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 Commerci...
Sep 13, 2023•10 min•Ep. 1064
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...
Sep 12, 2023•17 min•Ep. 1063
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 portf...
Sep 11, 2023•13 min•Ep. 1062
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 count...
Sep 10, 2023•15 min•Ep. 1061
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 investor...
Sep 09, 2023•17 min•Ep. 1060
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
Sep 08, 2023•15 min•Ep. 1059
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 re...
Sep 07, 2023•11 min•Ep. 1058
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 rea...
Sep 06, 2023•13 min•Ep. 1057
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 a...
Sep 05, 2023•14 min•Ep. 1056
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 ofte...
Sep 04, 2023•14 min•Ep. 1055
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 understan...
Sep 03, 2023•17 min•Ep. 1054
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 ...
Sep 02, 2023•10 min•Ep. 1053
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...
Sep 01, 2023•15 min•Ep. 1052
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. Y...
Aug 31, 2023•12 min•Ep. 1051
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/adchoic...
Aug 30, 2023•16 min•Ep. 1050
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 f...
Aug 29, 2023•11 min•Ep. 1049
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 megaphon...
Aug 28, 2023•6 min•Ep. 1048
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,...
Aug 27, 2023•5 min•Ep. 1047
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 ...
Aug 26, 2023•13 min•Ep. 1046
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 sti...
Aug 25, 2023•11 min•Ep. 1045
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, particular...
Aug 24, 2023•6 min•Ep. 1044
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 dur...
Aug 23, 2023•7 min•Ep. 1043
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 mark...
Aug 22, 2023•10 min•Ep. 1042
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 fo...
Aug 21, 2023•6 min•Ep. 1041
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 nation...
Aug 20, 2023•10 min•Ep. 1040
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 an...
Aug 19, 2023•8 min•Ep. 1039
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 rea...
Aug 18, 2023•7 min•Ep. 1038
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 ...
Aug 17, 2023•12 min•Ep. 1037
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 ...
Aug 16, 2023•8 min•Ep. 1036
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 rack...
Aug 15, 2023•7 min•Ep. 1035
