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The modern real estate investor doesn’t have time to research every headline and trend. That’s why BiggerPockets' Dave Meyer and his expert panel do it for you. Learn how to invest smarter in today’s economic environment.
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2024 Real Estate Investing Strategy Showdown: Rentals, Flips, & New Builds
House flipping vs. renting vs. build-to-rent: which real estate investing strategies could make you the MOST money in the second half of 2024? At the beginning of the year, many investors believed that interest rates would be coming down, housing inventory would finally return to the market, and inflation had been defeated. But that didn’t turn out to be the case. In this ever-changing housing market, what should investors like you do to make the most money possible with the fewest risks? We asked three of our expert panelists to give their take!
So today, we’re having a friendly real estate investing strategy smackdown to pit house flipping against buy-and-hold against build-to-rent homes. Each strategy has BIG benefits but also comes with some serious risks rookie and expert investors should be looking out for. Plus, these investing strategies are NOT for everyone. We’ll discuss who should (and definitely shouldn’t) invest using each method.
2024 is not an easy real estate market, but our expert investors lay out the exact risks to avoid, how to get around them, and the best ways to build serious wealth while most Americans sit on the sidelines. We’ll talk about the enormous gains you can make even with high interest rates, what James calls the best way to find financial freedom, how to invest EVEN if you have very little time, and the one type of rental property with WAY lower insurance and repair costs.
In This Episode We Cover
The three best real estate investing strategies of 2024 and which methods we’re using TODAY
Buy-and-hold real estate and the CRUCIAL skill that will help you build a real estate portfolio faster
The costs that can kill your house flipping business, but the massive gains you can make EVEN in 2024
Build-to-rent investments and why this may be one of the easiest ways to invest in real estate
Don’t have experience or money? How to form partnerships that’ll grow your wealth even if you’re a beginner
And So Much More!
Links from the Show
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On The Market
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Connect with Other Investors in the “On The Market” Forums
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James' BiggerPockets Profile
James' Instagram
Kathy's BiggerPockets Profile
Kathy's Instagram
Property Manager Finder
How to Build Wealth With Rental Properties Through Buy & Hold Investing
Flipping Houses: How to Get Started and Everything You Should Know
Investors Are Putting Their Money in Build-to-Rent Homes at a Record Rate—What’s Causing the Frenzy?
Jump to topic:
(00:00) Intro
(01:18) Buy (Renovate) and Hold
(08:32) Who Should Buy and Hold?
(10:05) Biggest Risks
(12:04) Flipping Houses
(17:41) Who Should Flip?
(20:01) Biggest Risks
(22:57) New Construction
(31:34) Biggest Risks
(34:36) Best 2024 Investing Strategy
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-223
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Boomers Hoard Houses, Millennials Struggle to Buy, But Gen Z Gets Ahead w/Redfin’s Chen Zhao
Millennials can’t afford homes, but somehow, their younger siblings, Gen Z, can. Even with over a decade more work experience than Gen Z, Millennials still feel priced out of the housing market. So how can the younger generation, only twenty-seven years at the oldest, already be on track to beat Millennials in the homebuying race, all while mortgage rates and prices are high, inventory is low, and inflation is eating away at Americans’ disposable income? We’ve got Redfin’s Chen Zhao back on the show to explain.
Today, we’re trying to answer one question: Who is buying all the houses? With younger generations struggling to buy and more Baby Boomers aging in place, real estate investors want to know their competition and who they may be selling their homes to. In this episode, Chen breaks down the data behind age trends in homebuying, plus shares why Millennials fell behind past generations.
But that’s not all. We’re getting into the changing landscape of the “buy vs. rent” debate and whether more renters now will mean fewer homebuyers in the future. Plus, with an aging Baby Boomer generation, will we finally see the “Silver Tsunami” of housing inventory hit the market as boomers “age in place,” especially with their large share of family-sized houses? Could our housing supply problems reverse if a sizable amount of inventory hits the market? We’re answering it all coming up!
In This Episode We Cover
Why Millennials can’t afford houses, and the reason so many still don’t own homes
How Gen Z is already on track to get ahead of Millennials even with today’s economic turbulence
Buying vs. renting a home and the “mismatch” between what renters want and what landlords supply
A potential reversal of our massive housing shortage and when this could happen
Whether or not the “Silver Tsunami” will hit the housing market as boomers get older
How the increase of “aging in place” will affect home inventory as Gen Z/Millennials try to buy
And So Much More!
Links from the Show
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On The Market
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Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave's BiggerPockets Profile
Dave's Instagram
Property Manager Finder
On the Market 151 - The Math Behind Mortgage Rates and Why They’re Staying Put
Real Estate Podcast 867 - Zillow and Redfin Top Economists Give Their 2024 Housing Market Predictions
Why Are Millennials So Behind in Homeownership?
Connect with Chen:
Chen’s LinkedIn
Redfin News
Redfin’s “From Our Economists”
Redfin Report: Gen Zers and Young Millennials Took Out 40% of U.S. Mortgages in 2023
Jump to topic:
(00:00) Intro
(01:03) Are Millennials Priced Out?
(04:29) Millennials’ Lost Decade
(07:46) Gen Z is Getting Ahead
(11:08) Is Homebuying Overrated?
(16:56) The Housing Shortage Could Reverse
(19:58) Boomers Ageing in Place
(25:20) Young People are STILL Buying!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-222
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Home Prices Hit Another Record: Are Americans Still Right About Real Estate?
Home prices are still soaring as they hit a new record high, despite high mortgage rates and low inventory dampening demand. At some point, this unaffordable housing market must make Americans even a bit bearish on real estate, right? Well, maybe not, according to a new survey that shows what Americans view as the best investment in the long term. But these updates are just the tip of the iceberg on today’s headlines show!
We’re back to discuss the housing market’s most hard-hitting headlines and share our opinions on whether they’re fact, fiction, or pure hype. First, Americans give their take on the best long-term investment, and one asset in particular reigns supreme (sorry, it’s not crypto!). Next, will record-breaking home prices push demand down even further, forcing house flippers and home sellers to get desperate? Our experts share exactly what they’re seeing in their local markets.
Speaking of home sellers, are you selling right now? If so, there are five things you CAN control that’ll help you sell your home faster and for more, even in today’s tough housing market. Expert house flipper James Dainard gives even more tips on how he gets his flips sold at lightning speed, even during slow seasons. Finally, we touch on Airbnb’s latest party-pooping and how they’re putting hosts in the driver’s seat to protect their properties from ragers that could ruin their homes. Plus, an update on the end of endless shrimp (check out this episode for context).
Just getting into real estate investing? Catch a FREE investing webinar on how you can get in the game as a complete newbie. Ready to invest? Join BiggerPockets Pro and use code “NEWMARKET24” for 20% off, plus get access to elite investor tools to help you get more deals done!
In This Episode We Cover
Why Americans think this asset is the best long-term investment
Home price updates and what the effects could be with housing prices hitting record highs
Five tips to sell your home faster and for more money even in today’s housing market
What an expert house flipper does on EVERY home he sells to get the best price possible
Airbnb’s newest party ban and how hosts can protect their properties
An unfortunate update on one of America’s most beloved seafood restaurant chains
And So Much More!
Links from the Show
Find an Agent
Find a Lender
BiggerPockets Forums
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BiggerPockets Bootcamps
Join BiggerPockets for FREE
On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave's BiggerPockets Profile
Dave's Instagram
Henry's BiggerPockets Profile
Henry's Instagram
James' BiggerPockets Profile
James' Instagram
Kathy's BiggerPockets Profile
Kathy's Instagram
Property Manager Finder
BiggerPockets Real Estate Podcast 959 - BiggerNews: 2024 Housing Market Update and Why Prices Are Still Rising
Want to Sell Your Home Fast—for the Most Money? Do This
Articles from Today’s Show:
Best Long-Term Investment
Home Prices
Home Seller Tips
Airbnb Parties
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-221
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Top Lenders Share “Good News” for Mortgage Rates + Trending Investor Loans
We may be close to some serious mortgage rate relief, according to today’s panel of top lenders. With interest rates finally starting to slide after cooling inflation and lackluster job growth, investors are gaining hope that we could see more affordable mortgage rates resurface after a very harsh past two years. So, what could come next? Stick around because we’ve got mortgage rate predictions and the best investor loans to look for coming up in this episode!
Caeli Ridge, Krystle, and Kenny Simpson, our expert investor-lenders, are back on the show to give their take on the commercial and residential mortgage space. All are feeling a bit more optimistic as we see rates finally trend into the six-percent range for primary residence homebuyers, with rates up another percent or so for investors. But with today’s mortgage rates still relatively high, which loans should investors use? From DSCR loans (debt service coverage ratio) to HELOCs (home equity line of credit), construction loans, and more, we’ll get into each of these loan products and share which ones investors are taking advantage of today.
Plus, if you’re struggling to find cash flow in today’s tough housing market, our lenders offer some simple but significant solutions to boost your ROI and help you build your portfolio. Do you have an adjustable-rate mortgage? If so, you MUST heed our commercial lender’s words, as you could get a surprise increase in your monthly mortgage very soon.
In This Episode We Cover
Top lenders’ mortgage rate predictions and updates on today’s rates
Why mortgage rates haven’t fallen faster and why there’s hope on the horizon
Trending loan products investors are using to build their real estate portfolios even with high rates
Why commercial lenders are getting cautious and starting to deny this one type of loan
ADU (accessory dwelling unit) lending updates and why it could be easier to get ADU funding soon
How to boost your cash flow and maximize your ROI WITHOUT buying more properties
And So Much More!
Links from the Show
Find an Agent
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On The Market
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Subscribe to The “On The Market” YouTube Channel
Dave's BiggerPockets Profile
Dave's Instagram
Property Manager Finder
On The Market Podcast 185 - Top Lenders on Mortgage Rate Predictions + Loans You’ve NEVER Heard Of w/Caeli Ridge and Krystle and Kenny Simpson
BiggerPockets Daily Podcast 1263 - Investors: Stop Worrying About Interest Rates—Here’s Why Right Now Is the Time to Buy
On The Market Podcast 184 - Fannie Mae’s Mortgage Rate “Range” to Expect in 2024 and 2025
Connect with Caeli :
Caeli's BiggerPockets Profile
Caeli's Instagram
Caeli's LinkedIn
Caeli's Website
Connect with Krystle and Kenny:
Kenny's BiggerPockets Profile
Krystle's Instagram
Kenny's Instagram
Krystle's LinkedIn
Kenny's LinkedIn
Kenny's X/Twitter
The Simpson Team's Website
Jump to topic:
(00:00) Intro
(01:07) Mortgage Rate Predictions + Update
(08:16) Trending Loan Products
(11:29) Commercial Lenders Get Cautious…
(19:41) Everyone’s Building ADUs!
(26:29) Advice for 2024 Investors
(33:07) Work with a Solid Lender
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-220
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Should You Pay Off Your Rental Property, Reinvest, or Buy More in 2024?
If you’re like most investors, you’ve probably asked yourself, “Should I pay off my rental property early?” With today’s high mortgage rates, troublesome inflation, low inventory, and risky economy, many investors don’t know whether it’s the right move to pay off their mortgage, reinvest in their properties, or go out and buy more. Paying down your debt gives you a guaranteed return, but with home prices still climbing, you could miss out on the sizable appreciation of getting another rental.
On today’s show, we’re going to debate which is the best move to make. Should you pay off debt, buy more investment properties, reinvest in your portfolio, or put more money down when you buy? Each investor has a different method for their next move, but thankfully, our expert panel gives their thought processes for figuring out which decision is best for your portfolio. Henry even shares his “three buckets” framework that EVERY investor should think through BEFORE investing or paying off a property.
We’ll also discuss the crucial calculations you can use to help you decide and avoid analysis paralysis if you’re stuck between choices. Plus, how a high-risk house flipper like James protects himself from downsides even during tough markets like today. Don’t pause on making moves that could help you reach financial freedom; stick around, and we’ll show you exactly how to know which moves to make in 2024’s housing market!
In This Episode We Cover
Whether to pay off your mortgage early, reinvest, or buy more properties
Why EVERY investor needs to calculate return on equity (ROE) on their portfolio
Is it too risky to invest today? Why James is making even more high-risk investments in 2024
The “three buckets” of your real estate portfolio that will help decide what you should do with your cash
What to do with extra money and how to make some serious passive income with private money lending
The only time when we would put a large down payment on a rental property
And So Much More!
Links from the Show
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On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave's BiggerPockets Profile
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Henry's BiggerPockets Profile
Henry's Instagram
James' BiggerPockets Profile
James' Instagram
Property Manager Finder
Should You Pay Off Your Mortgage Early or Invest?
BiggerPockets Real Estate 622 - ROE over ROI and Why Your “Cash Flow” Number is Deceiving
Books Mentioned in the Show
Real Estate by the Numbers by Dave Meyer
Start with Strategy by Dave Meyer
Jump to topic:
(00:00) Intro
(02:06) Too Risky to Invest?
(09:18) Pay Off Debt Instead?
(15:56) Value-Add and Reinvesting
(23:55) Putting More Money Down
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-219
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These “Subtle Risks” Could Have Astronomical Impacts on Real Estate Expenses w/John Sheffield
Owning real estate could get expensive—yes, even more expensive than it already is today. Insurance prices, property taxes, maintenance costs, and more are going through the roof, and there isn’t much stopping these costs from jumping even more. What’s accelerating the rise in these upkeep costs? Hotter summers, colder winters, and more natural disasters. Growing climate risk is making real estate deals harder and harder to pencil, and even some safer areas to invest are seeing sizable pricing upticks.
John Sheffield from ICE brings us the latest data on the financial impacts of climate risk in this episode. When we say “climate risk,” we know what you’re thinking: hurricanes, tornadoes, and wildfires. But that doesn’t even scratch the surface of what’s causing real estate expenses to jump. Areas of the US with once-cool summers are now experiencing record-breaking heat, increasing hail damage is denting roofs and breaking windows, and flooding has become the norm. These subtle climate effects have huge implications for your bottom line. So, what should you do to secure the profit you’re looking for on your next property?
John hits on the expenses that are rising the most, the areas where home upkeep costs could almost mirror monthly mortgage payments, and what investors must do when underwriting their next deal to account for this massive jump in expenses.
In This Episode We Cover
The actual cost of climate risk and the expenses that are seeing the most significant pricing surges
Why even areas without hurricanes, fires, or tornadoes are still at significant risk
Property tax problems and underfunded local governments that could quickly raise taxes
Insurance underpricing that could lead to even more expensive home protection
Areas where home prices could drop as a result of inflated home expenses
Where to find and track climate data so you know where (and where not) to invest
And So Much More!
Links from the Show
Find an Agent
Find a Lender
BiggerPockets Forums
BiggerPockets Agent
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On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave's BiggerPockets Profile
Dave's Instagram
Property Manager Finder
BiggerPockets Real Estate 951 - BiggerNews: Why Low Mortgage Rates Can’t Solve Our Affordability Crisis
BiggerPockets Real Estate 895 - BiggerNews: How Climate is Exploding Insurance, Building, and Investing Costs
Growing Home Insurance Costs Will Destroy Your Cash Flow—Here’s What You Can Do About It
Jump to topic:
(00:00) Intro
(01:31) Costly Climate Risk
(07:56) A Huge Insurance Problem
(14:31) Property Taxes and Utility Costs
(20:38) Maintenance Inflation
(22:54) What Investors Must Do
(25:22) Prices Could Drop Here
(30:08) Where to Find Climate Data
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-218
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
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