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 Credit...
Oct 24, 2023•13 min•Ep. 1105
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 mul...
Oct 23, 2023•15 min•Ep. 1104
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 A...
Oct 22, 2023•8 min•Ep. 1103
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 oth...
Oct 21, 2023•7 min•Ep. 1102
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 ner...
Oct 20, 2023•11 min•Ep. 1101
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...
Oct 19, 2023•14 min•Ep. 1100
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 ...
Oct 18, 2023•9 min•Ep. 1099
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 ...
Oct 17, 2023•14 min•Ep. 1098
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...
Oct 16, 2023•16 min•Ep. 1097
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—el...
Oct 15, 2023•16 min•Ep. 1095
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 ...
Oct 14, 2023•12 min•Ep. 1095
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,...
Oct 13, 2023•17 min•Ep. 1094
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 t...
Oct 12, 2023•13 min•Ep. 1093
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
Oct 11, 2023•15 min•Ep. 1092
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...
Oct 10, 2023•21 min•Ep. 1091
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
Oct 09, 2023•21 min•Ep. 1090
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
Oct 08, 2023•12 min•Ep. 1089
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 ma...
Oct 07, 2023•14 min•Ep. 1088
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 ...
Oct 06, 2023•12 min•Ep. 1087
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 ex...
Oct 05, 2023•13 min•Ep. 1086
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: T...
Oct 04, 2023•13 min•Ep. 1085
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...
Oct 03, 2023•10 min•Ep. 1084
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 ...
Oct 02, 2023•13 min•Ep. 1083
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 m...
Oct 01, 2023•13 min•Ep. 1082
“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 fol...
Sep 30, 2023•13 min•Ep. 1081
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....
Sep 29, 2023•12 min•Ep. 1080
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 yo...
Sep 28, 2023•14 min•Ep. 1078
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
Sep 27, 2023•14 min•Ep. 1078
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 form...
Sep 26, 2023•17 min•Ep. 1077
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...
Sep 25, 2023•15 min•Ep. 1076
