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...
Jul 15, 2023•11 min•Ep. 1004
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...
Jul 14, 2023•11 min•Ep. 1003
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 sa...
Jul 13, 2023•15 min•Ep. 1002
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...
Jul 12, 2023•14 min•Ep. 1001
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 ...
Jul 11, 2023•12 min•Ep. 1000
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 ...
Jul 10, 2023•15 min•Ep. 999
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
Jul 09, 2023•18 min•Ep. 998
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 settin...
Jul 08, 2023•16 min•Ep. 997
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 righ...
Jul 07, 2023•12 min•Ep. 996
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 i...
Jul 06, 2023•11 min•Ep. 995
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 l...
Jul 05, 2023•14 min•Ep. 994
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 rent...
Jul 04, 2023•7 min•Ep. 993
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 i...
Jul 03, 2023•6 min•Ep. 992
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, Bigge...
Jul 02, 2023•14 min•Ep. 991
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
Jul 01, 2023•6 min•Ep. 990
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 ...
Jun 30, 2023•9 min•Ep. 989
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 ...
Jun 29, 2023•9 min•Ep. 988
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 d...
Jun 28, 2023•11 min•Ep. 987
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...
Jun 27, 2023•11 min•Ep. 986
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,...
Jun 26, 2023•7 min•Ep. 985
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 ...
Jun 25, 2023•7 min•Ep. 984
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...
Jun 24, 2023•13 min•Ep. 983
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...
Jun 23, 2023•6 min•Ep. 982
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...
Jun 22, 2023•16 min•Ep. 981
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....
Jun 21, 2023•7 min•Ep. 980
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...
Jun 20, 2023•6 min•Ep. 979
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 ca...
Jun 19, 2023•10 min•Ep. 978
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 unf...
Jun 18, 2023•8 min•Ep. 977
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 me...
Jun 17, 2023•13 min•Ep. 976
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 ...
Jun 16, 2023•13 min•Ep. 975
