Podcast appearances and mentions of kathy fettke

What U.S. city is close to the North Texas border with one of the largest employers in its state but no housing for all the employees? It's probably not a city that's been on your radar unless you live in North Texas, but keep listening and you'll hear all about this city and how you can take advantage of an investing opportunity. In this episode, you'll hear from Leah, who's a long-time property provider for our RealWealth network, and my partner in a single-family rental fund in the Dallas metro area. She has an amazing track record for predicting which areas are ripe for growth, and is very excited to share her latest prediction in this interview. Leah has a $40 million dollar personal portfolio, and is the co-founder of one of the largest property management residential investment firms in North Texas. If you'd like to find out more about the rental funds I mentioned during the interview, go to https://growdevelopments.com. You'll find information about our North Dallas single-family rental fund which is closing in November, and a new build-to-rent fund for the secret city that Leah talks about in this interview. You can also get help investing in single-family rentals as a RealWealth member. It's free to join and free to talk to one of our experienced investment counselors.   As always, please be sure you are subscribed to our podcast, and if you haven't done so yet, please leave us a review!  Thank you for joining me on the Real Wealth Show! Kathy Fettke Additional Links: Kathy's Instagram: https://www.instagram.com/kathyfettke/ Kathy's audiobook on Audible: https://tinyurl.com/retirerichaudible

Mortgage rates are ravaging the real estate market, but Warren Buffett is bullish on housing. With interest rates at twenty-year highs, almost any house is unaffordable to the everyday home buyer. And, with rising insurance costs, commercial real estate investors face HUGE policy hikes that are eating away at any leftover cash flow. But is this just the storm before the calm—have the price hikes peaked, and could we be in store for a more affordable market? All the doom and gloom can seem scary; thankfully, Dave Meyer, James Dainard, and Kathy Fettke have brought their financial flashlights to make things a bit brighter. In today's correspondents show, we're talking about Warren Buffett's latest move to invest in some of today's top home builders and why “affordable” housing may be where the REAL money is made in real estate. Besides Buffett, we'll also touch on the growing insurance crisis across the United States, who it's impacting the most, and why Kathy's latest bill jumped 600% (c'mon, Kathy). Could this insurance squeeze make the commercial real estate crash even more lucrative for buyers? Lastly, we're talking about one of the most underground topics of 2023—mortgage rates. They're climbing fast, but this could be a sign of lower rates to come! In This Episode We Cover: Why the world's greatest stock investor is putting his money into residential real estate The ongoing inventory crisis and why we might be in a “2012” market in 2023 The insurance “squeeze” forcing commercial real estate investors out of their properties How to lower your insurance costs with simple, sustainable home improvements A mortgage rate update and crossing into the highest rates of the past two decades Rental property HELOCs and the best lenders to ask for one And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent 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 Kathy's BiggerPockets Profile Kathy's Instagram James' BiggerPockets Profile James' Instagram Warren Buffett Insurance Mortgage Rates Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-140 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

More big landlords and property managers are getting hauled into court over alleged rent-fixing. I recently reported on a lawsuit against RealPage and institutional landlords who use the company's YieldStar rent-setting platform. Now there are similar allegations against Yardi Systems and 18 property management companies.  Seattle-based law firm Hagens Berman filed the lawsuit accusing Yardi and the property management firms of a scheme to fix apartment rents nationwide. The attorneys say that the companies used Yardi's RENTmaximizer tool to automatically raise rents so they wouldn't compete with each other. That eliminated the need for discounts and other move-in deals to entice tenants... ...You can read more about the Yardi lawsuit by following a link in the show notes at newsforinvestors.com. And please remember to subscribe to this podcast, and leave a review!   You can find out more about the business of single-family rentals at RealWealth.com. Sign up for free and enjoy a wealth of information about how to find and manage rentals, without breaking any laws!    That's it for today! Thanks for listening. Kathy Fettke   Links:   https://www.bisnow.com/national/news/multifamily/yardi-18-real-estate-firms-accused-of-rent-fixing-in-class-action-lawsuit-120603

Do you have questions about commercial real estate that are keeping you on the sidelines? Questions like:     What's the difference between office and retail space?     What is a debt service coverage ratio and why does it matter?     What's involved with a triple net lease?     And most importantly, is now the time to buy commercial real estate or does it make sense to wait until values come down further? In this episode, you'll hear from a commercial real estate broker who's helped some of our RealWealth investors. Cedric has more than 30 years of experience in the business world and the commercial real estate industry, with a focus on the retail sector. His expertise includes lease negotiations, site selection, market analysis, and property acquisitions. And he joins me to explain some of the commercial real estate lingo and the current CRE environment to help investors better understand this asset class.  You can get in touch with Cedric on our website under the Invest tab. You can also watch a replay of a recent webinar featuring Cedric with more in-depth information on the CRE market. You need to be a RealWealth member to access that information, but membership is free and it's really easy to sign up. And please don't forget to subscribe to this podcast!  Thanks for listening! Kathy Follow Kathy on Instagram at: https://www.instagram.com/kathyfettke/ Purchase Kathy's audiobook on Audible at: https://tinyurl.com/retirerichaudible

In this Real Estate News Brief for the week ending September 2nd, 2023... what the Fed's favorite inflation gauge is telling us about July, the home buying slowdown among investors, and plans for a brand-new bustling city in the San Francisco Bay Area.   We begin with the Fed's preferred inflation gauge showing a slight uptick in July. The Personal Consumption Expenditure price index rose 3.3% compared to the previous year. That's up from 3% in June. The core rate which excludes food and fuel was also up from 4.1% in June to 4.2% in July. The report is fuel for the Fed's next meeting when officials will decide on whether to hike short-term rates once again...   You can read more about these stories by following links in the show notes at newsforinvestors.com. While you are there, be sure to sign up for a free RealWealth membership. You can learn more about how and where it makes sense for you to invest. You can also look at sample rental properties, get your questions answered by experienced investment counselors, and connect with property teams and other real estate professionals. And please remember to subscribe to this podcast, and leave a review!   Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://www.marketwatch.com/story/inflation-rate-rises-slightly-in-july-pce-finds-f496f493   2 - https://www.nytimes.com/2023/08/31/business/economy/fed-inflation-july.html   3 - https://www.reuters.com/markets/rates-bonds/feds-bostic-says-us-interest-rates-are-high-enough-2023-08-31/   4 - https://www.reuters.com/markets/rates-bonds/feds-bostic-says-us-interest-rates-are-high-enough-2023-08-31/   5 - https://www.marketwatch.com/story/u-s-jobless-claims-fall-to-lowest-level-in-four-weeks-3b2da360   6 - https://www.marketwatch.com/story/u-s-creates-187-000-jobs-in-august-382df422?mod=economy-politics   7 - https://www.freddiemac.com/pmms   8 - https://www.redfin.com/news/investor-home-purchases-drop-q2-2023/   9 - https://www.nytimes.com/2023/08/25/business/land-purchases-solano-county.html    

Getting an accurate forecast on the economy can be a little like a weather forecast – full of surprises! But it also depends on who's doing the forecasting. In this episode, you'll hear from the head of a team that's won awards for its forecasting accuracy on the economy, housing, and mortgage market activity.   Doug Duncan is Senior Vice President and Chief Economist at Fannie Mae where he is responsible for economic analysis and forecasting. As the head of Fannie Mae's Economic & Strategic Research (ESR) Group, the team earned the 2022 Lawrence R. Klein Award for Blue Chip Forecast Accuracy. It's an award that covers a four-year period that includes the pandemic. Doug and the ESR group also won the NABE Outlook Award two years in a row, in 2015 and 2016, for the most accurate GDP and Treasury note yield forecasts.    Doug is one of Bloomberg/BusinessWeek's 50 Most Powerful People in Real Estate and Inman News' 100 Most Influential People in Real Estate and he's here with us on the Real Wealth Show!   If you'd like to learn how to build wealth through real estate, be sure to subscribe to this podcast and become a Real Wealth member. It's free to join and get full access to our website where you'll find hundreds of webinars, sample pro-formas, referrals to our highly recommended real estate professionals, and a free session with one of our experienced investment counselors.    Thanks for listening, Kathy Fettke   Follow Kathy on Instagram at: https://www.instagram.com/kathyfettke/ Purchase Kathy's audiobook on Audible at: https://tinyurl.com/retirerichaudible

Like any industry, there are plenty of stories within the real estate world about lawsuits, fraud, and scandalous behavior. Some of the latest headlines include the resignation of the president of the National Association of Realtors in the midst of a scandal, a huge class-action price-fixing lawsuit against RealPage and some of the nation's biggest landlords, and a real estate influencer in Philadelphia accused of swindling starry-eyed first-time real estate investors. I thought I'd dedicate this episode to those stories and a few others... If you'd like to learn more about real estate investing without breaking any laws, please sign up as a RealWealth member. Membership is free and will give you full access to our website and resources, including our property teams and our investment counselors. You can also catch up on any episodes you've missed and find links to our sources at newsforinvestors.com. And please remember to subscribe to this podcast, and leave a review!   Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://www.cnn.com/2023/08/29/homes/nar-president-resigns/index.html   2 - https://therealdeal.com/national/2023/08/29/national-association-of-realtors-pocket-listing-suit-revived/   3 - https://therealdeal.com/national/2023/08/20/philadelphia-real-estate-influencer-accused-of-fraud/   4 - https://therealdeal.com/national/2023/08/20/philadelphia-real-estate-influencer-accused-of-fraud/ 5 - https://therealdeal.com/miami/2023/08/18/miami-realtor-sentenced-in-ppp-fraud-case/  

RealWealth has been in business for 20 years as of this year and we are celebrating with a special episode featuring three of our earliest employees. Director of Finance Kelley Pecoraro (Director of Finance), Maggie McKinnie (Consultant), and Jill Benes (Digital Editor & Event Support) can share what it was like at Real Wealth back then, before we became a remote company. We worked out of an office in Walnut Creek that felt like home to us all. We don't have that office anymore because we are a completely remote company now, but there are plenty of memories to share and stories to tell! Please enjoy this lookback at the early days of Real Wealth and come celebrate with us in real time at a live event we're holding in Los Angeles on October 6th and 7th. We're planning a cocktail party on Friday night, the 6th, a full day of presentations from our property teams on Saturday, the 7th, and a big celebration party that evening! The event is being held at a hotel near LAX so it will be easy to get to from the airport. You can find out more at realwealthshow.com under the Connect tab. If you haven't done so already, you should sign up as a RealWealth member. It's free to join and will give you access to our private investor portal, hundreds of webinars, sample pro-formas, help with the acquisition process, referrals to our highly recommended real estate professionals, and a free session with one of our experienced investment counselors.  And don't forget to hit the subscribe button for this podcast and leave a review!  Thanks for listening, Kathy Fettke Follow Kathy on Instagram at: https://www.instagram.com/kathyfettke/ Purchase Kathy's audiobook on Audible at: https://tinyurl.com/retirerichaudible

When it comes to a strategy for real estate investing, one of the most important things you can do is to know about the demographics of a particular market, or simply, the people who live there. Investors need to be asking questions like: How many people live there? Is that number growing or shrinking? Are they mostly singles, families, young people or older people?  How will the generational differences impact the kind of housing that's needed? And what will the market look like 10 years from now?   In this episode, you'll get answers to those questions and many more from internationally recognized demographer Ken Gronbach, president of KGC Direct, LLC. He's able to forecast societal, commercial, economic, cultural, and political phenomena with uncanny accuracy and will talk about an astronomical need for homes in the U.S. over the next decade. He also compares the U.S. to other parts of the world, and according to Ken, strong demand for housing in the U.S. will not be going away.   If you'd like to learn more about demographics, check out his two books: “Upside: Profiting from the Profound Demographic Shifts Ahead” and “The Age Curve: How to Profit from the Coming Demographic Storm.”    And to learn more about real estate investing, please join RealWealth and look through our website. You will find data on some of the strongest rental markets in the country and the teams that can help you buy rental properties in those markets.   It's also important to subscribe to this podcast. It will help our rankings! And we'd appreciate a positive review!    Thanks for listening! Kathy   You can follow Ken at these social media sites: Twitter: @KenGronbach Facebook: @KGCDirect LinkedIn: Kenneth Gronbach   Ken's Website: www.KGCDirect.com   Follow Kathy on Instagram at: https://www.instagram.com/kathyfettke/ Purchase Kathy's audiobook on Audible at: https://tinyurl.com/retirerichaudible

Building a small rental unit on your property is a great way to create passive income, but housing experts say that accessory dwelling units, or ADUs, can also help solve the nation's housing crisis. And there are a growing number of states that are allowing them. Plus, three states are actually paying people to build them!   California was the first to legalize ADUs back in 1982 The law allowed homeowners to build a second unit but local governments hampered the effort with restrictions. Some municipalities charged hefty “impact fees” or imposed complicated and expensive permitting requirements. There may have also been restrictions on renting the units if the owner didn't live on the property and problems qualifying for a loan to build an ADU...   If you live in a place that allows ADU's, It's now time to check your yard for space to build an ADU that can bring you some passive income! You can also find out how to become a landlord at our RealWealth website. Membership is free! You can also catch up on any episodes you've missed at newsforinvestors.com. And please remember to subscribe to this podcast, and leave a review!   Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://jbrec.com/insights/adus-surge-in-california-gain-momentum-nationwide/?utm_campaign=BMI&utm_medium=email&_hsmi=271469296&_hsenc=p2ANqtz-_-Hlar9T334pF3qolJt4tha6w2J6owC4q8dk-bEGPqJ1cu2FHzL0uPQKvYkVbr0EF1LiWvSP8vwxxXhrRyDCAbkgUURA&utm_content=271469296&utm_source=hs_email   2 - https://www.governing.com/community/the-role-of-adus-in-easing-americas-housing-crisis   3 - https://www.businessinsider.com/states-will-compensate-you-for-building-tiny-home-adu-2023-8?inline-endstory-related-recommendations= 4 - https://jbrec.com/insights/adus-surge-in-california-gain-momentum-nationwide/?utm_campaign=BMI&utm_medium=email&_hsmi=271469296&_hsenc=p2ANqtz-_-Hlar9T334pF3qolJt4tha6w2J6owC4q8dk-bEGPqJ1cu2FHzL0uPQKvYkVbr0EF1LiWvSP8vwxxXhrRyDCAbkgUURA&utm_content=271469296&utm_source=hs_email

“I want to understand this thing called passive income, but first how do you make the money and get into that mindset ? I learned wealthy people have a different mindset.” -Kathy Fettke   Today I am interviewing Kathy Fettke who is the co creator of the Real Wealth Network alongside her husband Rich Fettke. Kathy is an investor, educator, and radio host who is a guest expert on platforms like CNN, Fox News, NPR, CBS, CNBC, Marketwatch and the Wall Street Journal. She is the author of a best selling book "Retire Rich with Rentals" and is also the host and creator of the podcast The Real Wealth Show with listeners in 133 countries. She has presented at my FIBI Pasadena meeting times numerous and also is a guest speaker at many others.    Kathy Fettke: Began her career in broadcasting with a BA in Broadcast Communications from San Francisco State University. She worked in news media, but eventually discovered it wasn't for her. After family hardships, she went from a stay at home mom to a full time investor. She also became a certified personal coach where she educates people on creative financing as well as mindset.  TOPICS COVERED IN THE EPISODE:   The rights and wrongs in real estate  How Kathy got started in real estate with a 1031 exchange  Why mindset is the key to transformation  Wealthy people have a different mindset  Understanding the flow of money  Are you in your own way  Your mindset will set the foundation of your success  The healthy benefits of journaling and meditation  The importance of facing your fears How to face the next level necessary growth  Do you know your other selves and the gifts they have to offer the world  What is self reference  Why the deeper you go a deeper understanding is required There are many ways to become wealthy and create passive income  How to treat real estate like a business  What is an entrepreneurs brain  Do the opposite of what the headlines tell you to do  Are we in a recession Understand what you are buying     Listen now and find out how Kathy found her Real Estate Breakthrough!   The Real Estate Breakthrough Show with Christina Suter is where we talk about the reality of real estate, the mindset you need and the tips and tricks to get you moving forward in investing. Join us every other week and learn everything you need to know to invest in real estate on Youtube, iTunes, Spotify, and more. You can watch Kathy's interview on Youtube here.  Find out more about Kathy here:    Website RealWealth.com Website GrowDevelopments.com

In addition to the tragic loss of lives in the Maui wildfire, residents and insurance companies are assessing property losses which are currently coming in at about $3.2 billion. But it won't just be Maui residents paying for this fire. Insurance companies will be raising rates for everyone to help cover their losses.   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   As reported by Barron's, insurance companies won't have any problem paying claims for fire losses in Maui. The U.S. property and casualty industry is well-capitalized with about $980 billion at the end of last year. That's according to the Insurance Information Institute. The Institute's Janet Ruiz told Barron's: “The Hawaii insurance market is stable. Insurance companies are prepared to handle catastrophes.”   Property Insurance Rates    But analysts and industry experts say insurance companies are already raising rates as natural disasters cause more and more damage across the U.S. and the Maui wildfire will only reinforce this trend. Insurance companies will raise rates based on what they expect to pay out in the next few years.   The National Interagency Fire Center says an average of 4.4 million acres have been burned by wildfires in the U.S. each year for the past decade. Currently, the average cost of homeowners' insurance is about $1,700 a year or about 10% more than it was just one year ago.   Scaling Back Insurance Coverage   In addition to raising rates, insurance companies have also been scaling back coverage in areas they see as the riskiest. State Farm and Allstate have stopped selling new policies in California. Farmers Insurance is also restricting coverage in California and Florida.   Analyst Adam Klauber at William Blair told Barron's: “We'll continue to see more geographic restrictions and nonrenewals.” That's expected to push those consumers into the surplus market for coverage, which will cost more and cover less.   Families Without Property Insurance   There's also another side to the devastating impact of the Maui fire. Many of the residents live in homes that have been in their families for generations. If they are fully paid for without a mortgage, there's no home insurance requirement. News reports say that many of the victims are working class families who may not have splurged on home insurance, and for people without any insurance, rebuilding could be difficult or even impossible.   What was already a difficult housing shortage before the fire, it is now much worse. Demand has increased for homes in Maui as remote workers expand their horizons, and pay cash for homes on the island paradise. Short-term rentals have also reduced the supply of affordable homes. That's left many working class families renting homes or sharing homes with extended family members. And it's these folks who are crucial to Maui's tourism industry.   High Cost of Living   It's not cheap to live in Hawaii. Many products like food and building materials need to be imported, and that makes them more expensive. And there will be a huge need for rebuilding. Maui officials say the fire damaged or destroyed almost 3,000 structures.   But before that happens, displaced residents need to find a place to stay. The Washington Post reports that a local Realtors association is hoping to get many of those people into vacation homes that are currently vacant.    Investors and realtors are also reportedly contacting victims with offers to buy their scorched land. That's triggered some amount of outrage and a warning on Instagram by an organization dedicated to the preservation of land and native species in Hawaii. The message begins: “I am so frustrated with investors and realtors calling the families who lost their home, offering to buy their land. How dare you do that to our community right now.”   Realtors Donating $1.5 Million   On a brighter note, the National Association of Realtors also announced that the REALTORS Relief Foundation is donating $1.5 million in disaster aid to the Hawaii REALTORS association to help communities devastated by the fire.   Relief Foundation President Mike McGrew says: “Maui's recent wildfires have deeply impacted its residents, and we stand by them during this challenging time. RRF grants aim to ease the path toward recovery, offering tangible aid to those rebuilding their lives. As real estate agents, we recognize that unity and community spirit are invaluable, especially when facing such trying circumstances.”   That's it for today. If you've missed some of our episodes, you can catch up at https://www.newsforinvestors.com. You can also hit the Join for Free button to become a RealWealth member. And please remember to hit the subscribe button, and leave a review!   Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://www.barrons.com/amp/articles/maiu-hawaii-wildfire-homeowners-insurance-2fbc156   2 - https://www.nytimes.com/2023/08/11/us/maui-wildfires-housing.html   3 - https://www.washingtonpost.com/nation/2023/08/14/hawaii-housing-crisis-lahaina-homes-maui-fires/   4 - https://www.newsweek.com/investors-calling-maui-wildfire-victims-buy-their-land-1819600   5 - https://www.nar.realtor/magazine/real-estate-news/realtors-give-1-5m-to-aid-maui-wildfire-recovery

For the past two decades, we have been helping investors across the country to simplify real estate investing and achieve their financial goals. We've gone from an idea on a cafe napkin to a network of more than 70,000 members. We've helped regular folks create financial security with more than 6,000 rental properties worth more than $1.2 billion dollars. And we've donated to charity along the way.   In this episode, my husband, partner, and RealWealth Co-CEO Rich Fettke joins me to talk about our amazing 20-year journey and how we are celebrating this huge milestone with a live event in Los Angeles on October 6th and 7th. It will take place very close to the LAX airport if you are flying into the area, and will feature 10 of our property teams, food, drink, and lots of networking and fun!    If you are an investor who'd like to meet like-minded individuals, learn how they've made real estate work for them, and talk to the property teams that can help you create the wealth you've dreamed of, please sign up under the Connect tab on the RealWealth website. If you haven't joined yet, please hit the Join for Free tab, and remember to subscribe to this podcast!    We are thrilled to be hosting this event, and hope to see you all there! Kathy Follow Kathy on Instagram here: https://www.instagram.com/kathyfettke/ Purchase Kathy's book on Audible here: https://tinyurl.com/retirerichaudible   Purchase Rich's book on Audible here: https://tinyurl.com/richfettkewiseinvestor  

The housing market “recession” is…over? At least, that's what some economists think. But it doesn't feel so stable for the rest of us real estate investors. Home prices are still dropping in some markets, teetering on stability in others, and hot as ever in growing areas. With mortgage rates rising and the Fed staying true to its word, how can we be so sure that home prices won't begin to fall across the nation? We're back with another headline show where Dave Meyer, James Dainard, Jamil Damji, Kathy Fettke, and “the only investor in Arkansas,” Henry Washington, give their take on some of the hottest housing market stories of late. We talk about the NAR (National Association of REALTORS) declaring the “housing recession” to be (potentially) over, why banks are tightening credit and denying loans more than ever before (and how to still get funding), why lowball buyers are actually in the right, and the cities across the US most poised for growth. With offers becoming harder and harder to get accepted, interest rates rising, lending on lockdown, and sellers still living in 2022, you MUST invest smarter to build wealth in today's market. Thankfully, all our guests are doing just that and dropping some gems on beating the regular buyers by being smarter, faster, and picking up deals for less! In This Episode We Cover: The “housing recession” and why some economists think it may be over Why investor buying activity remains high EVEN with rising mortgage rates The commercial credit crunch and why banks are refusing to lend on specific assets  Five reasons you're getting lowball offers and why buyers NEED to stay reasonable The US cities most poised for growth and Henry's secret city to invest in (it's NOT in NW Arkansas!?)  And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent 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 Jamil's BiggerPockets Profile Jamil's Instagram Kathy's BiggerPockets Profile Kathy's Instagram James' BiggerPockets Profile James' Instagram Hear Our Episode with J Scott and Scott Trench Housing Recession Credit Tightening Lowball Offers Growing Cities Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-132 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

In this Real Estate News Brief for the week ending August 12th, 2023... you'll hear what Fed officials are forecasting for housing inflation, why a New York judge tossed an Airbnb lawsuit, and the top ten cities for build-to-rent single-family homes.   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   Economic News   We begin with economic news from this past week that features two reports on inflation. The Labor Department reported that the Consumer Price Index was slightly higher in July than it was in June, although the reported figure for both months was .2%. The slight increase was enough to bring the yearly rate up a tiny bit, from 3% to 3.2%, but as MarketWatch reports, the fluctuation may not be enough to worry the Fed. The core rate, which eliminates prices for food and fuel, was also up .2% with an annual rate that was down slightly from 4.8% to 4.7%.   According to Fed researchers, housing costs account for 90% of the inflation rate. They say that shelter costs were up .4% with a 7.7% year-over-year increase. But that number also represents a slow down the cost of housing. In March, the year-over-year rate was 8.2%. Researchers say: “Various market indicators, including house prices and rents, suggest that the housing market has slowed significantly with the rise in interest rates.” They say: “Our baseline forecast suggests that year-over-year shelter inflation will continue to slow through late 2024 and may even turn negative by mid-2024.”   The Producer Price Index for July also came out this last week and it showed an unexpected increase of .3% in July. That's up from .1% in June. That brings the annual rate up from a minimal .1% in June to .8%. The core rate also rose from .1% in June to .2% in July, for an annual rate of 2.7%. Economists are generally not anticipating another rate increase by the Fed in September, but they also can't rule it out, especially when they see inflation reports that any kind of increase.   Fed officials are also taking a wait-and-see stance. San Francisco Fed President Mary Daly is one of them. She said in a TV interview this last week: “There's still more work to do” and “there's a lot of time between now and September” indicating that incoming data will influence a decision on whether to hike rates another time. Fed officials raised the overnight lending rate a quarter point at their July meeting, to a range of 5.25% to 5.5%.   The number of people applying for unemployment benefits surged a bit last week. There were 21,000 additional claims for a total of 248,000. But the total number of people collecting benefits was down by 8,000 to 1.64 million. The overall trend has been a decline in claims, showing that the job market is still in good shape despite the Fed's effort to bring the economy, and the job market, down a notch or two.   Mortgage Rates   Mortgage rates crept higher for a third straight week, and are just a hair under 7% for your typical loan. Freddie Mac says the average 30-year fixed-rate mortgage was up 6 basis points to 6.96%. The 15-year was up 9 points to 6.34%.   In other news making headlines…   Judge Dismisses Lawsuit by Airbnb, NY Landlords    A New York judge tossed an Airbnb lawsuit against rules that could reduce the overall number of available rentals. The lawsuit was filed by Airbnb and three New York City hosts to challenge a requirement that listings must be registered or face penalties. That will require a registration fee. Hosts must also be present when the units are being rented.    They say the rule will make it nearly impossible to provide short-term rentals in the city's five boroughs and were seeking $85 million in damages. It is also expected to cause problems for landlords with tenants who rent their units illegally. The judge says the rules will probably not be perfect, but will make it possible to enforce a ban on illegal short-term rentals.   Remote Work Also Popular Among Executives   It isn't just the rank-and-file employees who want to work remotely. A report by Deloitte found that two-thirds of the executives that work in the financial services industry would walk off the job if they had to return to the office full-time. And more than half of them say they are feeling pressured to do exactly that.    They also feel they are making a sacrifice to work remotely, with a majority saying that in-office employees are paid more, are chosen more often for promotions, and are given more decision-making powers. They also feel they are missing out on networking opportunities.   Insider reported that a survey by McKinsey shows that many highly paid executives would be willing to take a 20% pay cut to continue working from home.   Where You'll Find the Most Build-to-Rent Homes   The build-to-rent trend is alive and well and very popular in some Sunbelt cities. A RealPage report shows that the three metros with the highest number of build-to-rent homes under construction are in Phoenix, Dallas, and Atlanta. It says that those metros account for 25,000 up-and-coming new units or more than a third of the nation's total number of build-to-rent homes under construction.   Other cities on the list include Fort Worth in fourth place, Houston in fifth, and Charlotte, North Carolina in sixth. Seventh on the list is San Antonio. Austin is eight. Nashville is ninth. The only Midwest metro on the list is Columbus, Ohio, in tenth position.   That's it for today. If you've missed some of our episodes, you can catch up at https://www.newsforinvestors.com. And please remember to hit the subscribe button, and leave a review!   You can also hit the Join for Free button to become a RealWealth member. As a member, you get access to our Investor Portal, where you'll be able to look at property pro-formas and connect with our network of resources. That includes experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and others.   Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://www.marketwatch.com/story/u-s-inflation-rate-creeps-back-up-cpi-shows-feds-fight-not-over-5f213049?mod=economy-politics   2 - https://www.bisnow.com/national/news/economy/rents-now-account-for-90-of-inflation-which-ticked-up-in-july-120172   3 - https://www.marketwatch.com/story/u-s-wholesale-prices-pick-up-in-july-ppi-shows-2a4dbfaf?mod=economy-politics   4 - https://www.marketwatch.com/story/fed-has-more-work-to-do-to-get-inflation-back-down-daly-says-1899e2cf   5 - https://www.marketwatch.com/story/u-s-jobless-claims-rise-to-highest-level-in-a-month-e2ec6929?mod=economy-politics   6 - https://www.freddiemac.com/pmms   7 - https://www.bisnow.com/new-york/news/hotel/airbnbs-lawsuit-challenging-new-yorks-restrictions-dismissed-by-judge-120161   8 - https://www.businessinsider.com/financial-execs-would-quit-if-mandated-back-to-office-2023-8   9 - https://www.globest.com/2023/08/11/here-is-where-the-most-build-to-rent-units-are/

When inspecting a home before purchasing, it's obviously very important to check the foundation's integrity. That's why we hire inspectors. But should you rely on your home inspection report to correctly identify the issues? Our guest today says, no, it's not enough. You need to know the tell-tale signs of foundation damage that would signal the need for further inspection, and then you need to know who to call. But how do you make sure you can get it all done within the homebuyers short inspection window of time?   In this episode, you'll hear from foundation repair expert RK Bob Brown whose mission it is to shed light on what he describes as an “opaque industry.” He joins me on The Real Wealth Show as part of his effort to teach home buyers how to recognize the red flags for foundation problems. He talks about what homeowners should look for, when and who to call for a more accurate and in-depth evaluation, and why you need to pay attention to soil conditions. He earned the nickname “The Dirt Whisperer” because he knows a lot about “dirt.” He is also a real estate investor who shares his rags to riches story with me in this interview.   Bob has more than 35 years of experience. He's a certified Foundation Repair Specialist by NFRA and is LEED accredited, among other accreditations. He founded Arizona Foundation Solutions in 1989 which he says was one of the only foundation repair companies to use licensed professional engineers. He sold the company last year to focus on speaking and writing, and is publishing a book this fall called Foundation Repair Secrets: Learn How to Protect Yourself and Save Thousands. He has also developed software that helps streamline home foundation investigations. You can learn more at his website: https://www.RKbobBrown.com   To learn more about all the things you need to know about real estate investing, sign up as a RealWealth member. It's free to join. You can also find out more about the North Dallas Single-Family Rental Fund I mentioned in the podcast at growdevelopments.com.   And don't forget to hit the subscribe button for this podcast and leave a review!    Thanks for listening, Kathy Fettke   Follow Kathy on Instagram at: https://www.instagram.com/kathyfettke/ Purchase Kathy's audiobook on Audible at: https://tinyurl.com/retirerichaudible

In this Real Estate News Brief for the week ending August 5th, 2023... the government's debt rating get a downgrade, typical mortgage payment rises, and wind risk data is now available on a popular listing website.   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   Economic News   We begin with economic news from this past week that features a downgrade on U.S. government debt. The Fitch credit rating agency lowered the U.S. government's debt rating one notch, from AAA to AA+ saying the downgrade reflects “expected fiscal deterioration” that includes a rising amount of government debt and repeated problems with “governance” because of all the debt-ceiling battles in Congress.   The government still has a triple-A rating from Moody's but now has “two” AA+ ratings. The S&P had downgraded U.S. government debt to a AA+ rating 12 years ago, in 2011.   As for what kind of debt we can expect in the future, a strategist at Bank of America says U.S. government debt will rise $5.2 billion every single day for the next decade. At that pace, U.S. debt will outpace U.S. economic growth. The Congressional Budget Office is estimating that debt held by the public will reach 118.9% of the GDP by 2033. That's up from 98.2% this year.   Although the downgrade triggered a stock market selloff, Warren Buffett isn't too worried. He said: “There are some things people shouldn't worry about, and this is one of them.” Buffett told CNBC that the downgrade won't impact Berkshire Hathaway's Treasury-buying plans. The conglomerate has been buying about $10 billion a week in Treasurys, for at least three weeks in a row.   Fitch also issued credit downgrades for Fannie Mae and Freddie Mac because higher interest rates have not resulted in lower home prices. Freddie Mac's chief economist, Sam Khater, said in a statement: “Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory.”   Officials at the Federal Reserve are sounding more confident that the U.S. might return to the 2% level of inflation without a recession. Minneapolis Fed President Neel Kashkari said in an interview: “Right now, the base-case scenario seems to be that we'll have a slowing economy, but that we would avoid a recession. And I hope that it's true.” Chicago Fed President Austan Goolsbee also believes the central bank can achieve a “soft landing” which he said would be a “historic triumph.” Neither one offered any clues on whether we'll need another rate hike in September.   Meanwhile, initial jobless claims did float higher this last week They increased about 6,000 from a five-month low to a total of 227,000 applications. As reported by MarketWatch, the slight increase doesn't point to a rising number of layoffs however. The job market is still strong. Continuing claims were also a bit higher. They were up 21,000 to a total of 1.7 million, but the data indicates that most of the laid-off workers are finding new jobs quickly.   Job listings declined slightly in June. The Labor Department says they decreased from 9.62 million to 9.58 million. There was also a drop in the creation of new positions but wages are still high, and the unemployment rate declined from 3.6% to 3.5%. The data might show a little slack in the job market, but overall, it's still on the tight side.   Money spent on construction was higher in June. The Commerce Department says it rose .5% overall to $1.94 trillion. As for private residential construction, spending for single-family construction was up 2.1% and for multi-family, 1.5%.   Mortgage Rates   Mortgage rates are still hovering around the 7% level. Freddie Mac says the average 30-year fixed-rate mortgage was up 9 basis points to 6.9%. The 15-year was up 14 points to 6.25%.   In other news making headlines…   Typical Monthly Mortgage Payment   The typical monthly mortgage payment is up about 20% from a year ago. That's due to a combination of higher mortgage rates and continually rising home prices. Redfin says the U.S. home sale price is up 3.2% year-over-year and the typical monthly mortgage payment is $2,605.   In a home buying activity report by Redfin the data shows that mortgage purchase applications for the last week of July were down 3%; that a request for home tours on Redfin and other home buying services were down 4% from a month earlier; and that Google searches for home for sales were flat during the same time and down 4% year-over-year.   New Wind Risk Data on Redfin   Redfin also announced the addition of wind risk data on listing pages. With concern growing about the impact of climate change on our environment, homebuyers can now see how individual properties might be vulnerable to wildfires, flooding, intense heat, and high winds.   Redfin uses data from First Street Foundation's Wind Factor, to rate properties on how likely they are to suffer wind damage from hurricanes. It also factors in the risk of it happening over a 30-year span, due to the typical length of a residential mortgage.   That's it for today. Please visit newsforinvestors.com to keep up with all the real estate news, and hit the “Join for Free” button to become a member of RealWealth. You'll get access to all our real estate data on markets that make sense for investors. And please remember to hit the subscribe button for this podcast, and leave a review!   You can also follow me on instagram, and learn how to create financial freedom from my audiobook, Retire Rich with Rentals.   Thanks for listening. I'm Kathy Fettke...   Links:   1 - https://www.marketwatch.com/story/mortgage-rates-rise-as-fitch-downgrades-u-s-government-debt-6d049644   2 -  https://www.marketwatch.com/story/the-u-s-debt-will-rise-by-more-than-5-billion-every-single-day-for-the-next-decade-775ed38d?mod=economy-politics   3 - https://www.marketwatch.com/story/warren-buffett-dismisses-fitch-downgrade-there-are-some-things-you-shouldnt-worry-about-f20a4482   4 - https://www.marketwatch.com/story/kashkari-says-fed-pulling-off-soft-landing-would-be-a-resounding-positive-outcome-77b581d3   5 - https://www.marketwatch.com/story/richmond-feds-barkin-says-inflation-remains-too-high-expects-economy-to-slow-f72776d4?mod=inflation   6 - https://www.marketwatch.com/story/jobless-claims-inch-up-to-227-000-but-show-no-sign-of-rising-layoffs-bd103957?mod=economy-politics   7 - https://www.marketwatch.com/story/job-openings-in-the-u-s-little-changed-at-9-6-million-e2fe3eb9?mod=economy-politics   8 - https://www.marketwatch.com/story/u-s-adds-187-000-jobs-in-july-and-points-to-slowdown-in-hiring-f24ac81f?mod=home-page   9 - https://www.marketwatch.com/story/u-s-construction-spending-rises-in-june-6a4047a4?mod=economic-report   10 - https://www.freddiemac.com/pmms   11 - https://www.redfin.com/news/housing-market-update-monthly-mortgage-payments-near-record-high/   12 - https://www.redfin.com/news/redfin-adds-wind-risk-data-for-u-s-homes/

The Federal government announced a plan to make it easier for builders to get new housing on the market. It's part of the Biden administration's Housing Supply Action Plan. This program, announced on July 27th, would reduce land use and zoning restrictions, increase financing for affordable energy efficient housing, and promote the conversion of under-used commercial space into homes.   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   Oversized Demand, Limited Supply   The housing crisis is the result of an oversized demand for housing, a limited supply of affordable homes, and a whole lot of rules and regulations that make it difficult to build more homes. Each city and municipality has zoning rules and land use policies that lean toward low-density housing, like single-family detached homes.   The new program will provide $85 million in funding to help communities increase their housing density. For communities that can identify ways to do this, the program will pay grants of as much as $10 million. The money would help create new policies for higher-density zoning, simplify procedures for the planning and development of affordable housing, and reduce things like land use restrictions and parking requirements.   This new HUD funding along with funds from the Inflation Reduction Act and Infrastructure Investment and Jobs Act will also be available for the conversion of office space to homes. Bisnow reported on a study that says as many as 34% of office buildings in 14 North American markets are conversion candidates, but the study also found that developers feel the cost for doing this is prohibitive and that more incentives are needed. There's also an effort to identify federal properties that could be converted.    Plan Calls for Several Far-Reaching Goals   The White House said in the press release that the announcement is a “down payment” on a plan that will “boost supply, lower costs, cut dangerous climate pollution, promote homeownership, protect renters, and promote fair housing.” As the president of the National Multifamily Housing Council, Sharon Wilson Geno, commented: “Policies that actually move the needle and expand housing supply are the only real way we are going to lower the cost of housing and broaden housing availability.”   The housing program is a multi-pronged action plan that also involves:   1 - The Department of Transportation to help with transportation and access issues as part of a previously announced “Reconnecting Communities and Neighborhoods” program. 2 - The Economic Development Administration to steer the grantmaking process toward efficient land use that includes housing density and access to commercial, economic, and employment opportunities. 3 - The Environmental Protection Agency to mobilize private capital and financing for clean energy projects and retrofits. There are several departments involved with various clean energy efforts related to housing. 4 - The Federal Housing Administration to make it easier to finance the building and rehabilitating of apartment buildings.    The FHA is also making it easier for homeowners to get financing for accessory dwelling units. One of the big policy changes is the ability to use expected rental income from an ADU to qualify for the purchase or the refinancing of a home.    White House Plan to Protect Tenants   There are also new efforts to protect renters. About 35% of the U.S. population live in rental housing. That's about 44 million people. Many faced eviction after pandemic moratoriums were eliminated. Bisnow says that in some cities, eviction filings surged by 50% this last summer. But to keep things in perspective, the eviction rate was close to zero during the pandemic, so a 50% increase may not be a huge amount. Landlords also need to collect rent to remain in business.    In regards to the White House effort to protect tenants, the plan is to:   1 - Ensure fair tenant screening practices which involve guidelines for landlords and landlord-tenant communication on why tenants were rejected.  2 - Provide new funding to support tenant outreach and education. This will help tenants who are part of HUD's rental assistance program. 3 - Ensure that public housing tenants are given at least a 30-day eviction notice.   Zillow is also contributing to the White House plan. The real estate website says it will provide a Cost of Renting Summary that will give users a better idea of the total amount they will have to pay for a rental property. That includes disclosures on unexpected or “sneaky” fees that are often a surprise to renters. It said in a news release: “Zillow is proud to partner with the White House in an effort to turn on the lights for renters by surfacing these fees and offering solutions to help renters save money.”   That's it for today. If you want to learn more about how you can use real estate to build wealth, hit the join for free button on our website. And please remember to hit the subscribe button, and leave a review!   Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://www.bisnow.com/national/news/affordable-housing/biden-administration-rolls-out-plan-to-cut-zoning-and-land-use-red-tape-120000   2 - https://www.whitehouse.gov/briefing-room/statements-releases/2023/07/27/biden-harris-administration-announces-actions-to-lower-housing-costs-and-boost-supply/   3 - https://www.whitehouse.gov/briefing-room/statements-releases/2023/01/25/fact-sheet-biden-harris-administration-announces-new-actions-to-protect-renters-and-promote-rental-affordability/   4 - https://www.zillowgroup.com/news/a-rental-market-that-works-for-everyone/

Be prepared for an eye-opening interview! In this episode, you'll hear from a remarkable Gen Z entrepreneur who has an impressive real estate portfolio and is well on his way to early retirement. He has an incredible story for a 23-year-old that will inspire and motivate you to take your next step toward financial freedom.   For Donato Callahan, it all began during the pandemic while he was still in college. He was studying biology but had extra time on his hands and discovered real estate as a way to build wealth. He started off as a house hacker with the purchase of a four-unit building. From there, he leveraged every kind of resource you can imagine to help him with his journey. As he explains in the interview, when you get advice from 10 people who each have 10 years of experience, you are getting insights from 100 years of experience.    He's now offering to help other investors as the CEO and founder of Bright Investor, which provides data to help you make smart real estate investing decisions. The way it works: Users pay a monthly membership fee for access to tons of data feeds that can help you analyze a deal.    Transparency matters: We've established an affiliate agreement with Bright Investor, offering users exclusive discounts through our referral link. Signing up through our link helps support the show too!   Referral link: https://brightinvestor.com/?ref=owy3mwf Code: REALWEALTH   To learn more about real estate, sign up as a RealWealth member. It's free to join. You can also find out more about the North Dallas Single-Family Rental Fund I mentioned in the podcast at growdevelopments.com.   And don't forget to hit the subscribe button for this podcast and leave a review!    Thanks for listening, Kathy Fettke   Follow Kathy on Instagram at: https://www.instagram.com/kathyfettke/ Purchase Kathy's audiobook on Audible at: https://tinyurl.com/retirerichaudible

In this Real Estate News Brief for the week ending July 29th, 2023… the Fed's latest rate hike, how the central bank's economic forecast has changed, and good news about the dreaded IRS “knock on the door.”   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   Economic News   We begin with economic news from this past week and a Fed meeting that resulted in yet another rate hike. The Federal Reserve raised the benchmark rate a quarter point, to a range of 5.25% to 5.5%. That's the highest it's been in 22 years.    In a news conference after the meeting, Fed Chief Jerome Powell said that inflation has moderated somewhat, but the 2% target is still a ways off. He wouldn't say whether Fed officials are leaning toward another rate hike in September. He said it would be a meeting-by-meeting data-driven decision.   A few of the other highlights from the Fed Chief's press conference:   1 - The central bank is no longer expecting a recession because of higher rates. It is now predicting an economic slowdown, and a return to the “soft landing” idea. The latest report on the GDP shows the economy growing at an annual rate of 2.4% in the second quarter.   2 - The Fed keeps an eye on lending conditions and acknowledges that lending conditions are tighter and could tighten further. But as the Fed Chief commented, he doesn't expect it will be a dramatic pullback on the money supply.   Higher interest rates are giving consumers one nice reward – higher interest rates for savings accounts and CDs. As reported by MarketWatch, it's already possible to find CDs that are paying 5.75% and high-yield savings accounts that are offering more than 4%.   And to end the week on a really positive note, the Labor Department released the latest PCE report. It shows that inflation rose a tiny .2% in June. That brings the annual rate down to 3% from 3.8%. The core rate rose at the same .2% bringing the annual core rate down to 4.1% from 4.6%.   The job market remains very tight. Jobless claims were down for a third week in a row. They fell 7,000 to a total of 221,000. There was also a big drop in continuing claims. They were down 59,000 to a total of 1.69 million.    As for housing, existing home sales ticked higher for the first time in four months. The National Association of Realtor reports that contract signings were up .3% in June, although that number is still 15.6% lower than the previous June. NAR economist Lawrence Yun says the turnaround in sales indicates that the housing recession is over. He also cites increased home builder activity and a growing number of multiple offers among buyers competing for a tight supply. And that's despite high interest rates.   New home sales lost a little momentum in June. According to the Commerce Department, they fell 2.5%. This number is volatile and often revised, however.   Mortgage Rates   Mortgage rates held steady this last week. Freddie Mac says the average 30-year fixed-rate mortgage was up 3 basis points to 6.81%. The 15-year was up 5 points to 6.11%.   In other news making headlines…   Landlord Tenant Role Reversal for Office Leasing   Office landlords are experiencing something new in the midst of all the office leasing distress. Prospective tenants are now asking landlords for proof that their finances are stable, some are even asking for a look at their books. That's typically something that a landlord may want from a tenant, but not the other way around.   As CBRE's Mary Ann Tighe told Bisnow: “It's not enough to just say, ‘You know, we have bulletproof institutional dollars behind us. The landlords still want to know about the credit of their tenants, but the tenants now say, ‘OK, I'll show you mine. You show me yours.”   IRS Says No More Surprise Visits!   The IRS announced a major policy change regarding surprise visits from agents. It's a policy that has been in place for decades to send agency employees to homes and businesses to collect unpaid taxes or unfiled tax returns. But this past week, the IRS said that those unexpected visits will be replaced by mailed letters with a request to schedule a meeting.   The change in policy is part of an effort to transform the IRS. IRS Commissioner Danny Werfel says: “Changing this long-standing procedure will increase confidence in our tax administration work and improve overall safety for taxpayers and IRS employees.”   That's it for today. Please remember to hit the subscribe button, and leave a review! If you want to learn more about how you can become a wealth-building real estate investor, hit the join for free button on our website.   Thanks for listening. I'm Kathy Fettke.   Links:   https://www.cnbc.com/2023/07/26/fed-meeting-july-2023-.html?&qsearchterm=fed%20approved%20hike%20that%20takes https://www.marketwatch.com/story/fed-no-longer-sees-a-recession-and-other-things-we-learned-from-powells-press-conference-ef98d718   https://www.marketwatch.com/picks/were-already-seeing-some-cds-with-5-75-apy-now-that-the-fed-hiked-interest-rates-again-might-rates-climb-higher-de14c37f   https://www.marketwatch.com/story/gdp-increases-at-2-4-annual-pace-in-the-second-quarter-7e548aed?mod=home-page   https://www.marketwatch.com/story/u-s-inflation-slows-again-pce-shows-966aa14c?mod=economy-politics   https://www.marketwatch.com/story/jobless-claims-drop-to-the-lowest-level-since-february-51cea584?mod=economic-report   https://www.marketwatch.com/story/s-p-case-shiller-shows-u-s-home-prices-up-for-fourth-straight-month-in-may-9190cfd0   https://www.marketwatch.com/story/newly-built-u-s-home-sales-fall-in-june-6123fd72   https://www.nar.realtor/magazine/real-estate-news/economy/nar-economist-housing-recession-is-over   https://www.freddiemac.com/pmms   https://www.marketwatch.com/story/the-housing-recession-is-over-real-estate-group-says-as-pending-home-sales-tick-up-for-the-first-time-in-4-months-2d4cce4f   https://www.bisnow.com/national/news/office/landlord-finances-owners-open-books-119930   https://www.bisnow.com/national/news/office/amazon-return-to-office-relocating-workers-major-downtown-hubs-119926   https://www.irs.gov/newsroom/irs-ends-unannounced-revenue-officer-visits-to-taxpayers-major-change-to-end-confusion-enhance-safety-as-part-of-larger-agency-transformation-efforts    

I'm very excited about today's interview with Gary Beasley, CEO & Co-Founder of Roofstock. He was just a regular guy when I met him years ago. Today, he's a leader in the institutional investment space and a true disrupter within the single-family rental asset class.   In this episode, you'll hear his thoughts on how the housing market has evolved since the 2008 meltdown, how he has transitioned his own real estate investing strategy over the years, and why he thinks that the single-family rental space is an asset class that will remain in high demand.   Before Roofstock, Gary was CFO of ZipRealty and Co-CEO of Starwood Waypoint Residential Trust which is now part of Invitation Homes, leading both through successful IPOs. In addition, he's been instrumental in acquiring and integrating more than $800 million in resort properties for KSL Resorts and has served as CEO for boutique hotel management company Joie De Vivre Hospitality.   Gary earned his BA in Economics from Northwestern and holds an MBA from Stanford. He now leads Roofstock with a valuable perspective on the use of technology in the real estate industry and challenges the way things have been done with the question: “What's next?”   You can follow him at these social media sites: LinkedIn - linkedin.com/in/gary-beasley-956647 Twitter - @garybeas2013   To find out more about how you can benefit from real estate, sign up as a RealWealth member. It's free to join and will give you access to our private investor portal, hundreds of webinars, sample pro-formas, help with the acquisition process, referrals to our highly recommended real estate professionals, and a free session with one of our experienced investment counselors.    And don't forget to hit the subscribe button for this podcast and leave a review!    Thanks for listening, Kathy Fettke   Follow Kathy on Instagram at: https://www.instagram.com/kathyfettke/ Purchase Kathy's audiobook on Audible at: https://tinyurl.com/retirerichaudible

Need housing market predictions? We've got them. Unfortunately, they may not be exactly what you want to hear. While most landlords hope and pray that mortgage rates will head down and the housing market will finally open back up, reality paints a much different picture. With inflation still high and the Fed refusing to budge on rates, we could be in for a wild ride over the next six months. So, what will unfold before the clock strikes midnight at the end of 2023? Stick around and find out! We brought in the heavy hitters for today's episode. J Scott, syndicator and author of numerous best-selling real estate books, but most importantly Real Estate by the Numbers, brings his stoic and scarily accurate take to the podcast. But that's not all. BiggerPockets CEO Scott Trench joins us to give his investor, executive, and homeowner opinion on what's happening in the housing market. Of course, Kathy Fettke, multi-decade investor and syndication expert, brings her unique view from booming markets. We'll go over the housing market, inflation, interest rates, unemployment, and the overall state of the economy in this show. From explaining why the Fed will either drop or raise rates this year to examining the impact of a potential recession, then discussing the somewhat cherry-picked stats chosen by the Fed, this episode goes MUCH deeper than real estate, and you could get caught off guard this year if you don't know what's coming. In This Episode We Cover: 2023 housing market predictions and why “things are going to be messed up” for years to come Why mortgage rates could fall (or rise) and what could cause the Fed to move  Unemployment stats and why the “gig economy” could be in danger  False inflation numbers and what will force inflation to drop, then spike, this fall The commercial real estate crash and why multifamily investors could see a profitless next few years  And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent 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 Kathy's BiggerPockets Profile Kathy's Instagram Hear Our Interview with Fed Expert, Nick Timiraos Books Mentioned in the Show Real Estate by the Numbers by J Scott and Dave Meyer Connect with J: J's BiggerPockets Profile Everywhere Else Connect with Scott: Scott's BiggerPockets Profile Scott's Instagram Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-126 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Fraud concerns are growing in connection with the Nightingale investment firm's handling of investor funds. We just reported on the disappearance of millions of dollars raised on the CrowdStreet platform for two Nightingale deals. And now, CrowdStreet is worried about the management of a Nightingale office tower in Chicago, which was also partially paid for by CrowdStreet investors.   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   In a previous podcast, we reported that Nightingale is accused of misappropriating more than $50 million that investors pumped into two high-end properties in Atlanta and Chicago. The deals never closed, and when the money went missing, CrowdStreet recommended the appointment of an independent manager. Shareholders agreed and hired Anna Phillips. She then placed the entities created for those deals into bankruptcy to help track down the money.   CrowdStreet Reviewing Nightingale Campaigns   Now CrowdStreet is taking a closer look at the Nightingale campaigns and wants to put Phillips in control of the Chicago property. That's after a request for audited financial records went unanswered.   But in this case, putting an independent manager in charge is more complicated because the Chicago office tower is an operating asset with equity investors who are not connected to CrowdStreet. There's also an ownership transfer to deal with and several loans.   Nightingale acquired the building in February of last year for $130 million. $25 million came from CrowdStreet investors. The rest came from other sources, including an $86 million mortgage from Citibank. CrowdStreet sponsors, like Nightingale, are expected to provide investor updates on a quarterly basis along with other information such as performance and distribution reports and annual tax documents.    In the first quarter report, which was reviewed by Bisnow, the entity's name was changed from Nightingale Realty LLC to Nite Sky Realty LLC. It reported that the building was about 91% occupied and aligned with the business plan but that the distribution couldn't be paid because three tenants were late on their rent. There was an apology for the delay, and a promise to provide a distribution date in the near future. It also said the building had about $10 million in reserves but there hasn't been another update since the mid-May report.   Issues Piling Up for Nightingale   One investor told Bisnow: “Where's that money? Is it still there?” CrowdStreet has told investors that it has hired a forensic accountant to review financial records that it received previously, around the time of the funding, and is talking to lawyers about how investors can wrestle control away from Nightingale. Although there's no evidence of fraud as yet, the issues are piling up for Nightingale.    Bisnow reports that Nightingale faces a growing number of lawsuits and debt defaults. It says that Nightingale lost a 2.2 million square foot property in Philadelphia to receivership, that Nightingale is facing foreclosure lawsuits for commercial buildings in Manhattan and Brooklyn, and that it is sitting on one of the biggest vacant office buildings in New York City.   In the meantime, CrowdStreet is reassuring investors that it remains confident in its vetting process, and that escrow is now a requirement for deals that haven't closed. Ultimately, responsibility for due diligence lies with the investor. As I mentioned in a previous podcast, this is one reason that only accredited investors are allowed to invest in these kinds of deals – so they can afford to have legal and financial professionals review the documents. It's important that the deal is understood by the investor or someone on the investor's team.   This is why I've decided to create a master course on development, that will be helpful for both investors and developers. So many syndications require development of some kind, and it's important that investors understand how to analyze the deal. It's also going to be valuable for developers because the courses will be taught by my developer partners. You can find out more at GrowDevelopments.com.   Thanks for listening!   Kathy Fettke   List: 1 - https://www.bisnow.com/chicago/news/office/crowdstreet-seeks-takeover-of-another-nightingale-asset-after-landlord-goes-dark-119919   2 - https://realwealth.com/category/real-estate-due-diligence/

I n this Real Estate News Brief for the week ending July 22nd, 2023... what economists are expecting from the Fed, why there's so much optimism about a soft landing, and what landlords are seeing for rent growth in today's market.   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   Economic News   We begin with economic news from this past week, and much of that news has been focused on what economists predict the Fed will do at this week's meeting. There's basically a consensus that the Fed will hike short-term rates another quarter point to squash inflation, and that that will likely be the final rate hike. But at the same time, most economists don't expect Fed Chief Jerome Powell to say that out loud, and he has predicted the need for another two rate hikes. But he's more likely to leave people guessing at this point, as Fed officials evaluate inflation data. And it's been good recently. The consumer price index or CPI dropped to 3.1% in June, but the core rate is still too high at 4.8%. The core rate eliminates food and gas and is considered a better gauge for determining what prices are doing. (1)   Meantime, the job market remains strong, so there's optimism that the Fed is getting inflation under control without a lot of layoffs. Last week, initial claims for unemployment benefits dropped to a two-month low of 228,000. Continuing claims were slightly higher but the data indicates that employees looking for new jobs are finding them quickly. The current unemployment rate has been in the 3.5 to 3.7% range for several months, with companies adding more than 275,000 jobs to the economy every month for the first six months of this year. (2)   Home prices are still rising and contributing to inflation, thanks to a lack of inventory and strong demand. And that's impacting home sales. The National Association of Realtors says that the total number of sales fell 13.6% in June, to an annual rate of 1.08 million units. For previously owned homes, sales fell 3.3% to an annual rate of 4.16 million. That's the slowest rate of existing home sales since June of 2009. (3)   Housing starts were also down in June, by 8%. But that's after a big jump in May. The National Association of Home Builders says that builders are busy finishing up those earlier projects. They are also pulling back due to weaker summer demand. Building permits were also down 3.7%. Despite the pullbacks, MarketWatch reports that builders are optimistic about future sales, thanks to the tight inventory and strong demand. Many feel they don't have to offer buyer incentives, like price cuts, that they were previously offering. (4)   Mortgage Rates   Mortgage rates came down a bit this last week, in step with an inflation slowdown. Freddie Mac says the average 30-year fixed-rate mortgage was down 18 basis points to 6.78%. The 15-year was down 24 points to 6.06%. (5)   In other news making headlines…   Home Turnover the Lowest in a Decade   Homeowners with low mortgage rates continue to postpone their plans for a sale and that's one of big reasons for low inventory levels. Redfin says that just 1% of the nation's homes changed hands during the first half of this year. That's about 14 out of 1,000 homes. During the first half of 2019, before the pandemic, 19 of every 1,000 homes were put up for sale. That means that buyers have 28% fewer homes to choose from now than they did previously.   The data for suburban homes shows an even bigger slowdown. In 2019, 24 out of 1,000 homes were put up for sale. The number drops to 16 for the first half of this year. Redfin says that smaller homes in urban areas are the hardest to find with just 11 out of 1,000 changing hands so far this year. And California has the lowest turnover rate of all with just 6 out of 1,000 homes available for sale in places like San Jose, Oakland, and San Diego. (6)   Single-Family Rent Growth Still Slowing but Positive   Single-family landlords are still seeing slower rent growth, but it's currently back to a pre-pandemic normal. CoreLogic says that single-family rent growth was 3.4% in May as a national average. The numbers vary from market to market.   The Chicago area topped the list for year-over-year rent growth at 6.6%. The Charlotte metro came in second at 5.9%. Boston and New York tied for third and fourth place with rents increasing 5.7%.     CoreLogic economist Molly Baesel says: “High inflation may be affecting renters' abilities to absorb continually higher monthly payments, which could be keeping year-over-year rent increases relatively low.” (7)   Apartment Rents Also Sluggish   Multi-family rents also continue to rise at their slowest pace in more than a decade. Yardi Matrix says that asking rents were up .4% in June for a year-over-year reading of 1.3%. According to calculations by Yardi Matrix, year-over-year rents for single-family homes were only up about the same amount 1.3%, which is lower than the previous CoreLogic report. And again, all the results differ from market to market.    That's it for today. Check the show notes for links at newsforinvestors.com. You can see all the data for rent growth by following a few of those links. And please remember to subscribe to this podcast and leave a review!   You can also join RealWealth by clicking on the “Join for Free” button. As a member, you have access to the Investor Portal where you can look at sample rental properties in various markets. You'll also have access to our experienced investment counselors who can answer questions and the property teams we've been working with.    Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://www.marketwatch.com/story/everyone-thinks-the-feds-rate-hike-next-week-will-be-the-final-one-except-the-fed-dc5fb209?mod=home-page   2 - https://www.marketwatch.com/story/jobless-claims-drop-to-two-month-low-of-228-000-f6709597?mod=economy-politics   3 - https://www.marketwatch.com/story/home-prices-climb-to-highest-level-in-a-year-as-home-listings-dwindle-c49ad934?mod=economy-politics   4 - https://www.marketwatch.com/story/u-s-housing-starts-retreat-in-june-e4a71eaa?mod=economy-politics   5 - https://www.freddiemac.com/pmms   6 - https://www.redfin.com/news/housing-turnover-decline-since-pandemic/   7 - https://www.corelogic.com/intelligence/us-rent-growth-returns-to-pre-pandemic-level-in-may-corelogic-reports/   8 - https://yieldpro.com/2023/07/yardi-matrix-reports-solid-rent-growth-in-june/

Some CrowdStreet investors are expressing disbelief, and rage, after learning that millions of dollars of their investment funds have gone missing! Investors pumped more than $60 million into two deals sponsored by Nightingale Properties on that platform, and Poof! The money has mysteriously disappeared!   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   As reported by Bisnow, Nightingale did a great job pitching the deals to CrowdStreet investors. One was Nightingale's purchase of the Atlanta Financial Center for $182 million, which represented a $78 million loss for the seller and instant equity for the buyers. The Real Deals reports that more than 650 investors clamored into that deal with $54 million. The other deal was the renovation of a Miami Beach office building that Nightingale already owned. It raised $9 million for that project.   Slick Marketings Pitch   Nightingale told investors that it has a stellar track record with more than 30 big deals that never lost money. And it enticed investors with what it described as a rare opportunity to invest in trophy-style real estate.   University marketing professor, Zhiyong Yang, invested 50K into Atlanta and told Bisnow that “they did a wonderful marketing job.” Investor, Mike Huber, says the news about the missing funds is mind-boggling. He has 150K in the project, and is now wondering, like other investors, how this could have happened.   Red Flags   Their worries began last August thanks to a Wall Street Journal article. The Journal reported that Nightingale had failed to tell investors about two previous deals that lost money, which would have tarnished the sterling reputation that Nightingale was selling.   Potential investor Ian Ippolito told Bisnow that he was initially interested and was partially sold on the pitch that Nightingale had never lost money. But then Ippolito, who writes a blog called The Real Estate Crowdfunding Review, decided to investigate further, and found that Nightingale's track record is not so sterling – that it had lost money in those two deals. He thought to himself: “There's something shady going on here. I'm not going near this deal.”   What Went Wrong?   Although CrowdStreet is just a platform, there are questions about where it went wrong in vetting Nightingale, and why it didn't do more to safeguard investor funds, which it collected. If you're not familiar with CrowdStreet, it attracts all kinds of independent real estate investors, from all walks of life. It was founded in 2014 but really took off during the pandemic, raising $1.2 billion from retail investors in 2021 alone.   CrowdStreet's CEO, Tore Steen, told Bisnow that he is “shocked and angered” by the Nightingale fiasco. He says: “This is not a crowdfunding issue. This was simple illegal behavior by a real estate developer. There were investors outside of the CrowdStreet platform that were involved here. Whether it's online or offline, fraud exists in this industry.”   Although Steen doesn't believe that the platform exposed investors to a higher risk of fraud, investors want to know why CrowdStreet handed the funds over to Nightingale instead of putting them into escrow.    Investors Blindsided   One investor told Bisnow: “It's surprising that CrowdStreet was not taking a more guardian role when the Wall Street Journal article came out.” The article did prompt some investors to ask for refunds, especially as the deals experienced more delays in closing. And some did get refunds, along with plenty of positive sounding communication from Nightingale, including Christmas cards.   One investor on the West Coast says: “They gave us the option to withdraw the funds. That gave me comfort. They do all those things to make you feel that they are super-legit. I was entirely blindsided.”   Nightingale ended up processing about $9 million in refunds, but Bisnow reports that the refund process wasn't consistent. CrowdStreet became concerned at that point, and requested bank statements and operating agreements for the two deals. Instead of producing those documents, Nightingale started communicating with CrowdStreet through an attorney, and CrowdStreet recommended that shareholders take on an independent manager for these two deals.   With a background in forensic accounting, former Cousins Properties executive, Anna Phillips, was chosen for that position. She told investors that it's not clear what Nightingale did with the funds but she did immediately see some irregularities, such as the transfer of $12 million into an account owned by Nightingale's CEO, Elie Schwartz, instead of an account managed by the company.  But even that policy is being questioned because investors thought that because the deals hadn't closed, the money would have gone into escrow.    Escrow for Unclosed Deals   CEO Steen said in a statement that: “Establishing an escrow process was one of many components of our transition to the broker model and something we have been working on for many months.” CrowdStreet has since incorporated an escrow process into its funding deals.   As to questions about the vetting of Nightingale, Bisnow reports that CrowdStreet had done a background check and received more than a half dozen references from well-known institutions like Citibank. These problems could be attributed to growing pains for CrowdStreet, but it is also a failure in due diligence by investors.   Accidents Waiting to Happen   According to investor Ippolito, some crowdfunding deals are “accidents waiting to happen,” which you could probably say about any kind of investment and that investors need to do more of their own research on sponsors. He says you wouldn't go to buy a car and trust everything the salesperson is going to tell you.    Investor Chris Honcik of Idaho told Bisnow: “I'm a little bit angry at CrowdStreet at not having vetted this a little bit better. I don't think I should be the person vetting Nightingale. But in the end, it all comes down to me. It's kind of my fault.”   At this point, almost all of the money is still missing and both Nightingale and CEO Schwartz have been accused of misappropriating funds. Phillips is hoping to track it down. She put both deals into Chapter 11 bankruptcy because the reorganization process will help her find out what happened.   Who's Responsible?   In the meantime, investors are taking it on the nose, not knowing if or when they'll get a refund, and CrowdStreet will continue to do damage control. CEO Steen said in an interview with Bisnow: “I really don't believe it has anything to do with the fact that it's crowdfunding. It has to do with the type of individual that chose to blatantly disregard the law and ethical behavior, and in this case, fiduciary responsibility.”    Here's my thoughts. Regardless of who's to blame, the funds are missing and may not be recovered. How can investors avoid this type of catastrophe in the future? 1. Verify and then trust. Yes, this is a twist to trust and then verify. Just because the deal was on a large crowdfunding platform like Crowdstreet does not mean the operators could be blindly trusted. Many real estate crowdfunding sites are just platforms for developers and syndicators to post their deals. Crowdstreet may or may not have performed due diligence, and it doesn't matter. If you are investing a few thousand dollars into a deal, maybe you don't need to research it fully as you can may be afford to lose the money. But if you are investing tens of thousands or even hundreds of thousands of dollars, you absolutely must vet the sponsor and the deal. This is why only accredited investors are allowed to invest in these kinds of opportunities - because they can afford to have a CPA, attorney and underwriter review the documents and pro-forma. Someone on your team needs to understand the deal when investing that much money.  2. All investments have inherent risk. That's why they are investments, and not guaranteed. That is why you should diversify and not put too much money in any one deal. Even a well-underwritten deal can go sideways when there are challenges like a global pandemic that shut down the economy and caused supply chain issues, or interest rates tripling in a year. 3. Finally, make sure you know exactly where your money is going. Escrow accounts protect your money - at least in the sense that the escrow company will ensure that the funds go to the closing table.   You can find out more about how to invest responsibly as a RealWealth member. It's free to join, and takes just a few minutes. Keep up with important real estate news at newsforinvestors.com, and please remember to subscribe to this podcast to get new episodes automatically delivered to your phone!    Thanks for listening! Kathy Fettke   Links:   1 - https://www.bisnow.com/national/news/capital-markets/crowdstreet-investors-say-accusations-about-nightingale-mind-boggling-as-they-face-a-possible-total-loss-119896   2 - https://therealdeal.com/national/2023/07/14/fiduciary-to-investors-funds-in-nightingale-projects-misappropriated/   3 - https://www.bisnow.com/new-york/news/capital-markets/nightingale-properties-crowdstreet-scandal-illegal-behavior-119884?utm_source=outbound_pub_58&utm_campaign=outbound_issue_69142&utm_content=link&utm_medium=email

Have you ever listened to fellow investors brag about how many doors they have as a measure of success? But do the number of doors you have really matter when it comes to how well your portfolio is performing? Honestly, I don't think so. What really matters is how well those doors are performing. Are they providing enough cash flow so you can live the life of your dreams? Are they appreciating in value to help meet your financial goals? Those are the questions at the top of my list! In this episode, you'll hear from someone who's living proof that you don't have to own 5000 units to be successful. Vince Rodriquez is an engineer who began his real estate adventure just four years ago. As a Southern California resident, he started investing in California but is now transitioning to out-of-state rental properties. He's currently focused on furnished duplexes in the mid-term space and has some great ideas for choosing markets and raising investment capital in a way that also helps family and friends. To find out more about real estate investing in a way that suits your goals, sign up as a RealWealth member. It's free to join and will give you access to access to hundreds of webinars and other educational material, along with our market data and investment counselors who help get you going. And don't forget to hit the subscribe button for this podcast! Thanks for listening, Kathy Fettke You can find our guest today on social media at these handles: @anviinvest @vince.capital Follow Kathy on Instagram: https://www.instagram.com/kathyfettke/ Purchase Kathy's book on Audible: https://tinyurl.com/retirerichaudible

The rent control debate is gaining momentum at the top of the legal food chain. New York landlords are asking the Supreme Court to overturn lower court decisions on a 2019 rent stabilization law, and several national real estate groups are showing support. If the high court takes the case and rules in their favor, experts say it could “destabilize” rent stabilization laws across the nation.   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   The two landlord groups pushing for a Supreme Court review of the lower court rulings are the Community Housing Improvement Program and the Rent Stabilization Association. They are both based in New York, and claim that the 2019 “Housing Stability and Tenant Protection Act” is unconstitutional. The law is also known as the Rent Stabilization Law or RSL. (1)   Housing Stability and Tenant Protection Act   The landlords lost their case in federal court and the court of appeals, so they are now hoping that the conservative-leaning high court may offer a different opinion. Within the past few weeks, several major business and real estate groups threw their weight behind the plaintiffs including the U.S. Chamber of Commerce, the National Association of Realtors, the National Association of Homebuilders, the National Apartment Association, the Mortgage Bankers Association, and others. They showed their support by submitting amicus briefs, which is like saying they are friends in support of the plaintiffs who would like the Supreme Court to grant a writ of certiorari or, in plain English, a review of the case. In other words, they want the Supreme Court to accept the case.   The lawyer representing the plaintiffs, Andrew Pincus, told the National Review that the RSL is a property rights infringement. He says: “The Constitution has certain property protections, one of which is the Fifth Amendment's takings clause.” That means that the government is not allowed to take private property for public use without “just compensation.” He says that that concept is at the heart of the lawsuit. (2)   Property Rights Infringement Under the “Takings” Clause   Under the umbrella of the takings clause concept are two supporting arguments. One claims that the RSL is equal to a regulatory “taking” based on a 1978 case out of New York City. It's related to the economic impact of the law, the extent of the government interference, and the kind of government action being taken. The second argument is based on a 2021 case out of California where the court ruled that a law allowing union organizers onto private property amounted to a physical taking. Pincus compared this to a landlord's situation by saying: “They can't choose their tenants freely, nor can they reclaim their property as they wish.”   In the case of the RSL, critics say it dictates who can live on the property, how long they can live on the property, how much or how little they should pay in rent, and how much the property owners can invest to maintain the property – all of which have an impact on the financial viability of being a landlord and whether the landlord is allowed to make reasonable use of the property.   On the other side of the argument, are New York City officials and rent stabilization supporters who say the law does “not” amount to a taking because the property owners are not deprived of the economic benefits, according to certain standards known as Penn Central standards which resulted from one of the previous lawsuits I mentioned. Pincus disagrees, saying it runs contrary to the requirement of “just compensation” when private property is taken for public use.   Other RSL Issues Undermine Benefits for Needy Tenants   Critics also highlight other downsides of the law that actually hurt tenants. One is the lack of a method for determining whether tenants truly need low cost housing. Pincus says it's more of a lottery, where some lucky tenants get a great deal on rent despite the size of their paycheck. And other tenants, who might really needs a break on the rent, are sidelined.   Another is that many tenants remain in rent-controlled units long after they need financial help, which prevents low-income tenants from accessing housing they truly need. Joe Strasburg of the Rent Stabilization Association says it “gives people a huge incentive to stay in apartments no matter what.”   No word yet on whether the Supreme Court will accept the case.   You'll find links to our sources at newsforinvestors.com. You can also find out more about the real estate market and how rental properties can help you become financially independent by signing up as a RealWealth member. It's free to join, and takes just a few minutes. And don't forget to subscribe to his podcast!   Thanks for listening! Kathy Fettke   Links:   1 - https://www.bisnow.com/national/news/multifamily/national-landlord-organizations-join-chips-supreme-court-fight-against-rent-regulation-119647   2 - https://www.nationalreview.com/2023/07/the-case-against-new-yorks-rent-regulatory-regime/

In this Real Estate News Brief for the week ending July 15th, 2023... the best inflation news in a long time, why you might get some money back from BofA, and a ranking of state economies with two of my favorites at the top.   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   Economic News   We begin with economic news from this past week, and the big news came from two promising inflation reports. With a tiny .2% increase in June, the Consumer Price Index, or CPI, shows that inflation is slowing down. The June reading is down from a .3% increase in May, and brings the annual rate down from 4% to 3%. It's the lowest rate of inflation we've seen since March of 2021.   The core rate of inflation, which omits food and gas, rose the same .2%, but the annual rate is still on the hot side. It's currently at the 4.8% level. The core rate is considered a better gauge for price growth, and is still well above the 2% target the Fed is aiming for. But things are going in the right direction. (1)   The Bureau of Labor Statistics also reported good news for wholesale inflation. It says the Producer Price Index or PPI rose .1% in June and indicates that wholesale costs may have stopped going up. The annual rate has now slowed from 1.1% in May to just .1% currently, which is VERY close to zero.   The core rate shows the same monthly increase with an annual rate that is now 2.6%. Economists are still predicting that Fed officials will hike rates again at the next meeting despite these great reports, to make sure they've squeezed every last drop of inflation out of the economy. (2)   San Francisco Fed President Mary Daly more or less confirmed that view, saying that “It is really too early to declare victory on inflation.” She says she's still in the wait-and-see mode. (3) Fed Governor Christopher Waller also spoke out after the CPI report saying: “The report warmed my heart, but I have got to think with my head.” He says he's seeing two more 25-basis-point hikes by the end of the year. (4)   The weekly jobless report continues to highlight the strength of the job market. Jobless claims dipped again from a revised 249,000 to 237,000 last week. The decline may have also been impacted by the July 4th holiday, if workers didn't apply for benefits right away. But the big picture shows that the job market is still going strong. (5)   Mortgage Rates   Mortgage rates are not doing what we'd like them to do. Freddie Mac says the 30-year fixed-rate mortgage was up 15 basis points last week, to an average of 6.96%. The 15-year was up 6 points to 6.3%. (6) The Mortgage Bankers Association reports that average rates were up in the 7% range, but decreased slightly after those reports on inflation. (7)   In other news making headlines…   Bank of America Caught Double-Dipping   Bank of America is doing damage control for millions of dollars worth of illegal transactions. The Consumer Financial Protection Bureau says that BofA allowed fees to be repeatedly charged for the same insufficient funds transaction, withheld credit card reward points and cash, and created unauthorized accounts to help meet sales-based incentive goals. (8)   BofA will be paying $100 million to repay customers for illegal fees or unauthorized account charges, and about $90 million in penalties. Customers don't have to apply for this compensation. The bank will either deposit any money owed into customer accounts, or send checks to the account holders.   Lenders Offer Loan Tweaks to Help Commercial Borrowers   The commercial real estate crunch is easing somewhat with the help of banks trying to prevent defaults. Many of those loans are expiring, and refinancing has become a problem because of high interest rates. Real estate analysts say that banks are dealing with the situation by offering loan extensions and modifications, selling derivatives to fix interest costs, and offering subsidized loans to investors to purchase defaulted loans.   Analysts say that lenders are hoping that this will help tide things over until properties become more profitable and refinancing can take place with lower interest rates. And the data reportedly shows that it's working.   As an example, a U.S. News article says that about $2.1 billion in CMBS office loans matured in May. That's almost double the total amount that matured from January through April. A Moody's report says that a little more than a third of those loans were modified or extended.   The default rate is currently at about 4% which is well below the projected 10%. Analysts are however, predicting that it could hit 6% by the end of the year.   Best State Economies List Florida, Texas at the Top!   This last story is about the top 10 U.S. state economies, and the two top ranking states are at the top of my list for investors. According to CNBC's America's Top States for Business study, Florida leads the nation with a score of 340 out of a possible 360 points! GDP growth last year was 4%; job growth was 4.9%; and the debt rating and outlook was AAA according to Moody's.   Texas was in the second position with a score of 324; a 2022 GDP of 3.4%; job growth at 4.8%; and a AAA debt rating and outlook.   That's it for today. If you'd like to know about the other states on the list, check for a link to the article at newsforinvestors.com. You can also join RealWealth, if you haven't already, for more data on various real estate markets, and how you can find rental properties that make sense for your long-term financial independence. And before you go, please remember to subscribe to this podcast, and leave a review!   Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://www.marketwatch.com/story/u-s-inflation-slows-again-cpi-shows-as-fed-weighs-another-rate-hike-3c1628c5?mod=economic-report   2 - https://www.marketwatch.com/story/u-s-wholesale-inflation-slows-to-a-crawl-ppi-shows-83855be2?mod=economic-report   3 - https://www.marketwatch.com/story/feds-daly-says-it-is-too-early-to-declare-victory-on-inflation-ec25249a?mod=federal-reserve   4 - https://www.marketwatch.com/story/feds-waller-unimpressed-by-inflation-data-calls-for-two-more-rate-hikes-this-year-9946b29e?mod=economy-politics   5 - https://www.marketwatch.com/story/jobless-claims-drop-to-237-000-and-point-to-still-strong-u-s-labor-market-f4826b74?mod=economic-report   6 - https://www.freddiemac.com/pmms   7 - https://www.mortgagenewsdaily.com/markets/mortgage-rates-07122023   8 - https://www.consumerfinance.gov/about-us/newsroom/bank-of-america-for-illegally-charging-junk-fees-withholding-credit-card-rewards-opening-fake-accounts/   9 - https://money.usnews.com/investing/news/articles/2023-07-12/analysis-banks-step-up-u-s-property-loan-tweaks-to-limit-defaults   10 - https://www.cnbc.com/2023/07/13/these-10-states-are-running-americas-best-economies-for-residents.html

Does it still make sense to buy rental property today when mortgage rates are at the 7% level? Should you buy your rate down with points or wait a few months to see if rates come down as many experts are predicting? And what about getting approved for a loan? Is it any harder now to get a loan in this tough credit environment?   In this episode, you'll hear from one of RealWealth's preferred lenders, Graham Parham and his business partner Aaron Stelly of Highlands Mortgage. They join me to provide some insights on the lending world as it stands today, along with some good news about inflation and how that is impacting mortgage rates.   Graham W. Parham has been a Mortgage Loan Officer for over 25 years. He has experience in the residential real estate market and has developed a significant following among homebuyers and investors. He currently owns 45 investment properties and is still buying.   Aaron Stelly helps guide clients through the lending process from start to finish. He's an active investor and recognizes the goals that investors are hoping to achieve as they grow their real estate portfolio.   You can get a hold of Graham at graham@theparhamteam.com. You'll also find contact information for Graham and his Highland Mortgage team on our website. You need to be a RealWealth member but it's free to sign up. Once you've done that, log in to the portal and look under the Resources tab for Lenders.    If you'd like to find out more about the North Dallas Rental Fund I mentioned during this episode, go to https://growdevelopments.com.   As always, I ask that you subscribe to the Real Wealth Show podcast, and leave a starry-eyed review! Thank you!   And thanks for listening! Kathy Fettke

This is the 1300th episode of our news podcast! And to celebrate we are featuring another big win for our RealWealth investors -- the public opening of a man-made crystal lagoon in the Tampa Bay area that's now the nation's largest! The 15-acre Mirada Lagoon is part of a massive development project in Pasco County that was syndicated by us at RealWealth. It was supposed to open a few years ago, but thanks to the pandemic and supply chain issues, those plans were delayed until now! (1)   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. Please remember to subscribe to this podcast and leave us a review.   We acquired the land for about 10 cents on the dollar nearly a decade ago, during the downturn. It was called Cannon Ranch at the time, and slated for 4200 homes on a golf course, but our team thought that consumers might be ready for something different. We brought on a partner, Metro Development Group, and decided to replace the golf-course plan with a huge 15-acre crystal lagoon.    We changed the name from Cannon Ranch to The Mirada. It's located near Wesley Chapel, north of Tampa, right next to another community with the nation's first crystal lagoon, also built by Metro. It's the 7.5 acre Epperson Lagoon. As reported by the Orlando Sentinel, Metro has now opened a total of three lagoons in the Tampa Bay area. (2) The Neighborhood News says Metro is opening a fourth in Ft. Myers, with plans for several more in central Florida. (3)   What Are Crystal Lagoons?   So exactly what is a crystal lagoon? They've been described by some as nothing short of massive and stunning. (4) They have the ability to transform any ordinary piece of land into a safe, family-friendly beach. They are filled with crystal clear water that's perfect for swimming, paddle boarding, kayaking and other water sports. They can be as deep as nine feet or as shallow as needed for young children. And there is no limit to their size.   The technology is also impressive. Crystal Lagoons use one hundred times fewer chemicals than swimming pools on a per-volume basis. Instead of chlorine they use an automated remote-controlled system that measures the water's PH, temperature, and other factors to determine the exact locations that need disinfecting. Disinfectant is then used only in those places.   They also have a low-cost ultrasonic filtration system for solid matter that uses sound waves to push dirt into a giant suction cart that travels on the bottom of the pool. It's very energy efficient and uses 50 times less energy than typical swimming pool technology.   And, they are good at conserving water. Despite the massive volume of water needed to fill one of these pools, they use 30 times less water than a golf course and 50% less water than a park of the same size. And, they use anti-evaporation technology that conserves even more water.   Mirada Lagoon - Massive and Stunning!   The Mirada is so big, it took 45 days and about 33 million gallons of water to fill it! It also needed about 17 million pounds of sand to create a mile-long shoreline around the lagoon. Amenities include a swim-up bar, a water slide, a “splash zone” for kids, and a floating obstacle course. Visitors can rent cabanas, as you might expect, along with paddle boards and kayaks to cruise around the lagoon.   Metro's vice president of marketing and communications, Vaike O'Grady, says the Mirada Lagoon presented some unexpected challenges, like the Covid-related supply-chain issues and labor shortages, but overall, demand for crystal lagoons has been strong. She said of the company's plans: “After we saw what the success was, we realized we could do this again and again because there was so much demand for it.”    The overall size of the Mirada development is about 2,000 acres. Although some residents already live there, plans call for a total of 4,500 homes from six different builders. O'Grady says prices will range from the high $200s to more than $1 million.   Popularity Growing for Crystal Lagoons   She says about 40% of the buyers come from out-of-state, and that many are finding the lagoon an affordable alternative to a home along the ocean. She says: “When they come here and they see they can have an inland lagoon lifestyle from prices as low as the high $200s, they're blown away by the value.”    Crystal lagoons are becoming popular in many areas. Including the Palm Springs area of Southern California. That's where Disney is building a community called Cotino with another mammoth-sized lagoon. It was initially going to be about twice the size of the Mirada, but plans have apparently been scaled back to about 24-acres, which is still substantially larger than the Mirada Lagoon.   As for how you can enjoy the Mirada Lagoon – members of the general public can purchase day passes. All-day passes range from $20 to $40. (5)   You can also learn how to buy real estate in places like this as a member of RealWealth. It's free to join for access to our housing market data, investment counselors, and referrals to real estate professionals that you might need to help build a portfolio of rental properties.  Our business plan with this syndication was to finish out the lots and sell them in bulk to builders. Investors, who have a 15% preferred return, should expect to begin receiving their capital back early next year, along with profits. If you want to hear about our current syndication projects, go to growdevelopments.com.   Thanks for listening, and please remember to subscribe to the podcast!   Kathy Fettke   Links:   1 - https://www.tampabay.com/news/pasco/2023/06/06/largest-man-made-lagoon-country-just-opened-pasco-county/   2 - https://www.orlandosentinel.com/2023/06/07/largest-human-made-lagoon-in-u-s-opens-in-pasco-county/   3 - https://neighborhoodnewsonline.net/now-open-at-mirada-the-largest-manmade-lagoon-in-the-u-s/#:~:text=Yes%2C%20while%20Epperson's%207.5%2Dacre,now%20open%20to%20the%20public.   4 - https://www.crystal-lagoons.com/real-estate-projects/   5 - https://miradastaycay.com/

In this Real Estate News Brief for the week ending July 8th, 2023... what's on the minds of Fed officials, how homebuyer competition is impacting prices, and what isn't happening with the back-to-office migration.    Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   Economic News   We begin with economic news from this past week and the release of the minutes from the central bank's last policy meeting. As you know, members of the Federal Open Market Committee voted unanimously in favor of a pause in rate hikes, but the minutes show that some members were in favor of another 25 point increase. The minutes also noted that the economy has been stronger than expected and that Fed officials don't see a lot of “clear signs” that inflation is headed to their 2% target. (1) Fed Chief Jerome Powell has said that more rate hikes are likely. We'll get two inflation reports in the coming week that will give us a better idea of what's happening with inflation.   The job market also remains strong, although the latest reports show a slight weakening and some economists don't think it's enough to avoid another rate hike. The unemployment report was up 12,000 from the previous week to a two-year high of 248,000 initial claims. But the number of ongoing claims was down 13,000 to 1.72 million. It's the third week in a row that they went down. As MarketWatch reports, the decrease in continuing claims is probably due to laid-off workers finding new jobs quickly, thanks to a strong job market. Although it's great that people are employed, Fed officials feel that it also contributes to wage growth and inflation, which they are trying to control. (2)   The Labor Department also reported that job openings fell below the 10 million mark in May, which is another sign that the labor market is cooling slightly. (3) And companies only added 209,000 jobs in June. That's the smallest number of new jobs since 2020, but the unemployment rate also fell from 3.7% to 3.6%. Average hourly pay is also up about 4.4% on an annual basis. (4) Most of the new jobs are for education, health, and the government, but construction jobs are also among the industries contributing to labor market growth.   Mortgage Rates   Mortgage rates are defying gravity and slowly creeping higher. Freddie Mac says the average 30-year fixed-rate mortgage is 6.81%, but Mortgage News Daily says it hit 7% this last week. Freddie's chief economist Sam Khater blames the high rates on the strong economy, sticky inflation, the Fed's rate hikes, and of course, a persistent low inventory of homes. (5) (6)   In other news making headlines…   Homes Selling Above Asking Price One Again   Homes are selling above their asking price for the first time in almost a year. Redfin says the average sale-to-list price ratio hit 100.1% for the four weeks that ended on July 2nd. The report says low inventory is the main reason for the higher sales price. (7)   Redfin says that new listings are down 25% from a year ago, and the total number of homes for sale is down 12%. There's no lack of demand however. Redfin says that requests for home tours and other services are up 4% compared to a month earlier.   Agent Jeremy Lewis out of Portland, Oregon,  says: “Almost every home is getting multiple offers and selling over asking price. The lack of supply is making it feel almost like 2021 all over again.” Although he says the bidding wars are happening at a lower price point because buyers are getting squeezed by higher mortgage rates.   Return to the Office Hit a Plateau at 50%   Companies trying to get employees back in the office have hit a plateau. According to security company Kastle Systems, U.S. office workers are back in their offices about 50% of the time. The national average was actually a little less than that at 49.8% in late June. Kastle analyzes office usage in 10 U.S. metros. That's up from about 40% last year but the number hasn't changed much since the beginning of this year. (8)   Some companies are cracking down on employees to get them into the office. Citigroup is reportedly threatening employees with “consequences” if they don't conform to the hybrid schedule. That's usually three days a week. Google is also warning employees that office attendance will be part of their performance review.    Texas Lawmakers Approve Huge Cut in Property Taxes!   In breaking news out of Texas – State lawmakers are making it a whole lot more affordable to own property with the largest property tax cut in state history! It's not quite a done deal yet, but the Texas House and Senate have agreed to an $18 billion dollar package to reduce property taxes. $12 billion will go toward a reduction in the school property tax for all homeowners and businesses. It also includes a $100,000 homestead exemption and a 20% limit on appraisal growth for non-homesteaded properties worth at least $5 million.   According to Houston Public Media, state lawmakers expect to pass the bill by the end of the week, and Governor Greg Abbott is looking forward to signing it when it reaches his desk.   The news is a big win for our North Dallas Rental Fund where we are buying single-family rentals for our fund investors. We'll be going into more detail on the tax deal and the rental fund during a webinar on July 11th. If you miss it, you can always catch the replay at our website.   That's it for today. Check the show notes for links at newsforinvestors.com. And hit the Join for Free button to become a RealWealth member. You'll have access to lots of data on buying rental real estate for our financial freedom, including the webinar I just mentioned. And please remember to hit the subscribe button, and leave a review!   Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://www.marketwatch.com/story/some-fed-officials-pushed-for-june-rate-hike-minutes-show-6007d897   2 - https://www.marketwatch.com/story/jobless-claims-climb-to-248-000-after-big-increases-in-michigan-and-new-york-97638580?mod=economy-politics   3 - https://www.marketwatch.com/story/job-openings-in-the-u-s-drop-to-9-8-million-labor-market-still-too-strong-for-the-fed-e064b516?mod=economy-politics   4 - https://www.marketwatch.com/story/jobs-report-shows-209-000-gain-in-june-smallest-increase-since-end-of-2020-fb8f7bd1?mod=economic-report   5 - https://www.freddiemac.com/pmms   6 - https://www.mortgagenewsdaily.com/markets/mortgage-rates-07072023   7 - https://www.nar.realtor/magazine/real-estate-news/mortgage-rates-hit-highest-average-so-far-this-year   8 - https://www.redfin.com/news/housing-market-update-homes-selling-above-asking-price/   9 - https://www.houstonpublicmedia.org/articles/news/politics/2023/07/10/456500/texas-house-senate-property-taxes-deal-18-billion-package/

In this Real Estate News Brief for the week ending July 1st, 2023... where we stand on inflation and rate hikes, how many homes we need to meet demand, and the amount of money Americans expect to need in retirement.   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   Economic News   We begin with economic news from this past week and a report on the Fed's preferred inflation measure. The government released the latest CPI on Friday which shows the lowest rate of overall inflation since April of 2021. Prices rose a mere .1% which brought the annual rate down to 3.8%. That's down from 4.3% in March. At the core level, inflation remains a little sticker. It omits food and energy, and shows a .3% price increase with an annual rate of 4.6%. (1)   The good news is that inflation is coming down, but maybe not fast enough to please the Fed. The central bank skipped a rate hike in June, but Fed chief Jerome Powell is hinting at the need for another one or two rate increases. He said during the European Central Banks annual forum: “Although policy is restrictive, it may not be restrictive enough and it has not been restrictive for long enough.” (2)   He talked about the risk of overdoing the rate hikes as compared to the risk of underdoing them and allowing inflation to keep going higher. He said those two risks are starting to come into balance but are not there yet. (3) One risk of overdoing it is the risk to the banking system, but new stress tests on the nation's 23 largest banks show they are in good shape. In fact, the results show they are in better shape than last year, despite a more painful worst-case scenario. (4)   The economy also continues to show resiliency. It was supposed to falter under the pressure of higher interest rates, but the latest revision on the GDP shows the first quarter was up a solid 2%. It was previously calculated at 1.3%. Second quarter results aren't in yet, but officials are expecting to see a 1 to 2% expansion. (5)    The job market also remains strong. Initial claims have been rising very slowly, but this last week, they were down 26,000 to a four-week low of 239,000. Continuing claims were also down 19,000 to a total of 1.74 million. As MarketWatch reports: “Still no sign of a recession.” (6)   As for the housing market, new home sales were surging in May. The Commerce Department says they were up more than 12% for the month to a seasonally adjusted annual rate of 763,000 homes sold. That's quite a bit higher than Wall Street economists had anticipated. Those figures are volatile however, and are often revised, but demand is strong as inventory remains low, especially for existing homes. (7)   And those sales were down in May. The National Association of Realtors says that pending home sales fell almost 3%, thanks to such low inventory. But despite the lack of contract signings, NAR's Chief Economist Lawrence Yun says: “The housing market is resilient with approximately three offers for each listing.” (8)   That kind of demand is keeping pressure on home prices. The S&P CoreLogic Case-Shiller national home price index was up .5% in April. For the 20-city index, home prices were up .9%. Miami shows the largest year-over-year gain at 5.2%. Chicago is second at 4.1%. Other cities with strong home price growth include Atlanta, Charlotte, Cleveland, and Tampa. The biggest home price declines were in Seattle at 12.4% and San Francisco at 11.1%. (9)   Mortgage Rates   All this as mortgage rates creep higher. Freddie Mac says the 30-year fixed-rate mortgage was up 4 basis points this last week to 6.71%. The 15-year was up 3 points to 6.06%. (10)   In other news making headlines…   Zillow: U.S. Need 4.3 Million More Homes   Zillow just published a report that shows just how many homes are needed to meet U.S. demand. The study says we are short 4.3 million homes, and the number of people needing a new home is twice the number of homes available. (11)   A Zillow economist compared the situation to a game of musical chairs because there are just not enough homes for everyone who wants one. The report says low income families are getting hit the hardest with 68 percent of them living in shared spaces.   Americans Put a Dollar Amount on Retirement   Americans are placing a higher price tag on retirement, but a new study shows that they aren't saving anywhere near enough. The research by Northwestern Mutual says the magic number for all age groups is $1.27 million, but it varies quite a bit from one age group to another.   Of the 2,740 adults who participated in the survey. People in their 50's expect to need $1.6 million which is the most of all the age groups. People in their 60's and 70's expect to need less than but close to $1 million. For the 20 to 40-something people, the figures were $1.2, $1.4, and $1.3 million for each of those decades.   Unfortunately, the survey shows that most people have only a small fraction of those amounts in their savings account. And many see themselves working until 65 or older. Baby boomers generally say they'll work until age 71.   This all becomes somewhat inconsequential if you have a source for passive income and rental properties are one way to do that. If you'd like to learn more about how to avoid the retirement savings dilemma, be sure to join RealWealth at newsforinvestors.com. It's free to join for complete access to our website. You'll find hundreds of webinars and articles on how to invest in rental real estate including turnkey properties, newly built properties, single-family homes, small multi-family properties, and short-term rentals.    Check the show notes for links. And please remember to subscribe to this podcast! And leave us a review!   Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://www.marketwatch.com/story/u-s-inflation-slows-pce-shows-but-price-pressures-still-intense-27c683f4   2 - https://www.marketwatch.com/story/powell-and-peers-vow-to-keep-fighting-inflation-until-there-is-evidence-theyve-succeeded-72224081?mod=the-fed   3 - https://www.marketwatch.com/story/powell-says-risks-of-overdoing-or-underdoing-rate-hikes-still-arent-in-balance-yet-7c228815?mod=economy-politics   4 - https://www.cnn.com/2023/06/28/business/fed-stress-test-preview/index.html   5 - https://www.marketwatch.com/story/economy-was-even-better-in-the-first-quarter-than-it-seemed-gdp-raised-to-2-299cbfa0   6 - https://www.marketwatch.com/story/jobless-claims-in-u-s-drop-to-four-week-low-of-239-000-b923a231?mod=economy-politics   7 - https://www.marketwatch.com/story/u-s-new-home-sales-surge-in-may-for-third-straight-month-9e492868?mod=economic-report   8 - https://www.marketwatch.com/story/u-s-pending-home-sales-fall-but-the-housing-market-is-in-recovery-mode-ea5598b6?mod=economic-report   9 - https://www.marketwatch.com/story/u-s-home-prices-rise-in-april-signaling-a-recovery-in-the-sector-case-shiller-says-347ae0fb?mod=mw_latestnews   10 - https://www.freddiemac.com/pmms   11 - https://zillow.mediaroom.com/2023-06-22-Affordability-crisis-United-States-needs-4-3-million-more-homes   12 - https://www.cnbc.com/2023/06/26/americans-think-they-need-nearly-1point3-million-retire-comfortably-study.html

Will we see home prices go any lower? Will we see a rise in foreclosures? When will mortgage rates come back down to earth? Is it best to keep a bunch of cash on the sidelines so we can scoop up all the good deals when we are hit by recession? Where does it make sense to buy rental property in this economy? In this episode, you'll hear from someone who can answer those questions and more to help you as an investor make better decisions during these uncertain times. Rick Sharga has more than 20 years of experience in the real estate and mortgage industries and is the Founder & CEO of market intelligence and advisory firm CJ Patrick Company. He has also served as the Executive Vice President of Market Intelligence for ATTOM Data, Carrington Mortgage Holdings, and RealtyTrac's Marketing Department, as well as Chief Marketing Officer for Ten-X and Auction.com. Over his long and distinguished career, he's become one of the most frequently quoted experts on real estate, mortgage and foreclosure trends. If you want to expand your real estate investing horizon, and would like a referral to one of our proven property teams in places like Texas, Florida, and the Carolinas, please hit the “Join for Free” button. Once you are a member, you will have access to our investment counselors, and trusted real estate professionals that can help you reach your investment goals. To find out more about our North Dallas Rental Fund, mentioned during this interview, please go to growdevelopments.com.  And please don't forget to subscribe to this podcast!  Thanks for listening! Kathy Fettke  

Fraudulent applications for the government's Covid-era Paycheck Protection Program helped push home prices higher in some markets. That's the conclusion of new research from the University of Texas at Austin. It says that fraudulent PPP loan recipients increased their home purchase rate more than non-fraudulent loan recipients, and that that corresponded to higher home prices. (1)    Hi, I'm Kathy Fettke and this is Real Estate News for Investors. Please remember to subscribe to this podcast and leave us a review.   The research paper shows that home price growth was much faster in areas with a high amount of “suspicious lending per capita.” In other words, areas with higher rates of loan fraud correlated with fraud recipients who also bought property. That may have increased prices due to competition among well-funded buyers, or maybe because it was easy to spend a little more on a home with easy money.   Loan Fraud Impact on Home Prices   So what was the estimated size of this impact? The report says: “at the zip code level, house prices in high fraud zip codes increased 5.7% more than in low fraud zip codes within the same county.” The analysis also accounted for land prices, historical home pricing trends, remote work impact, migration, population density, and how close the homes were to business districts.   The PPP loan program distributed more than $793 billion dollars from April 2020 through May 2021. Research done previously at the Austin university labeled $117 billion of those PPP loans as “suspicious.” Study co-author and professor of finance, Sam Kruger, says: “The fraud was highly concentrated geographically. And because of that concentration, there may have been spillover effects in some of those local areas.” (2)   Why Did This Happen?   Government data shows that home prices rose 24% nationwide from November of 2019 through November of 2021. Many factors contributed to those high prices including remote work, migration from crowded urban areas, and a desire for larger homes with yards, but this new research says that money handed out by the government to help business owners retain employees may have contributed to home price growth.    Kruger says: “This is a very specific type of stimulus that injected cash into certain areas, and it seems to have played a pretty significant role.”   How Did This Happen?   The report also blamed lax loan standards among Fintech companies, which had a higher rate of fraudulent loans than traditional lenders. It also suggested that social media was used to spread the word about getting fraudulent loans from those Fintech loan providers. In a zip code map of the country, areas where much of this fraud occurred was along the sun belt, as you might expect. If you'd like to read more about the study and check out that map, you'll find links in the show notes at newsforinvestors.com.   You can also learn how to buy real estate legally as a member of RealWealth. It's free to join for access to our housing market data, investment counselors, and referrals to real estate professionals that you might need to help build a portfolio of rental properties.    Thanks for listening, and please remember to subscribe to the podcast!   Kathy Fettke   Links:   1 - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4487877   2 - https://www.cnbc.com/2023/06/26/ppp-loan-fraud-drove-home-price-inflation-in-certain-markets.html

In this Real Estate News Brief for the week ending June 24th, 2023... what the Fed Chief is saying about another two rate hikes, where evictions are rising the most, and how the economy is impacting commercial real estate.   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   Economic News   We begin with economic news from this past week, and comments from Federal Reserve Chairman Jerome Powell about interest rates. He testified before Congress that U.S. inflation is still too high and that more rate hikes are likely this year. He told members of the House Financial Services Committee: “Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year.” But he also says that decisions will be made “meeting by meeting” so there's no timetable as to if or when this will happen. Most of the members are anticipating two more quarter point rate hikes. (1)   In a more positive light, Powell said that it's possible to get inflation under control without a huge increase in unemployment. During his testimony before the Senate Banking Committee, he said that he sees the labor market cooling gradually but doesn't expect to see significant job losses. (2)   Federal Reserve President Raphael Bostic is one of just two committee members who doesn't believe the Fed should hike rates again this year. He said in an interview that interest rates should remain where they are for the time being, and that rate cuts should not happen until later “next” year. He believes the economy hasn't yet felt the effects of previous rate cuts, and doesn't want the Fed to make the mistake of causing a significant economic downturn. (3)   The weekly unemployment report shows that initial claims are rising, although the number of applications was flat last week. The government says that 264,000 people requested benefits which is about the same as the previous two weeks. But, the last three weeks represent the highest level we've seen since late 2021. (4)   Builders are feeling bullish about new home construction. Housing starts for single-family homes surged in May to a new high point for the year. The National Association of Home Builders says housing starts were up 21.7% to an annual pace of 1.63 million. Economists were expecting a decline of .8%. (5) The association's monthly confidence index also reflects a feel-good attitude among builders. The index was up 5 points to 55 which puts it in positive territory. (6)   Meantime, the sale of existing homes rose a bit in May. Sales were up 3.8% to an annual rate of 1.08 million, but due to high mortgage rates, prices were down about 3%. It's the largest monthly drop in existing home prices since December of 2011. (7)   Mortgage Rates   Mortgage rates didn't move much this last week. Freddie Mac says the average 30-year fixed-rate mortgage was down 2 basis points to 6.67%. The 15-year was down 7 points to 6.03%. (8)   In other news making headlines…   Eviction Rates Are Rising in Some Cities   Rising rents and a lack of pandemic-era protections are pushing many renters into eviction proceedings. Princeton University's Eviction Lab tracks filings in almost three dozen cities and 10 states. It reports that eviction rates are now 50% higher than they were before the pandemic. (9)   Some of the hardest hit cities include Houston with rates that were 56% higher in April, Minneapolis/St. Paul with rates that were up 106% in March, 55% in April, and 63% in May. Nashville, Phoenix, and the state of Rhode Island are also seeing a lot of evictions.    Zillow reports that national rents are up 5% from a year ago, and almost 31% from 2019. High eviction rates right now are also due to the fact that many tenants were protected from being evicted during the pandemic.   Distress Starting to Hit Commercial Real Estate   We're beginning to see more distress in the commercial real estate market. A report from MSCI Real Assets shows about $64 billion in distress for the first quarter, and a total of about $155 billion in assets that are now at risk. (10)   Retail properties are suffering the most with about $23 billion in distress. But those problems began “before” the pandemic as stores lost business to online shopping websites. Office properties are now seeing about $18 billion in distress thanks to the rise in remote work, and leases that need to be renewed at high interest rates. Multi-families are also seeing some amount of distress. Delinquency rates for multifamily loans from major investment groups hit the 3% level at the end of the first quarter.    That's it for today. Check the show notes for links at newsforinvestors.com. And please remember to hit the subscribe button, and leave a review!   I also encourage you to join RealWealth at newsforinvestors.com. It's free to join and will give you access to information about how you can build wealth with single-family rentals. Membership will also connect you to our experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.   Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://www.marketwatch.com/story/powell-tells-congress-to-expect-higher-interest-rates-5ee9ffc0?mod=federal-reserve   2 - https://www.marketwatch.com/story/powell-says-he-sees-path-where-inflation-cools-without-significant-job-losses-d132327a?mod=mw_latestnews   3 - https://www.marketwatch.com/amp/story/fed-should-leave-interest-rates-unchanged-for-the-rest-of-the-year-bostic-says-43d83606   4 - https://www.marketwatch.com/story/jobless-claims-hit-highest-level-since-late-2021-2650a966   5 - https://www.marketwatch.com/story/housing-starts-surge-as-builders-rev-up-single-family-home-construction-in-may-while-a-housing-shortage-drags-on-fe6838ea?mod=economic-report   6 - https://www.marketwatch.com/story/home-builders-turn-bullish-for-the-first-time-in-nearly-a-year-amid-strong-housing-demand-81f5c7b9?mod=economic-report   7 - https://www.marketwatch.com/story/u-s-existing-home-prices-suffer-largest-drop-since-december-2011-56fe5258?mod=u.s.-economic-calendar   8 - https://www.freddiemac.com/pmms   9 - https://apnews.com/article/evictions-homelessness-affordable-housing-landlords-rental-assistance-dc4a03864011334538f82d2f404d2afb   10 - https://www.bisnow.com/national/news/capital-markets/report-distressed-cre-now-tops-64b-119503

We all want our children to be well educated so they can lead successful lives, but some of the most important subject matter for success is missing from school curricula. Financial literacy includes things like checking and savings accounts, budgeting, investing, the use of credit and credit cards, insurance, paying taxes, paying for college, and even the purchase of a home. But there isn't much in the way of personal finance on the list of classes that kids take in high school.   The guest in this episode is hoping to change that. Yanely Espinal is a millennial financial educator who started her career as a teacher and is now on a mission to convince lawmakers to make personal finance a high school graduation requirement. She serves as the Director of Educational Outreach at Next Gen Personal Finance (NGPF) and has been instrumental in getting legislation passed in several states including Florida (SB1054), Michigan (HB5190), Georgia (SB 220), Rhode Island (H 5491) and North Carolina (HB 924). CNBC called her “the millennial fighting for Gen Z to learn about money in school.”   Yanely, who's also known on the internet as MissBeHelpful, is also the author of a newly released book on the topic called: “Mind Your Money: Insightful Stories and Strategies to Help You Reach Your #MoneyGoals.” Her new book is available on Amazon. She's also the host of a podcast called “Financially Inclined from Marketplace” and one of the youngest members of CNBC's Financial Wellness Council, among other notable accomplishments.    If you'd like to learn more about how real estate can give you financial freedom, we encourage you to visit our website at realwealthshow.com. As always, please remember to subscribe to this podcast if you haven't already. If you have a few minutes, please leave us one of those starry reviews!    Thanks for listening! Kathy Fettke  

Asset allocation is arguably the most crucial step in building wealth. While most people think just buying rentals is enough, having the money set aside to protect those rentals, and subsidize your business during rough markets, can make or break your real estate portfolio. In the last crash, those entirely in real estate saw their wealth dwindle to nothing while diversified investors held strong, scooping up deals at a steep discount, making millions in the coming decade. Now, with many investors fearful that we're on the edge of another crash, James Dainard and Kathy Fettke have stepped in to give advice only multi-decade millionaires know of. Dave, James, and Kathy will be breaking down their exact investment portfolios, walking through what they own, what they don't, and how they structured their wealth to stay safe without stagnating. They'll also share their advice on what to invest in TODAY, how to diversify your portfolio so you don't get liquidated in the next crash, what they'd buy with $100,000, and “risk-free” investments like bonds still boasting favorable returns. Whether you're just starting to invest or are looking to optimize your passive income, this episode is for you! In This Episode We Cover Asset allocation 101 and why it is SO crucial to building (and keeping) wealth  Revealing our multimillion-dollar investment portfolios and how we designate our dollars Kathy's short-term rental bet and house hacking EVEN while you're financially free Geographic diversification vs. asset diversification and whether the market or asset matters more Protecting yourself during a real estate crash and what James wishes he did last time Bonds and “risk-free” investments that could give you a stress-free return And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent 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 James' Instagram James' BiggerPockets Profile Kathy's BiggerPockets Profile Kathy's Instagram The Biggest Real Estate Tax Loophole You've (Probably) Never Heard Of How Much Investment Diversification Is Right for You? Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-116 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

The latest report on single-family rents shows that rent growth is still positive, but declining in step with the Fed-induced economic slowdown. CoreLogic just released its Single-Family Rent Index for April which shows another monthly dip and rent growth levels for various metros. (1)   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. Please remember to subscribe to this podcast and leave us a review.   The CoreLogic report shows that single-family rents were up 3.7% in April for all the U.S. metros included in the index. That's down from 4.3% in March, and 14% from April of last year. The report shows single-digit rent increases for the most part. Las Vegas was the only exception with a negative reading of .8%.   Despite the huge year-over-year decline, single-family rents are still up almost 26% since the beginning of the pandemic, thanks to strong demand and low inventory.   Gains Approaching Pre-Pandemic Levels   CoreLogic principal Economist, Molly Boesel, said in a press release: “Single-family rent growth has slowed for a full year, and overall gains are approaching pre-pandemic rates.” She says: “Prior to 2020, single-family rent gains increased in the range of 2% to 4% for nearly a decade.”   Boesel also said that it appears rent growth is bottoming out which means that rent increases we've seen over the past three years are “more or less permanent.”    The CoreLogic analysis separates rent growth into four rent-level tiers and two property types. For lower-priced single-family homes, which are valued at 75% or less than the regional median, rent growth was up 6% in April. For lower-middle priced homes, at 75% to 100% of the regional median, rent growth was up 4.6%. High-middle priced homes, which fall in the 100% to 125% of the regional median, were up 4.1%. And higher-priced homes were up 2.4%. As for attached versus detached homes, attached single-family rents were up 4.6% while detached rents were up 2.6%.   Top Rent-Growth Metros   Let's take a look at a few of the top 20 rent-growth metros. CoreLogic says that Charlotte, North Carolina took the top spot with the highest year-over-year increase in single-family rents. They were up 6.9% in April. Boston and Orlando had the next highest rent-growth levels at 6.2% and 6% respectively. A few other metros I find interesting include Dallas with 3.5% in April, and Atlanta with 3.4%. The index is comprised of close to 100 metros.   That's it for an update on single-family rent growth. You can read more about CoreLogic latest report at newsforinvestors.com. You can also find out more about investing in single-family rentals at as a RealWealth member. It's free to join for complete access to all our educational material along, networking opportunities, and real estate professionals that can help you build wealth.    Please remember to subscribe to the podcast if you haven't already!   And thanks for joining me on the Real Estate News for Investors.   -Kathy Fettke   Links:   1 - https://www.corelogic.com/intelligence/us-single-family-rent-growth-continues-yearlong-descent-in-april-corelogic-reports/

In this Real Estate News Brief for the week ending June 17th, 2023... why we might see two more rate hikes this year, what the latest consumer price report is showing us, and the cities that are attracting the most attention from renters!   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   Economic News   We begin with economic news that grabbed headlines this last week. Members of the Fed's Open Market Committee decided to put their rate hike regimen on pause for the month of June, but said that two more rate hikes are likely later this year. The decision was unanimous for the pause, but not so for the rate hikes. Two members don't see any further hikes, four are anticipating one more rate hike, and nine are expecting the need for two. Two more believe we'll need three, and one is saying four. (1)   By holding the interest rate steady for the time being, the Fed will have a chance to “assess additional information and its implications for monetary policy.” Fed Chief Jerome Powell said at a news conference: “We have raised our policy interest rate by five percentage points, and we've continued to reduce our security holdings at a brisk pace. We've covered a lot of ground and the full effects of our tightening have yet to be felt.”   The Federal Funds rate is currently in a target range of 5 to 5.25%. Assuming quarter-point hikes, another two would bring that up to about 5.6%. Committee members meet next in July. Powell emphasized that the “core rate” of inflation for the personal consumption expenditure index, or PCI, is the most important indicator.    The Fed received two other reports on inflation right before the meeting. The consumer price index, or CPI, shows that prices rose only .1% in May, mostly due to less expensive gas. The low rate of monthly inflation brought the yearly rate down from 4.9% to 4%. That's the lowest it's been since March of 2021. When you omit prices for gas and food to get the core rate, there was a .4% gain with an annual rate that slipped from 5.5% to 5.3%. (2)   The U.S. Department of Labor Statistics also released the producer price index, or PPI, for May. It shows that wholesale prices fell .3% in May. It's the third time they've gone down in the past four months. That brings the yearly rate down from 2.3% to 1.1%. Again, the reading is slightly different for the core rate, which didn't move in either direction. The yearly core rate dropped from 3.3% to 2.8%. The PPI represents what companies pay for producing their goods such as packaging and transportation, which they often pass on to the consumer. (3)   Weekly jobless claims were unchanged from the previous week at 262,000, while the number of continuing claims was up about 20,000 to a total of 1.78 million. (4)   Mortgage Rates   Mortgage rates were down slightly for the week. Freddie Mac says the average 30-year fixed-rate mortgage was down two basis points to 6.69%. The 15-year was down 3 points to 6.1%. (5)    In other news making headlines…   Potential Sellers Remain on the Sidelines   High interest rates are keeping many potential sellers on the sidelines. Redfin notes that almost everyone with a mortgage has an interest rate below 6%. About 80% of homeowners have an interest rate below 5% and almost 25% have one below 3%. (6)   As for inventory, Redfin says there are about 6% fewer homes for sale now than there were a year ago, and 40% fewer homes for sale than there were five years ago in June of 2018, before the pandemic. (7)   Redfin blames the shortage on high mortgage rates, and a construction slump that began more than a decade ago. The number of months it would take to sell the inventory on hand is 2.6. A housing market with a balance between supply and demand typically has four to five months of supply.   Most Popular Cities Among Renters   A new report shows that the Midwest has become quite popular among renters. According to RentCafe's Rental Activity report, Kansas City, Missouri, is getting the most attention from renters. Runner-up is Overland Park in Kansas which is a suburb of Kansas City. Minneapolis was third, followed by Cincinnati and Albuquerque, New Mexico. Detroit took sixth place, Atlanta seventh, and Orlando eighth. Rounding out the top ten are Arlington, Virginia, and Raleigh, North Carolina.    You can get the full list of 30 cities by following links to the article at newsforinvestors.com. Make sure you are signed up as a RealWealth member to learn more about real estate investing in many of the markets on this list. And don't forget to subscribe to the podcast!   Thanks for listening. I'm Kathy Fettke.   Links:   1 - https://www.cnbc.com/2023/06/14/fed-rate-decision-june-2023.html   2 - https://www.marketwatch.com/story/inflation-slows-again-cpi-shows-and-might-keep-fed-on-sidelines-5137bc46?mod=economy-politics   3 - https://www.marketwatch.com/story/wholesale-prices-shrink-again-ppi-finds-and-point-to-slower-inflation-ahead-1de0968?mod=bnbh_mwarticle   4 - https://www.marketwatch.com/story/jobless-claims-stick-near-highest-level-in-almost-two-years-at-262-000-2cdb08f5?mod=economy-politics   5 - https://www.freddiemac.com/pmms   6 - https://www.redfin.com/news/high-mortgage-rates-lock-in-homeowners-2023/   7 - https://www.redfin.com/news/housing-market-update-supply-drops-mortgage-rates-high/ 8 - https://www.globest.com/2023/06/14/this-heartland-city-remains-most-popular-among-renters/