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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The No. 1 reason wholesalers have such a terrible reputation in the real estate industry is because they never have good deals. The most common complaint I hear is that wholesalers aren’t leaving enough profit margin for investor-buyers to make any money deals.  So what’s considered a good deal anyway? That would be a property that is going to bring our investor-buyers a nice return on their money after flipping. The biggest problem is that there’s a lot of wholesalers out there who don’t know how properly analyze deals! It’s critical as a wholesaler that we analyze deals from a fix-and-flipper or buy-and-hold investor’s perspective because they are our primary customer. And what may look like a good deal for us wholesalers may not be a good deal for our investor-buyers. Learn more about your ad choices. Visit megaphone.fm/adchoices

In recent years, a fairly new loan product: Debt Service Coverage Ratio (DSCR) loans, has become enormously popular with real estate investors. DSCR loans have become a critical tool for investors on track to achieve their dreams of financial freedom. These loans, meant specifically for investment properties only, are so effective and popular because they require no income verification (or Debt-To-Income Ratio) and no tax returns or endless paperwork. Further — while the qualification and documentation are much less than conventional mortgages — the interest rates are just barely higher (typically less than 1% more). These loans offer fixed rates for 30 years, including options where it’s interest-only for the first 10 years, so you avoid the payoff and refinance pressure that often comes with hard money alternatives. Learn more about your ad choices. Visit megaphone.fm/adchoices

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