Pittsburgh-based investor and house flipper John Walker of Turnkey Investment Properties and his business partner, Jim Auten, usually have around 10 flips on the go at any time. When rates were low, and business was booming, that number doubled. However, high rates and low inventory have seen many of their fellow flippers exit the market. “It’s a case of the last man standing right now,” Walker says. According to recent Bank of America research, it’s a scenario played out across the country, wit...
Mar 11, 2024•14 min•Ep. 1244
In the ever-changing landscape of the sharing economy, the concept of home sharing has undergone significant transformations. With the rise of short-term rental platforms like Airbnb, travelers and hosts alike embraced the idea of unique, short-term stays. However, the question that now looms large is whether the Airbnb dream is dead. While challenges persist, the evolution of the industry tells a different story—one of adaptation and innovation. Real estate investors, in particular, are explori...
Mar 10, 2024•17 min•Ep. 1243
I often hear new investors ask: “What types of properties are the best? “What should I look for when evaluating rental properties?” They are starting at the wrong point. As with any major venture, real estate investing starts with clarifying your goal. And every investment decision you make must align with your goals. Learn more about your ad choices. Visit megaphone.fm/adchoices
Mar 09, 2024•10 min•Ep. 1242
A new report from Redfin finds that 26% of investor purchases in Q4 2023 were in “low-cost” properties, up significantly from previous years. The increase comes as housing prices remain elevated and mortgage rates stay locked around the 7% range. Meanwhile, a new bill has entered committee in Congress, where senators are deliberating whether to set on track a new law that would tax real estate investors at a graduated rate on every new property that they purchase. We’ll cover both of these stori...
Mar 08, 2024•18 min•Ep. 1241
“You’re making too much money.” That’s what echoed in Missouri native Ryan Haywood’s ears after his boss decided to slash his commissions—a “sales haircut,” as it’s bitterly known in the industry. This notion of being penalized for success was perplexing for Ryan. Out of all the downsides of his job—the after-hours calls from his boss that he was expected to answer, dealing with poor management, and working up to 80 hours a week—this pay cut was the last straw. He didn’t realize it at the time, ...
Mar 07, 2024•18 min•Ep. 1240
As everyone knows by now, rising interest rates and low supply have been the most significant factors shaping the real estate market since 2022. The Federal Reserve began raising key interest rates in March 2022 in response to skyrocketing inflation. Following the pandemic-era sharp rises in the cost of materials and products across several industries, inflation in the immediate aftermath shot to its highest levels in 40 years. To tackle these high inflation rates, the Fed raised rates 11 times ...
Mar 06, 2024•14 min•Ep. 1239
Should you aim for diversification in your real estate investments? What about your stock investments? Oddly enough, many real estate investors never bother to ask that question. They just assume that all real estate investments require a lot of money and that each niche requires so much skill that you can only master one. They’re wrong on both counts, and it adds risk to their investment portfolio. Learn more about your ad choices. Visit megaphone.fm/adchoices
Mar 05, 2024•18 min•Ep. 1238
House hacking is often one of the first strategies that many new real estate investors use because it’s a simple way to live for free while your renters cover your mortgage payments. House hacking involves buying a single-family or multifamily property and renting out the units or rooms you aren’t occupying. If you are considering dipping your toes into real estate investing with this strategy, it’s important to consider the tax implications so you will know how much profit to report. Underrepor...
Mar 04, 2024•18 min•Ep. 1237
Flipping houses can be extraordinarily profitable, which is one of the reasons why it’s a popular real estate investment strategy. You go in with a competitive bid, invest some funds making repairs and sprucing up the place, and then sell. It’s rewarding, and when done well, it can be extremely lucrative. And while many people know about the potential expenses and risks that come with the actual acquisition, remodeling, and sale of house flipping, some investors are surprised to learn about the ...
Mar 03, 2024•16 min•Ep. 1236
The U.S. real estate market appears indestructible, with home prices nationwide continuing to increase. The latest report from analytics company CoreLogic shows impressive growth of 5.2% year over year in November 2023. It’s not an anomaly, either—home prices grew 4.7% year over year in October 2023. CoreLogic’s projection is a steady home price growth throughout 2024, forecasting a 2.5% year-over-year increase in November 2024 compared to November 2023. Learn more about your ad choices. Visit m...
Mar 02, 2024•12 min•Ep. 1235
Real estate offers plenty of strategies to avoid taxes. However, many require you to jump through hoops, hire third parties to help you, and otherwise make your life harder. This is why I use the “lazy 1031 exchange” strategy: no hoops, no hassles, no hiring custodians. But before explaining what a “lazy 1031” is, let’s make sure we’re all on the same page about how standard 1031 exchanges work. Learn more about your ad choices. Visit megaphone.fm/adchoices
Mar 01, 2024•12 min•Ep. 1234
Commercial real estate has had a few rough years, and it seems like things won’t be getting better anytime soon. The sector is set for a potential rise in defaults, as higher interest rates have increased the costs of refinancing. And with $2.8 trillion due between now and 2028, more landlords could be feeling the crunch. According to data firm Trepp, commercial debt maturities are expected to balloon in the next few years. While many loans were extended or refinanced, the clock is slowly tickin...
Feb 29, 2024•10 min•Ep. 1233
In a recent CNBC article, it was revealed that more than half of Americans earning over $100,000 a year live paycheck to paycheck. This eye-opening statistic highlights a fundamental truth: The road to wealth isn’t solely about income but depends significantly on transforming financial habits. In this guide, we’ll debunk the oppressive notion of budgeting, offering a transformative process to fix money leaks, cultivate strategic spending habits, and execute consistently for financial improvement...
Feb 28, 2024•10 min•Ep. 1232
Running a rental business comes with its fair share of headaches, but one upside is that just about every rental activity associated with buying, maintaining, and operating a rental property is tax-deductible. We’ll walk through a checklist so you remember to keep track of your actual expenses and get the maximum tax benefit. At the end of the day, the logic is that you should only have to pay taxes on your profits, which is your rental income minus all of your expenses. That’s the number that w...
Feb 27, 2024•12 min•Ep. 1231
This week's headlines cover the growing trend of investors switching their strategies from short-term rentals to medium-term rentals as Airbnb shows signs of instability and growing competition on the platform that’s eating away at occupancy rates and overall profits. We’ll also talk about the multifamily real estate market, which has faced a $1.2 trillion loss in valuations since its peak. We’ll cover the full story on multifamily and how the market got to this point, plus the silver linings th...
Feb 26, 2024•22 min•Ep. 1230
If you’ve been on TikTok recently—and perhaps even if you haven’t—you may have heard about the viral new concept of a ‘‘silent depression’’ that’s apparently overwhelming younger people in the U.S. No, we’re not talking about the country’s mental health crisis. We’re talking about what a few TIkTokers are referring to as the dire economic reality facing ordinary people trying to make ends meet. The term ‘‘silent’’ refers to the fact that, on the surface, the U.S. economy is doing well. We are no...
Feb 25, 2024•15 min•Ep. 1229
Drawing from my background in regulatory compliance for global financial institutions, I have developed an appreciation for the intent of regulations that strive to safeguard public interests. Regulations are not limited to finance—as you may be aware, short-term rental (STR) laws are a hot topic. As cities aim to refine STR laws to suit their unique community needs, the landscape and laws continue to evolve. In this article, I will share my experiences and offer actionable advice for navigating...
Feb 24, 2024•10 min•Ep. 1228
Before discussing how to calculate the number of properties needed to replace your current income, understand that retirement is not a one-time event. Retirement requires rental income that will enable you to maintain your current standard of living for the rest of your life. Learn more about your ad choices. Visit megaphone.fm/adchoices
Feb 23, 2024•10 min•Ep. 1227
Much recent news in real estate has centered on home prices, which appear to still be rising. But what about the profits from home sales? The latest Year-End U.S. Home Sales Report from ATTOM paints a less rosy picture of what’s going on in the real estate market. In fact, it’s showing that home sales profits dropped for the first time in a decade in 2023. So what are the figures, and what do they mean for investors? Learn more about your ad choices. Visit megaphone.fm/adchoices
Feb 22, 2024•11 min•Ep. 1226
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
