The pandemic swept through the U.S. housing market like a tsunami. Radical price hikes and all-time low inventory accompanied massive migration away from pricey big cities. Four years later, the housing market still hasn’t fully recovered. If you plan to invest in real estate or scale your existing portfolio in 2024, it’s worth keeping these six things in mind for a clearer perspective on today’s market movement. Learn more about your ad choices. Visit megaphone.fm/adchoices
Jun 20, 2024•13 min•Ep. 1345
Effective rental property management is essential to your long-term success. Without a defined strategy, there’s a greater chance of making mistakes that cost you time and money. Here’s a property management checklist that tells you two things: 1. What needs to be done 2. When it needs to be done Learn more about your ad choices. Visit megaphone.fm/adchoices
Jun 19, 2024•11 min•Ep. 1344
Depending on the college, students nationwide looking to live at school have recently found themselves staying in luxury hotels, trailers, on friends’ couches, or Zooming in to class from their parents’ homes. That’s because available student housing is becoming as rare as a full-ride acceptance letter from an Ivy League university. The shortage has created a massive opportunity for private developers and landlords, who know that housing doesn’t have to be paid for out of pocket but can be borro...
Jun 18, 2024•15 min•Ep. 1343
I don’t invest in Bitcoin because I am betting on the continuation of Western civilization, not its collapse or decline. If I did believe my government would collapse, I’d invest in guns, ammo, and canned corn. And if I believed that Bitcoin could peacefully replace my country’s currency, I’d still rather own real estate, businesses, stocks, or other alternative assets than a currency like Bitcoin. At $1.3 trillion in market capitalization as of April 2024 and a price of $65,000 per Bitcoin, ent...
Jun 17, 2024•25 min•Ep. 1342
I don’t invest in Bitcoin because I am betting on the continuation of Western civilization, not its collapse or decline. If I did believe my government would collapse, I’d invest in guns, ammo, and canned corn. And if I believed that Bitcoin could peacefully replace my country’s currency, I’d still rather own real estate, businesses, stocks, or other alternative assets than a currency like Bitcoin. At $1.3 trillion in market capitalization as of April 2024 and a price of $65,000 per Bitcoin, ent...
Jun 16, 2024•22 min•Ep. 1341
If you haven’t heard, Henry Washington and I are doing something special in honor of the 200th episode of On the Market. We are competing in a Flip/Off, battling against each other to see who can score the highest return. We described our deals on the podcast and what we hoped to achieve, but I want to keep everyone up to speed on how my flip is progressing. So, every week, I’ll update this diary so you can see how my property transforms into the high-cash-flow deal I know it will become. Learn ...
Jun 15, 2024•9 min•Ep. 1340
This year’s hurricane season is expected to be one of the busiest on record, with a potential for 25 named storms. How much risk is your property at? Meanwhile, home prices fell in 7% of markets, but some stand out as cities that, on paper, shouldn’t be showing declines. Is this indicative of a larger trend? Or is it just an outlier? https://www.biggerpockets.com/blog/14-cities-facing-highest-property-damage-risk-during-hurricane-season https://www.biggerpockets.com/blog/crash-or-correction-home...
Jun 14, 2024•20 min•Ep. 1339
With median house prices in the U.S. inching towards half a million dollars and mortgage rates back over 7%, homebuyers and investors alike are getting choked out of the market. Although there are several cities in the Midwest and South where you can still buy homes for $100,000, they tend to be the exception rather than the norm. Despite the shortage of houses, according to Realtor.com, there are several markets where you can buy a quality home in a good neighborhood for under $300,000. Learn m...
Jun 13, 2024•14 min•Ep. 1338
A record 300,000 migrants entered the U.S. through the southern border in December. Rather than trying to sneak past border agents, many surrendered to apply for asylum. Overwhelmed immigration courts take years to process these claims, and migrants are protected from deportation in the meantime. They hope to stay, work, and build a life here. But achieving legal status in the U.S. is a complicated process. Meanwhile, some Americans are fearful of the impact of increased immigration rates on U.S...
Jun 12, 2024•21 min•Ep. 1337
Taxes and regulations impact your bottom line as an investor—and not always in direct or obvious ways. Unfortunately, as soon as you start talking about either one, the average person closes their mind, circling the wagons around their existing worldview and only hearing data points that support it. Look no further than this Yale study, which shows that people perform worse on math problems if the correct answers conflict with their political ideology. I’ll get it out of the way now: I find both...
Jun 11, 2024•13 min•Ep. 1336
Before you find and hire a property manager, there’s something you need to know: Not all property management companies structure their costs the same way. Knowing how much property managers generally charge—including their fee structure—allows you to determine if it’s the right fit for you. Learn more about your ad choices. Visit megaphone.fm/adchoices
Jun 10, 2024•12 min•Ep. 1335
A Wave of Zoning Law Changes Could Have Huge Impacts for Investors and Housing—Here’s What You Need to Know The U.S. is facing a housing deficit of about 3.2 million units, and the situation is especially dire in urban areas like New York. It’s one of the reasons prospective homebuyers are finding it increasingly difficult to find affordable homes. That’s led many cities and communities to consider changes to strict single-family zoning restrictions, which are correlated with high home prices, s...
Jun 09, 2024•16 min•Ep. 1334
Are you sitting on the sidelines in this market? Many investors are. There’s a lot of fear and caution. But we’re not. And you don’t need to be, either. Of course, I recommend staying in cash if you can’t find the right investment opportunity. But we are finding them on behalf of our investors, and they’re the beneficiaries. I’ll tell you about one here. Learn more about your ad choices. Visit megaphone.fm/adchoices
Jun 08, 2024•10 min•Ep. 1333
For real estate investors, the question of cash flow versus appreciation is as old as time. However, in an era of high interest rates, buying properties for cash flow isn’t easy. That doesn’t mean investing should be off the table, as there are many advantages of owning rentals other than immediate cash flow—appreciation and tax advantages being the most obvious. Whether to keep buying or stay on the sidelines comes down to some specific decisions. Let’s dig deeper. Learn more about your ad choi...
Jun 07, 2024•14 min•Ep. 1332
In a recent episode of the BiggerPockets Real Estate Podcast, I had the privilege of chatting with Mindy Jensen about my journey to financial independence. One burning question arose: How did I manage to lower my expenses without sacrificing quality of life? Well, fellow FIRE enthusiasts, let me share six of my key insights into how I transformed my financial landscape by embracing strategic hacks that allowed me to live life to the fullest (no cutting out lattes here!) without breaking the bank...
Jun 06, 2024•11 min•Ep. 1331
We are less than a month away from listing our Brooklyn, New York condo, which we bought for $375,000 back in 2004, the same week we got married. 20 years, two kids, and one chocolate lab later, we are selling the condo for something close to $1 million and then flipping the profits into a new investment via a 1031 exchange. (New here? Catch up on the last few monthly missives!) As a reminder, we haven’t made much cash on this property over the past 20 years. The growth has been all equity—and n...
Jun 05, 2024•9 min•Ep. 1330
Why does mindset matter most? The answer is quite simple, yet surprisingly hard to believe: Mindset matters most because having the right one allows you to have the proper focus, work ethic, and decision-making skills to grow your company and your business. What Is Mindset, and How Does It Allow Me to Do All That? Mindset = mind + set. Mind = The element of a person that enables them to be aware of the world and their experiences, to think, and to feel; the faculty of consciousness and thought. ...
Jun 04, 2024•10 min•Ep. 1329
Commercial real estate is in for a terrible 2025 as high interest rates and high vacancies force big-time landlords to cut their losses at 50-80% discounts. Meanwhile, South Carolina passed a new law that effectively puts an end to wholesaling as a practice in the state. https://www.biggerpockets.com/blog/high-interest-rates-are-forcing-big-time-investors-to-sell https://www.biggerpockets.com/blog/new-south-carolina-law-would-severely-crack-down-on-wholesaling Learn more about your ad choices. V...
Jun 03, 2024•20 min•Ep. 1328
There’s a critical lack of affordable housing. This housing shortage began following the 2008 financial crisis and worsened during the pandemic, and now, not enough homes have been built to meet current demand. Inventory is slowly rising in Q2, which is helpful, but more inventory alone doesn’t solve the problem. The government has plans to help create more affordable housing inventory and keep large-scale investors from taking homes away from middle-income Americans. The White House released a ...
Jun 02, 2024•15 min•Ep. 1327
. What were you doing on the morning of Jan. 17, 2020? While the world was learning about a strange new virus approaching our shores, my business partner, Ben, and I were visiting Louisville, Kentucky. We were meeting our largest operating partner, Mike (not his real name), to walk through a mobile home park his firm was acquiring. Our fund would be the largest investor. This park looked like many we had invested in, but larger. There were 315 lots, but about 50 were vacant. We saw a typical ran...
Jun 01, 2024•15 min•Ep. 1326
A mayor in handcuffs, a bankrupt city mired in poverty, unemployment, and soaring crime: 10 years ago that was Detroit’s legacy. Today, it is a real estate success story. Early investors—to quote one of Motown’s most famous songs—are dancing in the street. Developers are pouring billions of dollars into its business district, luring the likes of Ford, Quicken Loans, Blue Cross Blue Shield, and more to take up office space. There’s even a Gucci store—the city’s first. The spillover has resulted i...
May 31, 2024•14 min•Ep. 1325
Gearing up for your first rehab? Whether it’s a flip or BRRRR, I’ve got earth-shattering news for you that will change everything you thought you knew about value-adds in real estate: If you’re trying to build equity for leverage or to cash out and want to get the best bang for your buck, forget the roof, new furnace, kitchens, or bathrooms. You need to take it outside and spend some real money on landscaping. But everyone knows kitchens and bathrooms are where the big money is made, right? Don’...
May 30, 2024•10 min•Ep. 1324
The real estate market is ever-evolving, and there has been a growing trend toward ground-up construction. With existing home inventory remaining at historic lows and no improvement in sight, new construction will be one of the solutions to the current housing crisis—and savvy investors will reap the rewards, with an average of 10% to 20% gross profit on projects done right. For builders, a successful project is one completed on time and within budget. But that is no easy feat these days. Accord...
May 29, 2024•15 min•Ep. 1323
Juggling 0% interest business credit cards is like juggling torches in a hay-covered barn. Drop one, and the whole place goes up in flames. However, if you are disciplined and know what you’re doing, they could be a great asset in helping you kick-start your real estate investing career. Getting a 0% Business Credit Card There’s lots of information online regarding 0% APR business credit cards. Most offer 0% interest for 12-18 months. This makes them well-suited for real estate projects that can...
May 28, 2024•15 min•Ep. 1322
What’s easier to find, a unicorn or a rock star contractor? If you asked most value-add real estate investors, the answer would be obvious: “Unicorns, of course.” We all know the inherent value contractors bring to any real estate investment. A great contractor can help you reduce costs on renovations, save money on holding costs with quick turnarounds, and manage the project with limited guidance. The end result, of course, is a beautifully renovated property that gets finished on time and brin...
May 27, 2024•17 min•Ep. 1321
As real estate investors, your emergency funds are a critical line of defense against unexpected costs. It prevents you from dipping into your budget to handle them. But what should you really use an emergency fund for? And how much money should you keep in your safety net? Here’s everything you need to know. Learn more about your ad choices. Visit megaphone.fm/adchoices
May 26, 2024•11 min•Ep. 1320
From the moment we take our first steps, we’re handed a blueprint for the American dream. Grow up. Get educated. Land a job. Buy a car. Tie the knot. Purchase a house. Raise a family. Clock in for 40 years while diligently stashing away funds in a 401(k). It’s the classic tale of success, promising a life of stability, security, and financial freedom. But what if I told you that beneath this facade of prosperity lies a lurking threat to your wealth journey? Learn more about your ad choices. Visi...
May 25, 2024•13 min•Ep. 1319
If you read traditional financial independence/retire early (FIRE) bloggers, many of them reached their goals by simply pairing a high savings rate with a standard portfolio of stocks and bonds. There’s nothing wrong with that. It works, and anyone can replicate it. But my wife and I follow a different path to FIRE. You do need a stable financial floor—but that’s just the beginning. Learn more about your ad choices. Visit megaphone.fm/adchoices
May 24, 2024•12 min•Ep. 1318
If you dream of becoming a real estate investor but work at Walmart, you could well be on your way to realizing your dream much sooner than you think. This comes with one important caveat: You’d need to manage a Walmart store to enjoy the financial benefits that could set you up with the cash needed to invest. Walmart U.S. announced last week that it would be giving its store managers stock grants in the company. The announcement comes after Walmart also made the decision to raise managers’ sala...
May 23, 2024•11 min•Ep. 1317
When evaluating deals in the competitive world of house flipping, as showcased in my current project, featured in my Flip/Off battle with James Dainard (you can also read about his weekly progress), I consider several key factors to ensure both a strategic purchase and a profitable sale. These components are crucial to the success of the flip and are designed to resonate with a broad range of potential buyers, especially those entering the market for the first time. But before I share my recipe ...
May 22, 2024•13 min•Ep. 1316
