ATTOM’s Year-End 2023 U.S. Foreclosure Market Report shows that foreclosure activity increased last year from 2022 levels, but is this a cause for concern for investors? The ATTOM report shows that foreclosure filings, which include default notices, auctions, and repossessions, stood at 357,062, up 10% from 2022 and 136% from 2021. These figures look much less alarming, however, when set in the context of pre-pandemic foreclosure levels. Foreclosure activity in 2023 was still 28% lower than it h...
Feb 10, 2024•11 min•Ep. 1214
In my previous article, we delved into the essential elements of development zoning. We explored key zoning designations such as R or C, critical parameters including setbacks, FAR, and building heights, strategies for enhancing density via affordable housing, the role of neighborhood ordinances, and the distinctions between by-right and discretionary review processes. In this article, we’ll delve into the crucial task of determining the development zoning for your project—an essential step to u...
Feb 09, 2024•16 min•Ep. 1213
I’ve encountered the question “Should I buy or hold?” on several websites for several years. All I have seen are opinions such as “only hold a property for X years.” Here, I propose a simple process for deciding whether to sell or hold. First, what should you base your decision on? That’s simple: your investment goal. Learn more about your ad choices. Visit megaphone.fm/adchoices
Feb 08, 2024•8 min•Ep. 1212
Buffalo, New York, will be 2024’s hottest housing market, according to a recent analysis by Zillow. While you may mainly know Buffalo as the place that regularly gets snowed in during the winter, it turns out that the city’s current combination of affordable homes, a thriving job market, and a multibillion-dollar federal regeneration project has produced market conditions every real estate investor should note. Zillow’s report uses several metrics to determine which housing markets are currently...
Feb 07, 2024•12 min•Ep. 1211
What is important for Real Estate investors to know this week? Managing Editor of the BiggerPockets Blog, Matt Myre is here today to share the top 3 headlines that Real Estate investors need to know about to make better investing decisions. We’ll cover a House bill that was passed last week that could potentially bring back 100% bonus depreciation if made into law, the “Silent Depression” that TikTokers are battling with economists over, and what the SEC is proposing for new accredited investor ...
Feb 06, 2024•20 min•Ep. 1210
A traditional home refinance involves replacing an existing mortgage with a new loan to secure better terms or a lower interest rate. This process can reduce monthly payments, change the loan duration, and/or provide access to home equity for other expenses or investments. What Is a No Closing Cost Refinance? A no closing cost refinance is a type of mortgage refinancing where the lender covers upfront closing costs in exchange for a slightly higher interest rate on the new loan. Learn more about...
Feb 05, 2024•10 min•Ep. 1209
Things are shaping up for homebuilders. In fact, one big name in the industry is projecting that 2024 will mark the “golden age” for homebuilding, thanks to falling mortgage rates and frozen existing home supply, among other factors. David O’Reilly, CEO of megalith developer Howard Hughes Corp., told CNBC last week, “We’re going to have the golden age of new home construction” in 2024, even calling the new home market “extraordinary” in its current form. Learn more about your ad choices. Visit m...
Feb 04, 2024•9 min•Ep. 1208
If you’ve been reading the BiggerPockets Blog for any length of time now, you’ll have noticed that the Midwest has often been named as one of the best places to invest in real estate right now. It offers reasonable home and rental prices and stable job markets in major cities. The result is a buoyant housing market that has so far avoided the post-pandemic slump seen in other areas. But what if we told you that, while all this is true, the Midwest is also the most at-risk area for flood damage o...
Feb 03, 2024•11 min•Ep. 1207
Well, 2023 has been another wild year in commercial real estate. The headlines continue to scream trouble for CRE. Many are getting increasingly fantastic. Some friends are asking me, “So…I hear it’s pretty tough in commercial real estate right now. How are you doing?” You may have wondered the same thing. Learn more about your ad choices. Visit megaphone.fm/adchoices
Feb 02, 2024•15 min•Ep. 1206
I’m really a pretty nice guy. I’ve met hundreds of you in person and spoken to a few thousand more prospects/investors by phone or on Zoom. So, hopefully, most of you agree. But as I write this, I’m a bit miffed. You see, our Wellings Capital team is like family. We love and care for each other. So, I hate to see anyone on our team taken advantage of. But it feels like that’s what happened here. Our team recently spent over five weeks heads-down on what should have been a straightforward preferr...
Feb 01, 2024•10 min•Ep. 1205
The commercial real estate market has been faced with headwinds for years, and 2024 may not be any different. With weak growth in the sector and a high interest rate environment that has pushed the cost of ownership to new heights, the CRE space is expected to continue falling in value this year. In fact, property values could fall another 10% after falling 11% last year, according to Capital Economics’ deputy chief property economist Kiran Raichura. He sees growth softening “as the industrial r...
Jan 31, 2024•11 min•Ep. 1204
The commercial real estate market has been faced with headwinds for years, and 2024 may not be any different. With weak growth in the sector and a high interest rate environment that has pushed the cost of ownership to new heights, the CRE space is expected to continue falling in value this year. In fact, property values could fall another 10% after falling 11% last year, according to Capital Economics’ deputy chief property economist Kiran Raichura. He sees growth softening “as the industrial r...
Jan 30, 2024•10 min•Ep. 1203
Investing in real estate can be a great way to generate wealth, but it isn’t for everyone. For one, the term ‘‘passive income’’ really does not describe real estate investing accurately. Becoming an investor is a much more hands-on process than just buying a house and renting it out. All the maintenance and potential issues with tenants will become your responsibility. And if you want to grow your portfolio to multiple properties, the responsibilities will grow exponentially. The time and effort...
Jan 29, 2024•17 min•Ep. 1202
You’re undoubtedly wondering what the answer to this question is. I was, too. As a due diligence partner for over 800 investors, we think about risks all the time. Since our default is to say no, we probably think about risks more than most people do. In The Road Less Stupid, author Keith Cunningham says (I’m paraphrasing): Rookie investors: “How much can I make?” Seasoned investors: “How much can I lose?” Professional investors: “Can I afford to lose that much? We believe the best investors thi...
Jan 28, 2024•10 min•Ep. 1201
Embarking on a ground-up development project may seem like a monumental task, but the opportunity to build something entirely new makes it one of the most exhilarating ventures in real estate. But, at the heart of any successful development analysis lies a thorough understanding of zoning. This guide will dissect the key facets, from general zoning classifications to intricate parameters such as height restrictions, setbacks, unit density, and the critical interplay of community incentives and n...
Jan 27, 2024•13 min•Ep. 1200
The vast majority of real estate investors get into the industry to pursue passive cash flow. Unfortunately, over the last several years, finding deals with strong cash flow has become a challenge. However, there are still plenty of markets in the U.S. that continue to offer cash flow potential. Below, I provide what I believe to be the top 10 markets in the United States for cash flow. Learn more about your ad choices. Visit megaphone.fm/adchoices
Jan 26, 2024•14 min•Ep. 1199
Are you considering listing your property on Airbnb? Understanding how much an Airbnb host can make before listing your property as a short-term rental (STR) is crucial. Factors affecting profitability include Airbnb fees, property maintenance, occupancy rates, and location. With fierce competition in the Airbnb rental market, understanding these factors is crucial for increasing your rental income potential. Getting started as an Airbnb host can be a great way to earn passive income. While some...
Jan 25, 2024•20 min•Ep. 1198
Redfin’s November rent report is out, showing that median rent prices declined by 2.1% year over year. This is the biggest decline since 2020, and renters nationwide will breathe a sigh of relief. Landlords and investors? Perhaps not so much, although there are regional variations that are worth exploring if you’re planning on investing in real estate in 2024. Asking rent prices have been dropping steadily since May 2022, when the median U.S. rental price shot up to above $2,000 per month. At th...
Jan 24, 2024•11 min•Ep. 1197
Real estate investors have many opportunities to invest in real estate and potentially earn a profit. Sometimes, though, you want that guarantee that you’ll be able to sell the home and have an exit strategy. While there are very few guarantees in real estate, a rent-to-own contract may be just what you need. So what is rent-to-own, and how does it work? Learn more about your ad choices. Visit megaphone.fm/adchoices
Jan 23, 2024•13 min•Ep. 1196
In 2004, I was living in NYC when I decided to start a new career. To identify potential business opportunities, I thought about some of the more frustrating experiences I’d had. I quickly narrowed the list to buying investment properties. The problem was that all real estate agents could do was send me MLS data sheets for the properties I selected; no analytics, processes, or services. I had to do everything myself. This was time-consuming, and I made frustrating mistakes that cost me time and ...
Jan 22, 2024•14 min•Ep. 1195
Borrowing a mortgage is a big responsibility. When you’re an investor, lenders take serious precautions to ensure you can afford it, but many borrowers still default. A mortgage default can greatly hurt your credit and future chances of purchasing real estate, even for your own use. So what is a mortgage default, and how does it work? Learn more about your ad choices. Visit megaphone.fm/adchoices
Jan 21, 2024•14 min•Ep. 1194
Knowing what to look for when buying a rental property will save you time and money while reducing stress. In this article, we outline seven considerations that you can’t afford to overlook. Consideration 1: Location Location, location, location is consideration No. 1 when buying a rental property. Is the property close to amenities such as shopping? How about public transportation? What about local schools? Is the area safe? Is it family-friendly? Learn more about your ad choices. Visit megapho...
Jan 20, 2024•10 min•Ep. 1193
When you buy a rental property, you do so with one goal in mind: to generate a positive return on investment (ROI). So, What Is a Good ROI on Rental Property? A good ROI on rental property typically ranges from 6% to 10%, although this can vary with location, property type, and market conditions. In some areas, ROIs over 12% are possible, while in expensive urban locations, a 4% to 6% ROI may still be favorable. Learn more about your ad choices. Visit megaphone.fm/adchoices
Jan 19, 2024•11 min•Ep. 1192
Every real estate investor wants to know if there’ll be a housing market downturn in 2024. But perhaps a better question to ask, now and always, is: “Which local markets are most at risk of a downturn?” Regional variations consistently play a part in any housing market analysis or forecast. And now we have the most up-to-date Special Housing Risk Report from real estate data provider ATTOM. Learn more about your ad choices. Visit megaphone.fm/adchoices
Jan 18, 2024•15 min•Ep. 1191
For all the recent talk about a possible interest rate easing in 2024 and the low likelihood of a severe recession, people are still feeling pessimistic. The Fannie Mae Home Purchase Sentiment Index for November is out, and it paints a general picture of low confidence among both homebuyers and home sellers. As interest rates began to climb in 2022, consumer confidence in the housing market began to plummet, reaching their lowest levels by late 2022. Confidence stabilized somewhat in 2023 but qu...
Jan 17, 2024•10 min•Ep. 1190
We all occasionally fall victim to fallacies—assumptions or beliefs that just aren’t true. Consider a deceptively simple logic puzzle known as the Monty Hall problem: You’re presented with three doors, behind one of which is a prize, and you have to guess the door. Before revealing the answer, the game show host makes your life easier by eliminating one of the wrong answers and asks you if you want to change your guess. Should you change it? Most people shrug and say, “At that point, it’s 50/50,...
Jan 16, 2024•16 min•Ep. 1189
What is important for Real Eatate investors to know this week? Managing Editor of the BiggerPockets Blog, Matt Myre is here today to share the top 3 headlines that Real Estate investors need to know about to make better investing decisions. We will cover the Top Cash flow markets in 2024, How Reitement through Real Estate has changed and why, and we will get into how the new Fannie Mae 5% downpayment really impacts investors. Learn more about your ad choices. Visit megaphone.fm/adchoices
Jan 15, 2024•22 min•Ep. 1188
Most homeowners bought their homes at mortgage rates that were lower than today’s, and that’s caused what’s known as the “lock-in effect.” Homeowners are hesitant to give up their cheap mortgages, which is suppressing available inventory. Low inventory has kept home prices from falling significantly, even as homebuyer demand fell due to rate hikes. With mortgage rates down more than one percentage point since their peak in October, the housing market is starting to show signs of rebounding deman...
Jan 14, 2024•13 min•Ep. 1187
Low-cost properties are appealing because you can acquire and generate income with less initial capital. However, they are actually the most expensive way to achieve and maintain financial freedom. Here’s why. What Determines Prices and Rents? Real estate prices and rents are driven by supply and demand. When the number of sellers equals or exceeds the number of buyers consistently, property prices remain low. If prices do increase, the rise will be gradual. Furthermore, when prices are low, mor...
Jan 13, 2024•12 min•Ep. 1186
Inflation broadly impacts the overall economy, causing the prices of goods and services to rise. This can have rippling effects across various sectors, including the real estate market. Real estate investors, homebuyers, and home sellers need to understand how inflation impacts the real estate market. This can help them make the best decisions when buying and selling real estate. We’re here to explain what causes inflation, its impact on real estate, and how real estate investors can benefit eve...
Jan 12, 2024•13 min•Ep. 1185
