Poor air quality has been in the headlines about U.S. climate change, especially on the West Coast and in Southern states. Increasingly devastating wildfires are becoming a sad fact of life in California, Texas, and Arizona, with many states added to the list of those impacted or at high risk of fire damage each year. But one specific wildfire-related factor is affecting the West more than in any other region in the country: smoke pollution. According to recent research from First Street Foundat...
Mar 24, 2024•11 min•Ep. 1257
When people start investing in residential real estate, one of the biggest mistakes is neglecting the importance of solid property management. We’ve said it before: Your property management team is your first line of defense. They are the best tool for maximizing your property’s performance and value. Without them, even a good investment can turn sour. Learn more about your ad choices. Visit megaphone.fm/adchoices
Mar 23, 2024•12 min•Ep. 1256
The National Association of Realtors (NAR) announced Friday that it finally reached a settlement with the various homeowner groups that had been suing the trade group since 2019. The NAR will pay $418 million in damages and end some of its practices, including the language around commission sharing. https://www.biggerpockets.com/blog/national-association-of-realtors-to-pay-418-million-and-remove-commission-standards-as-part-of-settlement https://www.biggerpockets.com/blog/the-housing-shortage-wi...
Mar 22, 2024•20 min•Ep. 1255
It’s that time of year when you’re either super happy that your team made it to the big game, or you’re frustrated with your team’s performance throughout the season (such as my Panthers) or still recovering from a playoff blowout (I’m talking to you, Cowboy fans). Or you could be an Eagles fan and question your existence after what’s happened over the last 365 days (much to my delight). At any rate, life goes on, and only one team can win the trophy. What we do have more control over, though, i...
Mar 21, 2024•12 min•Ep. 1254
What if we told you that you could use a credit card to pay the mortgages on your investment properties? And that you could earn points while doing so, which you could then use for free travel, down payments, or even for improving your ROIs? This is what the Bilt Rewards Mastercard could soon allow you to do. (We promise this isn’t an ad.) Bilt recently announced that the company raised an additional $200 million from investors, putting the company’s valuation at an impressive $3.1 billion. Bilt...
Mar 20, 2024•11 min•Ep. 1253
The multifamily and commercial real estate crash is in full swing. As much as $2.7 trillion in wealth has been wiped out with a historic surge in cap rates and plummeting asset values in the commercial real estate world, with multifamily and office leading the charge with estimated 30% and 35% peak-to-trough declines in asset value and even larger percentage declines in equity value. Learn more about your ad choices. Visit megaphone.fm/adchoices
Mar 19, 2024•25 min•Ep. 1252
The multifamily and commercial real estate crash is in full swing. As much as $2.7 trillion in wealth has been wiped out with a historic surge in cap rates and plummeting asset values in the commercial real estate world, with multifamily and office leading the charge with estimated 30% and 35% peak-to-trough declines in asset value and even larger percentage declines in equity value. Learn more about your ad choices. Visit megaphone.fm/adchoices
Mar 18, 2024•11 min•Ep. 1251
The multifamily and commercial real estate crash is in full swing. As much as $2.7 trillion in wealth has been wiped out with a historic surge in cap rates and plummeting asset values in the commercial real estate world, with multifamily and office leading the charge with estimated 30% and 35% peak-to-trough declines in asset value and even larger percentage declines in equity value. Learn more about your ad choices. Visit megaphone.fm/adchoices
Mar 17, 2024•15 min•Ep. 1250
The significance of earning passive income in today’s economy cannot be emphasized enough. Steady, reliable passive income serves as a cornerstone for achieving financial independence, offering a multitude of avenues for growth and prosperity. A plethora of new passive income generation opportunities offered by innovative digital platforms have emerged in recent years. From real estate short notes to high-end art, the landscape is ripe with prospects waiting to be explored. Learn more about your...
Mar 16, 2024•17 min•Ep. 1249
Choosing a real estate investment strategy can be challenging. There are risks no matter what avenue you choose, but understanding all options, including a ground lease, is important. A ground lease can be a good option for landlords or property owners who want prime locations, but not understanding what a ground lease is and how it works can be detrimental. We’ve broken down everything there is to know about the ground lease and what landlords and tenants must consider. Learn more about your ad...
Mar 15, 2024•11 min•Ep. 1248
Rental properties have been one of the largest real estate industry sectors to be hit by the increase in interest rates. Investor purchases of single-family homes tumbled 29% in 2023, according to the Wall Street Journal, citing data from Parcl Labs, a real estate data and analytics firm. Realtor.com concurred that last year saw the largest annual drop in investor buying activity in at least 20 years. However, for those who can buy with cash or hold their nerve (and pay the mortgage) during the ...
Mar 14, 2024•14 min•Ep. 1247
At the beginning of 2023, we reported on the advent of #Airbnbust, a term coined by Amy Nixon and amplified by vacation property operators on social media to describe falling revenues per host due to a rapid increase in the supply of rental homes. Last July, we also dug into conflicting data that sparked a viral debate on whether the short-term rental market was crashing or reverting to normal. Did the trending term correspond to an industry-wide shift in vacation rental performance that would p...
Mar 13, 2024•17 min•Ep. 1245
If you’ve been paying attention to news in the real estate sector, you will know that new construction has faced many challenges since the beginning of the COVID-19 pandemic. From rising prices of construction materials to labor shortages and, most recently, high mortgage interest rates, the homebuilding industry has had more than its fair share of hard knocks. Indeed, homebuilder confidence dropped for three consecutive months in 2023. And yet one of the most respected, successful investors out...
Mar 12, 2024•10 min•Ep. 1245
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
