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 ...
Dec 25, 2023•19 min•Ep. 1167
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
Dec 24, 2023•14 min•Ep. 1166
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 ...
Dec 23, 2023•14 min•Ep. 1165
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 refinanc...
Dec 22, 2023•21 min•Ep. 1164
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 ...
Dec 21, 2023•12 min•Ep. 1163
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
Dec 20, 2023•18 min•Ep. 1162
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 foundatio...
Dec 19, 2023•9 min•Ep. 1161
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 betwe...
Dec 18, 2023•12 min•Ep. 1160
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 Ke...
Dec 17, 2023•11 min•Ep. 1159
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
Dec 16, 2023•10 min•Ep. 1158
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 ...
Dec 15, 2023•14 min•Ep. 1157
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
Dec 14, 2023•6 min•Ep. 1156
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
Dec 13, 2023•15 min•Ep. 1155
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 mar...
Dec 12, 2023•11 min•Ep. 1154
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 a...
Dec 11, 2023•21 min•Ep. 1153
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. “El...
Dec 10, 2023•7 min•Ep. 1152
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 financ...
Dec 09, 2023•19 min•Ep. 1151
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 mark...
Dec 08, 2023•7 min•Ep. 1150
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 ...
Dec 07, 2023•12 min•Ep. 1149
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
Dec 06, 2023•13 min•Ep. 1148
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 spen...
Dec 05, 2023•13 min•Ep. 1147
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...
Dec 04, 2023•12 min•Ep. 1146
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
Dec 03, 2023•8 min•Ep. 1145
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 bef...
Dec 02, 2023•14 min•Ep. 1145
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 a...
Dec 01, 2023•12 min•Ep. 1143
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 fo...
Nov 30, 2023•10 min•Ep. 1142
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
Nov 29, 2023•12 min•Ep. 1141
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 ...
Nov 28, 2023•14 min•Ep. 1140
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...
Nov 27, 2023•15 min•Ep. 1139
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 po...
Nov 26, 2023•14 min•Ep. 1138
