Got kids? Then, eventually, you’ll (most likely) also have college bills. And spoiler alert: They will be big. While it’s certainly not a parental requirement, footing the college bill (or any part of it) and allowing your kids to graduate debt-free is an enormous gift—one of the biggest you can give your children. Conventional savings vehicles, like 529s, are amazing tax-free-withdrawal vehicles, but they’re not the only way to get to the finish line. You can also use your real investing superp...
Feb 21, 2024•9 min•Ep. 1225
Choosing between commercial and residential real estate is a big decision for investors. If you choose the wrong strategy, you could be in over your head and potentially lose money. We’ve created an investing in commercial real estate for beginners guide to help you understand what it means to invest in commercial real estate and what it requires. Learn more about your ad choices. Visit megaphone.fm/adchoices
Feb 20, 2024•17 min•Ep. 1224
With house flipping activity remaining high across the country, many investors are wrestling with this question: Is house flipping ethical? There are two sides to the argument, both of which we detail here. The Quick Basics of House Flipping There is more to house flipping than what you see on television. It takes money, knowledge, and expertise to flip a home for a profit. What is house flipping? House flipping involves purchasing real estate at a low price, renovating or refurbishing it, and t...
Feb 19, 2024•10 min•Ep. 1223
As an investor, you have many options when it comes to where you put your money. Day after day, whether you are driving to work or watching your favorite reality TV show, you’ll see advertisements telling you to invest in gold, stocks, digital currency, mutual funds, etc. And because of those ads, people have become familiar with those types of investments. But very few people are familiar with trust deed investing, although it’s a form of investing as old as money itself. Learn more about your ...
Feb 18, 2024•11 min•Ep. 1222
As part of its goal to increase affordable mortgage access for homebuyers in the United States, Fannie Mae announced in December that it would accept attorney-opinion letters (AOLs) in place of title insurance with more mortgages. While AOLs have been allowed by the government-sponsored enterprise on select mortgages since 2022, the decision expands eligible mortgages to include condo units and properties with homeowners association (HOA) restrictions, potentially assisting more first-time homeb...
Feb 17, 2024•16 min•Ep. 1221
Goals provide us with direction and purpose, acting as the foundation for every significant endeavor. Your goals should be written down, but they don’t need to be lengthy or complex. How to Get Started You can start with just the following items: Current situation: What is your current or anticipated financial capacity within a reasonable time frame? Get preapproved for an investor loan to determine your accessible credit limit. Financial end goal: Typically, this refers to an income goal, like ...
Feb 16, 2024•8 min•Ep. 1220
Are you searching for your next big wealth-building strategy? Looking for ways to strengthen your portfolio? If so, it may be time to add passive investments to your portfolio if you haven’t already, specifically through turnkey. Turnkey real estate is an increasingly popular option with a range of benefits, making it an appealing choice for individuals seeking passive income and long-term wealth accumulation. Typically speaking, a turnkey property is fully renovated and ready for immediate rent...
Feb 15, 2024•15 min•Ep. 1219
Despite recent challenges in the commercial real estate space, one area has become surprisingly popular among institutional investors: retail. As demand for office space has declined, retail seems to have picked up, despite a tumultuous 2023. According to the Wall Street Journal, private investors snagged $1 billion more in retail assets than they sold in the third quarter of last year. Predictions for retail over the coming year are strong, with many expecting retail to be a bright spot in an o...
Feb 14, 2024•10 min•Ep. 1218
Cash-out refinancing is pretty common in real estate investing. An investor will cash in on the equity they have on an existing property and then use those funds toward a down payment on their next property. Rinse and repeat. That complicated process may soon be unnecessary thanks to a new fintech company. Downpayments, a Miami-based financial tech startup, has come up with a way for investors to tap their existing property equity to buy new properties—no refinancing required. Here’s how it work...
Feb 13, 2024•9 min•Ep. 1217
It’s been nearly four years since COVID-19 burst onto the global stage. We’ve returned to normal, but “normal” just doesn’t mean what it used to. Domestically, Americans are feeling worn out. Social tensions are high and have been for a couple of decades. Conservatives and the right wing waste no time in blaming it on the commander-in-chief. Meanwhile, the left repeatedly insists not enough is being done by the government, pointing to healthcare, education, and housing as some of the issues wher...
Feb 12, 2024•23 min•Ep. 1216
The 70% rule in real estate can be helpful when comparing properties and making a final determination on which one is the best investment. Understanding the ins and outs of this rule is imperative to using it to your advantage. What Is the 70% Rule? The 70% rule is a formula commonly used by real estate investors as a barometer when purchasing distressed properties for a profit. The formula calculates the maximum amount to pay for a given property once two key factors—the after-repair value (ARV...
Feb 11, 2024•13 min•Ep. 1215
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
