In this podcast episode, Keith Weinhold discusses the benefits of investing in stable property markets, the risks and benefits of taking out a second mortgage on a property, and the potential impact of remote work on the real estate market.
Weinhold also touches on the performance of stocks and other asset classes in the first quarter of the year, highlighting the drawbacks of savings accounts, CDs, and money market funds, and suggesting that investing in real estate can be a better option.
Overall, Weinhold emphasizes the importance of investing in stable markets with high rent ratios and strong landlord tenant laws.
**Real Estate Prices [00:03:39]**
Discussion of the current and future direction of real estate prices, with a recap of the benefits of investing in real estate.
**Tapping Equity [00:04:50]**
Explanation of the problem with tapping equity and the risks of taking out a second mortgage on a property.
**Second Mortgage [00:05:43]**
Explanation of how to add a second mortgage onto a property and access cash without refinancing the entire loan, with details on the 80% combined loan value ratio.
**Risks of Second Mortgage [00:07:49]**
Discussion of the risks of taking out a second mortgage, including interest rate fluctuations and the potential pitfall of borrowing short to go long.
**Second Mortgage Benefits and Risks [00:09:51]**
Discussion of the benefits and risks of taking out a second mortgage on a property for investment purposes.
**Current Direction of Home Prices [00:12:09]**
Analysis of the current direction of home prices in the resale market, including a survey of resale agents and national existing home prices.
**Regional Real Estate Market Performance [00:18:00]**
Discussion of the stability of regional real estate markets, with a focus on the southeast and midwest, and the importance of stable prices, high rent ratios, and strong landlord tenant laws.
**WFH Trends and Regional Real Estate Markets [00:20:24]**
Analysis of the potential impact of work from home trends on regional real estate markets, including an increase in flexible job postings in major cities.
**Virtual Real Estate Investing [00:25:02]**
Discussion of the recent failures of metaverse projects and the risks of virtual real estate investing.
**Factors Affecting National Home Prices [00:26:15]**
Explanation of the headwinds and tailwinds affecting national home prices in 2021, including bank failures, job loss recession, labor and supply inflation, spring home buyer demand, and the supply crash.
**Mortgage Rates [00:30:20]**
Explanation of the difficulty in predicting mortgage rates and the lack of forecast for their direction.
**Various Asset Classes Performance [00:32:17]**
Discussion of the performance of different asset classes in Q1 of the year, including precious metals, savings accounts, and real estate.
**Benefits of Investing in Real Estate [00:35:14]**
Real estate investing as a way to beat inflation and transfer prosperity from dollars to property, with the added benefit of control and potential for five ways of profit.
**Reasons to Invest in Residential Real Estate [00:36:27]**
Advantages of investing in new or renovated residential real estate, including low maintenance expenses and potential for no capex expenses during ownership.
**Expectations for Real Estate Market [00:37:33]**
Expectations for the real estate market in the next five years, with a caution that the historically high price run-up may not be repeated.
National existing median home price:
National median home price (existing & new):
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cash flows from Day One: