding how to purchase a house is vital to your success, and that’s particularly true of the closing process. One of the most important questions is, “How long does it take to close on a house?”  In this article, we dive into the finer details of the closing process.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Workers were adding the finishing touches to a Ranch-style home just when an all-black Tesla Model 3 pulled up to the job site. As the door opened, an investor stepped out into the Dallas, Texas, heat. Enthusiasm emanated from this seasoned flipper as he encouraged his team and lent a hand. This is Don’nell Greer. With over 200 flipped houses under his belt, Greer is a real estate pro who has managed to build an impressive real estate machine. He started in Dallas and has since expanded his operations to include the entire Dallas-Fort Worth metro area, as well as parts of St. Louis, North Carolina, and Tennessee. Despite his ever-growing success, this Lone Star State flipper remains eternally grateful for his situation and wants to help others find financial freedom. In this article, Don’nell shares how he got started, tips for investors, and other key takeaways from his storied career in real estate. Whether you’re a veteran investor or a newbie, there’s plenty to learn from his story.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Congrats! You just closed on your new STR. Now the race is on to fix everything and prepare it for guests and 5-star reviews. As you contemplate your rental tech stack and how to get beds in bedrooms ASAP, don’t ignore your walls! These are the touches that will help cement your vibe, make guests feel like they’re entering a cared-for home, and are often the details that get mentioned in guest reviews on sites like Airbnb and VRBO. (A recent review of my own STR: “The house was clean, tastefully decorated, and had everything we needed” The guest mentioned only three things, and one was décor!)  Learn more about your ad choices. Visit megaphone.fm/adchoices

As a property owner, you’ll likely have neighbors who own property near you. And while friendly neighbors can make an area enjoyable, they can also be a source of frustration for many residential and commercial property owners.  One common frustration between neighbors is encroachment in real estate, when someone uses or builds on someone else’s land. On its face, encroachment isn’t a particularly tough concept for smart investors to grasp, but it’s far more complex.  Here’s what you, the savvy BiggerPockets-reading real estate investor, need to know. Learn more about your ad choices. Visit megaphone.fm/adchoices

Many landlords believe property management fees cut profit margins to a minimum in exchange for basic services to maintain your rental property. But the reality is that a property manager can simplify your life and smooth out the kinks in your investment properties—for a reasonable rate that maximizes profitability. A recent survey of landlords found that over 88% had experienced stress in renting out their properties, and over 44% had to evict a tenant.     But before you hire a property manager, it’s important to know that not all property management costs are structured the same by every property management company. Ensure you understand how the property manager’s fees work; otherwise, you might sign a property management agreement that reduces your rental income profit more than necessary. Also, many property management companies will charge an early contract termination fee if you want to cancel, which can add even more costs to your bottom line. Learn more about your ad choices. Visit megaphone.fm/adchoices

Math is a vital component of real estate investing success. Understanding how your business makes money is imperative in helping it make more. To know how profitable your rental properties are, you’ll need to have a solid grasp on calculating rental property cash flow by using a rental property cash flow analysis. Let’s explore how to calculate cash flow and perform a cash flow analysis for your rental property so you can see where you can make more money. What is a Rental Property Cash Flow Analysis? To learn how to generate a positive cash flow, you need to ensure you’re doing an accurate rental property cash flow analysis. This means that you’re looking at all the numbers involved with owning a rental property to ensure that the property can make you money. You must look at the numbers over several months to understand the whole picture. Learn more about your ad choices. Visit megaphone.fm/adchoices

There has been a lot of discussion on BiggerPockets about whether it’s worth getting your broker’s license. Still, the question of whether to get your CCIM (Certified Commercial Investment Member) has been left mostly unanswered. I touched on what such a designation offers here, but it certainly isn’t for everyone. What is a CCIM Designation? A CCIM designation recognizes an individual is an expert in commercial real estate investing. Awarded by the CCIM Institute, formerly known as the Commercial Investment Real Estate Institute of the National Association of Realtors, the designation is recognized globally. The CCIM Institute educates CRE professionals.   That is why most people with a CCIM designation are commercial real estate professionals locally and internationally. There are more than 50 CCIM chapters in local markets worldwide. Learn more about your ad choices. Visit megaphone.fm/adchoices

One of the most common questions people ask real estate agents is, “What credit score do you need to buy a house?” It’s a great question. Experian reports the average credit score in the U.S. is currently 714 as of 2021—and those numbers are steadily rising year over year. That’s a good credit score to buy a house, although by no means the lowest lenders will accept.  With some lenders, you can take out a mortgage with a score as low as 620. But according to BadCredit.org, 16% of Americans have a credit score of less than 580. That means a huge chunk of individuals are unable to obtain a mortgage, thus, making buying a house or real estate investing a difficult task. However, many people don’t know that there are alternative loan options if you don’t meet the minimum credit score requirements. Learn more about your ad choices. Visit megaphone.fm/adchoices

Becoming a successful investor doesn’t happen overnight. It requires patience, hard work, and the ability to reassess following any mistakes. Reflecting on over a decade of investing in real estate, I’ve concluded that five things have been the most influential in my success to date. These five things will also likely continue to be essential during my lifelong career as a real estate investor.  In less than 10 years of intentional investing, I was able to acquire an eight-figure investment portfolio that generates a net cash flow of more than $1 million per year. This was accomplished by adhering to these five core concepts below. I hope this helps you reach whatever investment goals you have in less time than you think! Learn more about your ad choices. Visit megaphone.fm/adchoices

The question of whether to trust one’s own gut or to painstakingly analyze any given problem has found different answers amongst different people and in different situations for centuries. On one hand, there is certainly such a thing as “paralysis by analysis.” I myself have seen numerous cases of wannabe real estate investors spend an enormous amount of time (and money) learning, only to never actually buy a property. You can even spot some “seminaraholics” at many events who have been to countless bootcamps and the like but have not locked down a single deal. Furthermore, as the famous saying goes, “time is money.” So even if a detailed analysis would yield a better result, it’s not necessarily the better course of action because the time spent on such analysis might not be worth the cost. But gunslingers who just go with their intuition have been known to make plenty of mistakes, including some very large ones. WeWork’s former CEO and certifiable nutjob Adam Neumann was able to convince SoftBank’s CEO Masayoshi Son to invest $4.4 billion in his wildly over-valued company during a 28-minute car ride to the airport. Needless to say, that gut decision didn’t play out too well. Learn more about your ad choices. Visit megaphone.fm/adchoices

To understand a reverse 1031 exchange, you should first make sure you know the ins and outs of a 1031 exchange. Key differences exist between a standard 1031 exchange and a reverse 1031 exchange, designed to defer taxes while investing in real estate. Read on to learn more about what it is (and how it differs from a 1031 exchange), how to complete one, and how it can benefit you. What Is a Reverse 1031 Exchange? A reverse 1031 exchange is a tax deferment strategy that allows real estate investors to purchase a second investment property before selling their relinquished investment property—and, importantly, defer capital gains taxes and other taxes that you would normally need to pay at the sale of a property. Because a reverse 1031 exchange is more complicated than a standard 1031 exchange, it’s important to understand it fully before proceeding. Learn more about your ad choices. Visit megaphone.fm/adchoices

Escrow is a key part of real estate transactions and mortgage agreements, but many homebuyers and homeowners aren’t familiar with escrow and how it works. Escrow protects homebuyers, sellers, homeowners, and even lenders with real estate-related financing—it supports those parties throughout the homeownership lifecycle. Let’s break down what escrow is, its role in real estate, and how it can be beneficial.  Learn more about your ad choices. Visit megaphone.fm/adchoices

So, the day has come to finally figure out how much your rental property income will affect your child support payment. You won’t be surprised that many states consider that pretty penny a critical component when calculating these payments. As with any financial analysis, it’s essential to understand how to break down the numbers, especially regarding child support. In most cases, parental income is calculated in its entirety. You’re going to have to provide proof of all of your finances. For rental property owners, the court will pay particular attention to the total net income of your rental. So, how is rental income calculated, and how does that play into child support payments? We’ll give you the low-down on figuring out your rental income so that you can prepare yourself somewhat for the road ahead. Learn more about your ad choices. Visit megaphone.fm/adchoices

Custom building a home is a dream many homeowners share. Being able to design your home exactly to your preferences is an exciting but time-consuming endeavor.  So, how long does it take to build a home? Building a custom home can take as little as a year to upwards of three years. The reason it’s so hard to nail down an average time estimate for completion? The average time for how long it takes to build a house can vary widely due to the scope of the project, weather-related delays, and how readily available supplies and labor are. Getting permits and completing inspections can also extend this timeline if those processes are difficult to schedule.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Did you know you can buy real estate using your IRA or 401(k)? Most real estate entrepreneurs are unaware of how easy it is to buy real estate with their retirement money.  Welcome to the world of Real Estate IRAs. 1. What is a Real Estate IRA? A real estate IRA is a supercharged IRA that enables you to invest your retirement money directly into real estate such as multi-family, commercial, land, fix-and-flips, tax liens, and more. It has the same tax benefits as a regular IRA and can be set up as a Traditional, Roth, or SEP Real Estate IRA.  A Real Estate IRA is also known as a Self-Directed IRA. Learn more about your ad choices. Visit megaphone.fm/adchoices

I’ve been investing in real estate since 2005, and to this day, I have yet to hear any other investor say, write or even hint at anything that resembles the following, “You know, I have this problem where I’m just budgeting too much for rehabs. I end up borrowing more than I need, and I’m probably missing out on deals because my rehab budgets are too large. I just always seem to come in under budget.” I’ve gotten better and better at hitting budgets since I started, but I still go over more often than I’d like to admit, and very rarely do I come in under. So, from what I’ve experienced (and heard about), mistakes are not made evenly in both directions when it comes to rehab budgets. We are biased heavily toward under-budgeting for rehab expenses. Indeed, we are biased toward under-budgeting in general. Learn more about your ad choices. Visit megaphone.fm/adchoices

Closing costs are a crucial aspect of any real estate transaction, but they can vary widely, build up quickly, and be confusing to understand. Buyers tend to focus on the upfront expenses like the purchase price and down payment. Sellers often consider the repairs and renovations needed to make the home presentable for showing.  But before the real estate deal’s done, buyers and sellers must pay closing costs. You can avoid unwanted surprises during the home buying or selling process by understanding the common closing costs and what you can expect to pay as a buyer and seller. Educating yourself about who pays closing costs can pave the way for a smoother buying experience or property sale. This will help you confidently navigate the process and make informed decisions that work best for your financial situation. Learn more about your ad choices. Visit megaphone.fm/adchoices

2023 has presented tremendous challenges for investors looking to get started. Financing is expensive compared to the historically low interest rates during the COVID boom. And, although they’re stabilizing, home prices have seen massive appreciation. Throw low inventory into the mix, and you’ve got an investor’s worst nightmare. In short, it’s tough to cash flow right now, but luckily, it’s still possible.  Take, for example, Jessica Later, a real estate broker and investor who’s crushing it in one of the most expensive markets in the country: Boston. In many ways, her story is contrarian. The lessons she shares in this article show you how to think outside the box to win big in any market condition.  Learn more about your ad choices. Visit megaphone.fm/adchoices

State income taxes are often a complex topic with major implications for real estate investors. Placing your money in states without income tax may be a smart idea and allow you to keep more money in your pocket each year.  Which states with no income tax does it make sense to invest in? How should you consider structuring your home rental business to optimize results? Understanding your potential tax liability in the nine states without an income tax allows you to make the best decision for your next purchase.  Learn more about your ad choices. Visit megaphone.fm/adchoices

A fourplex may be a good place to start if you’re considering testing the waters as a residential real estate investor. It’s also a sound investment for the first-time homebuyer, as you can live in one of the fourplex units and rent the others—your tenants pay the mortgage. If you want it strictly as an investment property, that’s not a problem, although it may limit some attractive financing options. What Is a Fourplex? A fourplex is a multifamily home with four separate units under one roof. You may also hear it referred to as a quadplex. Each unit has its own entrance. Some fourplexes include a common building entrance with separate interior entrances for each unit. The units are either side-by-side or stacked on top of each other. From the street, a common entrance quadplex may resemble a large, single-family home.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Medium-term rentals are more profitable than long-term rentals and less stressful than their short-term counterparts. While they used to be mainly for traveling nurses and business professionals, they’ve become more popular than ever due to the rise in digital nomadism and the stricter regulations enforced on short-term rentals.  In this post, we’ll explore how to invest in medium-term rentals so you can decide if they’re right for you.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Remote work, rapidly rising rents in some cities, and a desire for more amenities are all factors driving Americans to relocate—but the areas drawing the most new renters are shifting, according to the new Rent.com migration report for the first quarter of 2023.  Back in January, we reported that renters were showing interest in the South and Midwest regions due to relatively affordable housing available in many cities in these regions when compared to the West and Northeast. But as more people flocked to these regions to escape higher-priced areas, rents went up.  For example, while Miami is still cheaper than New York, rising housing costs in Florida from an influx of new residents are causing the Sunshine State to experience the highest inflation rate in the nation. As a result, some residents may be pushed out of the state, even as more people from New York and California move in.  Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re planning on buying or selling an investment property, having a handle on market conditions is critical. Can you expect a bidding war? Do you need to pay in all cash to win? What concessions might you need to make for buyers? There’s no way to answer all these questions with certainty, but a new survey from Opendoor does offer some insights. Here’s what to keep in mind as you prepare for buying or selling a property in the current market. Learn more about your ad choices. Visit megaphone.fm/adchoices

Home prices across the U.S. had the highest quarter-to-quarter gain since 2015, as potential homebuyers are getting pushed out of an increasingly expensive market.  The median single-family home value rose 10.2% from the first to the second quarter of 2023 to $350,000, a report from real estate data firm ATTOM found. It’s the biggest quarterly increase in almost the past decade. Median home prices in 565 of the 574 counties analyzed in the report (98%) were less affordable than in prior quarters, more than double the number of counties that were unaffordable two years ago before mortgage rates went up. This means only 2% of counties examined were more affordable than their historic averages.  Learn more about your ad choices. Visit megaphone.fm/adchoices

There’s no doubt that occupancy rates are declining for Airbnb properties amid a supply increase, but whether we’re entering an Airbnb apocalypse or just seeing a heated market moderate depends on who you ask. Nick Gerli, CEO of Reventure Consulting, began a viral debate over the future of Airbnb revenue when he tweeted a chart based on data from short-term rental analytics firm Alltherooms, which depicted average revenue per listing falling up to 47.6% in some cities.  Gerli suggested the trend would impact the housing market, inducing a “wave of forced selling from Airbnb owners” in the affected cities. But data from AirDNA, a competing short-term rental analytics firm, tells a different story. Learn more about your ad choices. Visit megaphone.fm/adchoices

Hearing pundits talk about real estate over the last year, you’d think the sky had fallen several times over.  Don’t get me wrong. The real estate sector has seen its share of challenges over the last year. Home prices in some markets have fallen after years of skyrocketing at unsustainable rates. Rapid interest rate increases left many would-be sellers feeling “stuck” in their homes, pinching supply, and left some investors with variable rate loans with thin or even negative cash flow.  But I still invest in real estate, month in and month out. Just as I still invest in stocks month in and month out, regardless of the market’s latest gyration.  Here’s why. Learn more about your ad choices. Visit megaphone.fm/adchoices

The leader of the bank for central banks—the Bank for International Settlements (BIS)—is sounding the alarm.  Just this week, BIS general manager Agustín Carstens told reporters that “The global economy is at a critical juncture.” And according to the bank’s just-released annual report, if inflation isn’t tamed and consumer prices remain high for much longer, banks could see credit losses of a “similar order of magnitude” to those of the 2008 financial crisis.  The comments are jarring, particularly on the backs of three bank failures earlier this year. BIS’s typical stances—which are usually more reserved—also lend gravitas to the statements. “The resilience of the financial system will be tested again,” the report reads. “Pockets of vulnerability remain. Recent events have shown how the failure of even comparatively small institutions can shake confidence in the overall system.” Learn more about your ad choices. Visit megaphone.fm/adchoices

Buying a home hasn’t been easy for the past few years. Besides increasing interest rates, a decrease in purchasing power, and a housing shortage, cash buyers have also put a squeeze on some would-be buyers.   Nearly a third of U.S. home purchases were made with cash in April, a nine-year high, according to data from Redfin that looked at the 40 biggest metropolitan areas in the U.S. That’s in line with data from February, which saw cash purchases reach 33.5% and continuing a trend that started during the pandemic. The share of homes being bought with cash is at levels not seen since 2014, when the housing market rebounded from the Great Recession. But the housing market today looks very different. So what’s driving this drive of cash buyers? Learn more about your ad choices. Visit megaphone.fm/adchoices

A recent report published by the National Association of Realtors reveals that the housing shortage and affordability crisis in the U.S. would be alleviated if there were sufficient homes available for buyers at all income levels. Currently, 51% of American households have an income of $75,000 or less, meaning they can only afford houses that are priced at $250,000 or lower. Data shows that of the 1.1 million homes listed for sale, only 25% are listed within that price range. To balance the market, the report indicates that there needs to be an additional 319,460 listings priced under $250,000.  The top five cities that have large supply shortages of affordable homes include El Paso, Texas; Boise, Idaho; Spokane, Washington; Cape Coral, Florida; and Lakeland, Florida. Conversely, Youngstown, Ohio-Pennsylvania is a region where buyers with an income of $75,000 can purchase 72% of the listings, exceeding the balanced market target rate of 66%. Learn more about your ad choices. Visit megaphone.fm/adchoices

Where have all the cash flowing properties gone? With high interest rates, low inventory, and purchase prices not budging, it’s becoming harder and harder to find your margins. It’s even harder to find a cash flowing property when your investment budget is modest. That’s why we loved Dave Meyer’s recent Instagram post covering his top five cash flowing market picks with average purchase prices under 200k. Sometimes all you need is someone to help you stop boiling the ocean when you’re looking for your next deal. Meyer looked at average purchase prices but also reviewed a few other positive financial indicators in each area to support his recommendations. We pulled those together along with a few more reasons these markets are worthy of further investigation. Of course, nothing is all roses, but there are sure to be diamonds in the rough here! Learn more about your ad choices. Visit megaphone.fm/adchoices

For high-earners raking in between $150,000 and $650,000 annually, a move from New York City to Miami provides the opportunity to save thousands through a reduced effective tax rate and a decrease in the cost of living, according to a SmartAsset study. San Francisco residents can realize similar savings by relocating to Miami.  It’s not that Miami is cheap—the cost of living is 22.8% higher than the national average, and the median sale price for homes in Miami is about 34% higher than the national median, according to data from Redfin. But it’s still cheaper to buy a home, rent an apartment, or even go to a restaurant or grocery store in Miami than in notoriously expensive cities like NYC.  But that could all change as more New Yorkers migrate to Miami in hopes of getting more out of their income. Miami residents began taking notice of their new neighbors from New York last year, blaming the skyrocketing rents in the city on heightened demand created by movers. The savings potential is likely to shrink as Miami home values and rents increase amid constricted supply. Furthermore, homeowners insurance rates in Florida are increasing dramatically due to climate change, with premium hikes outpacing every other state. And a surge in property taxes for newly acquired homes is taking new residents by surprise.  Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s been generally accepted in real estate that a “balanced market” has about six months of inventory. In other words, the sales for that month equal one-sixth of the number of listed properties, so, all things being equal, it will take six months to clear that inventory. As Norada Real Estate Investments puts it, “As a general rule, 5 to 6 months of inventory is considered to be a normal or balanced market. Over 6 months of inventory and we have a buyer’s market. If it is less than 5 months and we have a seller’s market.” Even the National Association of Realtors states that “Historically, six months of supply is associated with moderate price appreciation.” What’s immediately odd about this is that housing prices have fallen since last year despite what should be a seller’s market. In May 2023, prices were down 2.2% nationally from their peak in June 2022. At the same time, inventory was only half that of a “balanced market,” sitting at 3.0 months in May of 2023.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The big news to come out of last week’s Federal Open Market Committee meeting was the group’s choice to forgo another rate hike.  Previously, the central bank had increased interest rates at every meeting since March 2022 (with 10 rate hikes in total). The June decision marks the Fed’s first rate pause in over a year. Fed. Chair Jerome Powell revealed as much in his post-meeting briefing with reporters. He also delved into key real estate topics—including the impacts of a potential commercial real estate crash and a housing market “bottom.” Learn more about your ad choices. Visit megaphone.fm/adchoices

Understanding and applying these three sentences could make you wealthy: “In bad times, securities can often be bought for prices that understate their merits. And in good times, securities can be sold at prices that overstate their potential. And yet, most people are impelled to buy euphorically when the cycle drives prices up and to sell in panic when it drives prices down.” – Howard Marks (2013 Memo “Ditto”)  I’m excited to share some thoughts about fear and greed. But I’ll start by sharing a few comments on the current economy to set the stage.  Not long ago, I opened my computer to a startling CRE email subject line:  “Prices Plummet to 2010 Levels” It was a great attention-grabber but was inaccurate. The publication went on to say that the sharpness of the decline in CRE values (not the prices) had not been seen since the Great Recession, which is still disconcerting. (Note that the headline was changed at some point since the original publication.)  Learn more about your ad choices. Visit megaphone.fm/adchoices

What the heck is going on with the 2023 real estate market? From high interest rates and high purchase prices to elusive cash flow, this market includes enough uncertainty to spook new and beginner investors into thinking the best course of action might be to sit this cycle out.  Pro tip: Don’t sit out. You know the old adage: When’s the best time to plant a tree?  “20 years ago.”  When’s the second-best time to plant a tree?  “Today.”  Many expert investors will call this truth in 2023 in regard to real estate. For sure, this year has forced us to be more conservative and strategic than we’ve been in the past, but most say you’re still better off “in” than “out”.  Learn more about your ad choices. Visit megaphone.fm/adchoices

We’ve officially entered hurricane season. While the National Oceanic and Atmospheric Administration says there’s a good chance it will be a “near-normal” one for both the Pacific and Atlantic coasts, that’s not exactly comforting for property owners, especially given recent numbers. In the last three years, 13 hurricanes have made landfall in the U.S. One of those was Hurricane Ida—the second-most damaging storm the country’s ever seen. According to the Insurance Information Institute, Ida racked up an estimated $36 billion in insured losses, behind only Hurricane Katrina in 2005. It’s storms like these—and the risk of more of them down the road—that has spurred an uptick in property insurance premiums nationwide. Will 2023 bring more of that costly risk? Here’s what CoreLogic’s recent hurricane report tells us. Learn more about your ad choices. Visit megaphone.fm/adchoices

Offices across the country are still sitting empty. The nationwide office vacancy rate reached a high of about 20% in the first quarter of 2023, according to JLL, and while big tech companies are pressuring workers to return to the office, the hybrid work model has led to an increase in commercial office delinquencies. According to Trepp, a real estate analytics firm, the office delinquency rate surged 125 basis points in May to over 4%.  This spells trouble for the commercial real estate market and the broader economy, according to some experts. Analysts at Morgan Stanley are predicting a decline in commercial property values of up to 40%, a crash akin to the 2008 financial crisis. Fred Cordova, CEO of Corion Enterprises, believes the crash is already underway. But while most firms agree the office sector is under stress, some are more optimistic than others about the outcome for commercial real estate. For example, UBS Global Wealth Management asserts the problem is manageable, and a crash resembling 2008 isn’t likely.  Learn more about your ad choices. Visit megaphone.fm/adchoices

We all hate market meltdowns, and this one was bound to happen. We just didn’t know when, exactly how, or how bad things would get. But we now know the answer to the first two of these three questions.  When? Currently underway. How? See below. How bad? No one knows. The purpose of this article is to explore what led up to the unfolding meltdown of what is happening now. Then, based on the 10 items I consider below, investors can draw conclusions about what may happen next and how bad this could get.   Recently, the Wall Street Journal reported that thousands of investors lost millions of dollars in a series of multifamily deals. The article highlights a mid-level Dallas IT worker who built a 7,000-unit multifamily portfolio in just four years. Unfortunately, he lost 3,200 units to his lender in Q1, defaulting on $229 million in debt and losing a boatload of syndicated investor capital.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Another famous name is weighing in on the housing market. A few weeks ago, it was Elon Musk claiming that home values would plummet as commercial real estate faced headwinds. Now, it’s Barbara Corcoran—albeit a more experienced source when it comes to real estate—touting the opposite. The statements came in a recent interview Corcoran did with Fox Business’s Liz Claman. “There’s no relationship between the commercial and the residential,” Corcoran told her. “The residential is starting to rebound, but the commercial is in trouble.” “So Elon’s wrong?” Claman asked. “Of course he’s wrong,” Corcoran said. “Yet again.” Learn more about your ad choices. Visit megaphone.fm/adchoices

The record-breaking rent growth of the last several years is showing signs of fading. Earlier this month, Redfin reported that rent growth slid 0.6% on a year-over-year basis for the first time since the pandemic. This is, of course, a modest decline in rents, but it begs the question: will there be a bigger correction or even a crash in rents? Or is it possible that rent growth will pick back up in the coming years? Let’s dig in.  Where Rent Growth Stands When we talk about rent growth in the U.S., the normal situation is for rent growth to be around or slightly higher than the pace of inflation. During the 2010s, most markets had an average annual rent growth of 3-5%. But during the pandemic, as we all know, this changed, and rent growth peaked at around 17.5% on a national basis, with some individual markets seeing annual rent growth top 30%. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate investors want to avoid unnecessary taxation, and while there are many clever ways to reduce your effective tax rate, it can be difficult to simultaneously achieve robust asset protection. That’s because accountants and attorneys each have knowledge gaps that prevent them from seeing the full picture, according to Riley Neilson, real estate investment manager and founder of Flying ‘N’ Group. His business brings together lawyers and CPAs to help his clients achieve the delicate balance between minimal taxation and maximum asset protection.  Liability lawsuits against businesses are increasing in number and severity year-over-year, with businesses now spending an average of $1.2 million each year to counter litigation. Mom-and-pop real estate businesses are not immune, even those that do everything by the book, work to reduce risks and never cause intentional harm.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Commercial real estate is melting down fast. Home values next.— Elon Musk (@elonmusk) May 29, 2023 That’s what Tesla and SpaceX founder Elon Musk tweeted last week in response to a stream of tweets from venture capitalist David Sacks. In that series, Sacks claimed that Fed rate hikes and the increased borrowing costs they led to are causing a slew of problems in the financial world, including a soon-to-be crash in commercial real estate. That latter part could certainly be possible. In fact, JPMorgan estimates that nearly $450 billion in commercial real estate debt could go into default this year. Meanwhile, Morgan Stanley Wealth Management forecasts a 40% peak-to-trough decline in CRE prices, increasing the risk of default even further. Does that mean a similar drop in home values is coming, too? Let’s take a look. Learn more about your ad choices. Visit megaphone.fm/adchoices

Is it still possible to find undervalued commercial real estate investments?  I believe it is, and I’ll prove it by telling you a remarkable story about a recent investment we made in a Nevada self-storage opportunity.   We’re in a Transitioning Market We are in a time of transition. From a booming market to a shaky market. From historically low interest rates to the highest we’ve seen in years. From eager buyers, sometimes willing to overpay, to sidelined buyers, waiting to see where the falling knife lands.   Great cash-flowing deals have gotten hard to find. And with higher interest and cap rates, even harder to pencil. Times like this require more due diligence than usual and a dedicated acquisition team turning over every stone.  Learn more about your ad choices. Visit megaphone.fm/adchoices

According to a recent report by Fannie Mae, there are concerns about the housing market.  The U.S. housing market has experienced some ebbs and flows this year, but it’s undoubtedly been in correction mode. With elevated interest rates and tightening lending practices, Fannie Mae is forecasting a “modest” recession with a soft landing starting in the second half of 2023. Learn more about your ad choices. Visit megaphone.fm/adchoices

Federal eviction moratoriums lasted nearly 18 months, from early 2020 through late August 2021. Even after the federal eviction moratorium ended, many cities and states continued preventing landlords from enforcing their lease contracts.  Some cities went so far as to use federal tax dollars to give free legal aid to tenants to fight lawful evictions long after moratoriums ended. And that’s even after taxpayers paid for nearly 10 million rent assistance payments, albeit months after it did many landlords any good.   But that’s behind us, right? Never to happen again? Learn more about your ad choices. Visit megaphone.fm/adchoices

Commercial real estate is facing a lot of stress. Many analysts and investors, including myself, expect to see significant value declines across much of the sector in the coming year. But one particular type of commercial real estate is facing the biggest crash potential of all: office space. And even if you don’t currently invest in office space, the future of this huge asset class will have large implications for the broader real estate market and the economy as a whole. The idea that the office market may crash makes sense on a logical level, as more people are working from home, but from a data perspective—it looks even worse.  Since 2019, net absorption, a crucial indicator that measures the balance of supply and demand for office space, has turned starkly negative. In this time frame, tenants have given up a whopping 140 million square feet. 25 million of that lost square footage has come in 2023, so there’s no sign of slowing down. In fact, evidence points to this horror show continuing, with another 67M square feet of new supply projected to come online this year—that’s the most new office space coming online since 2009. So there is a huge glut of supply flooding the market, and it’s happening at the worst possible time—when demand is declining.  Learn more about your ad choices. Visit megaphone.fm/adchoices

By most accounts, the Fed will hold steady after raising the federal funds rate by a quarter point to 5.25% at the beginning of May. A Reuters poll found that 102 of 116 economists thought the Fed was done raising rates this year, and 30 believed they would lower it. With inflation down from its high of over 9% last year to 4.9% in April of this year, it might seem like the Fed should reverse course now. But as Michael Gapen, chief economist at Bank of America, noted, “Inflation is more than double the Fed’s target rate, and the unemployment rate is below every FOMC participant’s estimate of the natural rate.”  Still, with inflation halving over the last nine months, several recent bank failures, and warning signs of a recession—that many, including myself, have been predicting for a year—still being present, there are a lot of reasons to think the Fed will begin reversing course on rates. If not at the end of 2023, then probably in 2024. Learn more about your ad choices. Visit megaphone.fm/adchoices

Detroit, Philadelphia, Cleveland, and Houston. Those are the only four remaining cities where it costs less to buy a typical home than to rent, according to a new report from Redfin. The analysis compared March home values and rental estimates assuming a 5% downpayment and a 6.5% mortgage rate for the 50 most populous metro areas in the United States. Back in January 2022, an analysis from Realtor.com showed that buying a home was more affordable than renting in more than half of the largest metros. But mortgage rates have increased since then while rent prices have flattened nationally.  Naturally, the question for investors is whether buying a home can yield cash flow now that housing payments (including insurance and property taxes) exceed fair market rent in most markets. Spoiler: The long-term rental strategy is still viable—but investors face more challenges.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Your offer was just accepted on a beautiful property in Central Florida just a few miles from the coast. The income you will make from this short-term rental will fund your early retirement plans. Everything is humming along relatively smoothly—until you get your quote back for the insurance. Now, you feel like you just got punched in the gut.  The cost of the insurance will certainly take a chunk out of your profits, but after talking to an agent, you count yourself lucky because had you been located just a few miles south, you wouldn’t even be able to find a carrier to cover you. What’s going on in Florida? What about California and Texas? If it seems like finding affordable insurance in some areas is getting harder and harder, your thoughts are correct.  Capacity is limited, and prices are going up. Many carriers are pulling out of markets entirely. But why?  Learn more about your ad choices. Visit megaphone.fm/adchoices

Atlanta, colloquially referred to as the “capital of the South,” is a large and growing market with interesting investment opportunities. The metropolitan area, officially defined as Atlanta–Sandy Springs–Alpharetta, has a population of over six million and hosts the headquarters of many well-known companies such as Coca-Cola, CNN, and Chick-Fil-A (all of which oddly start with the letter “C”), and has an excellent sports scene anchored by the Hawks (NBA), Braves (MLB), and Falcons (NFL). In this article, we’ll cover Atlanta’s housing market and economy and offer investing tips by an expert in the city. Learn more about your ad choices. Visit megaphone.fm/adchoices

Passive activity loss rules are complex. These rules prevent you from using tax losses from your rentals to offset your active income. A foundational understanding of the rules will save you thousands of tax dollars over your investing career.  And knowing how to review your tax return to ensure these rules were successfully applied is an investor superpower. For instance, if you opened your tax returns, can you find the amount of suspended passive losses carried forward to next year? And can you easily determine if the losses from one rental offset the income from another passive activity you own? Knowing the amount of suspended passive losses you are carrying forward is critical to decision-making around buying and selling rentals.  Unfortunately, few investors know how to monitor this information. In this article, I will tell you about the passive activity rules and how to track suspended tax losses from your rentals. Learn more about your ad choices. Visit megaphone.fm/adchoices

Managing your real estate investment portfolio gives you more control over your assets and risk exposure. You can monitor the growth strategy of your real estate business so that it always aligns with your goals, which can change as you add alternative investments to your portfolio. While successful property management can vary among investors, there are key strategies that can enhance your skills as a real estate portfolio manager. These strategies can help you effectively manage your investments, mitigate risks, and optimize your portfolio’s performance. Learn more about your ad choices. Visit megaphone.fm/adchoices

Starting a real estate business can be a lucrative venture. Real estate investment provides various avenues for building wealth and achieving financial freedom, such as generating passive income through rental properties or earning profits through property sales. However, there is much to learn about real estate investing before closing deals.  Real estate investing (REI) offers endless opportunities for growth and success. But, starting a real estate business requires planning, preparation, building a real estate team, networking, and business knowledge. Although starting up in real estate sounds challenging, the rewards can be great.  This article explores the key steps for starting a successful real estate business. From creating a business plan to building a strong personal network, you will learn about the tools and resources you need to become a successful real estate investor. Learn more about your ad choices. Visit megaphone.fm/adchoices

Starting a real estate business can be a lucrative venture. Real estate investment provides various avenues for building wealth and achieving financial freedom, such as generating passive income through rental properties or earning profits through property sales. However, there is much to learn about real estate investing before closing deals.  Real estate investing (REI) offers endless opportunities for growth and success. But, starting a real estate business requires planning, preparation, building a real estate team, networking, and business knowledge. Although starting up in real estate sounds challenging, the rewards can be great.  This article explores the key steps for starting a successful real estate business. From creating a business plan to building a strong personal network, you will learn about the tools and resources you need to become a successful real estate investor. Learn more about your ad choices. Visit megaphone.fm/adchoices

The real estate industry is dynamic and ever-evolving. Market conditions are constantly influenced by factors like supply and demand, interest rates, and economic cycles, to name a few. Any of these factors can cause your property values, rental income, and investment opportunities to fluctuate. Before real estate investment trusts (REITs) were established in 1960, only ultra-wealthy investors could invest in high-income-producing properties like commercial real estate and apartment buildings. Now thanks to the internet, everyday investors can join real estate investment groups (REIGs), invest in real estate debt, and easily access different strategies for house hacking, house flipping, and real estate wholesaling. In addition, with sites like Airbnb growing in popularity, many investors have made whole careers out of investing and managing short-term rental properties. Learn more about your ad choices. Visit megaphone.fm/adchoices

A sound understanding of how to calculate debt-to-income ratio is critical to your overall financial health. Rather than guess and hope for the best, this blog post breaks down everything you need to know about the debt-to-income ratio.  What is a Debt-to-Income Ratio? Debt-to-income ratio (DTI) is a financial metric that shows how well you manage debt repayment in relation to your total income.  In short, it’s the percentage of your gross monthly income that goes towards paying your monthly debts. Lenders use this to gauge your creditworthiness and risk level, influencing whether you get approved for loans and the interest rates you’re offered.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you considering selling a rental property? If so, using the right strategies can help you profit from the sale of an investment property and reduce your tax liability. Marketing the rental property, deferring capital gains taxes, and having a robust sales strategy are a few ways to sell an investment property for the best price. Investment properties can be a reliable source of income to build personal wealth and enjoy recurring cash flow. However, circumstances change, and you may need to sell a rental property. But many variables affect your success in the selling process. Therefore, selling an investment property requires careful planning and execution.  This article examines the top strategies and tips to help maximize your profits and make selling a rental property as smooth as possible. Learn more about your ad choices. Visit megaphone.fm/adchoices

Every journey begins with a single step, and real estate investing is no different. Now that you’ve gotten your feet wet and learned a few lessons from your first investment, it’s time to grow your mindset andportfolio. Whether you’re an active investor looking to achieve financial independence or a passive investor wanting to earn extra income, expanding your business requires changing your goals.  If you just want to earn a little money and call it a day, that’s fine. However, if you’re interested in long-term success, you’ve got to think a little bigger. Congratulations on your early success! Now it’s time to scale. Learn more about your ad choices. Visit megaphone.fm/adchoices

Just because you own real estate doesn’t mean you have a real estate portfolio. It takes time, and you must be intentional about your real estate investing. A solid strategy guiding your buying and selling habits can help you build your portfolio and track your results. Once you have a strategy for buying an investment property and have created a real estate portfolio demonstrating your ability, you can scale your real estate business and achieve your financial goal. Your real estate portfolio proves to other real estate investors and lenders that you have a record for success. Use this guide to build a real estate portfolio to help you scale your investments and grow your business. Learn more about your ad choices. Visit megaphone.fm/adchoices

Deciding when to sell an investment property can be one of your most challenging decisions. The problem is that real estate markets are constantly changing. Selling a rental property too soon could mean missing out on a property boom. However, holding on to a dud property may result in significant financial losses. When is the best time to sell an investment property? It all comes down to timing. Market conditions, tax breaks, property appreciation, investment goals, and personal circumstances can affect your decision. And sometimes, a combination of factors can dictate the right time to sell a rental property. Whatever the reason, deciding when to sell a rental property or other real estate investment can be tricky. Even smart real estate investors cannot predict local housing markets with accuracy. This article presents 15 compelling reasons why it may be the right time to sell your investment property. Learn more about your ad choices. Visit megaphone.fm/adchoices

The 1% rule is a real estate investment guideline indicating the minimum monthly rent you must charge to break even on a rental property. The rule states that your rent should be at least 1% of your property’s sale price.  While the 1% rule can be a helpful metric for investment properties, it’s meant to be more of a filter than anything. You should take it with a grain of salt, especially when accounting for current home prices. This post will detail the 1% rule, what it doesn’t account for, and other metrics you should consider.  Learn more about your ad choices. Visit megaphone.fm/adchoices

News of a potential housing market correction often causes many Americans to be concerned about the global economy, but this concern may be unfounded. A correction isn’t necessarily a bad thing. It may help to improve housing demand and inventory when property values increase faster and higher than the norm. Housing market corrections impact people differently, and there are both pros and cons to consider depending on whether you are buying or selling. For the real estate investor, a market correction may represent a great opportunity to purchase a property at a discount and grow your investment portfolio. Learn more about your ad choices. Visit megaphone.fm/adchoices

There are plenty of platforms that short-term rental real estate investors can use to market their space, but two of them make up the lion’s share of the industry: Airbnb and VRBO (Vacation Rentals By Owner). While their primary functions are similar, Airbnb and VRBO have many key differences in the types of properties available, target audiences, fees and commissions, and much more.  Let’s match Airbnb vs. VRBO to determine which platform best suits your investment strategy. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re wondering how to grow your real estate business, you must learn about some of the most successful strategies for scaling your investment portfolio. Taking the time to educate yourself on the real estate world and what others have done to achieve success is a good first step. But to take your real estate portfolio to the next level, you must implement scalable techniques with proven results. When you create a well-defined plan and take action, you’ll witness substantial growth and progress in your real estate business. This article will explain key concepts and proven strategies successful business owners use across industries. By implementing these techniques, you can scale up your real estate portfolio and achieve remarkable growth. Learn more about your ad choices. Visit megaphone.fm/adchoices

Did you know you can add a layer of privacy to your entire portfolio through anonymous ownership on public filing for your assets? Holding property in your name makes it easy for anyone to find you through a simple public record search, exposing you to potential frivolous claims from upset tenants. However, by adopting anonymous ownership strategies, you can make it more difficult for them to identify and target you, providing a level of protection against such lawsuits. In this post, we’ll talk about asset protection strategies you should do, the many reasons why asset protection is vital for real estate investors, how to set up asset protection for your rental properties, and more. Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you looking at a real estate purchase agreement and trying to decipher its essential elements and terms? If so, that is understandable. A purchase agreement for buying or selling property involves complex legal expressions and procedures. So, it’s easy to get confused with terms like disclosures, sale inclusions, contingencies, and earnest money deposits when talking about real estate transactions.  Understanding the key elements and terms in a real estate purchase agreement is crucial for buyers and sellers. After all, signing the purchase agreement makes it a legally binding document. And trying to terminate a sales contract because you misunderstood key terms will not cut it with the other party.  Learn more about your ad choices. Visit megaphone.fm/adchoices

When you successfully manage your property manager, you’re saving time, minimizing stress, maximizing profits, and giving yourself the opportunities to grow as a real estate investor. If you fail to hire a good property manager or establish clear expectations, your investment can quickly become stressful and costly. Whether you’re a newbie, a seasoned investor, or are considering hiring or switching property managers, we’re here to share our insights on managing a property management company. In this post, we’ll explore the pros and cons of this $114.9 billion industry, share ten tips for managing property managers, and help you determine if hiring a property management company is right for you. Learn more about your ad choices. Visit megaphone.fm/adchoices

When you successfully manage your property manager, you’re saving time, minimizing stress, maximizing profits, and giving yourself the opportunities to grow as a real estate investor. If you fail to hire a good property manager or establish clear expectations, your investment can quickly become stressful and costly. Whether you’re a newbie, a seasoned investor, or are considering hiring or switching property managers, we’re here to share our insights on managing a property management company. In this post, we’ll explore the pros and cons of this $114.9 billion industry, share ten tips for managing property managers, and help you determine if hiring a property management company is right for you. Learn more about your ad choices. Visit megaphone.fm/adchoices

For some newbies, reading a real estate agreement can seem like reading a foreign language. The contract is typically full of confusing legal jargon that doesn’t make sense. But navigating contracts in real estate transactions is crucial for becoming a successful investor.  The term “real estate contract” refers to several types of agreements or contracts to “seal the deal.” So, whether you are buying, selling, transferring, or leasing property, a legally binding document is always part of the sales process. Therefore, it’s vitally important you understand how real estate contracts work and the common terms used in property agreements. This article aims to provide a comprehensive overview of different types of real estate contracts. Additionally, you will learn common real estate investing terms to help you make informed investing decisions. Learn more about your ad choices. Visit megaphone.fm/adchoices

Whether you’re building or rehabbing your investment property, the structure will require an inspection during the construction project—and you’ll most likely have more than one. Familiarizing yourself with the building inspection process can help investors better prepare for inspections, ensure compliance with building codes and regulations, and avoid costly mistakes that may result in failed inspections. Building inspectors thoroughly examine the property to ensure that it meets all safety and code requirements, the construction follows the approved building plans, and all necessary permits have been obtained. You’ll need to get their final approval before occupancy of your building takes place. Let’s discuss what a building inspection is, how to choose the right inspector, and what to do if you fail an inspection so you have all the details you need to complete the building permit inspection process. Learn more about your ad choices. Visit megaphone.fm/adchoices

The time value of money states that the money you have today is worth more than the money you’ll have at a future date. The two main reasons why are your potential earning capacity and inflation. It’s why people make investments instead of letting their money sit in their checking accounts. It’s why Mad Men’s Peggy Olson didn’t balk when she was offered $19,000 per year in 1970 (the equivalent of about $149,500 today).  As a real estate investor, understanding the time value of money is critical because it’ll help you make informed financial decisions that will impact the profitability of your investments. To help you make these decisions, let’s explore the time value of money, including how it works, how future values, present values, and compounding periods fit into the equation, and include some real-life investing examples to show you how to make your money work for you over time. Learn more about your ad choices. Visit megaphone.fm/adchoices

The time value of money states that the money you have today is worth more than the money you’ll have at a future date. The two main reasons why are your potential earning capacity and inflation. It’s why people make investments instead of letting their money sit in their checking accounts. It’s why Mad Men’s Peggy Olson didn’t balk when she was offered $19,000 per year in 1970 (the equivalent of about $149,500 today).  As a real estate investor, understanding the time value of money is critical because it’ll help you make informed financial decisions that will impact the profitability of your investments. To help you make these decisions, let’s explore the time value of money, including how it works, how future values, present values, and compounding periods fit into the equation, and include some real-life investing examples to show you how to make your money work for you over time. Learn more about your ad choices. Visit megaphone.fm/adchoices

Applying for an investment property loan requires understanding the terms used in the lending industry. This is especially important if you are considering taking out a hard money loan. Hard money loans are typically used for short-term financing and are secured by real estate.  Let’s take a look at 10 hard money terms to look out for when applying for a loan. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate syndication can be a lucrative way to enter the real estate investing business. Syndication in real estate gives you a share in investment properties with all the perks—passive income, tax breaks, and property appreciation. You also avoid the hassle and stress of being a landlord. So, suppose you want to invest in property without spending much capital. In that case, syndicated real estate could be for you. However, as with any investment strategy, there’s much to learn before setting up a real estate syndicate. This ultimate guide to real estate syndication will help you unlock the potential of this potentially profitable investment opportunity. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re like many property owners, you want to use your investment property to make rental income. But before you can get to the cash flow part, you likely need to rehab and prepare the rental property for tenants. Rehabbing a home isn’t the same as preparing a home for rental, though. Not all homes require rehabbing, but all rental properties must be prepared for prospective tenants. There’s a lot to know about being a homeowner with rental properties, and landlords must understand their rights and tenants’ rights to meet any legal requirements when preparing a home for a new renter. These details can guide you through rehabbing your rental property and getting it ready for new tenants so you can get your home onto the rental market sooner. Learn more about your ad choices. Visit megaphone.fm/adchoices

Water damage and moisture issues can be anything from a pipe leak to a foundation issue. However, if not taken care of promptly, it can lead to mold growth and cause further structural damage.  If the home inspection report finds water damage or moisture issues, it’s not usually a deal breaker. Once the homeowner hires a water mitigation company to address the damage and prevent further problems, the issue is usually resolved. The cost of water damage varies significantly based on the extent of it. Even if it’s a hefty price tag, it’s worth paying for if it means your health is at risk and circumventing your real estate transaction. Learn more about your ad choices. Visit megaphone.fm/adchoices

Home inspections are crucial in identifying potential property issues that may not be visible to the naked eye. By providing comprehensive information about the property’s condition, home inspections help homebuyers make informed decisions about whether or not to purchase the property. Home inspectors will generally cost you between $300 and $500. However, owning a larger home or requesting additional inspection services may cost you a little more. The cost also differs based on the property’s location. Whether you’re a real estate investor or an aspiring homeowner, you should consider a home inspection a necessary expense. Research shows that 86% of buyers who got their desired home inspected learned of at least one problem that required attention.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Several days ago, the Wall Street Journal published an article about real estate syndicator Applesway Investment Group (owned by real estate entrepreneur Jay Gajavelli), which lost more than 3,000 apartments across four rental complexes that went into foreclosure.  What led to one of the largest commercial real estate bursts since the financial crisis of 2008? In a nutshell, Gajavelli’s company held floating interest rate loans where payments ballooned. Inflation brought higher expenses, but rental revenues could not compensate for the difference. Thus, bills became overdue, ultimately leading to these properties’ foreclosures. Thousands of individual investors looking to generate passive incomes (without being a landlord) have now been left empty-handed.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Rent prices tend to increase in spring and summer as more people seek new rental homes, but lower demand alongside new inventory keeps rent prices nearly flat nationally. In some states, however, an influx of new residents is causing median rents to grow, according to a May report from Rent.com. The trend is clear: People are moving to areas with strong economies that still have affordable rent and housing prices. In the states where rents are rising the fastest year-over-year, the median rent is still relatively low compared to the national median. Nationally, rents were up just 0.29% year-over-year in April. The month-over-month decrease from March to April was -0.23%, following a 1.77% uptick from February’s low to March. The national median rent now sits at $1,967. Monthly declines have slowed, but that may be due to the season—there’s no telling whether the national median rent has ended its descent. In nearly 79% of markets, however, rents are still growing year-over-year. And in some Southern and Midwestern states, rents are rising at double-digit rates.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Forget basketball and even the weather—when anyone mentions the Miami “heat” in recent years, it’s more likely to be real estate talk. But in 2023, when interest rates have spiked, and the markets are showing signs of slowdown and seasonality returning, is Miami still the hottest place to own a residential investment property? What about Central Florida’s boom cities Orlando and Tampa? Or are the better deals up north in Jacksonville? In our third and final installment of market snapshots, BiggerPockets has teamed up with Belong to look at the Sunshine State. If you want guaranteed rent every month in popular cities like Miami, Orlando, Tampa, and Jacksonville—check out if you qualify for BelongX, the new app changing the way residential investors manage their rental homes.  Only you know your financial situation and what you can take on, so this report is designed to support your research by presenting stats on median pricing, rents, and the current state of the market in Florida. The data published is accurate as of April 2023.  Learn more about your ad choices. Visit megaphone.fm/adchoices

If you were to ask most investors who they thought the biggest player in the real estate industry would be, the name Sam Zell would be many’s first thought. The legendary real estate investor and entrepreneur passed away recently at the age of 81.  His legacy is vast. Many have referred to him as the “grave dancer” because Zell took seemingly dead assets and breathed new life into them. Learn more about your ad choices. Visit megaphone.fm/adchoices

Institutional investors (those who own 1,000 or more homes) have been selling off their inventory in 2023. These big investors have reduced their buying activity by nearly 80% from Q4 of 2022 compared to Q4 of 2021, according to John Burns Research and Consulting.  This change in activity has led to 90% fewer purchased homes in January and February of this year than in the first two months of 2022.  This is a sharp contrast to the pandemic purchasing of houses in the U.S. These were times when it was easy to borrow money and interest rates were at rock bottom—coupled with rising rents and soaring home prices making it a perfect storm for institutional homebuyers to add to their portfolios. So, why has the trend reversed?  We’ll take a closer look at the trends of institutional homebuyers, the reasons why they are backing out, and what this means for individual investors. Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s difficult to predict what will happen in the housing market, even during normal times. Given that the economy is anything but normal right now, predicting what will happen in the housing market over the coming months is pretty much a fool’s errand. But it’s important to have an investing thesis, and it’s also fun, so I will try anyway.  Below I will share my five predictions for the housing market in the summer of 2023 and three important indicators to watch that could change my predictions completely.  Learn more about your ad choices. Visit megaphone.fm/adchoices

For decades, when investment advisors talked about “diversifying your portfolio to include real estate,” they typically meant adding REITs to your stock portfolio. Don’t get me wrong, real estate investment trusts (REITs) have their advantages. They’re extremely liquid and easy to buy or sell with the click of a button in your existing brokerage account. And you can invest for the cost of a single share, which could mean investing $15 instead of $50,000.  But do publicly-traded REITs offer true diversification from the stock market at large? Perhaps not as much as you’d like to think. Learn more about your ad choices. Visit megaphone.fm/adchoices

The financial press is abuzz again about the debt ceiling deadline and the risks of another government shutdown and perhaps a catastrophic default on U.S. debt if an agreement cannot be reached. The ceiling (currently sitting at $31.4 trillion) is set to be hit on June 1.  The Washington Post is particularly apoplectic, “Federal workers furloughed. Social Security checks for seniors on hold. Soaring mortgage rates. A global financial system sent reeling…  “Leaders from Congress and the White House are trying to forge an agreement to lift the federal debt ceiling, with only a few weeks before the Treasury Department may no longer be able to avert an unprecedented U.S. default. If they fail, and the government can’t meet its payment obligations, economists and financial experts predict chaos. “’It would be a lethal combination,’ said Mark Zandi, chief economist at Moody’s. ‘You can see how this thing could really metastasize and take down the entire financial system, which would ultimately take out the economy.’” Well, that sounds rather bad. So, is this something real estate investors should be concerned about, and if so, how should one prepare? Let’s first start with a quick overview of what’s going on and how such “fiscal cliffs” have gone in the past.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Tampa, Florida, is one of the fastest-growing cities in the U.S. and boasts a strong housing market that’s held up to correction pressures through this point. With a diverse economy, large tourism sector, and growing population, investing in the Tampa Bay area is a no-brainer for anyone looking for long-term growth. Population and Labor Market Located in the southwest portion of Central Florida along the “I-4 Corridor,” the Tampa Bay metropolitan area consists of three cities: Tampa, Clearwater, and St. Petersburg. As of 2021, the total population tracks at just over 3.2 million, making it the 18th largest metro in the country.  Learn more about your ad choices. Visit megaphone.fm/adchoices

You never know when you might change your business for good. One day at breakfast, I met with a builder with almost $100MM on the street. He had incredible development ideas, with joint venture potentials that promised amazing opportunities for my business. Then, I hopped on a phone call with my partner on developing our client strategies for investors in the United States and internationally. And just before noon, I ate lunch with an entrepreneur who created, built, grew, and sold his business it to a multi-national company in the hundreds of millions. He is now finding ways to connect people with ideas all over to help change the world. Talk about the meeting of the minds. There were enough ideas talked about just that day to create a gazillion new businesses, rabbit holes, and crazy plans. I was able to connect, learn, and find ways that we could both help each other and take action at the same time. Learn more about your ad choices. Visit megaphone.fm/adchoices

Setting great goals is hard. Achieving them is even harder.  How many times have you made a New Year’s resolution (aka goal) and abandoned it by February? Maybe you intended to do one of the following: Lose 30 pounds Start eating healthy Spend more time with family Buy your first investment property But all too often I see newbie—heck, even seasoned!—investors set less-than-stellar real estate investing goals.  They might be something like: My goal is to buy 10 homes this year (meh…) My goal is to buy 10 $100-$150K homes this year (better!) My goal is to buy 10 $100-$150K homes in Kansas City / Indianapolis / Birmingham that each yield $200/monthly in cash flow after all expenses (good… but still lacking) I’ll tell you a secret. If you’re failing to achieve your goals, it’s probably because you didn’t set the goal correctly in the first place. Learn more about your ad choices. Visit megaphone.fm/adchoices

When did we stop growing like we used to when we were kids? Remember being young and absorbing knowledge like a sponge? Growing both mentally and physically like anything is possible—believing the future was limitless. This growth doesn’t have to stop. Our future can still be limitless. The truth is: we all limit ourselves by our own imagination to some extent. Luckily, there’s a way to break this bad habit! By setting goals and focusing on them day after day, you’d be surprised how much you can progress year after year. Here is how to set proper goals in order to achieve your dreams. Learn more about your ad choices. Visit megaphone.fm/adchoices

Of all the rental properties I’ve ever owned, there is one utility bill I’ve always gotten stuck paying out-of-pocket. The water bill. There are a few reasons why the water bill always ends up being my problem. In my area, unpaid water bills go as liens on a property (instead of collections to tenants), so if my tenants ever stop paying—it hurts me, not them. Water bills in my city are read quarterly (not monthly like gas and electric), which makes it very difficult to track which tenants should be paying which portions of the bill when one moves out and another one moves in. Most cities don’t have the infrastructure to deal with “landlord situations” very well. Frequent tenant transfers, notifying landlords if water is shut off, transferring to landlords when a tenant move out—it’s a hassle to make tenants pay this bill directly. A lot of multifamily landlords have to deal with this issue. Water is one of those ever-present utilities that is always needed, no matter who your tenants are, what time of year it is, or what region of the country you’re in. Learn more about your ad choices. Visit megaphone.fm/adchoices

October is the perfect time for snack-size candy, questionable costumes, and entertaining your own worst fears. And for those of you (my mother) who love a good horror story, Airbnb news may definitely feed those fears (more on that later). But for those of you curious about Airbnb-ing—but aren’t sure—who would like to hear about all the stuff that doesn’t make the news (but could potentially be a nightmare), we’ve listed our personal worst Airbnb stories below. Learn more about your ad choices. Visit megaphone.fm/adchoices

It all started when a nice gentleman called my office and asked me if the long-term rental advertised on Craigslist was legitimate or not. I explained to the gentleman I had no idea what he was talking about and that my company did not advertise anything on Craigslist. He went on to tell me what the ad said and even showed me where I could view it for myself. When I went on Craigslist, I was shocked to find that a rental house my wife and I owned was being advertised on Craigslist. A scam artist was offering the house for $1,000 a month (we rent the house out for $2,800 a month). He wrote in the article that he received a really nice promotion at work, and he was not going to be back in Orlando for a couple years. He wanted his good fortune of landing such a good promotion to help another family out… what a joke. Learn more about your ad choices. Visit megaphone.fm/adchoices

I am a member of the National Association of Realtors. My local association offers classes to help keep us up to date on all the latest real estate happenings. When a class about real estate scams was listed, I jumped at the chance to sign up. This particular class was sponsored and taught by Heritage Title Company, so the stories are coming from the title company point of view. They also illustrate why title insurance is so important and how an owner’s policy in addition to a lender’s policy can help protect you and your investment. Learn more about your ad choices. Visit megaphone.fm/adchoices

After a dozen years in the real estate investing business, one thing I have learned is that mistakes will be made. I made some pretty good ones when I first started out, and I am still making and learning from them today. Mistakes are a part of life and are something we all have to learn to deal with. Looking back over the years, I see that many of these mistakes were actually good things, as they taught valuable lessons and offered even more valuable experience. Newbies to this business are unfortunately more prone to making mistakes simply because of their lack of experience. These mistakes can cost them a lot of money and put a bad taste in their mouths for real estate investing. I have seen more than one person make a serious mistake that they really are never able (or want) to recover from. Hopefully this post can save some of the newbies out there from making a serious mistake that kills their dreams of being a successful real estate investor. There are many types of mistakes that can be made, but in thinking about it, they seem to fall into six general categories. Learn more about your ad choices. Visit megaphone.fm/adchoices

Behind housing and transportation, food is an American’s third largest expense at 12 percent of overall spending. In other words, a person who makes about $50,000 per year will spend approximately $6,000 on food. This number will vary based on the amount of people you are supporting. But for the average, single American, let’s assume $6,000 per year, or $500 per month. This article is going to show you a way to slash that in half. Yes, $3,000 per year, $250 per month, $8 per day, or $2.67 per meal—all while eating healthy! Although this article has been crafted with the 20-something-year-old American in mind, I believe that anyone in pursuit of financial independence, regardless of their familial status, can benefit from a few of the tips in this post. Learn more about your ad choices. Visit megaphone.fm/adchoices

There are literally thousands of real estate books on the market today, and trying to separate the best from those that can easily be passed on can be tough. To help, BiggerPockets has compiled a list of our top books in the real estate genre, based on popularity from our members throughout the BiggerPockets Forums, Blog, the BiggerPockets Facebook page, and more. Many of these books have changed lives (and many have even changed mine)—and we hope they will do the same for you. Learn more about your ad choices. Visit megaphone.fm/adchoices

As we approach the new year, I’ve come to realize that in my own life, there have been several things throughout my past that have been extremely toxic to my health and well-being—and to the health of my business. It’s in my heart to share some of these because I know a lot of the readers here on BiggerPockets are new, and I want you to be able to spot these things a mile away! It’s my desire to help you avoid the many mistakes that I’ve made because I want you to be far more successful than I have been. What good is life experience if I can’t share it with those who need it most? Learn more about your ad choices. Visit megaphone.fm/adchoices

With a diverse community as big as BiggerPockets, it’s easy to get lost or overwhelmed by the amount of Forum posts, blogs, people and information being shot at you as if out of a howitzer cannon. It can be daunting! I want show that it’s easy to attack BP with a strategy to get the most out of the time you spend here and make a TON of money in the process. Why just aimlessly surf if you can implement some tips below and start connecting with players in your market and start doing deals (or do more deals!)? For everyone from the newbie sitting on the sidelines to the old veteran who has 100 deals under his belt, there are many ways you might not be using BP to its fully powerful potential. Learn more about your ad choices. Visit megaphone.fm/adchoices

Cultivating a network of professional contacts is arguably one of the best things you can do for your business — and for yourself. Working in real estate, my sphere of influence is what drives my business. Whether you are a wholesaler, flipper, or buy and hold landlord, the better you are at networking, the more your business will thrive.  Here are some tips I’ve put into practice to build my network. As with anything worth doing, it takes time, but you will begin to reap the benefits before you know it — I definitely did!         Learn more about your ad choices. Visit megaphone.fm/adchoices

Everyone has their own unique experiences in real estate investing and building a portfolio of properties. Some of us develop a thriving local (or not so local) real estate empire, while other investors fail to complete their first real estate investment. Many times we sabotage our own businesses. Ultimately, you are in charge of your successes and your failures. As I write this, I understand that I do not speak for the entire human race or even other investors. However, I have most definitely changed as a human being (and real estate investor) over the past 15 years. Below are five traits that I have attempted to cut from my life. I use the word “attempted” because this is an ongoing process, and sometimes I still make mistakes. Learn more about your ad choices. Visit megaphone.fm/adchoices

What makes someone successful? Skill?  Talent?  Right place, right time?  What if I told you that I believe “luck” is one of the most important traits.  Crazy, right?  Hear me out. It seems that many of the most successful people of all time attribute their success at least partially to “luck,” to being “blessed,” or to having great fortune in one or many key parts of their lives or businesses. And they are right! Key connections, funding, inspiration, and breakthroughs often come about by chance, rather than through the direct planning or efforts that we take to get there. In fact, luck is defined as “success or failure apparently brought by chance rather than through one’s own actions.” Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’ve spent any length of time trying to “succeed” in life, then you’ve probably turned to self-help books at some point. Most real estate investors have sought out lists of recommended self-development books. Many titles appear on list after list. Once you notice those titles, you might be tempted to read a good chunk of these suggested books and to take the advice of these authors. You’ll find yourself motivated and confident—but more than likely no closer to your goals than before reading them. Why is that? Learn more about your ad choices. Visit megaphone.fm/adchoices

When I start reading a book, I don’t try to internalize it line by line. It’s too overwhelming to attempt to retain every bit of wisdom packed inside the pages. Instead I simply try to take note of one big concept from each book and make a point of implementing it in my life. I’ve found this approach of focusing on LESS actually allows me to retain MORE—and therefore effect a greater amount of real change in my life. Here are three impactful productivity-related books, as well as the one big lesson I took away from each and put to use. Learn more about your ad choices. Visit megaphone.fm/adchoices

I can already feel the hate mail coming my way. The “you have to live” talks. The “you’re missing out on the best times of your life” talks. That’s OK, though. I like those talks. In fact, I love those talks. Each time someone tells me, “You have to live,” it reassures me that I am living like no one else now, such that I can live and give like no one else later. A couple of years ago, my buddy Scott Trench posted an article about a few seemingly harmless habits that many Americans have. Because I 100 percent agree with Scott—and because I’m a numbers guy—I have taken many of his harmless habits and done my best to attribute a dollar value to show the impact of each of these activities. Think of the dollar values below as a unit of comparison; the actual amount may be more or less for you. Before we get started, let me preface with a disclaimer that I am no angel. I take part in almost all of these activities and don’t expect you to cut them out of your life either. However, I am keenly aware of the impact of these activities and practice them significantly less than the average American. Learn more about your ad choices. Visit megaphone.fm/adchoices

One last time I will delve into the amoral and borderline sociopathic book 48 Laws of Power by Robert Greene with a lesson that every half-decent politician knows: “Work on the hearts and minds of others.” As Greene notes: “Coercion creates a reaction that will eventually work against you. You must seduce others into wanting to move in your direction. A person you have seduced becomes your loyal pawn. And the way to seduce others is to operate on their individual psychologies and weaknesses. Soften up the resistant by working on their emotions, playing on what they hold dear and what they fear. Ignore the hearts and minds of others and they will grow to hate you” (Greene 367). You know, there would be a fairly easy way to rephrase this into something that normal, decent, and totally not-power-hungry freaks would find helpful. The key lesson is that every person is the hero of their own story. And while you can force someone to do something (at least you can sometimes), you can never truly get someone to buy into a course of action unless they want to do that thing themselves. And the more you personalize your approach to that specific person, the better. (For example, using sports analogies around people who hate sports isn’t going to help.) Learn more about your ad choices. Visit megaphone.fm/adchoices

Over my 16 years of investing in mobile homes, I’ve heard a similar nasty story to the one below from two other active mobile home investors. If we don’t learn from our own mistakes—and more importantly, the mistakes of others—we are doomed to repeat them. Disclaimer: This story gets a little gross. Maybe don’t eat while reading this. The Story It was November 2002. I was investing in my fifth mobile home deal. This particular home was a three-bedroom single-wide from the 1980s located in a pre-existing mobile home park in a small town outside of Tampa, Fla. I liked the area the park was located in, and the park manager liked me. The seller was asking less than $4,000, and I thought the home was a bargain. After quickly walking through the home and poking my head inside every room, I convinced myself that I must buy this home. I shook the seller’s hand. Learn more about your ad choices. Visit megaphone.fm/adchoices

I have a proposition for you. You give me $20,000 and I’ll give you… nothing. In fact, you’ll give me another $50 to $200 per month until you go crazy or broke. Sound like a good trade? No? Unfortunately, many rental property investors make this same trade with every purchase—because they didn’t properly calculate rental property expenses. The end result? Negative cash flow. Losing money. And unfortunately, it happens all the time in real estate investing, and it leads to financial ruin. I should know—90 percent of the deals I have purchased have been from “failed landlords.” But why do so many landlords fail? Simple. They don’t do do the math. They buy properties based on emotion, gut feelings, or bad calculations and then wonder why they lose money. And there’s one calculation that trips most people up: estimating the costs required to own rental properties. Learn more about your ad choices. Visit megaphone.fm/adchoices

Would you believe me if I said you didn’t need a massive buyers list to successfully wholesale properties? So many times, real estate gurus emphasize the importance of growing your buyers list to contain thousands of names.  Now, I know sending properties to thousands of people sounds much more appealing than sending a property to a small handful of individuals. I mean, the chances of selling your property are much greater if you send it to thousands of people, right? Yes, it’s very possible, but let me ask you this: Are you currently on someone else’s buyers list? If so, do you actually click and view those spammy emails?  Me neither! So, I want to encourage you guys to spend less time sending blanket emails to thousands of people you don’t know and focus your energy on developing relationships with buyers you can truly count on to buy your properties. Today, I’m going to show you why a small list of names is more valuable than thousands of names on a buyers list. Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you curious about investing but not sure if it’s right for you? I used real estate investing to pursue financial independence, but I had some doubts along the way. Personally, I have only done flips and buy and holds, but here’s what helped me figure out if real estate was the way to go: 1. I Laid Out My Intended Role A fantastic first question to ask yourself is: How much or how little do I want to be involved in my investments? Real estate can serve many purposes in many different ways. For example, real estate investment trusts are almost entirely passive. No middle-of-the-night phone calls, no managing, no nothing. You can also hire (competent) property management companies to take care of your properties. This way, you can stay as involved or uninvolved as you prefer. Learn more about your ad choices. Visit megaphone.fm/adchoices

A popular topic I hear a lot about is LLCs. It’s talked about all over BiggerPockets and my YouTube channel. People pose questions like, “Should I set up an LLC? What Should I name my LLC? In what state should I set up my LLC?” …Just to list a few. People think of the LLC as overly complex. But in reality, it’s not. I’m going to boil it down for you in a step-by-step process —as well as a crash course on what an LLC is. Disclaimer alert! I’m not an attorney and I’m not a CPA (nor is BiggerPockets). I’m just a real estate investor dude, and the advice I’m giving you is my personal opinion on LLCs based on my own experience. Before we dive into the steps, let me break down what an LLC is. Learn more about your ad choices. Visit megaphone.fm/adchoices

“The more we value things outside our control, the less control we have.” – Marcus Aurelius, Meditations If there’s been one theme to my writing as of late, it’s been economic volatility, be it real estate prices skyrocketing, coming back down, rents skyrocketing then falling like a rock, rampant inflation, banks failing, the office real estate market falling apart, or the specter of another 2008-like real estate collapse and deep recession. Volatility has been the name of the game since at least the beginning of the pandemic.  Indeed, most economists have been predicting a recession for some time in 2023, while consumer confidence is significantly below where it was in early 2022. Even prior to Covid, rates of anxiety had been increasing substantially in the United States. One paper found that whereas 5.12% of American adults experienced persistent anxiety in 2008, 6.68% experienced it in 2018. And that was before Covid. The American Psychological Association found that in 2022, “Inflation was reported as a source of stress for the vast majority of adults (83%), and the majority of all adults also said the economy (69%) and money (66%) are a significant source of stress.” Learn more about your ad choices. Visit megaphone.fm/adchoices

So far, throughout 2023, we have published several articles on DSCR loans, a loan product that continues to grow in popularity among real estate investors. These included an overview of how to get the best rate and terms, how to use advanced strategies to maximize returns, and an overview of the new small multifamily DSCR loan niche, which expands the loan product to properties with up to 10 units! As many seasoned real estate investors know, while investing in real estate and obtaining loans is a generally straightforward process, there always seem to be unique situations and wrinkles to every deal! The BiggerPockets forums routinely include questions related to DSCR loan qualifications. This overview will help consolidate helpful information for investors curious about this loan option! This article will walk through many examples of frequently asked questions on all things DSCR loans and provide all the answers you will need to navigate the lending process and scale your portfolio on the road to financial freedom. Learn more about your ad choices. Visit megaphone.fm/adchoices

Housing activity often picks up in the spring, but this year, housing affordability concerns and recession fears are impacting seasonal trends. While mortgage rates dipped enough for housing transactions and building activity to surge in February, these metrics looked sluggish for March. Many homeowners and renters are staying put, waiting out a potential recession, while those looking to move are seeking more affordable areas.  As of January, almost 30% of all work was performed out of people’s homes, a six-fold increase from before the pandemic. In busy urban areas, the share is even higher. The availability of work-from-home positions coupled with sky-high prices in the busiest metros is causing people to move further away than ever before. They’re choosing smaller communities with more affordable home prices and a lower cost of living to combat budgetary pressures while also aiming for desirable locations with booming economies that haven’t yet grown too crowded with transplants.  Learn more about your ad choices. Visit megaphone.fm/adchoices

If you thought of the cast of “Friends” (but poorer), you weren’t wrong. Historically, renters have been young and single, with low to mid incomes and typically less education than their homeowning counterparts. But, over the past decade, while the rest of the world was busy hyper-focusing on millennials, something happened. The demographics among renters shifted, and not how you’d expect either. Here’s how the face of American renters has changed over the past decade, and what it means for real estate investors. Learn more about your ad choices. Visit megaphone.fm/adchoices

While the process of finding a new tenant can be relatively straightforward, the tricky part is familiarizing yourself with landlord-tenant laws. And, even if you are familiar with them, rental laws are constantly changing. That’s why regularly keeping tabs on local regulations can help you better manage your rental properties. While the best way to familiarize yourself with rental laws is to consult a qualified legal expert, this article offers a closer look at ten landlord-tenant laws that all landlords should research.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate is considered one of, if not, the best investment you can make. Housing has been very consistent throughout history, more so than any other type of investment, and outpaces inflation and the stock market.  However, many people don’t invest in real estate because they assume it’s complex and requires a massive down payment to get started. It turns out that this is entirely false! Real estate can be pretty easy to get into!  Whether you’re looking to go the traditional route of buying and renting out properties, renting out rooms, or buying multifamily units the same way you do stocks, there’s no shortage of investment opportunities for which you can take advantage.  In this article, we’ll go over seven simple ways that you can become a real estate investor. Learn more about your ad choices. Visit megaphone.fm/adchoices

Short-term rentals (STRs) are the fastest-growing segment in hospitality and have been gaining market share for years. A confluence of factors like robust travel spending from Americans, increasing consumer preference for experiences, and remote work is expected to support 11% CAGR growth in the STR market through 2030.  Given the recent growth of STRs, vacation rental investing has become increasingly popular. Historically, however, the only way for people to invest in this asset class for a steady income and capital appreciation was resorting to the time and capital-intensive process of buying and managing a single or portfolio of vacation rental homes. In this article, we will explore the fundamentals of REIT investing, the benefits of investing in a vacation rental REIT, and Wander REIT, the first and only STR REIT that can help you reap the benefits of STR investing without the hassle.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate prices fluctuate based on supply and demand, but because so many demographic, economic, and policy changes influence the markets, it’s virtually impossible to know what to expect.  Before the COVID-19 pandemic, for example, economists weren’t predicting a downturn in commercial real estate. Now, Morgan Stanley’s chief economist warns of a crash more damaging than the 2008 financial crisis. On the other hand, unexpected gains are common as well. In May 2020, Zillow predicted a drop in home prices and home sales followed by a slow recovery in 2021. But instead, a homebuying boom caused prices to skyrocket before 2020 came to an end.  With the ever-changing markets, what seems like a good investment one year can look like a poor choice the next. But even with all the uncertainty, there are some enduring truths in real estate that you can always depend on as an investor. And understanding these tenets can help you navigate the shifting landscape with more confidence.   Learn more about your ad choices. Visit megaphone.fm/adchoices

The residential real estate market is doing better than most had expected after interest rates more than doubled last year. Prices declined nationally each month from July 2022 to January 2023 (although never by more than 1% per month). However, prices came back up 0.2% in February. Ironically, February was the first month that prices dipped year-over-year, interrupting what was a record 131-month run of ever-increasing prices. It’s too early to say, but it appears that despite high rates, the residential market is stabilizing. It’s not quite so pretty for commercial real estate, particularly office, though. The Office Recession Back in October of last year, I noted that “broadly speaking, the outlook for commercial real estate, specifically office buildings, is not great. And large office buildings, in particular, are doing poorly and will have difficulty in the coming years.” The reasons were threefold. First, the pandemic and lockdowns shuttered a lot of businesses, many permanently, and this led to a general deterioration of the existing stock and reduced demand for office space. Learn more about your ad choices. Visit megaphone.fm/adchoices

How would you describe the housing market right now? Is it up? Flat? Down? Crashing? Each option is a little bit correct and a little bit wrong. That’s because these days, there is almost no way to describe the housing situation in the United States on a national level. To understand what is happening and to make solid investing decisions in 2023, you need to be looking at regional trends and individual market metrics.  To shed some light on the differences in market behavior, I dug into the 295 largest housing markets in the country and wrote up the most interesting trends and findings from my research.  Learn more about your ad choices. Visit megaphone.fm/adchoices

After seven straight months of declining prices, the S&P/Case-Shiller U.S. National Home Price Index increased in February, and March seems to be carrying the same upward momentum. The latest data from Black Knight finds that out of the 100 largest markets in the nation, 93 had price increases from February to March, up from 79 in January-February.  This, of course, is traditionally expected as the spring months tend to bring a bump in prices as homebuying demand ramps up. But the rise is more than expected. “A modest bump in homebuyer demand ran headlong into falling for-sale supply,” said Andy Walden, Black Knight’s vice president of enterprise research. “Just five months ago, prices were declining on a seasonally adjusted month-over-month basis in 92% of all major U.S. markets. Fast forward to March, and the situation has done a literal 180, with prices now rising in 92% of markets from February.” Learn more about your ad choices. Visit megaphone.fm/adchoices

Economists look to the residential housing market as a primary indicator of whether a recession is coming, and home transaction and construction data began showing positive signs that the housing downturn may have reached a bottom in February. Many believe we’ve dodged a severe recession, and some are even optimistic that the Fed will achieve the soft landing the central bank was hoping for—an outcome of stabilized inflation without a significant rise in unemployment.  Consumer spending has begun to plateau, and The Fed has signaled that it will likely put future rate hikes on hold while keeping an eye on inflation. The rate hikes that began last March may finally be coming to a close. Meanwhile, signs have pointed to a recovery in the housing cycle. After a contraction in selling activity, a slowdown in residential development, and falling home prices, things started to turn around in February.  Learn more about your ad choices. Visit megaphone.fm/adchoices

For centuries, investing as a group has been a key ingredient in building wealth. I recognized early in my journey that earning a college degree, landing a steady W-2 job, and contributing to my 401(k) would only get me so far. I was participating in a vast investment world as an individual—but the real investors were “playing” on teams. More than a decade ago, my three brothers and I came together on a trip where we shared our desire to obtain financial freedom for our families and future generations. We knew we couldn’t do it alone. We also knew that combining resources was nothing new. For the wealthy, outsourcing the administrative process to pool their money may cost tens of thousands. But that is a drop in the bucket when considering the size and scope of these investments for each group. For my family, we struggled to get started in those early days. Like grappling over the last piece of cake as kids, we were challenged to get on the same page, navigating things like joint bank accounts, being transparent, managing a cap table, and so many other hurdles, twists, and turns.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Dallas, Texas, is one of the fastest-growing metropolitan areas in the country, with a large, diversified, and growing economy. With home prices below the national average and solid cash flow potential, Dallas has many traits that support favorable long-term conditions for real estate investors.  Population and Labor Market Located in Northeast Texas, the Dallas metropolitan area is actually composed of two large cities and one small city: Dallas and Fort Worth, and then the smaller city of Arlington that lies between them. Combined, the Dallas metropolitan area has a population that is growing well above the national average. The median age of residents in Dallas is just under 33 years old, which is right around the peak homebuying and household formation age—which indicates strong and sustainable demand for housing in the region.  Learn more about your ad choices. Visit megaphone.fm/adchoices

When growing a real estate investing business, having a good FICO Score is a key factor in obtaining capital and achieving the highest return on investment. Hard money or private money lenders use this score to determine if they should give a loan to the borrower and what interest rate they should set. In most cases, hard money lenders look at your FICO Score before pre-qualifying your application and approving your loan. So, let’s take a look at FICO Scores, how it’s determined, and some steps you can take to improve your score over time. Learn more about your ad choices. Visit megaphone.fm/adchoices

Investing in real estate comes with risk, and having the right insurance coverage is critical to protecting your rental property investment. Just as each property is unique, your insurance policy should also be custom to your dwelling type, location, duration of the rental agreement, and more.  Understanding the nuances of coverages for short-term, medium-term, and long-term rentals is especially important, as the wrong type of policy can render your claim denied by an insurer. This is because the risk of a long-term tenant is perceived differently from that of a property rented out on a short-term basis, such as an Airbnb or vacation rental. So, how do you know if you have the right coverage in place? In this article, we will take a closer look at each type of insurance policy and its key differences. Learn more about your ad choices. Visit megaphone.fm/adchoices

When the weather warms up, it’s a good time to clean out the nooks and crannies and not just the ones in your closet. Every year, you should take a step back, evaluate your processes, take care of your business “housekeeping,” and set new goals.  You’ve just paid your taxes, so getting organized for next year is top-of-mind. If you want to take this opportunity to give your real estate business a refresh, we’ve prepared a checklist of items to address in your spring cleaning efforts, with tips from two real estate investment advisors.  Learn more about your ad choices. Visit megaphone.fm/adchoices

In the past few months, we have published a couple of robust overviews of DSCR loans, a popular loan product that has entered the scene over the past few years. DSCR loans enable investors to qualify for a mortgage loan on an investment property without consideration for personal income or “DTI” ratios—making these loans a top option for investors scaling portfolios, especially for single-family rental properties. Qualifying for the best rates and terms for DSCR loans is primarily driven by three factors: leverage, property cash flow, and credit. After that, investors can use advanced strategies such as optimally structuring loan terms such as prepayment penalties, adjustable rate options, and borrowing entities to tailor DSCR loans to their specific investing needs. Learn more about your ad choices. Visit megaphone.fm/adchoices

Every great empire that has come before the United States has eventually fallen. Some have fallen at least somewhat gracefully, like Great Britain. Others, like ancient Rome, well, not so much.  As I write these words, more and more ink has been spilled regarding the looming threat to the American-led world order. Words such as “de-dollarization” and a “multipolar world” are thrown out often, perhaps simultaneously or even interchangeably. And indeed, “de-dollarization” is happening, albeit at nowhere near the speed some doomsayers describe. And we are likely already in a “multipolar world” where the United States is no longer the sole superpower. Instead, a new cold war—this time between the United States and China—seems to have dawned as East and West once again bifurcate and globalization slows down and begins to reverse. Not surprisingly, what plays out over the next few years will have a significant impact on investors. But first, let us strip away the hyperbole and describe what exactly is happening. Learn more about your ad choices. Visit megaphone.fm/adchoices

As a real estate investor, your business thrives when it’s properly maintained and optimized for future growth. You’ve counted the costs, done the research, and created a model for current success. But at a certain threshold, we all reach our personal limitations—or think, “There must be an easier way!” That’s where property management software comes in. Property management software can help real estate investors perform better in the present and grow faster in the future by simplifying everyday processes. But with all the property management software and app options available, what sets one apart from another? Which features are foundational, and which are fluff? Let’s take a look at how you can determine which property management software is best for your real estate investing business. Learn more about your ad choices. Visit megaphone.fm/adchoices

There’s been a lot of alarm in the real estate investment community lately over a newly enacted Federal Housing Finance Agency rule for Fannie Mae and Freddie Mac loans regarding mortgage fees.  The gist of the complaint is that homebuyers with good credit will now have to subsidize those with bad credit. Technically, this is true. However, the way it is being framed is quite misleading. The general argument goes something like this: Those with a 620 FICO score will get a 1.75% discount, and those with a 740 FICO score will pay 1%. Learn more about your ad choices. Visit megaphone.fm/adchoices

Median asking rents are beginning to dip in many markets, according to new data from Redfin, a turnaround from the skyrocketing rent prices observed last spring. The median national asking rent fell to $1,937 in March, a 0.4% year-over-year decline. Median asking rent prices are lower than they’ve been in over a year, and the days of bidding wars for an apartment are coming to an end in many markets. It’s indicative of a correction from overinflated rent prices that resulted in part from a pandemic-driven demand for more space. But rents are still about 20% higher than they were when the pandemic began.  Learn more about your ad choices. Visit megaphone.fm/adchoices

A common question on the BiggerPockets forums goes something like this, “I have $50,000 and looking to invest in real estate. How should I start?” In normal times, my advice would nine times out of 10 be house hacking for a first-time investor, especially given the markedly better rates and terms homeowners can get as compared to investors. However, in the past year, that delta in loan terms has compressed substantially, and so while house hacking is still an option, it’s not head and shoulders above everything else as it once was. Although, house hacking has certainly held up better than many other strategies.  Indeed, if there ever was a challenging real estate market—particularly for new investors or those with $50,000 or so burning a hole in their pocket—this would be the one. This 2022 meme succinctly explains that challenge as much as any essay could (updated for 2023 audiences): Learn more about your ad choices. Visit megaphone.fm/adchoices

Do Americans really vote with their feet, leaving high-tax states in favor of low-tax states? While most people don’t move often—and many never leave their home state—we can look at trends and patterns among those who do move across state lines.   I’m not interested in the politics of it. I’m interested in the actual migration numbers compared to tax rates. Set aside your politics for the next five minutes, and let’s focus on the raw population numbers.  After all, population change is the foundation of demand for real estate. By understanding where people are moving, we can understand where real estate markets will boom over the next few years.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Everyone would love to reduce their tax bill and pay less money to the IRS. But did you know that you can write off home improvements on your taxes? The good news is that certain home improvements can reduce your tax liability. For example, home upgrades that add value to your property, improve energy efficiency, or are adaptations for medical purposes are tax deductible.  Of course, not all home repairs can lower your tax obligations. And there are certain limits on how much you can claim on your tax returns. But capital improvements to your home make you eligible for tax deductions or tax credits.  As with most tax laws, the rules on writing off home improvements can be complicated. Therefore, this article aims to disentangle the complexities when writing off home improvements on your taxes.  Before learning about home improvement tax deductions, there are a few things to watch out for. First, the rules can change from year to year. Therefore, you should speak with a tax advisor about how much you can write off on taxes. Additionally, your income level can also impact home improvement deductions. Learn more about your ad choices. Visit megaphone.fm/adchoices

Let’s face it. It would be tough to become a local expert in every market where you are interested in buying an investment property. It takes a great deal of time and effort to become an expert in your own neighborhood.  You need to build relationships with contractors and real estate agents and learn about zoning, permitting, city ordinances, development rules, and short-term rental regulations– this is all in addition to constantly staying up to date on what homes are selling for in your neighborhoods. It’s time well spent on your business. And investors looking to expand and grow their fix-and-flip or buy-and-hold rental business eventually realize that building a team becomes crucial for sustainable growth. And sanity, of course.  Hiring a CPA, real estate attorney, and virtual assistant are pretty straightforward additions to help you organize and operate your business.    But there are seven crucial relationships you need to develop to truly become a local market expert. How they can help you, however, might not be obvious. Learn more about your ad choices. Visit megaphone.fm/adchoices

Let’s face it. It would be tough to become a local expert in every market where you are interested in buying an investment property. It takes a great deal of time and effort to become an expert in your own neighborhood.  You need to build relationships with contractors and real estate agents and learn about zoning, permitting, city ordinances, development rules, and short-term rental regulations– this is all in addition to constantly staying up to date on what homes are selling for in your neighborhoods. It’s time well spent on your business. And investors looking to expand and grow their fix-and-flip or buy-and-hold rental business eventually realize that building a team becomes crucial for sustainable growth. And sanity, of course.  Hiring a CPA, real estate attorney, and virtual assistant are pretty straightforward additions to help you organize and operate your business.    But there are seven crucial relationships you need to develop to truly become a local market expert. How they can help you, however, might not be obvious. Learn more about your ad choices. Visit megaphone.fm/adchoices

I recently asked an agent what they were doing for lead generation. Zillow was one of their sources. Here’s how the conversation went with one prospect. Agent: “Hello, this is Luke Skywalker (names have been changed to protect the innocent). How can I help you?” Lead: [weird, heavy breathing] “Hi, this is Darth. I had a question about 123 Tattoine St.” Agent: “Great, I know that property well! What would you like to know?” Lead: “Is that wallpaper in the dining room green or gray?” Agent: [facepalm] Not all leads are created equal, but this is often par for the course when it comes to online real estate leads. In this article, I’d like to put forth to you that not only are investors (and investor leads) easier to deal with, but they are also considerably more valuable. Plus, I’ll give you some tips to finding more investors to work with. Learn more about your ad choices. Visit megaphone.fm/adchoices

Strong demographics have fueled the U.S. demand for housing over the last several years. As millennials, now the largest generation alive in the country, hit their peak home-buying age, demand for home purchases and rental units has surged. This demographic strength has been one of the several variables that have pushed up home prices since prior to the pre-pandemic period.  But demographics isn’t everything when it comes to demand—economics matters too. And with persistently high inflation, and a great deal of economic uncertainty, there is the risk that demand for housing could slow in the coming years. What happens to demand over the coming years will have big implications for real estate investors.  Learn more about your ad choices. Visit megaphone.fm/adchoices

It was bound to happen, and it finally did.  Last month, according to a new report from the National Association of Realtors (NAR), real estate prices finally went negative,  “The median existing-home prices for all housing types in February was $363,000, a decline of 0.2% from February 2022 ($363,700), as prices climbed in the Midwest and South yet waned in the Northeast and West. This ends a streak of 131 consecutive months of year-over-year increases, the longest on record.” All good things, right? Though at first, this might sound odd. I myself wrote back in September last year that prices had finally started to decline. But those were month-over-month prices. In normal times, even when the market is flat, prices tend to increase in the summer months and decrease in the winter months.  Learn more about your ad choices. Visit megaphone.fm/adchoices

When it comes to investing in real estate, you may be tempted to stay close to home, and this is understandable. You’re more likely to understand the market and feel more comfortable being nearby while looking for tenants or collecting rent. It may seem daunting, but several real estate investors find it lucrative to seek out markets in other cities or states in order to secure more affordable investment properties.  Now, there are several options available to you when it comes to the management of real estate investments: managing yourself, hiring a property manager, or hiring a property management company. Regardless of what you choose, chances are in our tech-driven world that some type of software will be employed to conduct business operations.  Setting up software or tech to manage your properties ensures that when it’s time to place a tenant in your rental and deal with finding tenants and collecting rent, you’re able to present yourself as a capable and professional landlord—even from miles away. Learn more about your ad choices. Visit megaphone.fm/adchoices

The annual percentage rate (APR) and interest rate are two critical metrics affecting the cost of borrowing money. Although both figures are related, knowing the difference between interest rates and APR is vital when comparing mortgage offers. For example, learning how APR is calculated could save you thousands of dollars on your home loan.  APR versus interest rate gets confusing because some people use the terms interchangeably. Also, some mortgage lenders prominently display their loan interest rates — usually because the interest rates are lower than the annual percentage rate. So typically, you must hunt for the APR in the small print of loan terms.  What’s the deal with calculating interest rates and APRs? How can you decipher these figures to determine the actual cost of your mortgage? What is a good APR for loans when comparing mortgage rates?  This article helps you know how to compare lender fees to get the best deal on your mortgage.  Learn more about your ad choices. Visit megaphone.fm/adchoices

President Biden’s proposed Budget for the Fiscal Year 2024 seeks to promote expanded access and improved affordability in healthcare and education while cutting taxes for low-income families and shrinking the deficit, but the proposed funding comes from increasing taxes on wealthy families and eliminating an important tax break for real estate investors, which Republicans will likely reject outright.  Depending on your politics, you might have different views on taxation. But most Americans agree there’s an issue with the distribution of wealth in the United States, and 84% of those think the government should raise taxes on the wealthy to solve the problem, according to Pew. Disparities have widened over the past three decades—the wealthiest one percent of families now hold 34% of the nation’s wealth, up from 25% in 1989. Families in the 20th to 40th percentile of wealth distribution have seen their net worth decline 39% since 2007, while families in the top 20% have watched their net worth grow 13%.  Learn more about your ad choices. Visit megaphone.fm/adchoices

A low-income home loan could be your answer to homeownership if you have below-average earnings. Unfortunately, insufficient income is why banks and lenders reject conventional mortgage applications. However, several home loan programs have great financing options to make purchasing a home possible for low-income families.  Let’s face it—buying a home is tough at the best of times. Even with a sufficient down payment, a mortgage lender will refuse a home loan application if they think you cannot afford the monthly mortgage payments. In addition, if you are a first-time homebuyer, qualifying for a home loan can seem impossible due to the large deposit. If these scenarios affect you, what options are available to afford to buy a home? Popular low-income home loan programs include USDA, FHA, VA, Home Possible, and HomeReady. These programs have options like zero to three and a half percent down payments, less stringent minimum income requirements, or lower credit score thresholds. Therefore, a low-income home loan may suit you, depending on your situation. Learn more about your ad choices. Visit megaphone.fm/adchoices

Any tax person will tell you that you should save a receipt for every business-related purchase, no matter how small. Even so, many landlords are not keeping a paper trail of what’s often their most significant form of monthly income: rent.  A rent receipt is a simple document that shows that your tenant is paying rent. In this article, we’ll walk you through why you need a rent receipt, how to fill one out, and how to accept rent payments online. Learn more about your ad choices. Visit megaphone.fm/adchoices

Commercial real estate is facing stress from several directions. The primary stress is rising interest rates, which are putting upward pressure on cap rates (which pushes down asset values), making refinancing costs increasingly difficult and expensive to come by. But there is another risk arising, specifically to the multifamily niche of commercial real estate: oversupply. Recent data suggests that there may be a short-term glut of multifamily units hitting the market at an inopportune time.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Net operating income (NOI) is a vital real estate profitability metric to help you calculate an investment property’s potential revenue. The NOI provides valuable data to determine whether to purchase a property, predict potential rental income, or raise rents to boost cash flow. The NOI formula is straightforward. You deduct the operating expenses from the gross operating income (GOI) to calculate a property’s potential profitability. In other words, net operating income is the difference between how much the property costs to operate and the amount of revenue it generates. Net operating income doesn’t use expenses like debt payments, mortgage payments, depreciation, or capital expenditures in the calculation. However, it helps you compare properties when buying or selling real estate. As a result, some investors consider this to be the most critical metric in real estate investing.  This article explains why NOI is important when making real estate investment decisions.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you ever wonder how many mortgages you can have at once? In 2009, Fannie Mae updated its same borrower policy, amending the maximum number of conventional mortgages any one person can have from four to 10. However, qualifying and finding a lending institution that’ll give you more than four can be difficult.  In this post, we’ll discuss what’s required to have multiple mortgages (including an example), the pros and cons of having multiple mortgages, and how to manage them. Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s a nightmare scenario for any landlord. The lease expires, and your tenant doesn’t move out on time. You are then faced with the complicated decision of legally removing the tenant. After all, you cannot change the locks, cut off utilities, harass them, or do a self-help eviction. While the tenant won’t leave the rental unit, you are probably not getting monthly rent payments.  Unfortunately, the situation when a tenant stays on after the lease expires — called a holdover tenant — is all too common. What is worse — tenants’ rights mean you are limited in what you can do, despite being the legal property owner.  It may seem that your only option is to start legal proceedings. But, as any landlord knows, the eviction process can be expensive and time-consuming. And there is no guarantee that you can recover unpaid rent. Are there better ways to remove a tenant who refuses to leave after the lease period expires? This article will help you know the answer to two vital questions:  How long can a tenant stay after the lease expires? What should you do if a tenant doesn’t move out on time? Understanding your legal position when a formal lease agreement expires is critical to answering these two questions.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Artificial intelligence has been around for decades, but it seemed a lot more innocuous when it was just playing checkers. ChatGPT, an AI language processing tool developed by OpenAI, can pass the bar exam. We’ve all seen and read enough science fiction material to feel a twinge of fear that robots may be coming for our jobs. But what’s more likely to happen over the coming decade is that AI will enhance our capabilities, making our work processes more efficient and giving us back that precious free time that is often the motivation for real estate professionals to build passive income streams.  Of course, there are valid reasons to be concerned about ethics, safety, and human independence and agency as a result of this new technology. But so far, ChatGPT is proving to be an invaluable resource for real estate professionals in multiple aspects of their business. Understand its limitations and how to use it effectively, and you could build more wealth in less time or kick back and relax a little longer than you would otherwise. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate agent earnings vary widely based on numerous factors, including experience, location, and niche. Some agents struggle to get by while others earn a comfortable living.  However, some constants exist in how real estate agents work and get paid. For example, most real estate agents work on commission, which they earn at the end of a transaction. If you’re looking to become an agent or are just curious about how much realtors make, here’s what you should know. Learn more about your ad choices. Visit megaphone.fm/adchoices

A condo can be an attractive choice when purchasing an investment property, especially for first-time investors. They generally cost less than single-family homes and can be easier to maintain. However, whether or not they’re a good investment depends on several factors. Ready to learn more? Read on as we uncover the answers to common questions about investing in condos.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Managing rental properties is a complex task, especially when it comes to keeping track of which tenants are paying on time and who has outstanding balances. If you’re not maintaining an accurate paper trail and organizing your finances, your investment property can quickly become your greatest nightmare. A rent ledger is invaluable for property managers, landlords, and accountants, as it makes your life much easier when paying taxes and settling landlord and tenant disputes.  In this article, we’ll discuss what a rent ledger is, how to create one, and the many benefits of having one.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate properties listed as “off-market” are not publicly listed for sale. However, that does not mean that you cannot buy off-market properties. You may discover a great and lucrative real estate investment if you know how to find off-market properties.  What is the best way to find off-market sales? Are there advantages to searching off-market property sales for investment opportunities? What should you be careful of when buying a property off-market? This article answers these questions and many more.  Learn more about your ad choices. Visit megaphone.fm/adchoices

A wraparound mortgage is a financial option for real estate investors and traditional home buyers. In many cases, it can be a more desirable alternative to other non-conventional funding sources and can benefit both the buyer and seller. However, wraparound mortgages also come with their own set of risks, so you should be well-informed before getting into one. In this article, we’ll explain what a wraparound mortgage is, how they work, weigh the pros and cons, and discuss alternative loan options worth considering.  What is a Wraparound Mortgage? With a wraparound mortgage, the buyer becomes responsible for paying the seller for the property’s total purchase price plus interest, based on the negotiated terms.  A wraparound mortgage is basically a secondary mortgage or junior loan that an investor or home buyer takes out directly with the seller instead of a traditional bank or lending institution. Instead of trying to qualify for a loan, credit history checks, and meeting a conventional institution’s requirements, the buyer works out the loan and repayment conditions with the seller. Learn more about your ad choices. Visit megaphone.fm/adchoices

There are hundreds—if not thousands—of books on real estate, personal finance, personal development, and motivation. It’s likely you’ve heard of many of them, whether you read about them in an article or heard about them during a podcast. But what are the best real estate books for beginners? Successful real estate investors and entrepreneurs recommend everything from How to Win Friends and Influence People to The Millionaire Next Door. But deciding which book you should read first or next is a daunting task. Considering throwing up your hands and giving up? We understand—and so we did the heavy lifting. Learn more about your ad choices. Visit megaphone.fm/adchoices

There are hundreds—if not thousands—of books on real estate, personal finance, personal development, and motivation. It’s likely you’ve heard of many of them, whether you read about them in an article or heard about them during a podcast. But what are the best real estate books for beginners? Successful real estate investors and entrepreneurs recommend everything from How to Win Friends and Influence People to The Millionaire Next Door. But deciding which book you should read first or next is a daunting task. Considering throwing up your hands and giving up? We understand—and so we did the heavy lifting. Learn more about your ad choices. Visit megaphone.fm/adchoices

Bonus depreciation lets you maximize your return and minimize your tax liabilities. With bonus depreciation, you can deduct a large portion of the cost of qualifying assets during the year they were placed in service.  Unfortunately, understanding bonus depreciation, how it works, and whether it’s right for your real estate investment strategy is no small feat—but that’s where we come in.  In this guide, we’ll walk you through everything you need to know about bonus depreciation. Learn more about your ad choices. Visit megaphone.fm/adchoices

Choosing the right real estate investment to add to your portfolio requires ample research and extensive knowledge about the market that you’re investing in. A poor decision can result in your portfolio dropping substantially in value. When markets start to dip, and the economy enters a recession, selecting the best investment becomes even more important.  The most rewarding investments are ones that occur in recession-proof markets, which are areas where homes are in high demand regardless of how the economy is performing. Not every market performs the same. By investing your money in homes that are situated in recession-proof markets, you can benefit from consistent rental income, moderate appreciation even in poor economic environments, and continued rental increases YoY.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Commingling refers to the combining or intermingling of funds that may be coming from various sources or earmarked for different purposes. As a real estate investor, commingling can help diversify your portfolio and expand your potential. As a property owner, you must clearly understand where your funds are coming from and what they’re for so that you use them appropriately. In this post, we’ll explain what commingling is, when it’s advantageous, and when it could be illegal.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Selling your house without a Realtor may not be as complicated as you think. Although more work is involved, selling without the help of a real estate agent could be a smart financial move. You could save money on the agent fee, have more control over the sale process, and, in some cases, sell your home faster.  However, before you put a “For Sale by Owner” sign up in your front yard, it’s wise to consider the complexities of selling your house without a Realtor. Apart from dealing with a ton of paperwork, selling a home by owner is time-consuming. And in the end, the money you save on agent commission fees is usually not worth the extra effort.  This article discusses the pros and cons of selling your property without a Realtor. You will learn about the selling process to help you decide if the “sell a house by owner” route is for you. If you decide it makes financial sense, then go for it, but you might find that it makes more sense to simply hire an agent. Learn more about your ad choices. Visit megaphone.fm/adchoices

I know what you’re thinking. This guy is trying to stretch the SVB headlines into a multifamily real estate investing story. It must be clickbait.  I get it. But I hope you’ll give me a moment to tell you two ways the SVB and other major bank failures could potentially benefit multifamily syndicators and investors. Then you can decide if there’s any substance to my headline.  Like all of us, I watched the news stories unfold swiftly over this past week. Silicon Valley Bank went from paying bonuses to closing shop within days. There is no need to recount the gory details here.  But as I pondered the bad news falling out from this hopefully localized but potentially more significant situation, I realized two potential bright spots for multifamily syndicators and investors. Not just current players—but those eager to get into this currently over-crowded space.  My short-term thesis is speculative, so I freely admit I could be wrong on this one. But I will plant a confident flag on my longer-term discussions below since I believe these outcomes are virtually inevitable.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Rental properties are a fantastic source of income as long as your tenants pay rent. Unfortunately, even the strictest tenant screenings are imperfect, and even the most responsible renters can be hit with unpredictable, life-altering circumstances. That’s when rent guarantee insurance comes in handy.  Rent guarantee insurance provides financial protection if your tenants fail to pay rent. In the occasionally unpredictable real estate environment, rent guarantee insurance helps you minimize risk, so you don’t have to worry as much when collecting your monthly rent payment.  In this article, we’ll discuss rent guarantee insurance, how it works, and how to find the best insurance policy for you. Learn more about your ad choices. Visit megaphone.fm/adchoices

It goes without saying that investors of all stripes have been spooked by the recent collapse of Silicon Valley Bank and Signature Bank, as well as the Swiss National Bank facilitating UBS’ $3.2 billion purchase of Credit Suisse, First Republic Bank’s stock falling more than 70% and bank stocks, on the whole, being hammered. Many seem to think a 2008-like financial crisis is beginning.  While it’s important not to understate the precarity of our current situation, there are major differences that make these two events, more or less, incomparable. For one, Lehman Brothers was an investment bank, and both Silicon Valley Bank and Signature Bank were commercial banks. The size was also quite different despite Silicon Valley Bank being the second biggest bank failure in American history. Lehman Brothers had $600 billion in assets in 2008. Silicon Valley Bank had $198 billion. Adjusting for 15 years of inflation, Silicon Valley Bank was maybe 20% the size of Lehman Brothers. Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you listening to the advice of the world’s greatest investors? More importantly, are you acting on that advice?  If it isn’t clear already, the latest swing banking failures show that risky bets are capable of producing devasting results. Protecting your money should be first and foremost on your mind. So with that in mind, I’ll ask again. Are you listening and acting on the strongest advice of the world’s most successful investor? Learn more about your ad choices. Visit megaphone.fm/adchoices

A square foot is a measured amount of flat space that covers an area. Its measurement is one foot x one foot (or 12 inches * 12 inches, equaling 144 square inches), meaning that if you have a 100-square-foot bedroom, you can divide it into 100 equal squares. Regardless of your reasoning, you need to know how to calculate square feet down to the foot. Being off by even a little bit can cost you hundreds—even thousands of dollars. Here are a few reasons why: Identifying fair market value: Square footage is a key indicator of a property’s fair market value. When selling a house, you need to know what comparable homes in your area are worth. If the average home price per square foot in your neighborhood is $200 and your measurements are off by 10 feet, you could undervalue your property by $2,000. Tax assessments: If you believe the assessed value of your property is too high, you can calculate the square footage to see if your number matches the assessors. You can dispute the assessment and save money on property taxes if your number is lower. Renovations: If you’re renovating your home or a rental property, you need to calculate the square footage of the areas you’re rehabbing. This calculation will let you know how much material to buy and ensure your new furniture and appliances will fit and function properly.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Let’s get one thing straight: everyone should hold both stocks and real estate in their portfolios. Diversification is the ultimate hedge against risk. But that doesn’t mean we can’t pit stocks and real estate against each other in a classic Mortal Kombat-style matchup. Which earns the best return on investment: real estate or stocks? And while we’re asking this grandiose question, which investment is safer? Learn more about your ad choices. Visit megaphone.fm/adchoices

Let’s get one thing straight: everyone should hold both stocks and real estate in their portfolios. Diversification is the ultimate hedge against risk. But that doesn’t mean we can’t pit stocks and real estate against each other in a classic Mortal Kombat-style matchup. Which earns the best return on investment: real estate or stocks? And while we’re asking this grandiose question, which investment is safer? Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you want to destroy your wealth? I can teach you how. Do you want to create more wealth for yourself? I can teach you to do that as well.  Do you know about the denominator effect?  In finance and investing, the “denominator effect” occurs when the value of one portion of a portfolio decreases drastically and pulls down the overall value of the portfolio. As a result, any segments of the portfolio which did not decrease in value now represent a large percent of the overall pie. While this is true and somewhat obvious, there is another denominator effect at play in real estate. An insidious destroyer of investor dreams and wealth.  If you acquire and operate a great asset and this denominator goes in your direction, you will celebrate with a double win. But even if you buy and operate your asset well, this denominator effect can destroy you and liquidate your equity. What is this denominator effect? I’m talking about cap rate decompression.  Learn more about your ad choices. Visit megaphone.fm/adchoices

In January, we published an article about DSCR loans, a product increasingly used by more and more real estate investors to scale their portfolios. Known for easy qualification and light documentation standards (no income verification, no DTI requirements, no tax returns, etc.), sophisticated real estate investors are continuing to utilize DSCR loan options after maxing out on conventional financing options or simply finding it’s not worth trading the time and hassle of a bank qualification for the slightly lower rates. The previous article outlined the basics of how to best position yourself as a DSCR loan borrower to get the best rates and terms on your DSCR loans. Quick recap: the rates and terms are primarily driven by three main metrics:  Loan-To-Value (LTV) Ratio Debt-Service-Coverage-Ratio (DSCR) Ratio FICO/credit score While the rate you’re going to be quoted is going to be mainly driven by those three factors, there are several other pieces to the puzzle that can also change the terms offered. The savvy DSCR loan borrower will use all the options available to optimize terms, especially in volatile rate environments like today, where every little bit of rate matters in securing profitable investments!  Learn more about your ad choices. Visit megaphone.fm/adchoices

Last week, Silicon Valley Bank (SVB) rapidly collapsed—going from normal operations to insolvency in a matter of days. SVB was the 16th largest bank in the United States, with about $209B in assets. The failure represents the 2nd largest bank collapse in U.S. history. As of Sunday, March 12th, a second bank, Signature Bank, was seized by regulators for fears of insolvency. As of this writing, the government has stepped in with emergency measures intended to stop a full-blown financial crisis from occurring, but this story is still developing. In this article, I will explain what has happened so far and what you should be keeping an eye out for in the coming weeks.  Learn more about your ad choices. Visit megaphone.fm/adchoices

I’ve written two relatively recent articles on the economy. The first summarized Lauren Baker of ITR Economics keynote address at BPCON 22. She concluded that signs point to a potential soft landing in the economy—the aversion of disaster. Great news!  Or not.  I discussed the potential that the throttling of commercial credit markets could crash-land this potential soft landing.  In my second article, I talked about the implications of the credit cycle. I overviewed Howard Marks’ thoughts on the potentially disastrous impact of a restricted credit market. We discussed the characteristics of a generous credit market as well as a tight one. We reviewed the possible impact on the economy and what could go right or wrong.  Learn more about your ad choices. Visit megaphone.fm/adchoices

You’re not alone if you’re unfamiliar with land trust affiliate marketing. However, it is quickly becoming a popular real estate marketing strategy—and can be a highly effective one at that!  Land trust affiliate marketing is a technique that involves using land trusts to market real estate properties. This post will dissect exactly what that means, how it works, and its benefits and disadvantages. Are you ready to discover one of real estate’s newest marketing trends? Learn more about your ad choices. Visit megaphone.fm/adchoices

There are few real estate markets with as many attractive cities as California. From the allure of luxury and lifestyle in Los Angeles to the technology heart of San Francisco, there’s a reason why California rents are often reported to be the highest in the nation.  The California real estate market is an important one for real estate investors thanks to its large and diverse economy that spans numerous industries, including technology, entertainment, and agriculture. This creates sky-high demand for housing, leading to attractive rental income and consistent property appreciation. It also makes California an incredibly competitive real estate market.  It’s not the easiest region to achieve positive cash flow in real estate, with a higher entry point than many other states. Those who already own property, have recently inherited a home, or have decent capital to reduce debt servicing tend to fare the best in the Californian market.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Property taxes can substantially impact how much you’re paying for your home and dig into your profits as a real estate investor. They also vary widely from state to state, with Hawaii’s average property tax rate at around 0.29% and New Jersey’s averaging approximately 2.46%.  While there’s only a 2.17% difference between the two, that 2.17% equates to a lot of money. Let’s say you own two homes: one in Hawaii and one in New Jersey, and they both have an assessed value of $500,000. If you’re paying the average property tax rates for each state, you’ll owe $1,450 in Hawaii and $14,546 in New Jersey. That’s a $13,096 difference! While there are no states without property taxes in 2023, many states have low property taxes. In this article, we’ll discuss what property taxes are, how they’re calculated, and list the states with the lowest property taxes. Learn more about your ad choices. Visit megaphone.fm/adchoices

A blanket mortgage is useful for real estate investors with a large real estate portfolio. Also called a blanket loan, the mortgage consolidates several separate loans into a single mortgage. For many experienced investors, having one loan payment makes juggling several mortgage payments and interest rates more straightforward. However, arranging a blanket mortgage loan is not always the best financing option. For example, loans are harder to secure. And putting individual mortgages under one “blanket” can put all properties in the portfolio at risk.   When does it make financial sense to put separate mortgage loans into a single loan? Are there situations when it is best to keep individual loans separate and not consolidate them into an entire mortgage? This article explores the pros and cons of using blanket loan refinance to manage multiple properties in a real estate portfolio. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re a real estate investor looking to grow your portfolio, you are likely aware of the difficulties of finding adequate funding. You may have had to meet stringent qualification criteria, offer individual guarantees, and contend with complex loan management issues. Luckily, there’s a solution to the confusion. Rental portfolio loans reduce the difficulties of financing multiple rental properties by allowing you to use them as collateral for one loan. This can simplify the process of accessing streamlined capital for your investments. In this article, we’ll go over the fundamentals of rental portfolio loans, the benefits and drawbacks, and how they can assist you in developing your rental business. Learn more about your ad choices. Visit megaphone.fm/adchoices

Did you know you may be charged a prepayment penalty for attempting to pay off your loans early?  Prepayment penalties are fees that some lenders charge if you refinance or pay your mortgage off early. Not only are they fairly common—they’re also often misunderstood by borrowers. In this article, we’ll discuss how a mortgage prepayment penalty works, the types of prepayment penalties you may encounter, and how to avoid paying them.  Learn more about your ad choices. Visit megaphone.fm/adchoices

There are plenty of reasons to want a second home. Whether you’re making the leap into real estate investing and need a property that can cash flow each month or you just need a place to stay in the summers, second homes are a mainstay in the classic “freedom” lifestyle. However, buying another property is a serious financial commitment. And if buying a primary home is one of the largest financial transactions you are likely to make, purchasing a second home can be just as large. Therefore, before buying a second home, it makes financial sense to calculate if you can afford the purchase costs and maintenance. So, whether you want to find the perfect beach getaway, commuter home near a major city, or rental property to start a real estate portfolio, you need the best advice on how to buy a second home. This article explores the necessary steps to take ownership of a second residential property. You will learn how to choose a location, find financing, and close a deal. Learn more about your ad choices. Visit megaphone.fm/adchoices

You’ve decided, for whatever reason, that you want to invest outside of your local area or state. Your next question is—where should I invest? I’m going to offer you a list of things that you can consider when trying to figure out what market to invest in. These things are in no particular order, and some of them may not apply to you or your particular situation. My intention with each one is to give you something to think about and hopefully some ideas on where and how to start looking for a market that suits your investment needs. Here we go! Learn more about your ad choices. Visit megaphone.fm/adchoices

I am a huge fan of doing it yourself. My husband and I have flipped numerous houses—but on a fairly small scale, one home at a time and doing almost all of the work ourselves. YouTube is a great resource. There are videos for just about any task on that site. But just because you KNOW how to do something doesn’t mean it makes sense for you to do it yourself. Here are four jobs we have attempted at least once—and will never again do ourselves. Learn more about your ad choices. Visit megaphone.fm/adchoices

It was the year 2000. We had made it through Y2K! The world would continue as it had for many centuries before. One thing would change though. I was now in my freshman year of high school, and I started getting asked something more and more consistently. No, I am not talking about your mom or dad embarrassingly asking you if there were any new love interests in your life. The question was, “So, Ryan, what do you want to do for a job when you’re done with school?” I had already given this thought. I wanted to work for ING. Yes, the large banking and financial services company. Why? Well, if you drove through my state capital (Hartford, Conn., at the time), they had a really tall and cool looking office building with their giant orange ING tiger logo affixed on top. Learn more about your ad choices. Visit megaphone.fm/adchoices

Don’t be that person! If you’ve ever been to a networking event, then you’ll know who I’m talking about: the person who goes around giving out business cards as if they’re flyers. The best networkers give out business cards only when asked to do so or after you’ve established a personal connection. Otherwise, you may seem superficial, and the cards will become meaningless! Here are some steps you can follow to create a large yet intimate network. Learn more about your ad choices. Visit megaphone.fm/adchoices

The popularity of manufactured (mobile) homes has been on the rise over the past several years, spurred partly by highly competitive traditional housing markets, overall interest in smaller homes, and the search for more affordable housing. But what about adding this type of home to your real estate investment portfolio as a single home or in a mobile home park setting?  Although I haven’t personally invested in manufactured homes yet, I’ve researched and spoken with experts about the pros and cons as I consider diversifying my portfolio. This article will outline some interesting and informative information I’ve come across.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Before the pandemic, co-living as a housing solution was already gaining popularity as urbanization caused rents to rise in major cities. Now, the concept of living in accommodations with communal spaces is making a comeback after the pandemic left a rental affordability crisis and loneliness epidemic in its wake.   Early this year, the largest co-living operator in North America, Common, announced a merger with Habyt, the largest co-living operator for Europe and Asia. The result is a global leader in co-living that will operate 30,000 units worldwide, many of them co-living spaces. It is estimated that there were 74,000 total co-living bedrooms either for-rent or in development in the U.S. in 2022. At the end of 2019, real estate investment firm CBRE found that there were about 5,000 beds in only about 150 co-living communities around the country. It’s a rapidly accelerating trend, and research shows it may have staying power. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate is widely considered the best and more consistent investment around. However, calculating the value of your investment is more challenging than checking your monthly bank statement. Multiple ways to calculate your return on investment (ROI) for a rental property exist. How you choose to do so depends on your situation.  In this article, we’ll discuss the importance of calculating ROI for real estate and then show you how and when to calculate ROI for: Cash flow Cash-on-cash return Capitalization rate (cap rate) Appreciation Here’s how to calculate ROI on a rental property:  Learn more about your ad choices. Visit megaphone.fm/adchoices

The U.S. housing market is facing an affordability crisis. The combination of high home prices, rising mortgage rates, and decreased spending power has driven housing affordability to its lowest level in decades. As such, it is difficult for investors and homebuyers alike to identify cities where they can afford to buy property.  But, there are still great opportunities to buy real estate, even on a budget. I’ve done the research and have identified the eight most affordable markets for real estate investors. Below, I’ll explain how we arrived at the current situation, my criteria for selecting these markets, and then give you some data about the cities. Check out the list below and determine if any of these cities fit your investing goals.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you tracking the storm brewing in the commercial real estate realm?  It’s not a big surprise. It happens in every downturn in one form or another. But investors always seem to be surprised.  Though this downturn will likely not be as devastating as the Great Recession, there is one element that makes the problem more pervasive. That is the fact that a much higher percentage of the investor population invests in commercial real estate now compared to 2008.  Crowdfunding, social media, the JOBS Act, and the proliferation of new gurus (I call them “Newrus”) have contributed to the size of cracks in the ice that have already formed and are about to give way.  BiggerPockets has facilitated a wonderful community that has spawned education, connections, mentoring, and so much more. Communities like ours have also created paths for investors and syndicators to connect at a level investment sponsors and investors could have only dreamed about in years past.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you struggling to wrap your head around depreciation recapture? If so, you’re not alone.  When running your real estate business, you can account for the wear and tear of your property and any furnishings and appliances you own via depreciation. You can divide the costs associated with these items over several years through depreciation based on the schedules of asset classes that the internal revenue service (IRS) publishes.  Depreciation recapture refers to the portion of a gain you realize from selling a rental property taxed as ordinary income instead of capital gain. In other words, when you sell your property, the IRS taxes you on your depreciation deductions. Still confused? That’s okay. In this post, we’ll show you how depreciation recapture works (and include examples), how to calculate it, and tell you if it can be avoided.  Here’s everything you need to know about depreciation recapture.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Can you win in any market? No seasoned real estate investor would deny the importance of keeping up with macro and micro market conditions. Ignore either, and you don’t really stand a chance. With that said, lately, conversations of a downturning market have swallowed up evergreen advice. In fact, new data suggests that investor homebuying fell 46% year-over-year in Q4. So, it feels like not enough is being said about tried-and-true strategies, principles, and tools.  Learn more about your ad choices. Visit megaphone.fm/adchoices

When people consider taking the leap to start investing in real estate, one question always persists: is now the right time to start investing? The longer this question looms in an investor’s mind, the harder the proposition becomes. The short answer is yes. It is always the right time to invest in real estate. In terms of an asset class, real estate tends to appreciate over time and provides investors with income that can lead to generational wealth.  To be frank, more people should be investing in real estate, but it takes planning, hard work, execution, and a little bit of luck. Most savvy real estate investors all have stories that include roadblocks and obstacles to their success, but they found a way to maneuver through the industry to still be thriving today.  Some investors give up too easily when something goes wrong or if the current environment isn’t as easy to navigate as they’re used to. Success doesn’t come easy, but these tips to navigate the market and find success may instill some confidence in investors that are looking to start investing or investors that are considering moving on to a different venture. There has been a lot of discussion regarding the current state of the market, and a lot of panic from investors has ensued. Interest rates have increased, which brings challenges into play, but with the right tools and guidance, there are still plenty of opportunities for success. Learn more about your ad choices. Visit megaphone.fm/adchoices

Writing a late rent notice is an unavoidable part of being a landlord. The notice of a late rent payment has three purposes. First, it reminds the tenant to pay the overdue rent promptly, informs about late fees, and then warns the tenant of the consequences of nonpayment. However, a late rent letter has a more important purpose — it’s a formal document necessary if you choose to start an eviction process. Of course, being a landlord is easier when all tenants pay their rent on time. However, even the most diligent tenant can forget to pay their rent money by the first of the month. Of course, some tenants have serious financial difficulties and cannot pay rent. But in all cases, writing a late notice for rent is a vital part of the rent collection process. This article is a complete guide to dealing with overdue rent and how to encourage tenants to make rent payments on time. You will also find a helpful late rent notice template and step-by-step instructions on writing a late rent notice. Learn more about your ad choices. Visit megaphone.fm/adchoices

Americans are squeezed by inflation and rising housing prices in big cities. They’re seeking refuge in states with warm climates, a lower cost of living, and plenty of job opportunities—states like Florida, Texas, and the Carolinas. An analysis of census data from the National Association of Realtors (NAR) reveals which states lost residents and which made population gains in 2022. The trends clearly indicate that many Americans are moving in response to affordability concerns.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Fixer-uppers can be transformed into fantastic places to live. They can also get expensive. In addition to your mortgage loan, you will often need to pay for repairs out of pocket or get a short-term, high-interest loan. What if you could combine your home purchase and the cost of renovations in a single loan? With an FHA 203(k) rehab loan, you can!  FHA 203(k) loans (also known as renovation mortgage loans) let you purchase or refinance a home by combining the mortgage and repairs into a single loan with one monthly mortgage payment.  This post will explain how FHA 203(k) rehab loans work, their requirements, and the pros and cons of getting one.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The vast majority of real estate investors get into the industry to pursue passive cash flow. Unfortunately, over the last several years, finding deals with strong cash flow has become a challenge. However, there are still plenty of markets in the U.S. that continue to offer cash flow potential.  Below, I provide what I believe to be the top 10 markets in the United States for cash flow. Learn more about your ad choices. Visit megaphone.fm/adchoices

Last week, I listened to On The Market episode  “New Low-Interest Mortgages Are On the Way for Investors (How to Get One).” I was ready to learn the secret of acquiring a lower rate—and surprise, surprise—the three lending professionals had some ideas based on the market, but they had no crystal ball on what rates would actually do throughout the rest of 2023.  There were three quotes from the podcast that stuck out to me as a buyer’s agent and investor: Christian Bachelder, The One Brokerage: “Volume, just on a grand total, is down. But volume per investor, if that’s a metric that I could use, is definitely [up].” Bill Tessar from CIVIC: “I am really bullish on real estate, short and long-term. I think you can get a better deal today than you could six months ago. You can negotiate a little bit, you could demand a little bit more. You’re not paying over list price. You’re getting contingencies on your deals. You’re getting seller concessions on points. You’re getting all that stuff. That’s great. So I’m bullish on real estate.” LendingOne’s Matt Neisser: “The one thing I’d say to borrowers [that] I say to myself is I try not to bet on interest rates.” Learn more about your ad choices. Visit megaphone.fm/adchoices

The U.S. Department of Housing and Urban Development (HUD) is a federal government agency that helps people get access to affordable housing. Most Americans associate HUD with public housing assistance and assisting low-income families. However, HUD programs also help individuals qualify for FHA loans, make home improvements, and enforce fair housing laws nationwide.  Many property investors are considering buying HUD homes to expand their portfolios. HUD foreclosed homes are often sold below market value, allowing you to rehab and flip the property for profit.  However, HUD housing programs are also a great way for families to buy their first home. Schemes like the “Good Neighbor Next Door Program” or the “HUD $100 Dollar Program” provide highly affordable financing options for low-income families to buy a home. This article explores what it takes to purchase a HUD home and whether this type of housing can be profitable. You will also learn the pros and cons of buying a foreclosed HUD property. Learn more about your ad choices. Visit megaphone.fm/adchoices

Calculating the principal and interest on your mortgage helps you identify the actual cost of a property. If you have a $400,000 loan at a 30-year fixed rate of 5%, the amount you spend after 30 years isn’t $400,000. It’s actually $773,158. $400,000 will go toward your principal, while the other $373,158 will go toward your interest. When you buy a home with a fixed interest rate, your monthly mortgage payment will be the same for the duration of your loan. However, even though you’re writing a check for the same amount every month, how much you put toward your principal and interest will always be different.  In this post, we’ll define what your principal and interest payments are on a mortgage and show you have to calculate how much a house will cost you to make a more informed decision when purchasing a property. We’ll also discuss the difference between APR and your interest rate, what factors impact your interest rate, and how to track where your fixed-rate mortgage payments are going.  Learn more about your ad choices. Visit megaphone.fm/adchoices

I’m worried about a significant decline (or crash) in commercial real estate valuations, specifically including multifamily, in 2023 and 2024. I feel that the red flags are so clear and all pointing in the same direction that I’d be neglecting my duty to this community to fail to make my stance as clear as possible and to defend that stance in great detail.  In this article, I’ll walk through my thesis, outlining four primary threats to multifamily valuations, following the summary below:  Part 1: Cap Rates Are Lower Than Interest Rates  Part 2: I’m Not Betting On Meaningful Rent Growth In 2023 Part 3: I’m Betting On Interest Rates Rising In 2023 Part 4: High Interest Rates Put Pressure On Valuations And Debt Underwriting Part 5: News, Anecdotes, And Further Reading Part 6: Ideas To Protect Wealth And Make Money In This Environment Please note that real estate is local. My analysis in this article is reflective of the average across the United States, though I do dive into a couple large regions.  Learn more about your ad choices. Visit megaphone.fm/adchoices

I’m worried about a significant decline (or crash) in commercial real estate valuations, specifically including multifamily, in 2023 and 2024. I feel that the red flags are so clear and all pointing in the same direction that I’d be neglecting my duty to this community to fail to make my stance as clear as possible and to defend that stance in great detail.  In this article, I’ll walk through my thesis, outlining four primary threats to multifamily valuations, following the summary below:  Part 1: Cap Rates Are Lower Than Interest Rates  Part 2: I’m Not Betting On Meaningful Rent Growth In 2023 Part 3: I’m Betting On Interest Rates Rising In 2023 Part 4: High Interest Rates Put Pressure On Valuations And Debt Underwriting Part 5: News, Anecdotes, And Further Reading Part 6: Ideas To Protect Wealth And Make Money In This Environment Please note that real estate is local. My analysis in this article is reflective of the average across the United States, though I do dive into a couple large regions.  Learn more about your ad choices. Visit megaphone.fm/adchoices

I’m worried about a significant decline (or crash) in commercial real estate valuations, specifically including multifamily, in 2023 and 2024. I feel that the red flags are so clear and all pointing in the same direction that I’d be neglecting my duty to this community to fail to make my stance as clear as possible and to defend that stance in great detail.  In this article, I’ll walk through my thesis, outlining four primary threats to multifamily valuations, following the summary below:  Part 1: Cap Rates Are Lower Than Interest Rates  Part 2: I’m Not Betting On Meaningful Rent Growth In 2023 Part 3: I’m Betting On Interest Rates Rising In 2023 Part 4: High Interest Rates Put Pressure On Valuations And Debt Underwriting Part 5: News, Anecdotes, And Further Reading Part 6: Ideas To Protect Wealth And Make Money In This Environment Please note that real estate is local. My analysis in this article is reflective of the average across the United States, though I do dive into a couple large regions.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Prospective homebuyers have been waiting for more affordable conditions, and according to data from the Mortgage Bankers Association, they might be ready to start making offers. Mortgage demand surged 7% in the week ending January 20th after skyrocketing nearly 28% the week prior. While there have been variations in mortgage demand, often following fluctuations in the federal funds rate, a 28% increase in the volume of mortgage applications hasn’t occurred since the first week of March 2020.  Meanwhile, inventory isn’t growing to keep pace. Homebuyer sentiment improved slightly in December. Inflation is moderating faster than some recent expectations, and a growing cohort of economists are betting the Fed will pull off a soft landing. Did we manage to avoid a housing market crash, and is the housing market already making a comeback?  Learn more about your ad choices. Visit megaphone.fm/adchoices

There are a number of potential benefits associated with exchanging into a Delaware Statutory Trust (DST) 1031 property.  However, it is important to note that these potential benefits should also always be carefully weighed with the potential risks that are possible with DST investments, and as with all real estate investments, investors should consult their tax attorney and or Certified Public Account before investing in DSTs.   Still, DSTs continue to grow in popularity, especially among aging baby boomers who are tired of managing their own properties and are looking for a way to transition into a passive income stream. DST investments not only provide investors the potential for passive income but also the following six benefits as well.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The last year or so has been challenging for investors and savers alike. With inflation raging and many of the major markets in correction territory, it’s been difficult to find a safe place to park cash. Bond yields have been below the rate of inflation, and savings accounts have offered pathetic interest rates. Any money held in cash or bonds has been losing spending power against inflation. For real estate investors who often need time to save up cash between purchases, this can be a problem. Luckily, it looks like things are starting to change. One silver lining of recent rate hikes is that as the Fed raises their federal funds rate, bond yields and the interest rate paid on money market and savings accounts tend to rise. This is exactly what we’re seeing. These low-risk assets now offer the potential to earn a real (inflation-adjusted) return.  Bond yields have fluctuated between 3.5% and 4% for the last several months. According to Bankrate, high-yield savings and money market accounts are now offering between 3.3% – 4.3% as of this writing.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The Biden-Harris administration is responding to a rent-burdened nation with new actions designed to promote a fair rental market, alongside the release of a “Blueprint for a Renters Bill of Rights.” The demand for housing skyrocketed in 2021, causing rents to increase 17.1% year-over-year at their peak in February 2022.  The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) are being charged with identifying unfair practices that prevent tenants from accessing or maintaining housing. The Federal Housing Finance Agency (FHFA) announced that it would consider limits on rent increases and other renter protections through a transparent and public process. And the U.S. Department of Housing and Urban Development will publish proposed rules that would require certain owners of rental assistance properties and public housing authorities to give 30 days’ notice to terminate a lease for nonpayment.   The administration is also calling on state and local governments, as well as the private sector, to participate in improving conditions for renters by making their own commitments — as an example, the Wisconsin Housing and Economic Development Authority (WHEDA) and the Pennsylvania Housing Finance Agency (PHFA) have limited rent increases on subsidized affordable housing to 5%.  Learn more about your ad choices. Visit megaphone.fm/adchoices

What would life be like with no rent? No mortgage payment? Pretty good, as it turns out. Nowadays, 11 million Americans spend half their income on rent, and that doesn’t include the millions of homeowners similarly overstretched. But for anyone looking to find a different path, house hacking comes with plenty of perks. For this story, I tracked down a bona fide house hacker and pried until he agreed to spill the proverbial beans on exactly how he did it. Learn more about your ad choices. Visit megaphone.fm/adchoices

How do you classify yourself as a landlord or real estate investor? Are you a rookie emerging on the scene? Do you identify as an independent or small landlord? Or are you perhaps a property manager with a few rentals under your belt?  How you see yourself in relation to the real estate world can depend largely on how others like you classify themselves. And this can include anywhere from a mom-and-pop landlord to a large multifamily corporation. However, with the advent of modern technology, there’s a new type of landlord on the scene — the digital landlord. Previously being a real estate investor or landlord came with a lot of manual tasks. Things like collecting rent, sorting through paper applications, and even navigating maintenance issues were time-consuming and tedious. But with technological advances in the real estate landscape, tech is transforming historically manual pain points of the renting process into seamless, simple, and digital. Learn more about your ad choices. Visit megaphone.fm/adchoices

In 2022, 41% of renters spent more than 35% of their income on rent. As rental and living costs rise, wages are struggling to keep up. Living in a major city is exceptionally expensive, so most young professionals live in older apartments farther away to save money. With so much spent on rent, it’s unfathomable for younger generations to even think about purchasing their own homes. But what if there was a way to live in a new apartment and save 30%-40% on rent? Furthermore, the rent includes utilities, regular cleaning, furniture, and community events. Sounds too good to be true? It’s real, it’s called co-living, and it’s on the rise. Learn more about your ad choices. Visit megaphone.fm/adchoices

Prospective homebuyers are getting a little more hopeful that mortgage rates will come down, and a greater share is feeling confident that it’s a good time to buy a home, according to the Fannie Mae Home Purchase Sentiment Index, which has recovered slightly from its all-time low in October. The data comes from a survey of about 1,000 homeowners and renters who were asked more than 100 questions about their attitudes toward home buying and the economy.  The Fed has indicated that slower rate hikes are on the way and may even cease once rates reach just over 5% since December data shows inflation is moderating. Meanwhile, many markets are already shifting into the hands of the buyer, with sellers offering more concessions, and the Case-Shiller Index shows home prices declining month-over-month, though they’re still elevated compared to a year ago. More prospective homebuyers are betting that the affordability crunch will ease, likely as a result of these changes. But if their optimism translates to increased demand, that could cause prices to rise again.  Learn more about your ad choices. Visit megaphone.fm/adchoices