Most investment strategies touted by gurus involve first buying a course to learn their strategy to get rich in real estate. While subject-to deals, wholesaling, syndicating, BRRRRing, Airbnb arbitrage, and fix and flipping, when done correctly, have undoubtedly been ways to make money, they all involve an element of risk or hard work to find deals. There’s another way. This blueprint is for the risk-averse, those working full-time, interested in the tried-and-true investing methods, and satisfi...
May 18, 2024•10 min•Ep. 1312
If, like me, you check mortgage interest rates like an expectant parent checks their wife’s contractions, you doubtless will have analyzed every type of loan product in an attempt to inch the currently high rates down. Famed financial guru Suze Orman recently appeared on CNN extolling the virtues of an adjustable rate mortgage (ARM). But to many American homebuyers, mentioning an ARM is like the Ghost of Christmas Past returning to haunt us once more: Weren’t ARMs partly to blame for the 2008 fi...
May 17, 2024•12 min•Ep. 1311
There is no right or wrong way to invest in real estate. All that matters is that you’re comfortable with your strategy and positioned to generate a positive return on investment (ROI). However, it never hurts to compare all your options—and that means taking a closer look at short-term vs. long-term real estate investing. Learn more about your ad choices. Visit megaphone.fm/adchoices
May 16, 2024•12 min•Ep. 1310
When you’re talking to real estate investors, they’ll often tell you how many doors they own, meaning how many rental units they have in their portfolio. Stating door numbers, however, can often be misleading. Generally, the real metric to keep track of is cash flow because, after all, profitability is what counts in any business, right? Sometimes, though, the two can get conflated, and on occasion, owning just a few doors, irrespective of cash flow, can be a good strategy for building long-term...
May 15, 2024•15 min•Ep. 1309
Get ready for the ultimate real estate adventure as the BiggerPockets Conference (BPCON) 2024 heads to the tropical paradise of Cancun, Mexico, Oct. 6-8. International travel is always exciting, but knowing it can also be tax-deductible really takes things up a notch. Traveling outside the United States for business can be a little tricky when it comes to taxes, but don’t worry—we’re here to guide you through everything you need to know. Learn more about your ad choices. Visit megaphone.fm/adcho...
May 14, 2024•11 min•Ep. 1308
The biggest hindrance to building a real estate portfolio that allows you to leave your job and become financially free is getting past the hurdle of covering your living expenses. Decreasing your costs by living overseas could be the most logical way to build a real estate portfolio in the U.S. quickly. Why the Cost of Living in the U.S. Makes Saving So Difficult According to the Bureau of Labor Statistics’ Consumer Expenditure Survey, the average household earned $94,003 in 2022 before taxes a...
May 13, 2024•14 min•Ep. 1307
My first investment property was a C/D-class multifamily in Houston. I selected it primarily based on perceived cash flow. According to my calculations, the return on investment (ROI) was between 12% and 14%. And with a multifamily, even if one unit is vacant, I still have cash coming in. How could I lose? And then I got hit in the face (wallet) with reality: It was an older building, and maintenance was continual and expensive. Plus, the tenants and others almost continuously vandalized the pro...
May 12, 2024•11 min•Ep. 1306
Owner financing offers buyers and sellers more opportunities with real estate transactions. Before entering this type of transaction, it’s important to know what owner financing is, how it works, who benefits, and who pays property taxes on owner financing. Learn more about your ad choices. Visit megaphone.fm/adchoices
May 11, 2024•19 min•Ep. 1305
It’s common to have questions about your property taxes, but one is more important than all the others combined: Why did my property taxes increase? There’s no individual answer to this question, as it can depend on a variety of factors. Here are 19 frequently asked questions (FAQs) to help you understand property taxes as a whole, and with that, determine why your taxes have increased. Learn more about your ad choices. Visit megaphone.fm/adchoices
May 10, 2024•12 min•Ep. 1304
Working for a company is the most common way people in the United States earn their living. As an employee, your earnings are reported on IRS Form W-2, and federal, state, Medicare, and Social Security taxes are withheld every time you are paid. Although there are benefits to being an employee—like simplified tax preparation—you may pay more in taxes than self-employed individuals or business owners because you can’t claim certain deductions. That doesn’t mean you don’t have options, however. Yo...
May 09, 2024•16 min•Ep. 1303
Setting up an emergency fund is one of the fundamental pillars of financial well-being. And yes, saving can be hard, especially in 2024. According to a recent poll by Bankrate, many of us are saving less, with the majority (63%) saying that recent high inflation means they’re able to save less than before. As of 2024, only 44% of Americans could pay for an emergency expense of $1,000 or more from their savings. The majority would rely on credit cards, payment plans, or cutting spending elsewhere...
May 08, 2024•11 min•Ep. 1302
Denver’s housing market is on fire—at least according to a U.S. News analysis of December 2023 data from the U.S. News Housing Market Index, which includes multiple indicators of housing supply and demand, along with financial health measures. A healthy job market, low rental vacancy rates, and a low housing supply that keeps rents from falling may make Denver an attractive market to investors as well, U.S. News reports, despite its high home prices relative to the national median. Several more ...
May 07, 2024•15 min•Ep. 1301
When buying rental real estate, where you buy now matters just as much as getting a great deal. Matt Myre, managing editor of the BiggerPockets Blog , shares today’s Headlines about states that are becoming unapproachable for investors due to their politics and what you should look for when trying to avoid bad policies. There are really two main points that contribute to the issue with these states.high taxes and stringent regulations. Meanwhile, other markets are looking to improve zoning, maki...
May 06, 2024•21 min•Ep. 1300
Berkshire Hathaway CEO Warren Buffett’s much-anticipated annual letter to investors is out. As is customary for the maverick investor, it’s peppered with headline-grabbing statements about Buffett’s disdain for investment advisors and unearned wealth. But setting the flashy statements aside, Buffett’s latest letter contains some very valuable information. It’s worth paying attention to, even if you are at the very beginning of your investment journey because it concerns the future of one of the ...
May 05, 2024•12 min•Ep. 1299
Purchasing a home is an extraordinarily expensive process, especially once you add up the down payment, closing costs, and potential relocation expenses. And once you’ve acquired the home, you still need to consider the ongoing taxes, mortgage payments, and associated costs like HOA fees, insurance, and home maintenance costs. Many people understandably wonder what costs and expenses could be tax-deductible and what additional taxes they may need to pay as part of the homebuying and ownership pr...
May 04, 2024•13 min•Ep. 1298
I love telling people that I have been a Brandon Turner copycat when it comes to my real estate investing career. While our backgrounds in finding real estate are a bit different, our stories are quite similar because I followed what Brandon coined the “stack method.” The stack method is self-explanatory: First, you buy one property, then two, four, six, and eight more, but you start small and scale up gradually over time. In the hopes that you can avoid (or at least laugh at) some of the mistak...
May 03, 2024•16 min•Ep. 1297
There’s a lot that goes into house flipping. You need to choose the right market, negotiate a competitive price, work with the best contractors, and get an agent to help you sell for a profit. On top of that, a defined accounting strategy for house flipping is critical to your long-term success. Here’s how to create one. On top of that, a defined accounting strategy for house flipping is critical to your long-term success. Here’s how to create one. Learn more about your ad choices. Visit megapho...
May 02, 2024•14 min•Ep. 1296
Subleasing was frowned upon for a long time, but in today’s era of Airbnb popularity, it’s making a solid comeback and can be a great real estate investment strategy. Airbnb arbitrage allows you to rent properties to tenants that you rent from a landlord. You act as the middleman between the owner and tenants and take a piece of the pie without the need to own physical real estate yourself. Learn more about your ad choices. Visit megaphone.fm/adchoices
May 01, 2024•15 min•Ep. 1295
A home inspection doesn’t take long, and understanding the process means it won’t take longer than necessary. But why is a professional home inspection so vital in real estate investment? Here, we’ll explain the home inspection process and answers the essential question: How long should a home inspection take? As the adage goes, you cannot judge a book by its cover. Successful real estate investors know why it’s wise to avoid judging a property by its paint job. Below the seemingly pristine surf...
Apr 30, 2024•19 min•Ep. 1294
If you’re looking to elevate your real estate investing knowledge, expand your contact list, and gain powerful insight into 2024 real estate trends, then you need to be at the places that can make it happen. Real estate conferences are the top resource for meeting like-minded people who share your goals. You’ll walk away feeling empowered to make your dreams a reality. While we know there are tons of amazing real estate investing conferences going on in 2024, these are the ones we think you’ll w...
Apr 29, 2024•19 min•Ep. 1293
Real estate investments are available in many shapes and sizes, including industrial real estate investing. This is not the most common form of real estate investing, but it has a lot of potential when done right, and can be a great opportunity to diversify your investments. Understanding Industrial Real Estate Investing in industrial real estate involves purchasing, managing, and eventually selling properties. Like residential real estate investing, the goal is a great ROI, but you’ll cater to ...
Apr 28, 2024•16 min•Ep. 1292
HBO’s seminal series The Wire put Baltimore’s plight on the map, with crime and urban blight running amok. Now, 16 years after that show ended, it seems little has changed from the city it depicted. The situation has become so desperate that the city is selling off dilapidated buildings for f $1. However, before you dig out the loose change in your pocket to snag a townhouse, remember there are caveats. There were almost 15,000 abandoned homes in Baltimore as of 2022, blighting the landscape, an...
Apr 27, 2024•12 min•Ep. 1291
Why rent when you can buy? Luxury retailers are booming and using their extra cash to buy up highly coveted retail spaces across the U.S. and Europe. Prada bought the building where its Fifth Avenue store is located for $425 million, while LVMH is said to be in talks to purchase the building where Bergdorf Goodman, a men’s store, is located. Meanwhile, Gucci and Balenciaga’s parent company, Kering, bought a property on Fifth Avenue for $963 million, expanding its real estate portfolio, which alr...
Apr 26, 2024•10 min•Ep. 1290
Home foreclosures are on the rise. Is this the start of a housing collapse and the buying bonanza for real estate investors touted for the last two years, or a mere blip? Foreclosure rates have steadily risen since interest rates increased in conjunction with the home affordability crisis. According to Redfin, only 15.5% of U.S. home listings were accessible financially to U.S. households in 2023. This has led to an 8% increase in foreclosure filings, according to a new report by data company AT...
Apr 25, 2024•12 min•Ep. 1289
On any given day, depending on who you ask, we are either years away from the faintest possibility of a recession or about to enter one. Economists have made several dizzying U-turns in their predictions over the past couple of years, with the latest narrative claiming a recession is highly unlikely in 2024 and subsequent years. That’s a stark change in tone from only a year ago. A poll of 70 economists by The Wall Street Journal in January 2023 put the odds of a recession at 61%. Yet at least o...
Apr 24, 2024•14 min•Ep. 1288
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
