The location (city) where you invest is your most important investment decision, not the properties themselves. Why? The goal of real estate investing is financial independence. But financial independence isn’t just replacing your current income. It’s about having the necessary funds to maintain your present lifestyle throughout your lifetime. Learn more about your ad choices. Visit megaphone.fm/adchoices
Apr 23, 2024•12 min•Ep. 1286
After multiple lawsuits, the National Association of Realtors (NAR) has agreed to a settlement with home sellers amounting to a payment of $418 million and a few monumental rule changes for multiple listing services (MLS) and how real estate agents conduct business. The changes will go into effect in July. This has led to an array of responses within the real estate industry, from panic and complete reworking of real estate practices to others claiming it’s no big deal and business as usual. Lea...
Apr 22, 2024•14 min•Ep. 1286
After multiple lawsuits, the National Association of Realtors (NAR) has agreed to a settlement with home sellers amounting to a payment of $418 million and a few monumental rule changes for multiple listing services (MLS) and how real estate agents conduct business. The changes will go into effect in July. This has led to an array of responses within the real estate industry, from panic and complete reworking of real estate practices to others claiming it’s no big deal and business as usual. Lea...
Apr 21, 2024•16 min•Ep. 1284
According to ATTOM Data’s latest Q1 2024 Single-Family Rental Market report, average gross rental yields on three-bedroom single-family homes are projected to rise by 7.55% this year. As ever, though, the devil is in the regional details. While some markets are offering landlords great rental margins—over 10% in some areas—others offer lackluster and/or declining returns. Let’s dive a little deeper into which markets the report identifies as hot—and which ones should give investors pause, based ...
Apr 20, 2024•11 min•Ep. 1284
This week’s headlines cover the recent Federal Reserve meeting that ended with Fed Chairman Jerome Powell announcing that rates would be higher for longer. Bond yields rose in response, sending mortgage rates back into the 7-8% rage. Meanwhile, Matt assesses whether the pandemic ever recovered from the pandemic by looking at prices, rates, and inventory. https://www.biggerpockets.com/blog/why-the-housing-market-still-has-not-recovered-from-the-pandemic https://www.bloomberg.com/news/articles/202...
Apr 19, 2024•22 min•Ep. 1283
If you’ve ever dipped your toes into the world of personal finance, chances are you’ve heard of Dave Ramsey. He’s a household name in the realm of financial advice, known for his no-nonsense approach to getting out of debt and building wealth. One of the cornerstones of Ramsey’s philosophy is cutting expenses to the bone, often focusing on small, everyday luxuries like coffee and dining out. While slashing these expenses can certainly free up some cash in the short term, I’m here to tell you tha...
Apr 18, 2024•17 min•Ep. 1282
Real estate and franchising are two popular investment options offering significant financial returns. Both allow you to earn passive income, enjoy tax benefits, and benefit from regular cash flow. However, a real estate franchise and real estate investing each have pros and cons to consider. If you are considering investing in the housing market, which business model is best for you? Long-term wealth through property appreciation and regular rental income that real estate offers? Or the opportu...
Apr 17, 2024•21 min•Ep. 1281
Real estate investors accounted for 26.1% of low-priced home purchases in the U.S. during the fourth quarter of 2023, a record-high share, according to a new report from Redfin. Investors bought only 13.6% of mid-priced homes and 15.9% of high-priced homes sold during the same period. Redfin defined low-priced homes as falling into the bottom third of local sales prices. The median price investors paid for homes in the fourth quarter was $453,271, above the national median, according to Redfin d...
Apr 16, 2024•17 min•Ep. 1280
2024 will be a crucial year for the U.S. economy, particularly around what the Fed will do with interest rates. But for the Fed to lower rates, they have to see signs of slowing growth. What reliable signs are there that the economy is moving in either the recessionary or the growth direction? There has to be a better way to tell than using the Super Bowl Indicator (it doesn’t work, folks). Learn more about your ad choices. Visit megaphone.fm/adchoices
Apr 15, 2024•13 min•Ep. 1279
Disability benefits provide important lifelines to those who are unable to work due to various medical conditions. Although your ability to work while on disability will be limited, you may still be able to earn income from certain passive investments. Whether flipping houses while on disability will affect your benefits depends on your degree of involvement in your properties. Learn more about your ad choices. Visit megaphone.fm/adchoices
Apr 14, 2024•11 min•Ep. 1278
Investing in forest land can be a great way to diversify your portfolio. Because tree growth doesn’t rely on economic factors, consistent biological growth can create more stable returns than other financial investments. When you invest in forestry, you invest in a lower-risk asset that provides environmental benefits. This is often opposite what’s true for residential and commercial land, which is more prone to market disruptions and other market risks. Learn more about your ad choices. Visit m...
Apr 13, 2024•10 min•Ep. 1277
Yes, many pundits are still warning about a recession in 2024. Here’s one example. Richard Duncan did a Macro Watch fourth-quarter update. He pointed out that between 1952 and 2009, all nine times total credit (adjusted for inflation) grew by less than 2%, and the economy went into a recession. Learn more about your ad choices. Visit megaphone.fm/adchoices
Apr 12, 2024•12 min•Ep. 1276
Last week, Realtor.com published another version of its ‘‘magic number’’ forecast. The number in question is the mortgage rate number low enough to ‘‘unfreeze’’ the real estate market. We know that the market has been in something of a gridlock for over a year now: Home prices are very high and keep rising. Mortgage rates are high and aren’t showing much of a downward trend. There aren’t enough homes to go around, especially those that are remotely affordable. Something has to give. Learn more a...
Apr 11, 2024•10 min•Ep. 1275
I moved around a lot when I was younger. And I’m not talking from state to state or city to city—I moved a few doors down from wherever I was living. I never knew why, and frankly, I never asked my parents. All I knew was that I was with my family, so I went wherever they went. It wasn’t until years later that I realized my parents were fixers and flippers. Learn more about your ad choices. Visit megaphone.fm/adchoices
Apr 10, 2024•19 min•Ep. 1274
This week’s headlines cover the erosion of landlord rights as squatters racked up a series of victories in recent months, culminating in the arrest of a landlord in New York City who attempted to evict a person living in her vacant home without a right to. We’ll also cover why recession predictions are always wrong, and if they even matter to real estate investors in particular. Learn more about your ad choices. Visit megaphone.fm/adchoices
Apr 09, 2024•22 min•Ep. 1273
In simple terms, a mobile home—also known as a manufactured home—is a dwelling built in a factory. While these homes are used as primary residences by many, they can also make for a good investment. So, Are Mobile Homes a Good Investment for Rental Property? Yes, mobile homes can be a good investment for rental property when approached correctly. While there’s no defined strategy for success, key considerations include understanding the unique market demand for mobile homes, analyzing location b...
Apr 08, 2024•13 min•Ep. 1272
Real estate investors seem to be taking it from all sides these days. Not only are interest rates, property taxes, and construction costs up significantly from a few years ago, but more and more legislation is being passed to make investing in and managing real estate more difficult, arduous, and expensive. And, of course, it should come as no surprise that most of this legislation will not only hurt real estate investors but will make the problems that need solving all the worse. Learn more abo...
Apr 07, 2024•19 min•Ep. 1271
If you’re looking to break into real estate investing but need to figure out what it takes, consider house hacking. You might wonder, though: Is house hacking legal? Is House Hacking Legal? House hacking is legal when you do it right. For example, renting a spare room in a single-family home or a unit in a multifamily home is legal. However, renting a garage space not meant for living isn’t considered legal. Follow your city’s zoning laws, and house hacking can be legal. Learn more about your ad...
Apr 06, 2024•11 min•Ep. 1270
When it comes to maximizing profit on your investment property, you’ve likely considered quite a few rental strategies. If long-term doesn’t pencil out, you could always consider revenue from medium-term or short-term tenants if your market supports it. But there is another successful, profitable rental strategy you should add to your arsenal: renting your property “by the room.” Also referred to as a boarding or rooming house strategy, renting by room is not a new concept. But these kinds of ar...
Apr 05, 2024•8 min•Ep. 1269
In the ever-shifting world of real estate, you find yourself at a crossroads: Do you buy now or wait for more favorable market conditions? The housing market witnessed unprecedented shifts during the pandemic, with home prices soaring and mortgage rates experiencing volatility in 2022 and 2023 due to the Federal Reserve’s attempts to curb inflation through rate hikes. The combination of these two situations leaves aspiring investors grappling with the decision of whether to lock in stable levera...
Apr 04, 2024•13 min•Ep. 1268
If you’re a real estate investor in 2024 or planning to be, your list of investment property criteria probably has the qualifier ‘‘affordable’’ right at the top. And you’re certainly not alone. The latest Redfin investor home purchases report shows that investors snapped up 26.1% of low-priced homes sold in the U.S. during the fourth quarter of 2023. That’s the largest share of such purchases ever recorded, up from 24% in the fourth quarter of 2022. Learn more about your ad choices. Visit megaph...
Apr 03, 2024•10 min•Ep. 1257
There are plenty of different financing options to consider when you’re ready to invest in real estate. You can leverage your own funds, for example, or receive loans from established organizations or private lenders. There are even options to partner up with someone with the funds to help you carry out your vision. Learn more about your ad choices. Visit megaphone.fm/adchoices
Apr 02, 2024•15 min•Ep. 1266
In recent years, a sizeable amount of criticism has been leveled against what many see as endless sprawl and “lifeless” suburbia that surrounds many American cities. In fact, it happens so often that I’m actually a bit surprised that while the difficulty and opportunity of rural investing comes up fairly often, there isn’t a large amount of discussion regarding the merits and challenges of urban versus suburban investing (although there is certainly some in the BiggerPockets forums). Learn more ...
Apr 01, 2024•24 min•Ep. 1265
The year-round sunshine, the convenience of direct flights, the incredible food and culture—there’s a lot to love about Puerto Rico. As an American citizen, all the same rules apply for buying investment property in this balmy, seaside U.S. territory as they do on the mainland. The Market Details According to short-term rental tracking company AirDNA, it should come as no surprise that Puerto Rico is a booming and profitable short-term rental market. The capital city of San Juan gets AirDNA’s to...
Mar 31, 2024•10 min•Ep. 1264
The year 2024 can feel like a confusing space to inhabit for rookie investors. You have the cash, you have the plan, and you’ve done your research. There remains one big issue: Interest rates that are currently much higher than the historically low rates we had pre-2022. If you’ve done your research into investment financing, you know that investors pay even higher mortgage interest than regular homebuyers (typically between 0.75% and 1.5% higher). Right now, that is a daunting prospect, with re...
Mar 30, 2024•12 min•Ep. 1263
There are plenty of hedge funds investing in real estate in 2024. As an investor, you can learn a lot about the real estate market—including where to invest—by closely following these hedge funds and their performance. Now, let’s examine the hedge funds investing in real estate this year (and likely beyond). Learn more about your ad choices. Visit megaphone.fm/adchoices
Mar 29, 2024•13 min•Ep. 1262
Imagine one day living in a luxurious, spacious house with everything you could possibly want in life. Now contrast that with red and blue lights filling your home, with officers yelling and sirens blaring. Then, envision a SWAT team ripping you away from your parents. Although it seems far-fetched, this actually happened. By all accounts, John was living a charmed “trust fund” life, but that was quickly all taken away from him. At age 10, that left John Mansor a ward of the state—orphaned and a...
Mar 28, 2024•17 min•Ep. 1261
As insurance premiums climb, property owners need to grasp how economic conditions and natural disasters affect the insurance market. These insights provide practical guidance for real estate investors navigating a dynamic, unpredictable market. Learn more about your ad choices. Visit megaphone.fm/adchoices
Mar 27, 2024•12 min•Ep. 1260
Love it or hate it, the financial independence, retire early (FIRE) movement has changed the conversation around financial planning. And any change that provokes new discussion and a fresh perspective is a good change—even if you ultimately side with the traditionalists. Today, I’ll convince you that you don’t actually need or even want to retire early. You want the freedom, flexibility, and intentionally designed life that financial independence offers. The best part? You don’t even need to rea...
Mar 26, 2024•14 min•Ep. 1259
After a winter slump, the real estate market is starting to look a little brighter in time for spring. More homes are entering the market, and buyers are starting to consider buying again after staying on the sidelines, according to the latest numbers from Redfin. For the four weeks ending March 3, new listings were up 13%, the biggest increase in three years. That uptick helped bring the total number of homes for sale up 1.7%, marking the first time in eight months that supply has increased. Me...
Mar 25, 2024•10 min•Ep. 1258
