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,