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...
Jul 26, 2023•7 min•Ep. 1015
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 s...
Jul 25, 2023•19 min•Ep. 1014
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 interes...
Jul 24, 2023•15 min•Ep. 1013
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 p...
Jul 23, 2023•17 min•Ep. 1012
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 c...
Jul 22, 2023•18 min•Ep. 1011
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...
Jul 21, 2023•9 min•Ep. 1010
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 corr...
Jul 20, 2023•14 min•Ep. 1009
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 you...
Jul 19, 2023•14 min•Ep. 1008
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 progr...
Jul 18, 2023•19 min•Ep. 1007
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...
Jul 17, 2023•14 min•Ep. 1006
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 bu...
Jul 16, 2023•16 min•Ep. 1005
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
