Podcasts about sfrs

Play Episode Listen Later Sep 5, 2024 6:37

In this Real Estate News Brief for the week ending August 31st, 2024... a music-to-our-ears inflation report, the “up” side of the down payment, and build-time for single-family homes. Hi I'm Kathy Fettke and this is Real Estate News for Investors. Before I begin, I'd like to share some exciting news with you! My husband Rich and I are celebrating our book launch at a climbing gym in Denver, and you are invited! It's free to attend so long as you pre-order our book, Scaling Smart, which you can buy on Amazon. The book launch is September 8th just two days before the book hits the market. If you miss the big party, you can join us for a virtual book launch on September 21st. Check the show notes for information! Links: Book Launch: https://realwealth.com/scaling-smart-book-launch/ Virtual Event: https://realwealth.com/scaling-smart-virtual-event/ ~~~~ JOIN RealWealth® FOR FREE

Sky Captain and the World of Tomorrow

Play Episode Listen Later Jun 7, 2024 41:08

We return to discuss Sky Captain and the World of Tomorrow! But first, Alex makes the executive decision to discuss other films, so we briefly discuss Kingdom of the Planet of the Apes, Furiosa, Atlas, and You Can Call Me Bill. Then we sadly have to watch the film we're here to see. And it ain't great. But at least it's a good excuse for Alex to tell his story about his copy of Horton Hears A Who...Here are the far superior cutscenes from Jedi Knight - Dark Forces 2Next week, prepare for a bumper pod as we give Star Wars: Episode I - The Phantom Menace the full SFRS 2.0 scientific treatment.See the new list!Play along at home!Get in touch!Visit the Website!Watch us on Youtube!See the old list!Download the soundtrack!Buy our Merch!And we're on Instagram and Facebook too! Hosted on Acast. See acast.com/privacy for more information.

world kingdom acast merch planet of the apes phantom menace furiosa world of tomorrow sky captain sfrs horton hears a who

503: How Decades of Inflation Destroyed Our Dollar, Today's Rent Trends

How Did They Do It? Real Estate

Play Episode Listen Later May 27, 2024 41:36

We've already had more inflation in this young 2020s decade than the entire 2010s. If the next forty years have as much inflation as the last forty, gas will cost $13.38 per gallon, the average home $1.88 million, and the average rent $59,000 annually. Inflation impoverishes most people. You can profit from it 3 ways at the same time. Watch the free 3-part video series: GetRichEducation.com/TripleCrown. The 30-year fixed rate mortgage is a uniquely American construct. It virtually exists nowhere else in the world. I compare this to mortgage terms in Europe, Canada and Australia. In much of the world, homeowners have had their mortgage payments double overnight! Trends that won't soon be disrupted: more inflation, people need to live somewhere, there aren't enough places to live. That's so simple! Invest in it. Rents are increasing the most where little new supply has been added. There's a myth that gigantic institutional investors are gobbling up all the single-family rental homes. But they only own 3% of the market. Mom & pops own 80%. Single-family rents are up 3.4% per CoreLogic. Detached SFHs are up more than attached types. Property prices and rents are positively correlated. Some people falsely think that they move inversely. Resources mentioned: Profit from inflation 3 ways: GetRichEducation.com/TripleCrown For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 For advertising inquiries, visit: GetRichEducation.com/ad Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review” Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Complete episode transcript: Welcome to GRE! I'm your host, Keith Weinhold. Learn how the misery of INFLATION is altering BOTH your quality of life and the return on ALL of your investments… … also, many people are now having their mortgage payments DOUBLE overnight and IT'S creating pain, then, what are the factors affecting the future direction of RENTS - all that, and more, today on Get Rich Education! ______________ Welcome to GRE! You're listening to one of the longest-running and most listened-to shows on real estate investing. This is Get Rich Education. I'm your host, Keith Weinhold - the voice of RE since 2014. I don't know if you fully realize how much inflation is steering all of your investments - and it's emphatic at a time like this when the dollar is down 25% cumulatively just in the last four years. Gosh! And I've got some jaw-dropping inflation fact to share with you soon. We'll get to inflation's RE affects shortly. But here's what I mean. In stocks, they keep riding up on a wave of optimism, anticipating a Fed interest rate cut - largely due to future INFLATION expectations. Yes, there's jobs & GDP and some other factors. But the stock market - which is a FORWARD-looking market - it moves based on what's expected to happen 6 to 12 months from now. STOCK investors know that rate cuts open the floodgates to get us closer to the “easy money” days again. That's why - as backwards as it is, the worse the economy looks, the lower that inflation tends to be, and then, in turn, the lower that interest rates can go, which the stock market likes. So a worsening economy often pumps up the stock market. Soooo backwards. Just look at what happens historically. Recessions sound bad. Yet what happens is that rates get cut in a recession - because the economy needs the help. But nearer-term, it's this ongoing expectation of the rate cut - that's been looming out there for months but hasn't happened - which CAN keep propelling the stock market to higher highs. It's already hit all-time highs here recently. You can make the CASE that stocks should keep floating higher from here… based on that premise. Before we look at real estate & inflation. Understand this. Inflation has already widened the divide between the affluent and the deprived. That divide has gone from a gully to a canyon. But... my gosh! Here's the stat that I want to share with you. And you're really going to get a sense for the gravity of what you're living through this decade. We've already seen more inflation in the first 51 months of the 2020s decade than in the ENTIRE decade of the 2010s. Already. This gets really interesting. Let's look at about the last four decades here. Alright, in the 1990s decade, America had 34% cumulative inflation. Let's go ahead and… we'll associate this decade with President Bill Clinton. We won't tie any President to the inflation number because there are lag effects and other factors. A President really can't take the credit or blame, in most cases. Just marking the era here. So, 34% inflation in the 1990s. The 2000s decade saw the GFC and… 29% inflation. Most of those were George W. Bush years. The 2010s decade saw lower inflation → Just 19%. So that's under 2% a year. These were mostly the Obama years here in the 2010s. Little flex there from the former Commander in Chief. Then the 2020s decade → have seen, like I alluded to, and under Joseph Robinette Biden, Jr. - yes, as the oldest sitting president ever, it's easy to forget that he's a “junior. In this young 2020s decade, we have, 21% cumulative inflation. Already. So this figure is after just the first 51 months of this decade, if we're counting from 2020… and this is largely due to supply shortages from the COVID pandemic. So 21% ALREADY this decade… and just 19% ALLLL of last decade which was a full decade. That's the impact. That's reflective of what you see in home prices and rent prices and utilities, transportation, labor, and almost every facet of your life.… and what you see in your weekly Costco bill and Trader Joe's bill. Who have we left out here? A one-term president, so far? Does somebody feel left out. Yes, that is the actual person of one Donald John Trump. Psssshhh! All of those figures I cited are from the BLS, and I've been rounding to nearest whole percent. But get this! Inflation over the next forty years could make the LAST 40 years seem like a picnic. That's partly because we're $35T in debt and that figure now grows by $1T every single quarter… every 90 to 100 days. So we MUST keep dollar-printing to help pay it back. But just, if the last forty years repeats itself, by the year 2064, which is the next forty years, we'll see these prices. Prepare for a future that looks like this: Gas at $13.38 per gallon The home price at $1.88 million Average rent at $59,000 per year And the average salary at $104,000 That is if inflation over the next 40 years, looks like that last 40 years. Also, note how salaries don't keep pace with prices. That $104K average salary in the year 2064 doesn't sound as high-flying as those other figures. Well, this is all really frustrating for consumers… and even debilitating to one's standard of living. Remember, this latest wave of inflation brought us the biggest YOY increase in homelessness - based on HUD figures. and why you need to invest in something that reliably BENEFITS from inflation and pays you an income at the same time. Look, here's really, the deal. Dollars are abundant. So then isn't it a paradox that a major spike in the supply of dollars would create more homelessness? Well, you know that dollars are there for your taking - because so many more have been brought into existence. Dollars are abundant. So as they cycle through the economy, rather than going through the consumer motions, you can build your diverter. That's where the world of abundance exists, so get into that flow. Ultimately, REAL capital is scarce. Your time and energy are scarce. Natural resources are scarce. Labor is scarce. What's frustrating is that money ought to reflect that scarcity if it is going to accurately convey the value that enables people to make capital accumulation decisions. And alas, we're doing our measuring in dollars and the dollar is not remotely scarce. The middle class and poor often have wages that don't track inflation, yet they disproportionately suffer the higher consumer prices. The investor class owns assets that float up with inflation. And GRE listeners will do even better than that. As income property owners with mortgages, we're winning three ways at the same time with the Inflation Triple Crown. That's your dollar diverter. Alright, so that's longer-term inflation. I've been talking in terms of decades - both the past and with an extrapolation into the future to 2064 there - and it's really rather sobering. Well, what's the more CURRENT inflation situation? The situationship? Ha! What's the situationship now? In trying to quiet it down to their 2% target, the Fed has run into so many hurdles that you'd think they were training for this summer's Olympics in Paris. After it peaked over 9% two full years ago now, inflation's been bouncing near 3-and-a-half-percent for a year and they just keep having trouble getting it lower than that. Hmmm... would we say that this could turn into Jerome Powell's three-quarters life crisis? We'll see. Rising inflation is one of the key factors that brought down the Roman Empire. They famously experienced hyperinflation after a series of emperors lowered the silver content of their currency, called the denarius. Today, some lament that the dollar isn't backed by gold, silver, or anything else. But it is. It's backed by the world's most powerful military, strongest economy, reserve currency status, international trade agreements, and you also… must pay your taxes in dollars. Dollars are still liquid and useful… but perpetually debased, so get them and then transition out of them. Yet, at the same time, we're also the greatest debtor nation in world history. The easiest way to pay it all back is to simply print more and inflate more. So that's why it's almost inevitable that dollars will keep being worth less... and BTW, the two words “worth less” sound awfully close to the word “worthless”. Ha! That's where we keep heading. Until you can send a Venmo request to the Fed to compensate you for your loss in purchasing power, we need to actually do something about this. And the dollar that you had when you started listening to me today could very well now only be worth 99 cents. Ha! We can either have our standard of living degraded by inflation or we will decide to profit from it. So, if you haven't yet, check out GetRichEducation.com/TripleCrown. Rather than impoverish you, learn how you can make inflation CREATE wealth for you three ways at the same time with that free, 3-part Inflation Triple Crown video series. Good learning there. It's free & easy to watch, again, at GetRichEducation.com/TripleCrown Inflation seemingly seeps into everything. Inflation took down the commercial sector - Apt buildings & offices. Apts are down 30-40% in the last two years. It's all because inflation made the Fed panic and jack up those rates. If that's not jaw-dropping enough. Office values are down 80%+ in the last two years. 80%+, 90%+ in some cases. Of course, office RE got the double-whammy of the inflation-induced interest rate hikes AND the Work-From-Anywhere movement. That leaves residential 1-4 unit properties in good standing - and still impacted by inflation, but LESS impacted by inflation. Yeah, your 1-4 unit RENTS are up - and I'll talk more about rent later in the show today. inflation also jacked up your expenses like insurance, utilities, maintenance & repair cost and more. But as we move away from the inflation conversation now, of course, one big reason that 1-4s have stayed resilient is the American privilege of LTFIRD - and the fact that it's 30 years for most US properties. In fact, in 2022, 89% of homebuyers applied for the 30-year. I think that you're about to get more appreciation for this… perhaps than you've ever had. The 30-year FRM is a UNIQUELY American construct. And, BTW, some people don't seem to know what the word “unique” means. You've probably heard people misusing this word all the time. Unique does not mean something that's sort of different. Unique means “ONE of a kind”. Unique means something that does not exist ANYWHERE else. What do I do here on this show? Besides giving you the occasional geography lesson as a side dish to your real estate, I do this with vocabulary, grammar, and syntax as well, don't I? Even though my own is surely imperfect. Anyway, the reason that the 30-year mortgage can exist is due to our deep financial markets - especially our secondary market for mortgage-backed securities, where your loan gets packaged up and purchased by a bond investor - a bit like Ridge Lending Group President Caeli Ridge & I touched on last week. The reason that mortgage-backed securities are attractive to investors in the U.S. and across the globe is because their government sponsorship makes them safe investments over long periods of time. They also provide a fixed payout to the MBS holder. And see, the rate on the 30-year fixed-rate mortgage tracks closely to 10-year Treasurys because “U.S. real estate is almost as good an investment as a U.S. Treasury bond.” They've got Fannie & Freddie insurance. And that entire MBS process now has more guardrails in it than we had before the Global Financial Crisis. We're talking about the foundation here - really - of where you get your big lumps of money from - the 30-year FRM and its uniqueness. Compared to the world, the US has very little variable rate debt. Less than 4% of American mortgage borrowers have debt that's on rate terms of a year or less. Over 96% of US debt is LTFRD, defined as 10 years or more. That is virtually unparalleled worldwide. To compare us to some other developed nations, mortgage borrowers in Germany - just 47% of them have long-term fixed debt - and none of them can get 30-year debt. Long-term debt, again, defined as ten years or more, Is little to ZILCH for mortgage borrowers in Canada, the UK, Ireland, Italy, Sweden, Finland, Australia, and other developed nations like them. In Canada, the most common mortgage terms reset to the prevailing market interest rate every five years. In Finland, their mortgages reset annually or faster. Gosh, can you imagine if your mortgage rate reset every year like it does for the Finns? Sheesh, that's more often than some people lose the remote control or rearrange their furniture. OK. So what's this really mean? Ya gotta… pour one out for most mortgage borrowers in the rest of the world. They can't lock in their mortgage interest rate for the long-term. So with rates doubling or tripling, starting from 3 years ago, it's totally ruined a lot of foreign homeowners. Look, what if you're middle class and your monthly mortgage payment soars from $1,893 on Tuesday up to $3,415 on Wednesday? That's what's happening elsewhere. It can go up 50% overnight and nearly double overnight in Australia, Europe and elsewhere. But in the mortgage-advantaged US, we're safe. If we buy at an 8% mortgage rate on a 30-year fixed amortizing loan today—just the plain, vanilla loan: If rates rise to 10% later, you're happy to be locked-in at 8% If rates fall to 6% later, you'll refinance Note that I refrain from saying "just refinance". I don't like the word "just". You'll still need hours to provide documentation and your credit score will be checked. But it's worth it. You won't “just refinance”. Ha! You'll refinance. So think of it this way then, you can alter your deal with the bank whenever you want—and usually with no prepayment penalty. Yet the bank can't alter it on you. What did Darth Vader say to Lando Calrissian in the “Empire Strikes Back?”. I am altering the deal, pray that I don't alter it any further. Ha! We better not play that clip here. I don't know the copyright laws with LucasFilm or Disney there. Ha! But you're not a dark lord of the Sith for doing it… for altering the deal on the bank. You're playing within the rules. This is almost an unfair advantage for Americans. The bottom line here - with this unique American advantage, is that, as rates change, you get to play both sides of the game. And that's why we add smart properties with loans. We turn that into wealth, with compound LEVERAGE. Now, mere compound interest, that's a vehicle for you to rely on more for your shorter-term funds, your cash or what you're keeping more liquid. Long-term wealth is build through compound LEVERAGE. Short-term funds - that's for compound INTEREST. And… your bank is getting rich off of YOU. The national average bank account pays less than 1% on your savings. If your money isn't making about 4-5% today, you're losing your hard-earned cash to inflation. What I do, is keep my dollars in a private LIQUIDITY FUND. You can do this too. Your cash generates up to an 8% return with—COMPOUND INTEREST—year in and year out instead of earning less than 1% sitting in your bank account - or even 4-5% elsewhere. The minimum investment is just $25K. You keep getting paid until you decide you want your money back. This private LIQUIDITY FUND has a decade-plus track record - and they've always paid their investors 100% in full and on time. I would know… because, I'm an investor with them myself. See what it feels like to earn 8%. A lot of other GRE listeners are. To learn more, just text the word FAMILY to 66866 to learn more about Freedom Family Investments' LIQUIDITY FUND. Get 8% interest! Just do it right now, while you're thinking about it. Text FAMILY to 66866. More straight ahead, including what's happening with rents. I'm Keith Weinhold. You're listening to Get Rich Education. _____________ Welcome back… you're listening to Episode 503 of Get Rich Education. I'm your host, Keith Weinhold. We've got a poll result, from our Get Rich Education Instagram Page. The poll question was simple. “When buying property, what's more important?” The purchase price or the mortgage rate. 71% of you said the purchase price. 29% of you said the mortgage rate. Of course, both are important, but I think that the PURCHASE PRICE is the best answer - because your purchase price stays fixed for the life of your ownership period, and you can CHANGE your fixed mortgage rate and make it malleable… whenever it suits your needs. As we talk about where the OPPORTUNITY is today, though multifamily apartments are going to bottom out sometime and therefore, at some point, they'll make a wise investment - who REALLY knows - maybe the time for larger apartments is now… … one opportunity is… giving good people OPTIONS during a housing affordability crisis. And what's going on right now is that… let me put it this way… when people have a hard time affording their own home today, basically (ha!) people are having a hard time transitioning from resenting their landlord to bickering with an HOA. Ha! That's kind of how the world works. Seemingly everyone would rather be bickering with an HOA rather than resenting their landlord. A lot of renters want to be buyers… they can't… and that isn't expected to change anytime soon… as prices will likely stay elevated… and mortgage rates are staying higher, longer too. These things are ALMOST “knowns”. It's often wise… to invest in trends that are known. Nothing's completely predictable, but when you're looking for a place to park your investment dollars, a few other things… are known… right now. And AI is not expected to change what I'm about to tell you… anytime soon. VR - virtual reality is not about to change what I'm about to tell you anytime soon. AR - augmented reality isn't either. Machine learning won't imminently disrupt this. And that is, that… everyone expects more long-term inflation. At what rate, no one knows. People will need to live somewhere… and there are not enough places to live. Those three facts, right there, are so simple. I love simple. Ha! One reason I love simple things is that I can remember it. So many investors - investors in all types of things, say, from tech EFTs to junior mining stocks to crypto - you can make money there. But, at times, investors will unnecessarily go out on the risk curve and GUESS and speculate… at a future trend. Some are right. They're often wrong, and adopting too much of that approach… that's exactly when your risk-adjusted return goes down throughout your investor life. Instead, you can get great returns - real estate pays 5 ways-type of returns - in these trends that I just described that are near certainties. Why guess? When instead, you can almost be certain. Often times, the certain thing is right… there. It's often easier, like I think I brought up on the show once before, inspired by Jeff Bezos - don't ask what will change in 10 years. The more insightful question and profitable question that fewer people think to ask is actually - “What will be the SAME in ten years?” Well, when we talk about rents and the fact that tenants WILL keep paying you to live somewhere ten years from now, the trend that's taking place here in the mid-20s decade - here in the mid 2020s, is that… Rents are increasing the most where there hasn't been enough new supply added - up 5-6% in parts of the Northeast including New York and Boston - Seattle too… and parts of the Midwest. Detroit and Honolulu rents are each up about 5%. Rents are decreasing the least, and even declined - where they've added lots of new supply recently, like Austin, Texas and Miami, where they're down 3% or more in each. New Orleans is another major city that's down - at minus 1%. But among the larger cities, Austin, Texas is the WORST performer in the nation right now. If you're listening to this either this week or you're listening to this ten years from today, if you want to know future rent trends, look at where they're adding supply. Especially in apartments. But all these new apartments will fill up and nationally, they're building fewer apartments this year than last year's apartment-building boom. When we talk about rents and who owns SINGLE-FAMILY HOMES, there are a few myths that I want to help bust for you here. There seems to be this misconception or misinformation that GIANT Wall Street firms are buying up all the SFRs. That's just not true. Now, there is more participation from the big firms than there has been historically, but those that own 1 to 9 SFRs… which is our definition of mom & pop investors here… constitute 80% of the SFR market. 80% own one to nine units. Now, you might own more than 9. In fact, 14% are in that next tier up, owning 10 to 99 SFRs. Then 3% - known as small national investors own between a hundred and a thousand. And, what's left, the big institutional investors - those that own 1,000+ SFRs - and you've heard of some of these companies - Invitation Homes, and another is American Homes 4 Rent. Progress Residential, Blackstone, First Key Homes - all those big players own just 3% of the market. So again, 80% are the small ones - the mom & pops… a highly fractured market. There are a total of 82 million SFHs in the United States. Out of all of them, do you have any idea what percent are OOed and how many are rentals? It's 83% OOed and 17% of the single-families are rentals. So about one-sixth of SFHs are rented out. Now, here's the thing. Some people tend to think of mom and pop single-family rental operators as unsophisticated charity case workers who never raise rents. That's part of the perception out there. But that narrative has never really been true, and, in fact, the COO of American Homes 4 Rent - his name's Bryan Smith - recently brought up this key point on their recent earnings call. He said that while historically mom and pops hadn't always priced directly to market because of a lack of market data, "they've migrated into a strategy that's closer to ours." How is this and why is this? Anymore, why ARE mom & pops raising rents just about as aggressively as the big institutional players. It's really increased transparency on the rents that landlords are asking… through internet listing sites like Zillow. It's not that mom and pops didn't increase rents before. (I mean… just look at what happened with rising rents in the 1970s and 80s before institutions were in the sector.) But when there's a lack of rent amount transparency, it takes longer for operators to discover and adjust to market pricing-- especially for smaller players in a deeply fragmented market. That's the part that's changing. But see, increased transparency works both ways. It's good for you and bad for you as a property investor. This information helps tenants too. In upswing markets, operators may push rents faster than they would otherwise. But in a downswing market, operators may cut or keep rents flat faster in order to lease the unit. Because tenants can easily see what other LLs are charging and compare features. When you price too high, units sit vacant and generate no income. Since renters benefit from increased transparency too, if they see two similar homes, they're usually picking the better deal. And increased transparency is why NEW lease rent growth is cooling off. In fact, CoreLogic just released their latest SF Rent Index report last week. It showed that, nationally rents are up 3.4%, which coincidentally, happens to be the same as the latest CPI inflation number. Detached properties are seeing more rent growth than ATTACHED ones - like townhomes. If you think about it, that makes sense. Townhomes are in less demand now. Because the homeownership dream, is when one moves out of the apartment & buys a detached house. And since that's so unaffordable to buy here in the 2020s decade, that's why more people are willing to pay more for to rent the detached type. Note that SFR rent growth has moderated since mortgage rates spiked-- further dispelling the sticky myth that rents boom when home sales fall. Remember - when homes price growth is really hot - like it was in 2021 and 2022 - near 15% - rent growth tends to be hot too. It was ALSO near 15%. And when home price growth is moderate, like it is now, well, rent price growth is moderate too. Prices and rents move together. They're POSITIVELY correlated. Some people think they move inversely… and we're looking at history over hunches again - what REALLY happens here. So though you're almost certainly going to get nominal rent growth over time, it's not a good thing for you to count on it in the short-term - it NEVER is, in any era. The time for you to push rents is, of course, in any market, when you go for NEW leases. A new lease with a new tenant is going to be higher than a renewal lease. It's the ol' - this has been a good tenant for three years, so I don't want to push the rent too hard & lose them. To review what you've learned today, inflation is affecting ALL of your investments, 30-year FRMs are a UNIQUE American advantage… …it's wise to invest in future trends that are KNOWN, if you want to know what is going to happen with rents in the near future, look where they've added supply. Less new supply correlates with more rent growth… and large institutional investors own just 3% of SFRs. If you enjoy the show, please, tell a friend about it. Isaiah on LI had the most flattering comment. Over there, he wrote and called GRE “The best podcast on the planet.” I… really don't think that I can take credit for that, though… I'd like to think we're a good resource for building your wealth through REI and regularly informing you, giving you ideas that you've never thought about before that add real value to your life. You've heard of Bidenomics. The first portmanteau type that I ever heard about a President's economic policies is REAGANomics, though it was a little before my time. Here on the show next week, with us, will be none other than “The Father of Reaganomics”. Yes, late President RONALD REAGAN'S Budget Director will be here next week. Basically, he was Reagan's “Money Guy”. His name is David Stockman and he often met with the President in the Oval Office, advising Reagan on economic affairs. I have asked David Stockman, if besides talking about the condition of today's economy next week, he'll also discuss real estate - and he agreed to do so. That's “The Father of Reaganomics”. You can look forward to he & I together next week here on the show. You might be one of the listeners that's been here every single week since 2014 - just like I've been here for you. A new podcast is published every Monday. If you want more our DQYD E-mail Letter is published and sent about weekly, that's typically been on Thursdays lately. Then, there are many new videos published each month over on our Get Rich Education YouTube Channel. Those are the main three places that you can find us. Until next week, if you enjoy listening, I really appreciate if you would told a friend about the Get Rich Education Podcast. Until then, I'm your host, KW. Don't Quit Your Daydream!

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SA926 | Accumulate Predictable Cash Flow by Investing in the Right Rental Properties with Andrew Kim

Play Episode Listen Later Apr 4, 2024 20:18

If you're looking for a platform to find cash-flowing single-family rental properties, you landed in the right show! This episode with Andrew Kim talks about the motivation behind staying in single-family investing despite his past losses, the things he considers when choosing the right market and deals, and how he helps investors make single-family rentals even more passive.Listen in and learn how to own rental properties and earn passive income without the hassle of being a landlord!Key Points & Relevant TopicsAndrew's background in the tech industry and the ups and downs with his first single-family investmentsThings that caused Andrew's losses from single-family investments and BRRRR strategyThe start of Andrew's investing journey from Canada to the United States and the reason he initially chose the Florida marketHow SHARE works and what it does for investorsThe driving force behind Andrew's decision to grow his portfolio during the pandemicFinding single-family deals that pencil out despite the current market situation and high cost of housesAndrew's insights on the Sunbelt and Midwest SFR marketHow SHARE find deals for its clients and win deals amidst the competitionResources & LinksApartment Syndication Due Diligence Checklist for Passive InvestorAbout Andrew KimAndrew is a technology entrepreneur and passive real estate investor. After investing and losing a lot of money trying to do BRRRs, he managed to find success by working with seasoned professionals. His real estate portfolio (20 SFRs) allows him to focus on his other passion/profession - building technology companies. His current focus is building SHARE - the easiest way to build a portfolio of rental properties. SHARE's mission is to help others seek financial security through real estate. Get in Touch with AndrewWebsite: https://sharesfr.com/ To Connect With UsPlease visit our website www.bonavestcapital.com and click here to leave a rating and written review!

492: Inflation is an Immoral Force

Play Episode Listen Later Mar 11, 2024 40:20

Get our free real estate course and newsletter: GRE Letter Learn why inflation helps dishonest people and harms honest ones. I use an example of a honeymaker. Both new-build SFRs and apartment units are being shrinkflated. Landlords skimpflate by: delayed maintenance, transferring the electric bill to the tenant, adding a surcharge for storage locker use, firing the doorman, charging to park beneath the carport, or not replacing an old fridge. Instead, raising the rent is the ethical thing to do. To comfortably afford the typical US home, it took $59K in 2020 and $107K today. In a sense, you're both richer and poorer than your grandfather. Learn why investing through IRAs is a poor strategy. I compare RE market conditions from when I bought my first property in 2002 with 2024's conditions. Timestamps: Inflation and Immorality (00:01:51) Explanation of how inflation impacts the economy and the moral dilemma it creates for producers. Housing Affordability (00:04:26) Discussion on the impact of inflation on home affordability and the consequences for renters and homeowners. Rental Affordability and Apartment Shrinkflation (00:05:47) Insights into the shrinking size of new apartment units and the implications for rental affordability. Impact on Middle Class and Homeownership (00:08:29) Analysis of how inflation affects the middle class and the changing dynamics of homeownership. Affordability by Metro Area (00:11:09) Breakdown of home affordability in different metro areas and its correlation with real estate cash flow. Impact of Inflation on Wealth and Society (00:17:11) Discussion on the implications of inflation on wealth accumulation and its societal effects. Conventional Finance and IRAs (00:24:45) Brief mention of conventional investment vehicles like 401(k) and Roth IRA in relation to real estate investing. Conventional Wisdom (00:26:36) Challenges conventional financial wisdom, emphasizing real estate investment over traditional saving and budgeting. Roth IRA vs. Traditional IRA (00:27:45) Discusses the limitations and drawbacks of Roth IRAs and traditional IRAs in relation to increasing income and real estate investment. Market Timing (00:28:59) Emphasizes the importance of having a sound investment strategy and taking advantage of market conditions, using personal experience as an example. Real Estate Market Comparison (00:30:14) Compares the real estate market conditions in 2002 to those in the mid-2020s, highlighting changes in pros, neutrals, and cons. Investment Uncertainty (00:32:53) Addresses the uncertainty of investment and the need to adapt to shifting market conditions, emphasizing the importance of taking what the market offers. Property Highlights (00:34:13) Details three available investment properties in different locations, providing information on purchase price, rent, and potential cash flow. Long-Term Investment Strategy (00:36:55) Advises on the ideal holding period for rental properties and the benefits of new build properties in the current market cycle. New Build vs. Resale Properties (00:38:02) Discusses the advantages of new build properties and the potential impact of declining home price premiums on resale properties. Investment Coach Contact (00:39:12) Encourages listeners to contact investment coaches for assistance in exploring potential income properties. Disclaimer (00:39:42) Provides a disclaimer regarding the information presented in the podcast and advises consulting professionals for personalized advice. Resources mentioned: Show Page: GetRichEducation.com/491 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review” Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Complete episode transcript: Speaker 1 (00:00:01) - Welcome to GRE. I'm your host, Keith Weinhold. Sure, you might find monetary inflation annoying today. Learn why inflation is even worse than you think. It is an immoral force. How bad homebuyer affordability has become by metro region. Then why conventional finance and IRAs don't move the meter in your life and more today on get rich education. When you want the best real estate and finance info. The modern internet experience limits your free articles access, and it's replete with paywalls. And you've got pop ups and push notifications and cookies. Disclaimers are. At no other time in history has it been more vital to place nice, clean, free content into your hands that actually adds no hype value to your life? See, this is the golden age of quality newsletters, and I write every word of ours myself. It's got a dash of humor and it's to the point to get the letter. It couldn't be more simple. Text gray to 66866. And when you start the free newsletter, you'll also get my one hour fast real estate course completely free. Speaker 1 (00:01:18) - It's called the Don't Quit Your Daydream letter and it wires your mind for wealth. Make sure you read it. Text GRE to 66866. Text GRE 266866. Speaker 2 (00:01:35) - You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Speaker 1 (00:01:51) - Welcome, Gary. From Gainesville, Florida, to Brownsville, Texas, and across 188 nations worldwide. I'm Keith Weinhold. Hold in your listening to get Rich education. I'm honored to have you here. Inflation is immoral. Now, at best, you might find what the central bank, the fed, does as annoying on the consumer level. It might even severely debase your standard of living, eroding away your one and only quality of life. But how does inflation have an immoral impact on you and the actors? In an economy? A honey maker sells his jars of honey for $20. The fed prints money like crazy. The money supply doubles well. The honey maker now has three options. Keep selling honey for $20, which is where he eats the loss and keeps providing honey for his customers at the same price. Speaker 1 (00:02:51) - Secondly, he can water down the honey or use other inferior ingredients, which is known as skin deflation or shrink the honey jar size known as shrinkflation. The last option is to be honest and increase the honey price to $40. But if he behaves honestly, he drives away his customers and they look for honey elsewhere. So therefore, those that choose to water down the honey will outcompete the honest guy. And over time, what happens with currency debasement is the producers must now weigh their financial well-being with moral integrity. And that is the problem. This is why inflation has an immoral impact on human beings. It's also a contributor to why food quality suffered during the big wave of inflation in the 1970s and 1980s. It led to rampant obesity and prescription drugs, now comprising half of our TV commercials. All these people now walking around as near zombies that need their meds. And on top of that, somehow society has quickly come to believe that this is normalcy. Then the 2020 wave of inflation is both fueling that trend, and it's now making homes unaffordable for the middle class. Speaker 1 (00:04:26) - As a landlord, the honest thing to do then is to raise the rent. It's not honey inflation or rent inflation because the honey maker and the landlord didn't create it. It is central bank inflation. Higher rent is simply the consequence of more dollars in circulation and simultaneously new build homes. They are indeed experiencing shrink inflation as a result of this currency inflation. I discussed the incredible shrinking size of new build single family homes with you last week, where that new home size has fallen 14% in the past decade plus or minus. Well, the average American apartment size that's falling to, yes, apartment developers in their new projects. They're cutting square footage, and they're doing that to try to contain rents. The square footage of apartment units being built has not been this small since at least last century, and maybe ever. Soaring construction cost. That means developers have got to either pass along all of those increases through into the rents, or find ways to limit rent. Or one way to do that is by building smaller units. Speaker 1 (00:05:47) - Yes, apartment construction shrinkflation. And who can blame the builder? Because rental affordability has been of increased importance in recent years, and developers have got to be able to convince their investors and their lenders that there is going to be sufficient demand at proforma rent levels among apartment units completed in 2022. That's the most recent year available. Average unit sizes fell to 1045ft², and that is the lowest level on record for apartments. And we just got confirmation on that through the US Census Bureau figures. Yes, that is for newly built multifamily rental units that therefore apartment sizes are down 8% from just five years ago. And that number could drop a bit further when 2023 stats are released. Yes, American lifestyles are being shrink inflated. All over the place, and it is even worse for those that don't own assets. And a recent peak of apartment sized construction was 2013, when they were just over 130ft². And I told you that the latest figure here is, again, 1045ft². The Covid era really saw new build. Speaker 1 (00:07:12) - Apartment sizes drop fast because that's when people started to split up. Like if they weren't a family. Now, when rents rise, whether that's for apartments or single family homes or self-storage units or whatever it is, most any kind of real estate, you know, when those rents rise, people try to keep from raising the rent sometimes. Now landlords, instead of raising the rent, they can instead skimp flat themselves. They can do that by delaying maintenance, transferring the electric bill to the tenant, adding a surcharge for storage locker use, firing the doorman, charging to park beneath the carport, or not replacing an old fridge. That might have given you some ideas there, but I do not advocate that. That's the best way. The bottom line is that inflation is not just a persistent economic affliction. It's an immoral force. And the ethical thing to do, like you learn with the honey maker, is raise the rent. Now, when wages don't keep up with prices, that's a problem. Let's take a look at just how bad affordability is. Speaker 1 (00:08:29) - All right. Here is the lowest salary amount that US households need to at least earn to comfortably afford the typical priced US home. Okay, we're rounding to the nearest thousand dollars here in 2020. That figure was just 59 K. In 2024 it's 107 K. All right, 59 K in household income up to 107 K today to afford the typical US home. Astounding. That is up more than 80% in four years. But at the same time here's how bad it is. Median US household income did not keep pace. You probably figured that much. American incomes are not up 80% in the past four years, but in 2020, the household income, the median was 66 K. Today it's 81 K. Well, that's up only 23%. So the income needed to comfortably afford a home is up 80%, while the actual median income has risen just 23%. That's per Zillow. Well, who does this hurt the most? Of course, it hurts that prospective first time homebuyer, not just because they usually have entry level incomes as well, but it's because they don't have any equity to roll forward into a purchase. Speaker 1 (00:09:58) - And when first time homebuyers never get that mortgage loan pre-approval, what happens? They have to rent. So this affordability trend is good for income property owners. And you know, this is one big reason why. For a while now, I have said that I expect the homeownership rate to fall and therefore for America to have more renters, more rental demand. Well, that has now begun to fall from 66% in Q3 last year to 65.7% in Q4 of last year, and expect a homeownership rate to keep dropping. And that share of renters in the United States to keep rising. Now, let's break down this poor affordability by city. Let's break it down by metro area. I'll start with some select lowest priced cities, and then let's work our way up to the highest price cities. And I'll tell you as we ascend, when we pass the national mark, and you're going to notice that the lowest price cities, which are the earlier ones that I mentioned here, they tend to be the better areas for real estate cash flow. Speaker 1 (00:11:09) - Here we go. In 2020, the typical Pittsburgh home could be bought with a 35 K household income. Wow, that's low today. It takes 58 K Memphis a very popular investor city here at GRA. Maybe our top investor city that has gone from 38 K in 2020 to a 70 K household income today. And it appears that more people will have to rent in Memphis. Cleveland from 41 K up to 71 K, Birmingham 42 K up to 70 4KD. Fruit 45 up to 76. Buffalo 42 up to 77. Saint Louis 45 up to 77 Kansas City 52, up to 93 Houston 56 up to 95 San Antonio 57. Up to 95. Columbus, Ohio 52, up to 96 Chicago. Still pretty affordable for such a world class city, but the median household income required to afford the average Chicago home in 2020 was 65 K, and today it's 105 K, and then you've got that aforementioned national average, 59 K and income needed four years ago up to 107 K today Philly 61 K up to 109 Jacksonville 58 K up to 109. Speaker 1 (00:12:46) - Minneapolis 72. Up to 114 Baltimore 70. Up to 114 Atlanta 59. Up to 115 Tampa 57. Up to 116 I mean, we're looking at more than a doubling in Tampa. Las Vegas 65 up to 120. Dallas 68. Up to 121. Phoenix 66 up to 131. We're looking at about a doubling of the household income that it takes to afford the median home in Phoenix just over the last four years. Miami 76 to 151. That's another basically a doubler there. Denver 101 up to 173. Boston 118 to 205. New York City 135 to 214. And we just got a few left here as we're getting close to the top. Seattle 120 to 214 and then the top three Los Angeles 158 K to 279 K San Francisco 220 up to 340 K today. And number one San Jose, California Silicon Valley 263 K up to 450 4k. That's how much a household needs to earn to afford the typical home in their local market. Not an extravagant home, not a home that's even above average, just the typical home in their local market, as calculated by Zillow. Speaker 1 (00:14:31) - That's what's happened to affordability, basically since Covid began about four years ago. So some other takeaways from what I just told you about there. The correlation here is that lower priced metros often have high homeownership rates because they are more affordable. Yet, paradoxically, those places, those low cost places with high ownership rates are often the best markets for you to own rental property in due to that affordability. And this is not just true in the United States. When you look at Europe and we shared a map of this on our general education Instagram page last week, Europe also has higher homeownership rates in less expensive nations, led by Kosovo at an astounding 98% homeownership rate. Can you believe that 98% Kosovo, part of the former Yugoslavia and then Kosovo in the high ownership rate, is followed by Albania in second, Romania and third? And again, today's U.S homeownership rate is nearly 66%. And then, conversely, some of Europe's more expensive nations have the lowest homeownership rates. Switzerland is the lowest at just 42%, and that's followed by Germany in Austria, with the next lowest European homeownership rates with declining US affordability. Speaker 1 (00:15:59) - I mean, sometimes, do you ever think that it just feels like dollars are losing all of their value? I mean, some of these figures just look like funny money anymore. If you visited U.S Debt Record recently, you'll see that our national debt keeps ticking up, nearing $35 trillion now. Now, I recently listened to two guys talking about rising prices back when they were kids and when they were kids, they thought that meant that the economy is prosperous. Have you ever thought that even as a kid, I didn't. I never thought that rising prices were some sign of economic prosperity, like when you were a kid, that pack of baseball cards going up from. $0.50 to $0.60 symbolize that economic prosperity was taking place somewhere else. I never thought that. I guess as a kid, though, I thought that if a 100 K home increased in price to 200 K, that it meant that it doubled in value, although it surely did not. I probably thought that as a kid before I understood things like inflation and leverage. Speaker 1 (00:17:11) - But inflation is not some law of nature. Not at all. I mean, if you want to look at what happens is technology progresses. Well, of course prices should go down if we are picking apples by hand and then a machine comes along that picks apples 100 times faster, and you don't need to pay all these human harvesters anymore, well, then the price of apples should plummet. Prices should go way down as we get better at producing things. So just imagine how much higher prices would be today if there weren't these productivity gains that try to hold down the inflated prices just somewhat. My gosh. But instead, governments are incentivized to expand the money supply to pay for programs rather than tax you. What's the easiest way to pay for a $1 trillion federal infrastructure program? Just print a trillion bucks out of thin air. That way they didn't have to send you a tax bill because people don't like seeing tax bills. They didn't have to ask for your vote either. Just quietly print it. And now that they printed $1 trillion more, every single dollar that you're holding on to just got diluted. Speaker 1 (00:18:29) - That's another reason that inflation is immoral. If you hold dollars in a savings account, fed inflation diluted it. If you hold dollars in a stockbroker as account inflation just diluted it. If you hold equity in a property, inflation just diluted it. Well what hedges you against inflation. Gold and bitcoin. They both break the government monopoly on money. That's just simply hedging yourself. And then what doesn't just hedge but help you profit from inflation. As we know that formula is income property with debt. Now the United Nations, they recognize 193 sovereign states across the world, but many with their own currency. And like I said, governments are incentivized to expand the money supply to pay for programs rather than tax you. It's not just an American thing. Everybody does it. It is just a race to the bottom with every currency, all of which eventually go to zero. Historically, they all have. Well, you and I, we actually gotten richer from our technology advancements in some ways. And at the same time, we are horror for our debased dollars by almost any standard out there. Speaker 1 (00:19:59) - You and I are both richer than our grandfathers were. The technology is better. The iPhone in your pocket would blow away your grandfather or your great grandfather. But back in my grandfather's day. See, here's the difference. He could pay for both of his kids to go to college and do it without student loans. Grandpa could easily find a job in a factory, bought a house. His wife didn't have to work. He supported his kids. His wife was home so she could take care of the house and kids. We have lost that. That wave of high inflation in the 70s and 80s made it so that both parents had to soon work, eroding the nuclear family. Inflation destroys families because wages often don't keep up. When you have these ways of inflation, both parents work and the wife cooks last, meaning even more obesity. And now, in this era of inflation, the 2020s, the first time homebuyer has instead become the renter so that the median age of the first time homebuyer is now 36, per the Nar, which I think I mentioned on a show last year. Speaker 1 (00:21:13) - And that number looks to be going higher. So the American dream, owning your home, it looks like that soon won't even begin until you're near 40. And it's not just a result of government inflation. Government regulation has driven up the cost of doing business, hence why the prices are so high. You're seeing more and more evidence of inflation widening this chasm between the haves and the have nots. I mean, Macy's, the department store they recently announced. Plans to reorganize their stores around this hollowing out of the middle class businesses are reacting, and inflation is the problem. In fact, it made a lot of news a few weeks ago. You might have seen this story where, gosh, can you believe that a public figure would say this out loud? Kellogg CEO Gary Pinnick commented on how Americans are dealing with high grocery prices when he was quoted as saying, cereal for dinner is something that is probably more on trend now. And he got blasted for it. From malnutrition to family erosion to unaffordable homes, inflation from the central bank is the culprit and it's reached levels of immorality. Speaker 1 (00:22:35) - More straight ahead. I'm Keith Whitehouse and you're listening to episode 492 of get Rich education. You know, I'll just tell you, for the most passive part of my real estate investing, personally, I put my own dollars with Freedom Family Investments because their funds pay me a stream of regular cash flow in returns, or better than a bank savings account, up to 12%. Their minimums are as low as 25 K. You don't even need to be accredited for some of them. It's all backed by real estate and that kind of love. How the tax benefit of doing this can offset capital gains and your W-2 jobs income. And they've always given me exactly their stated return paid on time. So it's steady income, no surprises while I'm sleeping or just doing the things I love. For a little insider tip, I've invested in their power fund to get going on that text family to 66866. Oh, and this isn't a solicitation. If you want to invest where I do, just go ahead and text family to six, 686, six. Speaker 1 (00:23:47) - Role under the specific expert with income property you need. Ridge lending Group Nmls 42056. In gray history from beginners to veterans, they provided our listeners with more mortgages than anyone. It's where I get my own loans for single family rentals up to four Plex's. Start your pre-qualification and chat with President Charlie Ridge personally. They'll even customize a plan tailored to you for growing your portfolio. Start at Ridge Lending group.com Ridge lending group.com. Hi, this is Russell Gray. Speaker 2 (00:24:27) - Co-host of the Real Estate Guys radio show, and you're listening to get Rich education with Keith Reinhold. Don't quit your day dream. Speaker 1 (00:24:45) - Welcome back to Jewish Education where we are day trading. We are decade trading. I'm your host, Keith Reinhold. As we approach springtime before your tenant considers moving out, this is the time to remind them of the cost of moving. I've seen landlords effectively do this with a well worded letter. If you're raising the rent, this could accompany that notice. Tell them how costly moving is, because tenants often don't realize that until it's too late. Speaker 1 (00:25:16) - And moving is also one of the most stressful things that a human can do. Vacancy and turnover are your biggest expense, so you should consider doing this before your tenant makes moving plans, because by then it's too late. Andrew Carnegie said that 90% of all millionaires become so through owning real estate. I could still believe that 90% figure today. But sadly, Carnegie's quote wasn't quite inflation proofed, and I'm sure he would admit that if he were alive today, a net worth of $1 million today does not make you rich. Millionaire. Yeah, not a wealth marker, but it probably means that you aren't poor. But yeah, a millionaire is no longer that aspirational. multi-Millionaire might not be a net worth of $2 million or more if you're under, say, 60, a $2 million net worth, that probably means that you better keep doing something to generate income. Here at gray, we probably spend less than 5% of our content, or even less than 2% of our content here, describing what most people think of conventional investment vehicles like, say, a 401 K or a Roth IRA. Speaker 1 (00:26:36) - Instead, we follow something more like what Andrew Carnegie said, because being conventional, it just doesn't get you anywhere. And trimming your expenses, that really doesn't move the meter much in your life, unless you do enough of it to make you miserable. Saving money by getting your haircut at home is not going to build financial freedom. How many at home haircuts would you need in order for that to happen? There's no number. Neither will finding a way to get a free Thanksgiving turkey, or saving $90 on a flight itinerary by adding a layover and losing three hours of your time. That's not respecting your own time. So this is why we don't talk about conventional stuff here. Savers lose wealth, stock investors maintain wealth, and real estate investors build wealth. But now really, why else don't we discuss something like the benefits of a Roth IRA or comparing them to a traditional IRA? The main difference there being with a Roth you fund with post-tax dollars, meaning that you pay the tax today versus a traditional IRA where you pay the tax later rather than now. Speaker 1 (00:27:45) - Well, you can't draw the funds penalty free until you're older, for one thing. And also, if you're under age 50, you can only contribute $7,000 a year to an IRA, and it's a care year if you're over 50. It doesn't move the meter in your life. And also, since we're a show about increasing your income, not cutting your expenses in a don't live below your means, grow your means vein. Well, this year's Roth IRA income limits are 161 K for single tax filers in 240 K for those married filing jointly. All right. Well, if you are not there at that income level yet, you are targeting exceeding those limits. So you won't be qualifying to participate anyway. Even if you had wanted to 401 K's in IRAs, they take money out of your pocket every month and every year. And I said with income property, you made a plan to put more money, tax advantaged money in your pocket every month and year. And this is all why I frown on budgeting, too. Speaker 1 (00:28:59) - Now, one classic investor axiom that makes a little more sense to me is that you can't time the market. This is precisely why time in the market beats timing the market. Another phrase you've surely heard. I think that another way to say this is take what you've been given. Yeah. In general, once you've got a sound strategy, take what you've been given. The epiphany of real estate pays five ways is a motivator to adding more property. For example, when I bought my first property, yes, that modest and seminal Blue fourplex in 2002, there were pros and cons to buying 22 years ago. Just like there always are. Well, what I did is I took what I was given because I begin to understand how real estate could benefit me. And do you want to know what the market conditions were like back then? Let's look at this and compare this to today's income property market. This will be really interesting. What are the big factors that have changed in 22 years? Well, back in 2002 there were pros, neutrals and cons to buying. Speaker 1 (00:30:14) - Then back then the pros were a good rent price ratio and I got a historically low six and 3/8 mortgage rate. Yes, I still remember that the neutral back then was an average vacancy rate, and the cons back in 2002 were low inflation, a high housing supply. The fact that I had made a $295,000 full price offer for that fourplex, which felt high at the time. I asked the owner if he'd come down and he said no. And another con is that I own in a small metro area, Anchorage, which was more vulnerable to economic change. That's something that I didn't even realize at the time. And another con to me, buying back then, as successfully as that turned out, was weak. Future demographics. Tenants quickly vacated because it was so easy for them to get first time homebuyer loans, liar loans amidst that loose lending environment. So right there were the pros, neutrals and cons in the marketplace. When I first started out taking what I was given, I took what the market gave me and became a profiteer. Speaker 1 (00:31:32) - Once I had a strategy. Now this current environment, let's look at it. It could very well be better than when I started out. Here's what the market is giving investors here in the middle of the 2020s decade. The pros are low vacancy, higher inflation, though I would not call it high any longer. Another pro low housing supply. The polar opposite of when I begin there is strong future demographic demand. And another pro is like I've been touching on earlier here in that first part of the show, this dreadful first time homebuyer affordability. And what that does is that increases tenancy duration. Those are the pros today. The neutrals are strict loan underwriting and historically average interest rates okay. So those are both neutral conditions. And then the cons today are lower rent to price ratios and higher insurance premiums. So there they are. They're the progression of pros neutrals and cons in the real estate market. Since I bought my first property in 2002, one has got to own assets. When the middle class is hollowing out, it's caving in. Speaker 1 (00:32:53) - No one wants to end up as desperate as Google's. I struggling to catch up with Microsoft and OpenAI. We don't want that to happen. And uncertainty. As you think about the future and growing your portfolio, you know, uncertainty that is an ever present condition with zero antidote. Uncertainty will only disappear when the world ends. These factors oppose neutrals and cons. They constantly shift. And in fact, life is about not knowing. The only safe years of your life are past years. Live in the question. Take what you've been given. That's the message here. Like I discussed last week, investor purchases are breaking records in today's environment. And speaking of today's market conditions, let me give you something tangible that you can really sink your teeth into with some real property addresses. These are ones that you find at Gray Marketplace. Let me start with the most expensive one first in San Antonio, Texas. It is a 2024 new build fourplex for a price of $1,100,000. Yeah. Hey, big spender, $1.1 million. Speaker 1 (00:34:13) - The rent is $7,580. Class A neighborhood 5000ft², three bed, two baths per unit. Gosh, I wish this would have been my first ever fourplex. Mine was two beds, one baths, and when I bought it, it was about 20 years old. Well, the interest rate on this new build San Antonio fourplex is 4.25%. You need to use the seller preferred lender for that you're down. Will be $275. Projected monthly cash flow is $1,413. The second property is at 16 1027 Street Northeast in Canton, Ohio. Yes, canton, Ohio, the home of the Pro Football Hall of Fame, which I visited about five years ago. This is a single family rental in canton. The price is 130 K. The rent is 1125 B class neighborhood 1100 and four square feet. It was built in 1952. It has three beds in one bath. 33 K is the down payment, $279 of projected monthly cash flow. And then the last one that I'll detail here is 8700 East 79th Terrace in Kansas City, Missouri. Speaker 1 (00:35:35) - It's also a single family rental 213 K purchase price. The rent on it is 1875. And gosh, that is a really good rent to price ratio. They're almost 9/10 of 1% here in Kansas City. B is the neighborhood class. It's 1180 eight square feet built in 1967, four beds, two baths. And it is a down payment of 53 K down with a projected monthly cash flow of $449 there in this Kansas City single family rental. Now you don't want to count on rent increases, but rents in the Midwest are now rising faster than any other region in the whole nation. And that's not hard to do, by the way, because in most U.S. regions, rents are hardly rising at all today. Now, as far as homes built in the 50s and 60s, although it's still good for you to mark more for maintenance expenses on properties of that age. You recall that I said earlier that you're likely doing more decade trading than day trading with these rehabbed or new build investor homes and 7 to 10 years. Speaker 1 (00:36:55) - That's typically how long you want to plan on holding for, because by that time, or even earlier, it might have been as little as three years here recently. But by that time, sufficient equity has built up so that you want to sell in order to keep your return high and trade up tax free. Well, you only need new or rehabbed systems or components, therefore, to last 7 to 10 years, and you're typically selling the property before you need anything like a new roof or new Hvac. I personally don't believe I've ever held any rental property for more than ten years now, as I gave details of those three available properties there. This really is a time in the market cycle for you to consider new build properties. If you can swing the higher price, and that's for a lot of reasons you probably realize. The first one is that because builders are still buying your rate down for you to under 6%, you saw their with that San Antonio new construction fourplex, how a builder is buying down your rate to 4.25. Speaker 1 (00:38:02) - Gosh, another trend that's been developing is the new home price. Premium over resale property seems to have declined substantially in the US, but builders just cannot keep doing these rate buy downs forever. Once rates go down, they're going to have less incentive to do them. For one thing, there won't be a need there. And also see, it depends on the builder, but a lot of builders, they bought land back in 2021 that they're only building on today, and those builders got to pay lower 2021 prices for that land that they're now building on. Will in a year or two, when builders are selling property where they had to buy the land in 2023, that is going to be reflected in higher prices in a year or two. So go new build if you can swing it. If not, you've got your 7 to 10 year hold strategy for resale properties, and that's 7 to 10 year hold. Strategy also applies to new builds on a scarce asset that everyone is going to need all 340 million Americans. Speaker 1 (00:39:12) - And if any of these income properties or ones like those seem interesting to you, go ahead and contact your gray investment coach. If you don't have one, they'll help you for free. And our coaches really just make it easy for you. You can book a time right on their calendar, set up a friendly zoom or phone call, and strategize at Gray marketplace.com. Until next week, I'm your host, Keith Weintraub. Don't quit your day dream. Speaker 3 (00:39:42) - Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get Rich education LLC exclusively. Speaker 4 (00:40:11) - The preceding program was brought to you by your home for wealth building. Get rich education.com.

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Zardoz

kids acast merch sean connery zardoz john boorman i shrunk sfrs

Play Episode Listen Later Feb 16, 2024 42:53

Our infinite look at sci-fi films finally hits upon Zardoz, John Boorman's psychedelic cult (?) classic (???) which turns 50 this year. Join us as we try to follow along, discuss Sean Connery's 'unique' contract, Sean Connery's 'unique' acting style in this film, and Sean Connery's wedding dress.Next week we take a trademark SFRS hard turn into something completely different - it's Honey, I Shrunk the Kids!See the new list!Play along at home!Get in touch!Visit the Website!Watch us on Youtube!See the old list!Download the soundtrack!Buy our Merch!And we're on Instagram and Facebook too! Hosted on Acast. See acast.com/privacy for more information.

Serenity (2019)

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Play Episode Listen Later Jan 10, 2024 56:53

A new year begins and SFRS are back for an 8th year of rating science fiction films! As is tradition, we start the year with a selection of films from the newly unlocked and primed to rate films from 2019.First up is Alex's pick, Serenity (not the Joss Whedon one). Join us as we discuss the strange career of Steven Knight, the even stranger plot of this film, Matthew McConaughey's illicit bongo playing, and so much more!Next week we watch as Earth gets rocket power and flies away in The Wandering Earth!See the new list!Play along at home!Get in touch!Visit the Website!Watch us on Youtube!See the old list!Download the soundtrack!Buy our Merch!And we're on Instagram and Facebook too! Hosted on Acast. See acast.com/privacy for more information.

$7Billion or 20K AUM in Landlord Friendly USA with Dmitri Bourchtein

The Truth About Real Estate Investing... for Canadians

Play Episode Listen Later Jan 10, 2024 90:10

Dmitri Bourchtein (CIO & Co-Founder of SHARE) was formerly an Executive Director of Investments at Starlight U.S. Residential, with direct involvement in over $7B of U.S. residential real estate transactions. Dmitri is a seasoned institutional investor with experience in all aspects of the real estate value-chain and is passionate about levelling the playing field for retail investors in the competitive landscape of U.S. SFRs and enabling everyday landlords to maximize their returns. By the way, if you like what Dmitri has to say, he will be speaking at our US Investing Workshop this Saturday January 13th. Our guest speakers included Andrew the CEO, Carmen Da Silva, last week's guest and CFO, and today's guest Dmitri, CIO of Share. We have owner of LendCity Scott Dillingham, the only investor focussed Mortgage Broker I know who can offer US commercial style mortgages to Canadians for income properties. Note commercial lending is better than residential mortgages. The property and the cash flow is the lender's focus so it's way easier to qualify and one can in theory have unlimited mortgages. I'm your host and we are teaching direct investment as in the investor owns the property 100%. That is the definition of direct investment. No shares, no joint venture partners, not private lending. Good old fashioned income property ownership, in-line with how my client 350+ clients and I invest in real estate. Link for details or to register: https://USworkshop.eventbrite.ca/?aff=iwin To connect with SHARE: https://sharesfr.com/partners/iwin

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The 7th Annual SFRS End of Year Jamboree!

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Play Episode Listen Later Dec 31, 2023 37:38

As is tradition, we see out the year with a look back at the last twelve months, like a Spotify Wrapped but MORE SCIENTIFIC. Join us as we discuss some of our favourite films and TV shows of the year, take a quiz to see if we can remember what we watched on the pod, and then announce which films from newly unlocked 2019 we'll be watching in January. p.s. no spoilers for anything science fiction, but we do accidentally spoil the end of Succession!Thanks again for listening, everyone, as we enter our 8th year and approach our 300th episode! Insane! It's been a tricky year for us, but we're pretty sure episodes will drop more regularly in 2024 - see you then!See the new list!Play along at home!Get in touch!Visit the Website!Watch us on Youtube!See the old list!Download the soundtrack!Buy our Merch!And we're on Instagram and Facebook too! Hosted on Acast. See acast.com/privacy for more information.

Godzilla Minus One Spoilercast!

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Play Episode Listen Later Dec 25, 2023 43:51

On Christmas morning SFRS leave a special bonus gift for you, a spoilercast for the fantastic new proper Godzilla film, Godzilla Minus One! Join Sam and Alex for a spoiler-free overview of the film until 14:10 when Godzilla STOMPS the spoiler wall and we go into lots of detail about what makes this new entry in the franchise feel fresh and exciting as anything thats come before.Want more Godzilla? We've also discussed, Godzilla (1954), Godzilla (1998), Godzilla (2014) and Shin Godzilla (2016)!We're back later in the week with our traditional end of year wrap up! See you then!See the new list!Play along at home!Get in touch!Visit the Website!Watch us on Youtube!See the old list!Download the soundtrack!Buy our Merch!And we're on Instagram and Facebook too! Hosted on Acast. See acast.com/privacy for more information.

Financial Freedom through Entrepreneurship and Real Estate Investment with Paul do Campo

The Military Millionaire Podcast

Play Episode Listen Later Dec 22, 2023 58:16

In today's rapidly evolving real estate landscape, investors need to arm themselves with diverse strategies to build wealth and create sustainable cash flow. Paul do Campo is a former flipper, a serial entrepreneur, and now a pro copywriter and “armchair” investor. Since 2015, he's implemented practical copy and marketing techniques in his own businesses (land flipping, mobile home flipping, wholesaling SFRs, and info-publishing)... and for other people's businesses including the renowned 8-figure investor, Ryan Dossey... and for big brands like Ballpoint Marketing, Call Porter, and large land developers selling hotels and 100+ unit developments. After 2 years of personally building out unique and custom drips for high-end investors... he decided to scale his formula and skillset and create an affordable solution that fixes an industry-wide problem: Off-market Investors who lack systematic follow-up. What You'll Learn: The importance of leveraging unique strategies, exploring new avenues, and harnessing the power of effective communication for success Understanding the significant role that engaging copy can play for real estate investors Aspects of real estate investing Challenges and opportunities How REI Omnidrip helps real estate investors improve their lead generation and follow-up systems And so much more! Timestamp: 00:00:58 Paul's Journey from Pipeline Welder to Real Estate Investor 00:01:39 Paul's Transition into Land Flipping and Copywriting 00:02:03 Paul's Introduction and Initial Conversation 00:02:37 Paul's Journey into Copywriting 00:12:07 Paul's Experience with Door Knocking in Gang Territory 00:17:46 Paul's Strategy of Flipping Mobile Homes into Notes 00:23:48 Paul's Experience with Land Flipping 00:29:34 The Power of ROI in Real Estate 00:30:05 The Art of Land Deals 00:30:57 Exploring the Concept of Copywriting 00:31:13 The Different Levels of Copywriting 00:31:38 The Humorous Side of Copywriting 00:31:49 The Power of Social Media in Today's World 00:32:35 The Role of Copywriting in Real Estate Investing 00:33:01 The Creation of Omnidrip 00:34:33 The Importance of Social Proof in Real Estate 00:35:20 The Art of Follow-Up in Real Estate 00:35:58 The Power of Providing Value in Real Estate 00:36:45 The Importance of Confidence in Real Estate 00:40:29 The Role of Copy in Real Estate 00:48:17 The Importance of Touches in Real Estate 00:54:28 The Journey of a Passive Investor Favorite Quote: "You've got to take into account your end goal, your exit strategy" - Paul do Campo How to Connect: Embark on a journey into the world of real estate with Paul at REI Omni Drip! Explore his website at https://www.reiomnidrip.com/ for a comprehensive dive into the intricacies of real estate investing. For personalized advice and direct inquiries, shoot Paul an email at paul@reiomnidrip.com. Follow him now to stay in the loop with the latest trends and valuable tips for success in the dynamic realm of real estate investing. ------------------------------------------------------------------------------------- Snag a FREE copy of my book, and get connected to the Military Millionaire community on all of your favorite platforms: https://www.frommilitarytomillionaire... Join The War Room Mastermind (no, not Andrew Tate's knockoff), the only mastermind exclusively for service members and veterans striving to achieve financial freedom: https://www.frommilitarytomillionaire... #militarymillionaire - Recommended books and tools: https://www.frommilitarytomillionaire... - SUBSCRIBE: https://bit.ly/2Q3EvfE - Website: https://www.frommilitarytomillionaire... Instagram: / frommilitarytomillionaire Facebook: / militarymillionaire - My name is David Pere, I am an active duty Marine, and have realized that service members and the working class use the phrase "I don't get paid enough" entirely too often. The reality is that most often our financial situation is self-inflicted. After having success with real estate investing, I started From Military to Millionaire to teach personal finance and real estate investing to service members and the working class. As a result, I have helped many of my readers increase their savings gap, and increase their chances of achieving financial freedom! - Click here to SUBSCRIBE: https://bit.ly/2Q3EvfE to the channel for more awesome videos!

Arrival

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Play Episode Listen Later Dec 14, 2023 55:01

Ladies First season concludes with Arrival, which we watched absolutely ages ago in an old list with an old format, so now it gets the proper SFRS review and rating. Join us as we discuss deceiving the audience, the paperwork of first contact, and as ever we get in a bit of a mess with logistics of a mechanic of this script that I can't really discuss here for spoiler-y reasons.Next week, it's our traditional Christmas trip to a galaxy far, far away with Star Wars Episode VII: The Force AwakensSee the new list!Play along at home!Get in touch!Visit the Website!Watch us on Youtube!See the old list!Download the soundtrack!Buy our Merch!And we're on Instagram and Facebook too! Hosted on Acast. See acast.com/privacy for more information.

The Hunger Games

hunger games sfrs quatermass xperiment

Play Episode Listen Later Oct 26, 2023 57:49

This week, we watch The Hunger Games, Chris' birthday pick. Long-time listeners may remember us devoting 15 minutes to this way, way back several podcast formats ago, but here we are with a full on SFRS rating treatment. Join us for a long discussion about the problem with siloing off all your manufacturing into distinct districts of a country, and...er...no, it's mostly just moaning about that. I mean have you seen the fishing district? What on earth is going on? Also, a district that just builds nukes? What? Next week we finally get back to a listener's request and watch the wrong film...it's The Quatermass Xperiment!

471: Real Financial Freedom, 4.75% Mortgages in Florida

The Smart Real Estate Coach Podcast|Real Estate Investing

Play Episode Listen Later Oct 16, 2023 37:15

At age 20, you're actually happy to trade your time for money. At 30, many have realized that they don't want to work at their job for the rest of their lives. At 40, if you have collected things that pay you to own them, you're financially-free. Instead, by age 50, corporate ladder-climbers often realize that their ladder was leaning up against the wrong building. Most people play the wrong financial game all their life. You want to get financially-free first. You can get debt-free later. “The Debt Decamillionaire” concept is revisited. Learn how to get 4.75% mortgage rates for Florida income property with what is known as a “builder-forward commitment”. Start here. What about hotly spiking Florida property insurance? We discuss how premiums have been kept in-check with post-2004 built property and more. Expect $3,200 rents on a new-build $474K duplex with 4.75% mortgage rates in Southwest Florida. SFRs are available too. Start here. There's free PM for the first year too. Resources mentioned: Show Notes: GetRichEducation.com/471 4.75% mortgages in Florida: GREmarketplace.com/Southeast If you'd like help with one of GRE's Investment Coaches (free), start here: GREmarketplace.com/Coach Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY' to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review” Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Monologue transcript: Welcome to GRE! I'm your host, Keith Weinhold. Financially, you need to play a game worth winning. It's not about being debt-free. Instead, I discuss how at each age-when you're 20, 30, 40, 50 and beyond, it's about being financially-free. Then, in an era where mortgage rates are 7 to 8%, we go straight to the source, in Florida, on how to get 4¾% mortgage rates on new-build property. Today, on Get Rich Education. ___________ Welcome to GRE! From Framingham, MA to Dillingham, AK and across 188 nations worldwide, yeah, you & I are back together here on Episode 471 of Get Rich Education. I'm your host, Keith Weinhold. You've got to play a game worth winning - with your personal finances. Most play the wrong game. Now, you're already initiated on this. Debt-free just means that you don't owe anyone anything. FF means that you've got enough passive income that you can do what you want to do, when you want to do it. FF is the flex. Now, when you're around age 20 - you might be new to full-time employment. And you know what, it actually can feel kinda good when you're in your early twenties are you're being paid what feels like a respectable income for the first time in your life. Now, ten years go by, and by the time that you're 30, you know, I think that a lot of work-a-day job types - you might tell yourself, ya know, making money is alright at this point. But I really don't want to do this for the rest of life. Maybe around age 30, you pursue alternative avenues of more RESIDUAL income. But some people just keep plowing ahead hating big chunks of their life and devoting energy at a full-time job, because somehow, you feel like you HAVE to. Others, though it's a minority, it's you. Because, instead, maybe around age 30, you tell yourself that you'd rather start building things that pay you to own them. The mindset supersedes the grindset. And by age 40, you're out. You're out of that soul-sucking job and you're living that life that you've always dreamed of living already. It sure could happen earlier. And by age 50, you're so glad that you chose the financially free financial track in life - rather than the debt-free track. Back on the slow, scarce debt-free track - the people that mistakenly think that debt-free is the game worth winning - they're still losing their zero-sum, non-replenishable resource of time in their 30s and 40s and 50s and 60s and maybe 70s. Perhaps somewhere around 30, abundantly-minded, aware people like you developed your divergent, not-running-with-the-herd FF path instead. You believe that money is an abundant resource - because you start having it all around you. You built a financial windfall for yourself with simultaneous RE cash flow, leverage, and arbitrage while you're young enough to enjoy it. Instead, the “work at a soulless job” type tries to get debt-free, climb the corporate ladder, and believes that money is a scarce resource (which is why they think they need to be debt-free). They defer their life and get eaten up by inflation and zero passive cash flow. THAT person, by age 50, is asking themselves where all the time went. It went to a job that you're not passionate about - and you can't change history. All those time chapters of your life… are… gone. And you begin to realize that the corporate ladder that you climbed… was leaning up against the wronggggg building for decades. Those are two paths of those in their productive working years - the “there's never enough” debt-free world vs. the “money is abundant” FF world. If you retire debt, like paying off a mortgage early, all those dollars are gone, when they could have been leveraging, say, 5 properties at once. Now, if you're late to realize this, like you didn't have the FF epiphany by 30 or whatever. It's not too late. You'll remember that in recent months here, we had two GRE listeners come on the show for two different episodes - Scott Saunders and then Shawn Finnegan. Shawn - you might remember that was the inventor of a home gym system - he didn't hear this show & start until he was 52 and he's gotten to his first $2,000 of passive cash flow fairly quickly. FF beats DF. And FF is the game worth winning. Retiring debt early means your dollars can't be employed in true wealth-building activities. Now, look. You might call me old-fashioned on this. But I like the integrity of doing what I say that I'm going to do, following through, and following up. We check back at the end of the year to see how GRE's housing price appreciation forecast from the previous year actually went. Back in January, we had the return of an agricultural RE principal where the cash flows DIDN'T hit what were targeteded, so we followed through and discussed why THAT happened. And now… You might remember that a few years ago, here on the show, I introduced you to the novel concept of being the Debt Decamillionaire. That means that you've achieved $10M in debt - which doesn't sound like an achievement to most people. That's the Debt Decamillionaire. I recommended this as a desirable path for you - though many could deem it iconoclastic or even heretical. If the only thing that I knew about you is that, say, you had $10M in real estate debt, I'd know that the chances are good that you're a financial WINNER. Yep, it's actually unlikely that $10M in debt would make you a loser. Not only would you have to be creditworthy to even get $10M of debt… just think about if you would have tied up that much debt, say, five years ago. Well, how has it actually gone for the person with $10M in income property debt over the past 5 years? We've had perhaps… 25% cumulative inflation since then - with higher wages, prices, salaries, and rents. So then, your $10M debt is whittled down to just $7½M of inflation-adjusted debt. So inflation passively beat down your debt for you, plus your tenants would have paid it down to somewhere below $7M. So now, you'd be $3M wealthier, just off the debt debasement alone. Meanwhile, over on the asset side, your property value that you borrowed against might have gone from something like $12M up to $18M… and all While it created ALL that leverage plus some cash flow and tax benefit for you at the same time. If you only managed to tie up $1M in investment property debt, then just take 10% of all those numbers. And pat yourself on the back for being a debt MILLIONAIRE. Ha! Not Debt Decamillionaire. Instead, high inflation made the debt-free approach hurt - really sting over the last five years. The opportunity lost! DF is playing small ball, saying money is a scarce resource, and it even correlates more with people being addicted to a paycheck. There's a benefit to a paycheck. But is the trade-off worse? Paycheck dependence is like you being addicted to a TIME thief. That is, unless you get an unusually extraordinary amount of meaning from your work. In that case, great. Now, a high interest rate environment could narrow the gap between how much better FF is than DF. But we're not in one of those. We're in a historically average interest rate environment. But in just a few minutes here, we'll bring in a prominent American homebuilder of BTR homes that'll tell you how to still get mortgage rates as low as 4¾%. In fact, the time in the market cycle is really right for talking about this. You'll remember that last month, Housing Intelligence Analyst Rick Sharga & I discussed why today's market is a good opportunity for residential REIs. It's a bad market for primary residence HBs It's a bad market for flippers It's a bad market for real estate agents - with lower sales volume. And it's a… decent market for many homebuilders. I am in Chicago today. Next week, I'll be in - my home state - the Keystone State of PA. I'll Sit down with Richard Vague, the Secretary of Banking and Securities for the great Commonwealth of PA from 2020 to 2023, there in the state capital, Harrisburg. It is a cabinet-level agency. He was appointed to that position by PA's Governor. He also sits on the Ivy League University of Pennsylvania Board of Trustees. I'll be sure he understands some core GRE principles here and get HIS opinion on those. That should be a really interesting episode next week. I don't know what kind of turn that's going to take. To review what you're learned so far, I think you already know that FF beats DF. Rushing to be debt-free exacts an opportunity cost on you. It postpones what you really want - Financial Freedom… and once you get FF, if you do desire to be debt-free then, hey, great! Let's discuss how to get lower Florida insurance premiums, 4¾% mortgage rates and a free year of property management. A lot of our listeners have acted on this. And I don't want you to miss out because I don't know how long it can last. ___________ Usually, you see fewer investors that want to exchange their properties in a higher interest rate environment, because you're trading in a lower rate property for a higher rate property. But here, 1031s look more attractive because we've bent that back with rates down to 4.75% + lower insurance premiums on post-2004-built Florida property plus 1 year of free PM. So many of you have been acting here on this - either by yourself at GRE Marketplace, or working through one of our free Investment Coaches. So, if it can help you, don't miss out. This won't last forever. You can get started at: GREmarketplace.com/Southeast Until next week, I'm your host, Keith Weinhold. DQYD!

Episode 424: Creating the Right Systems to Convert Your Leads, with Paul do Campo

Play Episode Listen Later Oct 11, 2023 22:23

Paul do Campo is a former flipper, a serial entrepreneur, and now a pro copywriter and “armchair” investor. Since 2015, he's implemented practical copy and marketing techniques in his own businesses (land flipping, mobile home flipping, wholesaling SFRs, and info-publishing)… and for other people's businesses including the renowned 8-figure investor, Ryan Dossey… and for big brands like Ballpoint Marketing, Call Porter, and large land developers selling hotels and 100+ unit developments. After 2 years of personally building out unique and custom drips for high-end investors… he decided to scale his formula and skillset and create an affordable solution that fixes an industry-wide problem: …Off-market Investors who lack systematic follow-up. What you'll learn about in this episode: What types of email campaigns businesses use to create leads How Paul has successfully used infotainment emails to drive conversions How segmented funnels can help you personalize follow-ups and secure more deals Why it's important to have the right system in place to capture leads at various stages of the funnel How Paul's business can work with your CRM system to build out your process How you can reduce your marketing costs by converting more of the leads you currently bring in Resources: Everyone is always asking us, “How is it possible to buy real estate without using my own cash or credit?” With decades of combined experience in real estate, we've perfected the process of investing creatively. We want to share as much as we can with you, which is exactly why we're running this FREE workshop! If you're thinking about leaving your job, escaping the W-2 lifestyle, and starting on the path towards creating generational wealth — this is for you! To register, just visit: smartrealestatecoach.com/pcws. Schedule a free strategy session with us. This is an opportunity for you to have an honest conversation with our team about your background, investment goals and create some action steps toward creating the life of your dreams. Together we'll discover where you are, where you want to be, and what's in the way. Just visit: smartrealestatecoach.com/action. Our free Master's Class is the ONLY webinar where you're given the exact techniques we use in our family company to buy and sell homes every month — all across North America and ALL on TERMS! Register by visiting: smartrealestatecoach.com/mastersclass The Wicked Smart Investor's Toolkit is a great way to dip your toe in the water of buying properties on terms. Here you'll receive seller scripts, our investor blueprint, be able to listen to live calls, and much more! Enroll for free at smartrealestatecoach.com/tools The Quantum Leap System has everything you'll need to start buying and selling on terms (without banks and without your own money or credit), launch & scale a business that fits your goals, and strengthen your mindset so you can follow the proven path to becoming a successful real estate investor. You can learn more by visiting: smartrealestatecoach.com/qls. For additional information on lead generation, funding, mindset coaching, legal assistance, virtual staffing, and business growth, visit the Investor Resources section of our website at: smartrealestatecoach.com/resources. Chris's Book: Real Estate on Your Terms by Chris Prefontaine Instant Real Estate Investor eBook: SmartRealRstateCoach.com/ebook Find our next workshop here: https://smartrealestatecoach.com/workshop If you're looking to secure some lines of credit for your business, check out Fund and Grow: www.Smartrealestatecoach.com/fundandgrow Learn more about Associate Coaching Program Funding here: www.smartrealestatecoach.com/funding 90-Day Jump Start: www.smartrealestatecoach.com/jump Nat Processing Website: www.natprocessing.com Request a free copy of our best-selling book, Real Estate On Your Terms and Deal Structure Overtime, at absolutely no charge: WickedSmartBooks.com Join us at the Wicked Smart Summit in March and get 50% off your ticket now! Don't miss out, secure your spot at www.smartrealestatecoach.com/summit50 today! Additional resources: https://smartrealestatecoach.com/omnidrip

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Alien: Resurrection

director alien merch hunger games alien resurrection sfrs

Play Episode Listen Later Oct 5, 2023 70:51

It's birthday season on SFRS, and this week watch Sam's choice of birthday pick: Alien: Resurrection! Join us as we dissect this most messy of Alien sequels. Directors speaking the wrong language, a mysteriously destroyed blu-ray, and a scriptwriter trying to wriggle out of responsibility when it's all his fault. It's a downer, but it's a fun downer! Next week, Chris' birthday pick - The Hunger Games! See the new list! Play along at home! Get in touch! Visit the Website! Watch us on Youtube! See the old list! Download the soundtrack! Buy our Merch! And we're on Instagram and Facebook too!

Pardon The Disruption Live & In Person at Family Mastermind

The Titanium Vault hosted by RJ Bates III

Play Episode Listen Later Sep 29, 2023 33:50

Pardon The Disruption hit the road and had it's first ever LIVE and IN PERSON show at the Family Mastermind in Tampa, Florida! After over a year of recording the podcast virtually, we were finally able to debate each other in person! Thank you to Matt Andrews, the founder of the Family Mastermind, for giving us the opportunity to do this and for also being the special guest host!Topics discussed:1. What does the future of wholesaling, as an industry, look like? With so many gurus, coaching programs, and new technology, how will the industry change in the next 5 years?2. The feds paused rate hikes, yet the bond market responded negatively and mortgage rates still increased and some economists say we're headed toward a recession. With all the uncertainty what tactical things should a wholesaler be doing right now to weather the storm? 3. How important are Realtors in building your wholesale business?4. A new report indicates that nearly all NFTs are worthless. What do you take into consideration when venturing into a new type of investment to maximize R.O.I?5. Coach Prime has dramatically changed the story lines in college football and sports in general. More importantly, Colorado Football has done a complete 180 since his arrival. How essential is coaching to the performance of your students?6. The Median Net Worth is 40 Times Greater for Homeowners Than Renters. With projections of 30% of SFRs being owned by institutions/investors by 2030. How do wholesalers maintain a conscience when selling to hedge funds? Buy the replay of the Closers Olympics at https://closersolympics.com/rjLearn more about the systems I use to virtually wholesale nationwide using the links below!Speed to Lead PPC Marketplace: https://app.ispeedtolead.com/TITANIUMLeadZolo YouTube Leads: https://www.leadzolo.com/titaniumBatchLeads 1,000 Seller Leads: https://batchleads.io/titaniumBatchDialer 7 Day Free Trial: https://batchdialer.com/titaniumNationwide MLS Comps: http://bit.ly/3K3MFUGThe Most Powerful Dispo Tool: https://get.investorlift.com/titanium/Propstream Free Trial: http://trial.propstreampro.com/titanium/Support the show

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Jumanji: Welcome to the Jungle

rock gamers jungle merch jumanji welcome to the jungle jumanji welcome poppins limpet sfrs

Play Episode Listen Later Sep 6, 2023 55:17

This week SFRS:

461: Skyrocketing Insurance Costs, The End of Free Money

Play Episode Listen Later Aug 7, 2023 40:23

Sharply higher insurance premiums are affecting property owners nationwide. It's especially bad in: CA, LA, FL, TX and CO. This is due to erratic weather (climate) and higher rebuilding costs. Phenomena like an increasing intensity and frequency of hurricanes, tornadoes, wildfires, and floods are sending some insurers out of business. State Farm and AllState completely stopped issuing new homeowner policies in California. Some areas are on the brink of becoming completely UNinsurable. In that case, the only sales that could occur with all cash buyers. Learn three techniques to keep your skyrocketing insurance costs lower. As you'll learn today, landlords have more options than homeowners for navigating spiking insurance rates. Then, listen to a CNBC clip along with me about how the end of ZIRP (zero interest rate policy) affects your life and investments. Resources mentioned: Show Notes: www.GetRichEducation.com/461 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Find cash-flowing Jacksonville property at: www.JWBrealestate.com/GRE Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY' to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review” Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Complete episode transcript: Welcome to GRE! I'm your host, Keith Weinhold. First, I'm going to help you make your real estate more profitable in the near term as I discuss how to deal with skyrocketing property insurance costs. Later, I'll inform your strategy about your long-term, overall personal finance as we talk about what the end of free money means in this new era of higher interest rates. Today, on Get Rich Education. ____________ Welcome to GRE! From Tirana, Albania to Albany, New York and across 188 nations worldwide, I'm Keith Weinhold and you're listening to Get Rich Education. This is how real wealth is built in the real world with real estate. We aren't day traders. We are DECADE traders. And we do that with the right mission. Let's invest directly in America - own real property in American neighborhoods, and provide housing that's clean, safe, affordable and functional. And when we all do that, we can abolish the term “slumlord”. Conversely, what do some people think about first? Themselves. [RIC FLAIR CLIP] Ha ha ha! Over the top with some vintage Ric Flair. There's nothing wrong with living well. But that best comes as a byproduct of serving OTHERS first. Let's talk about the SKYROCKETING cost of property insurance. Why it's happening, what MY experience is, and what you can do to manage it. First of all, and I hope that none of my insurance agents are listening, but why would you ever work in the insurance industry? And I kid. But that's got to be one of the most boring industries to work in. What 15-year-old ever says that when they grow up, they want to be an insurance broker? Nobody. But, in any case, it is a STABLE industry because there will long be a need for insurance. But, I mean, even your customers - the policyholders like us - we don't really want insurance. Insurance ads all say the same thing: “Switch and save.” No one has seen an advertisement from this industry that says, “Upgrade for better coverage.” That's because so many people just want the minimum coverage and want to get on with their lives… until a calamity occurs. But now, the insurance industry has gotten SOMEWHAT more interesting lately, the effects of which center around erratic weather… maybe you like calling it climate change, maybe you don't. But suffice to say, if erratic weather persists, then it's no longer erratic, rather, it is, in fact, a pattern, and then, a change in a region's climate. The intensity & frequency of storms is increasing. I'm talking about weather phenomena like hurricanes, floods, wildfires, tornadoes, and even high snowfall. Inflation also means that there are rising COSTS to rebuild. And RE-insurance costs are higher. Yes, your insurance company gets insurance from insurers themselves, called re-insurance. Re-insurance companies insure insurers. Everyone knows State Farm's jingle. “Like a good neighbor, State Farm is there.” No, State Farm is gone. State Farm is the largest home insurer in CA. So they're the largest home insurer in the most populous state. Well, you might have heard a few months ago that they're completely stopping issuance of new home insurance policies in all of CA. And AllState followed shortly afterward. Persistent wildfires are a culprit there. Insurance companies can't make any money so it's hard to blame them. Well, why don't they just, say, double their premiums? Some sure have. Others can't because of competition for lower rates from other companies. But a lot of SMALLER insurance companies - including many in Florida - have done just that. They've gone out of business… and when there are fewer companies in business - less competition - that's when rates can get jacked up high. Insurance rates are up the most in many of the states that have the greatest incidence of hurricanes, floods, and wildfires. What are the states where rates are rising most? CA, LA, and FL. And after that, TX and CO too, and some other states. TX is one state that's subject to both hurricanes and tornadoes - hurricanes in SE Texas - Galveston, Houston and Corpus Christi. And tornadoes in NE Texas, like Dallas-Fort Worth. So, when hazards happen, losses can occur. That's why your lienholder - your mortgage holder - forces you to have insurance. They require you to have it because they're not willing to take that risk. Louisiana's problems with insurers REALLY compounded a few years ago when Hurricanes Delta, Ida, and Laura hit the state. That created a true crisis in Louisiana's insurance market. A lot of insurers just left with $24B in insurance claims during that period. Others in Louisiana stopped issuing new policies and increased the premiums on the existing insured homeowners. Now, I'm going to center on the homeowner's insurance problem in Florida soon, because Florida is a popular investor state, I own a lot of rental properties in Florida and I'll tell you about my personal insurance experience there shortly. When it comes to wildfires - which are often spurred by hot, dry, and windy weather conditions, some areas are on the brink of becoming completely UNinsurable. California has a bunch of regions like that. And other places like Bend, Oregon and Boulder, CO are in danger of insurance denial because the homes are surrounded by forest. If that happens there, the only resale market for the properties would be to all-cash buyers, unless the state ever comes in to buy them out since people were ALLOWED to build there in the first place. Now, notice that I haven't mentioned earthquakes yet. Earthquakes aren't related to the surface weather like hurricanes and wildfires and these other things are. Earthquake insurance, which many people have in places like CA, WA, OR and AK is often a completely SEPARATE policy from your standard homeowner's policy and EQ insurance is prohibitively expensive. Besides that, their deductibles can be high, like 10 or 20%. If an earthquake completely destroys your $500K home and you have a 20% deductible… … then to even make a claim, you'd need to come out of pocket $100K first - plus you'd be paying high premiums all that time just to have that condition! Anchorage, AK had a big magnitude 7.1 earthquake back in 2018. I was in Anchorage when it happened and I told you about that here on the show back then. I was pretty shaken up. At the time, I owned dozens of apartment units in Anchorage. I don't anymore. I had, maybe $40,000 of out-of-pocket cosmetic damage that I had to pay from that one earthquake. Lienholders DO not make EQ coverage a necessity, and 25% of Anchorage homeowners had coverage before the quake. It went up to 35% afterward. Fortunately, the top cash flow REI areas don't tend to be in the west coast of the United States. So, how high have some of these insurance premiums gotten in states known for disasters? Well, the average is about $225 per month in LA. In TX, it's $250 per month on their average $300K home, and in Florida it's about $325 monthly on a $300K home. Of course, that's going to vary by what region of the state you're in and distance from the coast and such. One weather phenomena that I haven't seen any evidence of in contributing to higher insurance costs is heat itself. This summer, Phoenix hit a new record for consecutive days that exceeded 110 degrees Fahrenheit. That went on for weeks on end. But heat in itself, and its resultant air conditioner use and power load - is not something directly attributable to escalating insurance costs, unless power load problems start a fire. Now, you keep hearing about climate migrants moving to more northerly places with access to a lot of fresh water like Minnesota, Michigan, and Wisconsin. But these stories seem to be largely anecdotal and of little impact. The faster-growing areas continue to be in the Mojave and Sonoran deserts - that's Las Vegas and Phoenix - places with lots of heat, rising heat, and dry conditions. And despite what you might think, they're not going to run out of water anytime soon. Those deserts actually have a lower incidence of natural disasters too, which is one reason why they've built new microchip plants in Phoenix. Climate migrants moving north might be a thing at some point - but it still is not. Well, speaking of hot in-migration states, Florida has had a LIGHT hurricane season so far. But that's not the kind of thing that we can count on for long. Rates have gone up more than 50% throughout the state of Florida, with ALL insurance carriers. Carriers are either pulling out of the state (because its not profitable for them), or they're increasing rates across the board, or they're not renewing policyholders. Now, I've had my rates hiked up on my Florida properties more than once. There, it's often because an insurance company goes out of business due to too many claims, and then I have to switch to another landlord's policy carrier that always has higher rates. So here's what happens. I get a notice in the US mail that my current insurer on a Florida rental SFH - call them Insurer A - is going out of business in 5 months and that I have 5 months to find a new insurer - call them Insurer B. So I take a photo of that notice and forward it over to my Florida insurance agent and ask them to give me quotes for my new prospective Insurer B. Now, say that if you don't do that. If you don't ask your insurance broker or agent to get you a new policy, if you don't act, here's what happens. Say that the 5-month deadline approaches and you still don't have new coverage lined up. Your mortgage holder, call them Wells Fargo or Chase, they'll send you a notice in the mail and remind you that it's required that you have insurance in place – because Wells Fargo or Chase doesn't want to be on the hook for the risk… and if you don't get a new insurer - Wells Fargo, say, will buy a policy FOR you & make you pay it. And the insurance that they buy for you will have lesser coverage and cost way more. It seems like, whoever the bank is, they always tell me that they're going to buy me an ultra-pricey policy with Lloyd's of London. So again, it doesn't entail too much work on your part. If your insurer is going out of business or just doesn't want to issue you a new policy, share that notice with your insurance person and ask them for new quotes. That's a quick, easy thing to do. And then, when you switch insurance companies, your PM must submit photos of your rental home to the new insurer within something like 15 days. Over the past few years, I think I've had Florida properties where the premiums have been hiked up steeply twice. I seem to remember a complete doubling a year or two ago. More recently, I had 30% rate increases on some of my Florida rental properties. So how much am I paying now? Well, on one Florida rental SFH that has a market value of about $300K, I'm paying $330 per month. Of course, for your long-term rental properties, your landlord insurance contract should provide what's called “loss of rents,” coverage. That's something that OO homeowner's policies don't have. That means that if your property is damaged and your tenants are displaced, your insurer pays the fair market rent to you since the tenant won't. That's typically capped at 12 months. On your STRs - like AirBnBs and VRBOs, the coverage that you want is called “lost business income” with no time limit. And that might take an upgrade to a commercial insurance policy for STRs. Alright, so let's get to something actionable. We are real estate investors for the production of income. So amidst what are perhaps UNPRECEDENTED increases in insurance premiums these last few years, how do you navigate this, and what do you do to stay profitable? Well, whether you're an OO or a rental property owner, you can do things like make sure that your coverage is appropriate. You can raise your deductible amount to reduce your annual premium, of course. The more financially strong that you are, the higher you can make your deductible because the less a claim is going to impact you. But as a rental property owner, you have a FEW LEVERS that you can pull that OOs cannot. The big one - is that this is your cue to RAISE THE RENT. Yes, higher insurance premiums point to raising the rent. Really, this is like a game of hot potato… and it is your job to pass along the potato. That's all that you're doing here. See, the reinsurer raised rates on your property insurer. Your property insurer is raising the rate premium on you, the property owner. Now it's your job to pass along the hot potato to the tenant in the form of a rent increase. Then your tenant has to pass along the hot potato by asking their employer for a raise or finding new employment. And it keeps going, now your tenant's employer needs to pass along the higher labor cost in the form of raising consumer prices on the goods or services that they produce… and it continues throughout the economy. That's how inflation works. It's your job to pass along the hot potato. What if the tenant leaves? Well, there's always that possibility. But if they go to rent or buy a “like” property, it's still going to have the same higher insurance cost that they'd have to pay. For help with that, and this is the second time that I referred back to this recently, in Episode 449, just twelve weeks ago, I provided you with 12 ways to raise the rent. Again, that's Episode 449. You always want to provide a REASON to the tenant about why their rent is increasing, say 5% in this case for example. Nothing beats the truth. Your insurance costs are higher. That's the reason. Now, you might be wondering, if, say, insurance costs just rose 30%, like they did on one of my own properties recently, then how is a 5% rent increase going to offset that? That's because your rent amount is multiples more than your monthly insurance amount. If your rent on a property goes from $2,000 to $2,100, that's just 5%, but it's a $100 increase in your income. If your monthly insurance cost goes from $200 up 30% to $260. That's a $60 decrease in your income. You have a $100 gain from rent and just a $60 deduction from your insurance increase, and you've more than offset it. It's THAT effect. Now, what if your numbers don't work for raising the rent though? As an income property owner, you have other levers that you can pull that are less palatable as an OO. That is, can you sell the property? If you're in SFRs, there is a big buyer appetite for them. And in just the past three years, there's been so much appreciation that you might have a lot of equity such that you can trade it up for 2 SFRs. Now, new-build properties in a place like Florida have substantially lower insurance costs than older properties, because new-build properties are built to more stringent wind resistance requirements. So you might trade up your older, existing Florida property in this case for a new-build property that has lower insurance deductibles. Insurance costs ALONE rarely drive investment decisions. But it's the fact that you'd get to reposition dollars at a higher leverage ratio at the same time. But now, if you've owned the property for, say 2 years or more, you might lose your ultra-low rate mortgage that you got a few years ago. You need to run some numbers and see if it's worth giving up your low mortgage rate in order to get more leverage and lower insurance premiums. That's the trade-off. See what works best for you. So, your first lever is clearly to just raise the rent on your existing properties that have higher insurance rates. To summarize what you can do to meet higher insurance premiums is: #1 - Raise the rent. #2 - Tilt your portfolio into more NEW-BUILD properties in some markets, and #3 - Increase your deductibles. They are the actionable takeaways that I really wanted to share with you today. Keep investing. Tweak your strategy where you need to. Be sure that your tenants are taken care of. And after that, remember, that it's common that when you have an insurance CLAIM, that you often profit from the event when your claim pays more than your actual losses were. Coming up shortly, the 15-year Era of Money for Nothing is Over. How does this new era look and how do you adjust to it? There is more real estate news and more that impacts your personal finances every week that we can cover in one big, weekly show here. Strip Malls are Hot (yes, really) Strip malls are hot, Old Houses are Now as Valuable as New Houses, and Zillow predicts 6.3% HPA from June of this year to June of next year. More details on stories like that, as well as my breakdowns of developments like that are in our Don't Quit Your Daydream Letter. You can get it free. Just text “GRE” to “66866”. Actionable real estate guidance, breaking news, and a dose of my dorky, cornball humor are all in the letter. Get it free by texting “GRE” to 66866. More next. I'm Keith Weinhold. You're listening to Get Rich Education. _____________ Welcome back to Get Rich Education. This is Episode 461. I'm your host, Keith Weinhold. The United States is entering a new economic era. 15 years of access to nearly FREE MONEY has come to an end. Let's listen in to this terrific CNBC compilation where you'll hear the voices of a number of economists, reporters, and directly from people that used to work at the Fed… on what this all means with the end of Fed Funds Rates at zero - the good and the bad. Some familiar voices that you'll hear include CNBC's Steve Leisman. And, near the end, Former Fed Chair Ben Bernanke. This is about 12 minutes in length and then I will come back to comment. [CNBC Clip] Let's remember that economies work slowly. There are lag effects. The Fed began hiking rates in March of 2022. And higher rates are only starting their job, not finishing. Today, higher insurance premiums and a higher cost of MONEY (which is what interest rates are) are trends to navigate. With both, if you're a landlord, you can raise the rent. Longer-term, have that 30-year FIRD. Just that plain, vanilla loan in most cases. Nothing fancy. That's because, living in the US has many benefits, like stunning national parks, seedless watermelon, and pizza with cheese baked into the crust. But it's got something even better, even better than fixing your rate for 30 years. It's that ability for you to refinance as soon as rates drop. You get to alter the deal whenever it's best for you whenever you're in residential real estate. Well, at the end of the show, I've learned that you're often thinking “I want more. How can I get more content like this without having to wait until next week?” I often like to leave you with something actionable at the end. Get our Don't Quit Your Daydream Letter. I write every word myself. You can get it free right now. Just text “GRE” to “66866”. Until next week, I'm your host, Keith Weinhold. DQYD!

Master and Commander: The Far Side of the World

merch khan commander poppins master and commander commander the far side sfrs

Play Episode Listen Later Jul 27, 2023 63:54

It's an SFRS first as we take a dip

455: Disturbing Facts About Your Bank, Many Millennials Will Rent Forever

Play Episode Listen Later Jun 26, 2023 37:44

Get our newsletter free here or text “GRE” to 66866. Storing your money at a bank entails more risk than you think. Your deposit is a bank's liability. Banks must take risks with your money because they don't charge you fees. Banks used to have a 10:1 reserve ratio. As of March 2020, all reserve requirements are now eliminated. Rather than storing lots of money at the bank, borrow lots of money from the bank. US households own $41T of owner-occupied property—$29T in equity, $12T in debt. The national LTV ratio is 30%, historically low. That's 70% equity. Of the five ways real estate pays: one profit source is the market, two are from the tenant's job, and two come from the government. Many Millennials plan to rent forever. 63% have nothing saved for a down payment. The interest-rate lock in effect keeps constraining the available supply of homes. This forces more homebuilders to build. Last week, NBC Nightly News covered the rise of build-to-rent communities. Resources mentioned: Show Notes: www.GetRichEducation.com/455 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Find cash-flowing Jacksonville property at: www.JWBrealestate.com/GRE Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY' to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review” Top Properties & Providers: GREmarketplace.com Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Complete episode transcript: Welcome to GRE! I'm your host, Keith Weinhold. Do you have any idea what banks do with your money? How home equity is like a bank, hot Millennial rental trends, and the proliferation of Build To Rent real estate, today on Get Rich Education! ___________ Welcome to GRE! From Glens Falls, NY to Klamath Falls, OR and across 188 nations worldwide, the voice of real estate investing since 2014. You're listening to Get Rich Education. I'm your host, Keith Weinhold. You did not wake up to be mediocre today. So we don't focus on long-term budgeting here. Correlating financial betterment chiefly with reducing your expenses is just a race to the bottom. You and your peers would just be racing to the bottom. We know that, instead, yes, arbitrage is created when you borrow low and invest high. But the ultimate arbitrage - which is the gap or that spread, is when your quality of life vastly exceeds your cost of living. That's that gap that you & I pry open ever wider together right here, every week. Savers lose wealth. Stock investors maintain wealth. REIs build wealth. Savers lose wealth because inflation makes holding onto a dollar like a block of ice melting in your hand. Retail stock investors only MAINTAIN wealth because their 9 to 10% long-term return is worn down to less than nothing with inflation, emotion, taxes, fees, and volatility. And real estate investors BUILD real, durable wealth. If you have a mentality of trading time for dollars, then you have a certain way of looking at your life. If you realize that your investing mission in your life is to build things that pay you to own them, then you have a different way of looking at life. The resources that you need to build those things are what we cultivate here on this show. You know something though, by the time that I bought my first rental property, I didn't have all of that figured out yet. It really wasn't until I bought my second property. It was also a fourplex, just like the first one. This second one cost $530,000. And check out how I bought it. I bought it with a 10% down payment, interest-only loan, and interest rate of 7⅝%. Yep, I took accumulated equity from my first four-plex and used it as a down payment on the second four plex. Now, that way, I essentially had zero money in the deal - which is an infinite return strategy - and both fourplexes cashflowed. Now, the interest-only loan on my second fourplex there… that gives some people pause. Why would I do that? That kept my monthly payment amount down - since I could pay only interest - and didn't have to pay principal. That turned a property with a small cash flow into a nice cash flow. Yeah, some people don't like interest-onlys because then the tenant isn't paying down your principal for you. I typically take interest-only loans because for every dollar that doesn't go into your illiquid principal as equity, instead, it becomes a dollar of liquid cash flow that goes into your pocket. In fact, changes are that the reason that you have fat equity in home right now is from market appreciation, not principal paydown. In fact, why don't I approach the classic GRE principle of “your return from home equity is always zero” from a new and novel angle here today. Gosh, this could make you hundreds of thousands or millions over your investor career. Imagine a bank. We'll call it a red bank. This bank is offering you zero rate of return, it's difficult for you to withdraw your money from it, and this red bank might not even let you withdraw your own money at all - it is at their discretion. How motivated are you to hold your money at that bank? Well, you aren't at all. Well, I just described equity that's locked inside properties… and that's why… your properties make terrible banks. Equity is the opposite of you being liquid. Instead, the GRE Way is leverage and arbitrage, but it needs to be supported by cash flow. So, we are not quite on an island here with our strategy, because we're still connected with the mainstream finance world - but we're, say, a peninsula then. And, like a peninsula, maybe, real estate keeps you insulated - though not completely disconnected from that more volatile stock and bond shuffle that most people are on - which provides little to zero leverage or cash flow. Do you know what that stock and bond shuffle is - that seesaw? Let's remind ourselves… that when money flees the stock market, it usually ends up in bonds. As demand for bonds goes UP, interest rates go DOWN. Then, as interest rates go down, investors go back to stocks in pursuit of yield, and everything reverses. It's an ebb and flow of funds which often provides you with zero real return. That's how that seesaw goes. So rather than get a part-time job, which is selling your time for dollars, get a few rental properties instead. Whether you manage them yourself or you manage the manager - like I do, I manage managers… you've got the income stream of a part-time job with an asset that appreciates at the same time. As time passes, the reason that you will feel satisfied is because you took strategic risk. Now, to stick to the bank analogy theme here, a lot of people still don't realize that when you take your money to the bank, you are a creditor of the bank, and the bank is now lending your money out. So, just think about what you're doing - well, you yourself probably aren't doing so much of this - you're probably a better than average investor since you're listening here. But think about those depositors that keep a lot of money at the bank. Yes, we know you're losing to inflation, but besides that, just think about what happens to your money this way. What about a parking garage and your car? OK, when you park your car at a valet, the valet is supposed to turn around and park it in a garage. The valet does not have the right to take your car and let an Uber driver go make money with it while you're off having dinner. And then maybe they'll give you the same make & model back at the end of the night… and they stick YOU with the risk of having a problem with your car - or your money. That's what banks are doing with your money when you park it there. It's like a valet letting an Uber driver use it and take risks with it without your knowledge. What isn't FDIC-insured is… at… risk. Well, what's the alternative to banks lending out the money that you deposited with them? Well, the alternative to the existing system is that banks, instead, could make money off of fees that they charge you. How is it that you avoid paying fees to your bank right now, like you are? I mean, afterall, banks have capital expenses, technology expenses, and employee expenses. If banks charge fees to you rather than profiting from the spread that they get on lending your money out, we could have a safer system. But most people like the allure of fee-free banking, partly because that's what they're used to. Banks used to have to hold onto a dollar for every $10 they had in deposits. That's also known as a 10:1 fractional reserve ratio. Well, the risks of parking your money at a bank went up in March of 2020. That's when the Fed just COMPLETELY eliminated reserve ratios for banks. Now, for every $10 they have in deposits, banks can hold zero dollars in reserve. Instead of parking your money at a bank, you do the opposite. You borrow from the bank, pay them their 7% interest and invest it in “Real Estate Pays Five Ways” property that beats 7%. Right there's… your arbitrage. Now you're using their money instead of them using your money - like the valet that you entrusted your car with that lent out your car to the Uber driver while you were at dinner. So outside of inflation, why is it risky to keep your money parked AT a bank - rather than borrowing from them. Because, as has often happened this year, banks implode. Why are they imploding? Well, just a couple years ago, when banks lent on mortgages at 3%, they're only collecting 3% for 30 years. What happens to the BANK when interest rates go up? No one wants to buy their 3% debt. The depositor (that's you, the customer) wants their money back - because they can go invest it for 5% elsewhere. That's a problem for the bank. And if the government does come in to give a bailout of your bank - we know by now that they're more likely to do it if it's a large bank, like Chase, Wells Fargo, or B of A. Well, more gov't bailouts of banks… means more money printing… which means more inflation, making our eventual problems even worse. So rather than keeping too much money at the bank, BEAT the bank. Now, earlier, I mentioned how having a glut of equity in your properties is like keeping your money in a rather illiquid bank. That is a germane point - a pertinent discussion to have right now, because take a look at this. This is America's equity position, right now. This is for the latest quarter ended. The Federal Reserve Flow of Funds report tells us that U.S. households owned $41 trillion in owner-occupied real estate. Alright, $41T is the value of that US residential property. Of that $41T, how much do you think is in debt, and how much is in equity? I'm just doing some rounding here. $12 trillion in debt and the remaining $29 trillion is in equity. Therefore, the national loan-to-value "LTV" right now is about 30%. That is historically quite low. Another way to say it is that America's primary residences have a 70% equity position today. Yes, 70% of the value of American homes is locked into that vehicle that's famously unsafe, illiquid, and always has an ROI of zero. Homeowners today have an average of $302,000 of equity in their homes. Now, as inefficient as that might sound from an opportunity cost perspective from homeowners. There is, at least, a little upside to your neighbors having a glut of equity even if you try to opportunistically hold a low equity position. This equity provides a cushion to withstand potential price declines, but also prevents any future housing distress from turning into a foreclosure situation. Those equity cushions around American neighborhoods help prevent the down… drain in prices that we saw from 2007 to 2009. I've got more for you coming shortly, including, has the Build-To-Rent concept that we've discussed on this show for years & years finally gone mainstream now that NBC news is discussing it? You'll hear that audio clip and get my commentary on it. But first, I want to ask you, is this the "Golden Age" of quality NEWSLETTERS or what? News WEBSITES are increasingly riddled with: paywalls, logins, banner ads, and pop-ups about cookies, the hassle of 2FA. Instead, a quality newsletter is just automatically “there” in your inbox. Our valuable Don't Quit Your Daydream newsletter is full of real estate investing industry trends and forecasts, broader economic forces that are going to affect you in the future & more. Get top investment property news in under 5 minutes. You can sign up and get the letter free now at GetRichEducation.com/Letter. In there, you get updates about what provider has inventory now - even exact physical addresses of properties. In fact, I've featured two of my own rental properties in the newsletter as I broke down their financials. Again, sign up at GetRichEducation.com/Letter I STILL write every single word of that letter myself. I don't think that a lot of founders do that. Upon signup, you'll receive some lay of the land e-mails, and thereafter, I only send it about weekly. Not daily. Alternatively, you can easily sign up for the letter by text. If you aren't yet one of many subscribers expanding your means with my letter, you can simply text “GRE” to 66866 for our DQYD Letter. It is free. Again, you can sign up by simply texting “GRE” to 66866. More next. I'm Keith Weinhold. You're listening to Get Rich Education. _____________ Welcome back. You're listening to Episode 455 of Get Rich Education. I'm your host, Keith Weinhold. Five weeks ago on the show, you'll remember that I reiterated why real estate does not pay 4 ways and does not pay 6 ways - it pays exactly five ways simultaneously. Sometimes, amid uncertainty - and note that there's ALWAYS - uncertainty. It never abates. People wondered when the Fed would stop hiking rates at a meeting. Now they did. People wondered when inflation would get down to 4 - now it has. But those that worry excessively will still point to something else that's uncertain. But in good times, bad times, and uncertain investing times, you might want to get more offensive. Other times, more defensive. Real estate is both. Of the 5 ways you're paid, appreciation and cash flow serve your offensive side. At the same time, your return on Amortization, Tax Benefits, and Inflation-Profiting all serve your defensive side. Now, let's go and look at the sources - the headwaters - the genesis. What are your 5 profit sources - for appreciation - it's the market. It's the vibrancy and diversity of the economic market that you bought in. That's where your appreciation emanates from. For the second way you're paid, cash flow, it's your tenant and your tenant's job. For the third way, your Return on Amortization - that ROA, that also comes from your tenant, since that pays your loan's Principal & Interest. The fourth way, tax benefits, that's the gov't. And the fifth way, your inflation-profiting, that also comes from the gov't. Yes, that's the source, the headwaters for each of the five ways you're paid and knowing that can help you be mindful about what to pay attention to in your investment real estate portfolio long-term. Yes, this is just with carefully-bought buy & hold real estate. Unlike most investments, if the value of your property goes down, you still get paid 4 ways. So to review the 5 Ways Real Estate Pays SOURCES - where your money actually originates, it's: Appreciation - from the market Cash flow - from the tenant ROA - tenant Tax Benefits - gov't And Inflation-Profiting - also from the gov't Now, here at GRE, when we focus on your tenant and where your tenant comes from, you know, one word that comes up an awful lot is Millennials. Why do we discuss Millennials so regularly? It's not because we're the first generation to embrace avocados or online dating over “in real life” dating or, it's the first generation to be raised in a world of participation trophies. Ha! It's because, not only are Millennials the largest generation in American history, but they are in their prime household formation years. Though there's a bit of dissension among demographers, many agree that Millennials were born between 1981 and 1996. That makes them Age 27 to 42 - they are prime household formation years. BTW, you probably know of the generation after that, Gen Z. They were born between 1997 and 2012, making Gen Z age 11 to 26. But do you know about the generation after that? That is Generation Alpha. They were born between 2012 and today, making Generation Alpha age 0 to 11. Well, the Millennial homeownership rate lags that of previous generations of people that were the same age. So this is why you have such a deep pool of people that's driving demand for your rentals. Millennials have the misfortune of being stung by back-to-back global crises. When they were coming of age in 2008, many couldn't get a job during the Global Financial Crisis. Then the pandemic disruption made getting their independence pretty bumpy. In fact, fully 18% of Millennials say that they plan to rent forever. Forever! That's up from 11% just five years ago. Not just a few, but the MAJORITY of Millennial Renters have zero down payment for house savings. 63% of them have absolutely nothing saved for a house. And in fact, another 14% have less than $5,000 saved - which is close to nothing. That is all according to a survey from Apartment List. More Millennials plan to rent forever. Now, I've done a fair bit of research on Generation Z real estate trends - again they're the age between 11 and 26. And there are a few more Gen Z homeowners than you might think already. But the short story on Gen Z, just isn't that compelling. To distill everything I've researched, most Gen Zers want to own a home but few can afford it. Well, no kidding. That's not a very novel takeaway, but that's the REAL story there. If Millennials are your current renters, then Gen Z are your current and future renters. Now, I've talked to you a good bit about the “interest rate lock-in” effect. So many homeowners have ultra-low mortgage rates that they don't want to sell their home, and when they don't put it on the market, that further constrains supply. Well, Redfin recently brought some new color to the interest-rate lock-in effect. They've shared some really interesting material with us. 92% of mortgage borrowers have an interest rate under 6%. 80% of them have an interest rate below 5%. 62% of these people have an interest rate below 4%. And a quarter have a rate below 3%. New listings of homes for sale and the total number of listings have both dropped to their lowest level on record for this time of year… and that is fueling homebuyer competition in some markets and preventing home prices from falling. In fact, Redfin tells us that the national ASKING price for homes is the same that it was one year ago. Sale prices increased most in these 5 metro areas. Cincinnati leading the way at (9.2%). We've got cash-flowing Cincinnati property at GRE Marketplace. Miami (8%) not really a cash flow market there. Third-best is Milwaukee (8%), rounded out by Fort Lauderdale, FL (6%) and Virginia Beach, VA (5%). They are the 5 metros with the highest appreciation. Current months of national housing supply is still just 2.6 months - scarce inventory. 6 months is a balance market. Homes that sold were on the market for a median of 28 days. That is the shortest span since September. There's a bit of a seasonal factor there though. Now, when we talk about the paltry supply of homes since existing homeowners don't want to lose their low rate, it's forced more homebuilders to build - in order to make some inventory available. It's made a good opportunity for you to buy these homes that are built for renters from Day 1, and rent it to a tenant yourself. Now, I know that your life is more interesting than watching the NBC Nightly News with Lester Holt and then dozing off to sleep at 9:30 PM (ha!), so in case you didn't catch it, here it is on “Build-To-Rent” last week. It really takes the perspective of the RENTER and why they want to pay your rent to stay in a Build-To-Rent home… longer than they do for an apartment. This is about 2 minutes long & I'll be back to comment. BTR on NBC News: https://youtu.be/BXwTerRQWNo?t=954 Yes, that's the popularity of build-to-rent homes. Something that we've been discussing here at GRE, for, gosh, maybe 8 years now. Like they said there, rents are on the rise. But they're not rising nearly as fast as they were 1 and 2 years ago. Rent growth has slowed for both SFHs and apartments. I think that the assurance for prospective income property owners like you is that in your Build-To-Rent properties, you can have a reasonable expectation of high occupancy and low vacancy as long as you buy your SFRs in a decent market. And see, more often than not, a builder is only going to build new, rental single-family homes if there are plentiful jobs nearby to support that. So you can kind of crowdsource the due diligence that the builder did on what's demographically and economically feasible if you choose to add these property types. Despite the build-to-rent properties added, today, America only has half as many homes available as 2019. Compared to just a year ago, there are 5% fewer available properties today. But, we've got available Build-To-Rent and existing income property here at GRE Marketplace. Yes, just create one login, one time, and get access to all national providers at GRE Marketplace.com. But say you want a little help, a little coaching. Say perhaps you haven't bought property before, or you haven't bought one in a while, or you haven't bought property across state lines yet - since that's where the best deals usually are - or you just want to lean on a coach to bounce ideas off of as you're looking for your next investment property. Well, in that case, you can rely on our free coaching service. That's at GREmarketplace.com/Coach Our coaches don't blow the whistle at you for missing a play. You'll never find them as grumpy as, say, New England Patriots' Coach Bill Belichick. They're not that kind of coach. It's not the kind of coach that will ask you to start your morning with an ice bath. And if you're new to real estate, there's no such thing as a stupid question with GRE Investment Coaches. No penalty flags are thrown. To find that property that builds your residual income and pays you five ways, you can choose which coach you want to have help you. Coaching is a completely free service to you. What they do is... Learn your goals Find you the best off-market deals nationwide Find the property provider with incentives. (One provider recently offered 4.75% interest rates, another free PM for one year.) Help write your offer if you would like that Submit earnest money Navigate the inspection Interpret your appraisal Check your management agreement And just ensure a smooth closing day for you Your Investment Coach can do more than this. If you prefer, they can do less than this. GRE Marketplace is where the coaches source the properties. It is more like an organic farmers' market than a big box store. Property offerings change frequently. Because there are limited slots available to talk with them through phone or Zoom, it helps if you've got your down payment and are ready to go. Sheesh. If it were any easier, they'd even make your down payment for you. Did I mention that it's completely free? To get started, choose your coach and book a time. Start at GREmarketplace.com/Coach Until next week, I'm your host, Keith Weinhold. DQYD!

Re-Ranking Special II

ranking back to the future twins merch tron legacy death race sfrs

Play Episode Listen Later Jun 22, 2023 69:53

You asked for it, we delivered. This week, we add a whole load of list 1.0 films to list 2.0 with a bumper episode of classic SFRS re-ranking action. Join us to hear revised thoughts on Back to the Future, Twins, Death Race 2000 and lots more! It's the hard-hitting analysis you've come to expect from us: mis-remembered plots, confusion over how the system works, and Alex inventing some rules. Also, guest reviewer Logan Humphrey returns with his thoughts on Tron Legacy! Next week we watch Back to the Future Part II! See the new list! Play along at home! Get in touch! Visit the Website! Watch us on Youtube! See the old list! Download the soundtrack! Buy our Merch! And we're on Instagram and Facebook too!

Scaling to 39 Units in 3 Years w/ Soli Cayetano

The Real FI

Play Episode Listen Later Apr 4, 2023 58:13

In this podcast episode, our guest Soli Cayetano shares her journey into real estate investing. Soli invests in out-of-state properties in Ohio and Georgia, primarily focusing on SFRs, MFRs, and STRs. Soli started her real estate journey during the pandemic, buying her first property in Ohio for $98,000, sight unseen. From that point on, Soli then quickly scaled her portfolio with the help of private and hard money lenders. Her goal is to achieve $20k/month passive cash flow and to purchase 100 units this year. Soli also talks with us about her role in her partnerships, where she focuses on the capital raising and asset management side of the business. Overall, Soli's journey is an inspiring example of how one can achieve financial freedom through real estate investing.You can connect with our guest on Instagram @lattes.and.leases.Are you interested in finding great off-market investment opportunities? We've partnered with DealMachine to help bring great deals to your doorstep. All you have to do is sign up with DealMachine using this link and follow the steps to secure your next deal. Patrick and I are clients of DealMachine and have made a lot of money using their services. We hope you do too!Do you have any questions you'd like for us to answer on the show, or a success story you'd like to share? Shoot us an email to info@TheRealFI.com and we'd be happy to connect with you. And If you haven't done so already, please leave us a glowing 5 start review on your podcasting platform–it would really help us out!You can connect with you hosts on instagram:James on Instagram: @James_RippeonPatrick on Instagram: @RentalPropertyCoupleWatch on Youtube. Sign up for our newsletter to stay informed.Let's kick the 9 to 5!Decide. Commit. Take Action!

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Cloud Atlas

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Play Episode Listen Later Mar 29, 2023 52:44

We return from a classic SFRS unexpected hiatus with the 2nd part of our Wachowski season, Cloud Atlas. Join us as we try and untangle six stories, 60 bad prosthetics, and 600 roles played by 6 actors. It's a mess, but is it a good mess? Hmm? (not really, no.) Next week, we watch V for Vendetta! THE NEW LIST HAS ARRIVED! Play along at home! Get in touch! Visit the Website! Watch us on Youtube! See the old list! Download the soundtrack! Buy our Merch! And we're on Instagram and Facebook too!

442: How Inflation Stole Your Time, Florida New-Build Incentives

Play Episode Listen Later Mar 27, 2023 49:28

Get started with new-build Florida duplexes, triplexes, and quads right here. Conventional personal finance says that you should be able to put in your time, effort, and energy when you're young. When you're older, you can live a great life knocking back drinks served in coconuts. That's being severely threatened. Throughout history, some humans have perpetrated malicious time theft on other humans. Murder and slavery are extreme versions. You're likely the victim of more subtle versions. If you're working at a job, then you're selling your time, effort, and energy into the marketplace. The proxy (currency) that you're receiving in exchange for the finite resources that you expended tangibly represents what you've sacrificed. With dollar inflation blatantly debasing your currency from beneath you, your human life capital is being stolen. Invest in what's scarce and take real world resources to produce—real estate, gold bitcoin. Avoid what's abundant and easy to produce—dollars and stocks. I play an audio clip of Fed Chair Jerome Powell's attack from Elizabeth Warren on raising interest rates. Last week, the Fed hiked rates for the 9th straight time. A Florida builder of rent-to-own properties joins me - SFRs in the mid-$250Ks up to fourplexes. Their build times have been reduced. They're still paying a higher price for concrete. They're building smaller, entry-level rental properties that you can buy and have them manage. The builder currently provides income property in: 7 southwest Florida markets, Jacksonville, Ocala, Palm Coast, Inverness, and Citrus Springs. Square footages are falling. Their site selection and stringent building codes are hurricane-resistant. Until at least April 15th, 2023, they're offering investor buyers 2% of the purchase price at closing (buy down your rate to ~5.75% today) and two years of free PM. Get started here. Our in-house Investment Coach, Naresh, can help get you started. At times, he is paid a referral fee. This is in order to keep it free for you. Resources mentioned: Show Notes: www.GetRichEducation.com/442 Get started with new-build Florida duplexes, triplexes, and quads right here. Fed Chair Powell vs. Senator Warren video: https://youtu.be/Y-IK0xdcRW4 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Memphis & Little Rock property that cash flows from Day One: www.MidSouthHomeBuyers.com Find cash-flowing Jacksonville property at: www.JWBrealestate.com/GRE Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review” Top Properties & Providers: GREmarketplace.com Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free—text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Partial transcript: Welcome to GRE! I'm your host, Keith Weinhold. Inflation is not only stealing your prosperity - it's worse than you think… IT'S even stealing your time. I've got some new perspective on how you can stop that from happening. Then, a fresh opportunity for incentives on path-of-progress income property in a great market. Today, on Get Rich Education. Welcome to GRE! From State College, PA to College Station, TX and across 188 nations worldwide, the VOICE of real estate investing since 2014. I'm Keith Weinhold and this is Get Rich Education. Inflation is a TIME thief. It's stealing your time. You know, here's the problem. CW says that you should be able to put in your time, effort and energy when you're young and live a great life when you're older - maybe even live the life of your dreams someday. But postponing things until a nebulous someday isn't actually so great - and even THAT is being seriously threatened for you. Look, throughout history, some human beings have perpetrated time theft on other human beings. Now, extreme versions of time theft are murder and slavery. YEAH, that's stealing your time. But you're likely the victim of more SUBTLE versions of time theft. If you're working at a job and you're selling your time, energy and effort into the marketplace… Then the proxy - the money - that you're receiving back for your human life expended - that money tangibly represents the time that you gave up. That irreplaceable, unreplenishable highest order resource of time, that you gave away. Well, with dollar inflation blatantly debasing your money away from beneath you, your human life capital is being stolen. This is evil. Now, look. “Good money” is something that doesn't degrade over time. Let's look at this historically together & then I'll bring it up to the present day for you. Centuries ago, Europeans landed in west Africa. First, it was the Portuguese in the 1400s. The Europeans found that west Africans use beads for money. Well, Europeans soon found that the beads are really cheap to produce in Europe but expensive to produce in Africa. Well soon, they brought enormous quantities of beads into Africa and they purchased EVERYTHING valuable there. There was NO WAY for beads to remain as money in Africa, no matter what the feelings of the bead holders were. Anyone that kept insisting to use the beads as money completely lost their purchasing power. In effect, the beads ceased functioning as money. Does that sound like any currency that you're familiar with - any dollars or euros that you've got in your wallet today? Are you drawing any parallels here? Now, rather than beads, gold became a popular currency for millennia - because gold is beautiful, durable, and it's expensive to mine & produce across cultures - and it still is. But as we reached modernity and we're no longer in a world where everyone lives within 25 miles of where they grew up, gold fell out of favor as a currency - though it's still a good STORE of value. Now you transact interstate and internationally more often. Jet travel became common. Paper money allowed you to more easily move your value across space. Today, you can electronically move dollars across space faster. But you can't move dollars or really any sovereign currency very well across TIME… and that's because of INFLATION. Compared to 100 years ago, today's dollar has about 3% of it's value from a century ago. So if you held dollars under a mattress for 100 years, you've lost the vast majority of your wealth. If you held dollars under a mattress for 10 years, you've lost substantial wealth. Lately, if you held your dollars under a mattress for 3 years, you've lost substantial wealth - or even if you held them in a CD or what they call a high-yield savings account. What makes a good money is a good proxy for human time. You've got to be sure that your money doesn't degrade over time & that you can store it and use it. You need your medium of exchange in order to track your expended time. When we talk about perpetrating time theft, your government - whatever nation you live in - they can push a button, print billions or trillions more in currency to pay for social programs and pay for infrastructure programs or another stimulus package or QE or to send dollars & weapons to Ukraine, and the Fed buys trillions in treasury securities and mortgage-backed securities, the $2.2 trillion CARES Act. All those processes are inflationary. All this currency creation dilutes the currency that YOU hold. That's why that $20 bill that's in your wallet right now was worth a tiny bit more yesterday than it is today. And if your $20 bill stays in your wallet overnight tonight, it's going to be worth a little bit less tomorrow. What the easiest way to pay for a new $1.2 trillion government program? Just print $1.2 trillion dollars. They keep doing it. It's why America has $32T in debt today. Well, what often happens when your government pushes buttons to electronically create tons of dollars or pounds or euros or real or yen? More dollars get circulating. You and the money that you have traded your precious life time for - you just got diluted. A dollar is a low fidelity way for you to store your finite time and your finite life effort. You might pledge allegiance by creating value for others in the workplace everyday. But don't pledge allegiance to the dollar. Your fealty should be toward accepting your INCOME in dollars but then, quickly getting out of them. Are you upset? You should be totally upset. Every single day, pieces of your life, energy, and ambition are being stolen away from you. That's immoral. Now you're being forced into investing. That's what happens to people that are conscious of dollar dilution and how insidious, and persistent and severe and surreptitious it all is. Now you need to go chase wealth preservation… with a sense of urgency! You're being pushed out on the risk curve. The S&P 500 is not the answer. With say, a 10% return over time, subtract out 5% inflation, subtract out emotion, volatility, subtract out taxes, subtract out fees, and your real return is less than zero in stocks. See, dollars and stocks can be easily created and diluted. They can just print more - debasing what you've already got there. Conversely, real estate, gold, and bitcoin cannot be easily created or diluted. All three take proof of work. All three take real world resources to create - real estate, gold, and bitcoin. If you're not familiar with bitcoin, it takes mining hardware, software, and electricity to create it - real world resources, and there will only ever be 21 million bitcoin. Alright, so what can we learn from this? Unlike west African beads in the 1400s and 1500s which could be diluted and unlike dollars and stocks today which can be easily diluted, real estate, gold, and bitcoin cannot. Gold is really just a wealth preservation instrument, only tracking inflation. It's not proven to be accretive or additive to your wealth. Bitcoin has some promise. But it's still a nascent technology. It's only been around 15 years. I like it but there's still a lot of questions about it. You've got to find a way to stop the time theft! What are you gonna do? If you aren't upset enough about it, think about how the theft of your time through currency inflation took away more life experiences with loved ones that you could have. You could spend more of your one finite life on this earth with your mother, father, spouse, kids, church, hobbies, on the boat, at the lake, whitewater rafting, playing pickleball anything. Certainly be offended and even a little outraged at the surreptitious time theft through inflation. This is why… we are… real estate investors - and we get loans for property that produces income. Now, you aren't just HEDGING inflation. You're profiting from it. With income property, you're performing something ADDITIVE TO YOUR life time. That's the Inflation Triple Crown. The asset holds it's own with price inflation. Your debt is being debased by inflation & paid back by the tenant… and thirdly, your income - that property cash flow outpaces inflation because the biggest payment - the mortgage principal & interest, stays fixed & inflation makes it easier to pay back as more & more dollars keep coming into circulation as over the years & decades, everything spirals higher - prices of all types, wages, salaries, expenses, taxes, everything. This all penalizes the saver and favors the debtor. Be a strategic debtor with real estate. Win the Inflation Triple Crown. Win your time back - and then profit on top of that. Now you know that inflation is stealing not just your prosperity… but your time… and now you know what you can do about it. Most people don't do anything about it. You have got to. It would have sounded like a bit of an exaggeration until you heard my explanation today - but you're actually saving your own life. Well, inflation, interest rates, and employment have been huge issues in the economy for about two years now. Jerome Powell & the Fed began raising interest rates to control inflation a little over a year ago. Let's listen in on how heated and contentious this is all getting, compounded by bank failures. This is about 4 minutes long, and then I'll be right back. Listen to this confrontation. This really summarizes the crux and intersection of a lot of these issues. It's Fed Chair Jerome Powell testifying in front of the Senate Banking Committee's Elizabeth Warren of Massachusetts. It's a real clash over inflation: [Play Powell-Warren clip] Yeah, there we go. Elizabeth Warren would rather keep more people employed and have inflation spread across everyone rather than the other way around. I think that the important lesson for you is that, inflation is going to keep happening. That's a really safe bet, whether the level is the 2% Fed target or the 6% CPI that we've had lately. Invest in what's scarce and avoid investing in what's abundant and multiplying. Invest in what's scarce and takes real-world resources to produce - that is predominantly real estate, maybe with a touch of gold or bitcoin. Avoid what can be easily printed and diluted - dollars and stock shares. What are homebuilders seeing today, is builder sentiment up off the bottom, and how is rental demand now that we're deeper into 2023? Let's talk to our builder-provider guests about that. They have a strong incentive to offer you, the GRE listener. They are still building new construction rental homes in the mid-200s price point in Florida. Let's get caught up on builder sentiment and look for opportunity in in-migration hotbed Florida. _________________ Yeah, can you tell that they know what investors need? If you think that it sounds like the right “Real Estate Pays 5 Ways” opportunity for you amidst high inflation, I've got some more good news for you. After our southeastern US provider was on the show here, I spoke with them again, and they've extended those generous incentives for your 2% closing cost incentive & 2 years of free PM until April 15th of 2023. So you do have to act soon. Will it be extended beyond April 15th? We'll see. You could ask, but they've been pretty generous already. And also, this is an opportunity to work with our free, in-house Investment Coach, Naresh here at GRE to easily walk you through getting started with finding just which Florida market might be write for you, helping your write up the purchase contract, inspection, appraisal and all of that. Now, you might have been an income property buyer that's worked with Naresh already and maybe you feel a little bad that he's spending his time helping you for free, well, you shouldn't. I have endeavored to really reduce the friction for you by always finding a way to make things free and helping you add more rental property to your portfolio and in the spirit of creating less friction for you, often, though not always, the property provider helps Naresh with recompense in the form of a referral fee. So, Naresh does volunteer some of his time and resources for you, but he often is made whole that way, keeping it free for you. So, we are really making it easy for you here with low property prices, strong builder incentives and free investment coaching. Your opportunity to get the new-build, durable Florida product with management & incentives & free coaching. If it were any easier, someone would even make your down payment for you. Well, no one's going quite that far here. If it sounds interesting to you, this is the window of opportunity. You can get started at GREmarketplace.com/Southeast. Until next week, I'm Keith Weinhold. Don't Quit Your Daydream!

The Real Estate News Brief: Inflation Flip-Flop, Investor Purchase Activity, Big Landlords Gobbling Up SFRs

Play Episode Listen Later Mar 1, 2023 6:19

I n this Real Estate News Brief for the week ending February 25th, 2023... the latest disappointing report on inflation, a Q4 report on investor home-buying activity, and a new prediction for institutional ownership of single-family rentals. 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 that inflation remains stubbornly high. According to the Personal Consumption Expenditures index or PCE, the cost of goods and services rose .6% in January. That's the largest increase since last summer, and raises the annual rate from 5.3% to 5.4%. The core rate, which excludes food and fuel, was also up .6% and raises the annual core rate of inflation from 4.6% to 4.7%. The disappointing results follow two other hot inflation reports for January. It's not clear if this is just a blip in the battle against inflation or a change of course, but it does suggest that the Federal Reserve may keep its foot on the rate hike gas pedal. (1) The next meeting of the Federal Reserve Board is March 21st and 22nd, so a lot can happen between now and then. Fed officials raised the rate a quarter point during their February meeting to a range of 4.5 to 4.75%. The minutes show there's unanimous support for continued rate hikes although some Fed officials believe the economic risks have become more balanced and not just focused on inflation. A few members suggested the need for a half point rate hike to speed up the Fed's inflation-reducing strategy but it wasn't written into the minutes as an effort supported by all members. (2) (3) Several of the regional Fed Presidents also spoke out last week, including Cleveland Federal Reserve President Loretta Mester. She said last Friday that interest rates may need to move higher to curb inflation but she's still optimistic that it can be done without triggering a recession. (4) And it's “so far so good” for the job market. U.S. jobless claims were lower last week by about 3,000 to a total of 192,000. That's below the forecast and a sign of strength for the job market. (5) On to the housing market… New home sales were up 7.2% in January thanks to strong sales in the South. They were up 17.1% in the Southern region and down everywhere else. The Northeast had the biggest drop of 19.4%. U.S. year-over-year sales are still down 19.4%. (6) Existing home sales were also higher in the South and the West, but they were down overall by .7%. As reported by MarketWatch, the amount of sales activity was the lowest since October of 2010. Year-over-year, they were down 36.9%. (7) Mortgage Rates Mortgage rates floated higher last week. Freddie Mac says the average 30-year fixed rate mortgage was up 18 basis points to 6.5%. The 15-year was up 25 points to 5.76%. Freddie also said that as average rates rise, there may be a big difference in rates from lender to lender so it's best to shop around. (8) In other news making headlines… Real Estate Investor Activity Down Almost 50% in Q4 It isn't just retail home buyers who are sitting on the housing market sidelines. Many investors are too. A new Redfin report shows that investor home purchases were down 46% year-over-year in the fourth quarter, but the share of homes bought by investors is about the same. It slid from 19% to 18% for the year. (9) Redfin says that investors had piled into the market in 2021 because of low mortgage rates and high demand for housing. But many are now waiting for rates and prices to come down. Florida agent Elena Fleck says: “A lot of investors are on hold because they still see home prices declining.” She says: “The investors who are in the market are selective and aggressive. Many of them are only offering around 60% of the asking price since it's so difficult to make a profit when flipping homes right now.” Investor activity varies from market to market. The report says investors activity is down the most in pandemic boomtowns like Phoenix and Las Vegas. But there are many markets where the investor share of purchased homes is higher, including Miami, Jacksonville, Atlanta, and Charlotte. Will Institutional Investors Own 40% of Single-Family Rentals by 2030? The institutional ownership of single-family rentals could mushroom over the next several years. According to an analysis by MetLife Investment Management, their share was about 5% early last year, and by 2030, it could be more than 40%. That's about 7.6 million homes controlled by rental portfolio giants like Tricon Residential, Progress Residential, American Homes 4 Rent, and Invitation Homes. (10) Representative Ro Khanna from California authored the “Stop Wall Street Landlords Act of 2022.” If it passes, it would provide disincentives for institutional investors such as an excise tax on the sale or transfer of a single-family home that's equal to the price of the home. It would also eliminate deductions for mortgage interest, insurance, and depreciation. (11) That's it for today. Check the show notes for links, and join RealWealth if you'd like to know where it still makes sense to invest in single-family rentals. We're offering several market tours over the next few months. You can join RealWealth and check out the tours at newsforinvestors.com. 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/inflation-jumps-in-early-2023-pce-shows-and-stays-stubbornly-high-e406552a?mod=economy-politics 2 - https://www.marketwatch.com/story/fed-minutes-show-some-officials-thought-easier-financial-conditions-could-mean-tighter-monetary-policy-bf431e25?mod=federal-reserve 3 - https://www.cnbc.com/2023/02/22/fed-minutes-february-2023-minutes-show-fed-members-resolved-to-keep-fighting-inflation.html 4 - https://www.cnbc.com/2023/02/24/feds-mester-says-she-has-hope-that-inflation-can-be-brought-down-without-a-recession.html 5 - https://www.marketwatch.com/story/u-s-jobless-claims-stay-firmly-below-200-000-for-6th-straight-week-2ccc7a46?mod=mw_latestnews&mod=home-page 6 - https://www.marketwatch.com/story/u-s-new-home-sales-rise-by-7-2-despite-weakness-in-the-broader-sector-13f6dde4?mod=economic-report 7 - https://www.marketwatch.com/story/existing-home-sales-fall-for-the-12th-straight-month-in-january-lowest-since-2010-17a703ba?mod=economic-report 8 - https://www.freddiemac.com/pmms 9 - https://www.redfin.com/news/investor-home-purchases-q4-2022/ 10 - https://www.cnbc.com/2023/02/21/how-wall-street-bought-single-family-homes-and-put-them-up-for-rent.html?__source=realestate%7cnews%7c&par=realestate 11 - https://www.congress.gov/bill/117th-congress/house-bill/9246?s=1&r=2

A Quiet Place

toys merch quiet place jack ryan speed racer wachowski sfrs

Play Episode Listen Later Feb 24, 2023 57:52

2018 season concludes with long-time listener Colin's pick- A Quiet Place! Join us for a classic SFRS alien feasibility breakdown, great ideas for films that we should have redacted, unrelated Jack Ryan appreciation. And we re-rank Toys and end up with loads more problems with the rankings! Next week, Wachowski season begins with Speed Racer! Prepare to feel sick. Play along at home! Get in touch! Visit the Website! Watch us on Youtube! See the old list! Download the soundtrack! Buy our Merch! And we're on Instagram and Facebook too!

Real Estate News Brief: Fed's February Rate Hike, Elon Musk as Homebuilder, Realtors Love ChatGPT

Play Episode Listen Later Feb 10, 2023 6:49

In this Real Estate News Brief for the week ending February 4th, 2023... another Fed rate hike with an encouraging forecast for the coming months, what Elon Musk is doing with Lennar in Texas, and why real estate agents are embracing an artificial intelligence chatbot called ChatGPT. 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 the past week. The Federal Reserve's Open Market Committee hiked short-term rates by another quarter point, as expected. That raises the Federal Funds rate to a range of 4.5 to 4.75%. It's the highest it's been since October of 2007, and will likely go higher before the Federal Reserve is convinced that inflation is subsiding. During a news conference, Fed Chief Jerome Powell said: “While recent developments are encouraging, we will need substantially more evidence to be confident that inflation is on a sustained downward path.” (1) Economists are generally seeing at least one or two more quarter point hikes with the possibility of rate cuts after that. The weekly CNBC Fed Survey shows that 82% of participating economists are forecasting another quarter point hike in March as “baked in” with the possibility of a policy reversal after that, and rate cuts later this year. Only 51% are expecting a recession. That's down from 60% in recent surveys, but normal projections for a recession are more like 20%. (2) Jobless claims dipped again, despite recent layoff announcements. The government says there were 186,000 weekly unemployment applications which is down from 195,000 for the previous week. Ongoing claims were also down about 11,000 to a total of 1.66 million. According to MarketWatch, there has been a gradual increase of continuing claims since last spring which suggests that it's taking longer for people to find new jobs, but the job market remains tight. (3) The latest report on job creation shows that companies added 517,000 new jobs to the market in January while the unemployment rate went from 3.5% to 3.4%. That's the lowest it's been since 1969, and reflects the strength of the job market. Economist Sal Guatieri from BMO Capital Markets says of the report: “It raises serious doubts about the economy slipping into recession and the Fed ending its tightening cycle this spring.” (4) Home price growth has slowed for a fifth month in a row. The S&P CoreLogic Case-Schiller national index shows that it fell a seasonally adjusted .6% in November to an annual rate of 9.2%. The 20-city index was down .5% to an annual rate of 8.6%. Of those 20 cities, Miami, Tampa, and Atlanta topped the list for largest year-over-year gains, although prices are also lower in these cities. The only city with a decline in home price growth was Detroit but only by .1%. (5) The amount of money spent on construction was down in December. The Commerce Department says it fell a seasonally adjusted .4% to $1.81 trillion. Wall Street economists had expected a flat reading. Single-family construction was down 2.3%. (6) Mortgage Rates Mortgage rates dropped a bit closer to the 5% range. Freddie Mac says the average 30-year fixed-rate mortgage was down 4 basis points to 6.09% while the 15-year fell three points, to 5.14%. According to Mortgage News Daily, the average 30-year rate has already dipped below that 6% threshold to 5.99%. The big dip came right after Fed Chief Powell softened his language about inflation after last week's meeting and rate hike. Freddie says the lower rates will make it possible for as many as three million more people to qualify for a loan. (7) (8) In other news making headlines… Elon Musk Partners with Lennar in Texas Elon Musk is expanding his footprint in Texas with a community of about 100 workforce homes. He's teaming up with Lennar to build the homes in the Pflugerville area, north of Austin, where the Boring Company is headquartered. The development is being affectionately called “Project Amazing” with some Musk-inspired street names that include: Boring Bulevard, Cutterhead Xing, Porpoise Place and Waterjet Way. (9) Real Estate Industry Embraces ChatGPT Real estate agents are embracing the artificial intelligence chatbot ChatGPT. Business Insider says realtors are using it for emails, property listings, social media posts, and newsletters. According to Iowa real estate agent JJ Johannes: “It's not perfect but it's a great starting point.” He says the chatbot uses all the lingo you'd expect to see in a listing like “open floor plan” and “recently updated.” You can also add to the listing after it's written if you think that details were left out. Miami broker Andres Asion offered another example, he was unsuccessful at getting a developer to correct a problem with some windows until he asked ChatGPT to write the email as a legal issue. He says the developer showed up at the owner's home shortly after that email was sent. The artificial intelligence chatbot was introduced to the public just a few months ago. It is currently free to use, but some people are saying they'd gladly pay 100 to $200 a month for access. That's it for today. Check the show notes for links at newsforinvestors.com, and join RealWealth for more information about real estate investing. It's free to join and get access to all our data including our virtual live event on February 11th. It's called “Why You Should Invest in Real Estate in 2023” and features 11 property teams and 1 commercial broker. Once you sign up as a member, it takes about two seconds to register for the event at our website. And don't forget to subscribe to the podcast if you haven't already, and leave us a review! Thanks for listening. I'm Kathy Fettke. Links: 1 - https://www.cnbc.com/2023/02/01/fed-rate-decision-february-2023-quarter-point-hike.html 2 - https://www.cnbc.com/2023/01/31/why-the-case-is-growing-for-a-fed-rate-cut-before-year-end.html 3 - https://www.marketwatch.com/story/u-s-jobless-claims-drop-to-nine-month-low-of-183-000-11675345085?mod=economy-politics 4 - https://www.marketwatch.com/story/u-s-adds-517-000-new-jobs-in-january-in-sign-labor-market-still-strong-11675431419?mod=home-page 5 - https://www.marketwatch.com/story/u-s-home-prices-fall-for-5th-straight-month-in-november-case-shiller-index-shows-11675174667?mod=economy-politics 6 - https://www.marketwatch.com/story/u-s-construction-spending-falls-in-december-11675264823?mod=economic-report 7 - https://www.freddiemac.com/pmms 8 - https://www.cnbc.com/2023/02/02/mortgage-rates-five-percent-range-first-time-september.html 9 - https://therealdeal.com/texas/2023/01/30/elon-musk-lennar-plan-workforce-housing-near-boring-co/ 10 - https://www.businessinsider.com/realtors-using-ai-chatgpt-to-write-property-listings-emails-2023-1

The Real Estate News Brief: Inflation Dips, Midwest Attracts Attention, New Baby Boom?

Play Episode Listen Later Jan 18, 2023 6:34

In this Real Estate News Brief for the week ending January 14th, 2023… the good news about inflation, a few new potentially hot real estate markets, and the recent surge in U.S. population growth. 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 good news about inflation. For the first time since the beginning of the pandemic, consumer prices were down. The Labor Department reports that the Consumer Price Index fell .1% in December. The decline brings the annual rate of inflation down from 7.1% to 6.5%. It was up as high as 9.1% last summer. The core rate of inflation is considered a more accurate gauge of inflation because it eliminates food and gas prices which can be volatile. That rate was down .3% to a core rate of 5.7%. (1) The December reading is proof that inflation is subsiding, and is giving economists hope that the Federal Reserve will back off on the rate hike gas pedal. Senior economist Dean Baker at the Center for Economic and Policy Research says: “It's time for the Fed to declare victory and stop the rate hikes!” But in general, economists don't think that will happen. Instead, they are predicting the Fed will go easy on the rate hikes with a quarter point hike at their meeting on February 1st, and possibly another quarter point hike in March. That would bring the Federal Funds rate to a range of 4.75% to 5%. What happens next might be too far off to predict, but economists at the CME Group are forecasting a pause followed by a half point rate cut later this year. (2) The job market continues to show strength. New claims for unemployment benefits were down last week to 205,000. That's a 1,000 claim drop from the week before. Wall Street economists had expected a 10,000 claim increase. There were also 63,000 fewer continuing claims for a total of 1.63 million people collecting unemployment benefits. (3) Consumers are feeling much more confident about the economy. The University of Michigan's consumer sentiment index jumped from 59.7 to 64.6 in December. That's still far from a peak of 88.3 in April of 2021, but it's a big improvement over recent levels. (4) Mortgage Rates Mortgage rates swung lower last week. Freddie Mac says the average 30-year fixed rate mortgage was down 15 basis points to 6.33%. The 15-year was down 21 points to 5.52%. (5) And they could be heading lower. Economist Nadia Evangelou of the National Association of Realtors believes the 30-year will dip below 6% in the near future, and will likely stabilize in the 5% range for the rest of the year. (6) In other news making headlines… Rent Growth Is Slowing Down Renters are expected to gain some bargaining power in 2023 as rent growth slows, and the vacancy rate rises. According to ApartmentList, the national median rent growth was 3.8% last year, and it's expected to slow further this year. The report shows that 90 of the nation's 100 largest cities saw an end-of-the-year decline for apartment rents with a vacancy rate of 5.9%. (7) But not all markets are created equal. The Sun Belt markets have experienced phenomenal growth over the past few years. According to some analysts, they may have hit a growth peak, with cities like Tampa and Tucson gaining almost 40% in rent growth. Although demand is still driving those markets, Apartment List expects more affordable cities in the Midwest to attract attention this year. It says that during the last six months, the top three cities for growth were the Midwestern cities of Indianapolis, St. Louis, and Oklahoma City. North Texas Popularity Universal Studios is also recognizing North Texas as a strong growth market, with the announcement of a new theme park. It plans on building a 97-acre theme park in Frisco, Texas, where the population has almost doubled from 117,000 in 2010 to more than 200,000 in 2020. Frisco Mayor Jeff Cheney said in a statement: “Frisco is one of the fastest growing cities in the U.S. and has been recognized as a great place to plant professional roots and raise a family.” (8) Frisco is part of an area north of Dallas that is attracting technology companies, including several large chip-making facilities. That's creating tens of thousands of jobs, and a strong demand for housing. This is why we started our Texas Single Family Rental Fund – to help investors capitalize on the growth in this area. If you want to find out more about that, go to GrowDevelopments.com. Post-Pandemic Baby Boom U.S. population growth rebounded during the last two years. According to Census Bureau data, it hit an historically low birth rate of .16% between 2020 and 2021. And then it went into overdrive, and jumped to .38% from 2021 to 2022. That growth spurt added about 1.25 million people to the population roster for a total of 333 million. Florida was the fastest growing state with a growth rate of 1.91%. It also had the second largest numerical increase of 416,000. Texas was first on that list with about 470,000 more people. Both Texas and California have the largest populations in the nation with more than 30 million people each. That's it for today. Check the show notes for links. And please remember to hit the subscribe button, and leave a review! You can also join RealWealth for free at newsforinvestors.com to learn more about how you can build generational wealth with real estate. Thanks for listening. I'm Kathy Fettke. Links: 1 - https://www.marketwatch.com/story/inflation-softens-at-the-end-of-2022-and-clears-path-for-slower-fed-rate-hikes-11673530439?mod=economic-report 2 - https://www.cnbc.com/2023/01/12/time-for-the-fed-to-declare-victory-on-inflation-not-yet.html 3 - https://www.marketwatch.com/story/jobless-claims-show-no-spike-in-layoffs-11673531088?mod=economic-report 4 - https://www.marketwatch.com/story/u-s-consumer-sentiment-jumps-to-nine-month-high-as-high-inflation-ebbs-11673622868?mod=economy-politics 5 - https://www.freddiemac.com/pmms 6 - https://www.nar.realtor/magazine/real-estate-news/economist-mortgage-rates-will-dip-below-6-soon 7 - https://www.bisnow.com/national/news/multifamily/rental-rates-cooling-in-2023-the-midwest-surprises-117053 8 - https://www.bisnow.com/dallas-ft-worth/news/commercial-real-estate/a-universal-studios-theme-park-is-headed-for-north-texas-117148 9 - https://eyeonhousing.org/2023/01/u-s-population-growth-rate-rebounds-in-2022/

Commercial Properties Face “Refi Reckoning”

Play Episode Listen Later Jan 10, 2023 6:21

The commercial real estate market is in for a rough ride this year. Many mortgages become due in 2023, and refinancing could be impossible for some property owners because of high interest rates. That situation is expected to shake things up a bit, and lead to more defaults, subleasing, and vacancies. As a MarketWatch headline suggests: “The party is over in commercial real estate.” (1) 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. Lenders say there's an estimated $450 billion worth of commercial real estate loans coming due within the next four years. Property owners will be forced to refinance at much higher interest rates, for properties that may have also lost value. It's a double whammy that could result in property sales and/or bankruptcies. Higher Rates & Lower Valuations And that's not including a decline in lease renewals, which is already happening. You may have seen headlines about some of the big tech companies cutting down on their square footage – companies like Amazon, Meta, and Salesforce. According to Western Asset Management's Greg Handler: “You had all these large tech companies signing big new leases, which was getting the market comfortable with the idea that the office sector was going to recover over the long term.” But with many companies retreating, Handler says there are big questions as to “who is going to pick up the extra square feet, and at what price.” As MarketWatch reports: “Landlords tend to default when debt comes due and financing dries up, a situation that can be exacerbated when a property's cash flows or valuation falls.” Bank of America's Alan Todd says of the situation: “If you're in a property where valuations are lower (and) your rate is significantly higher, how are you doing to refinance successfully?” CRE Price Growth Slows, but Positive Commercial property prices haven't dropped significantly yet. One index mentioned in the MarketWatch article says they are still up 7.3% for the year, and 123.5% from 10 years ago. But Todd at BofA thinks they could be headed lower by as much as 20 to 30%. He says: “You're talking about a secular, not cyclical, change for certain property types, whether those are regional malls or some of the lower quality offices. Some of those could be fairly problematic.” Steve Madura of Illinois' Hilco Real Estate offered a much bleaker forecast for commercial real estate in a Bisnow article. His company specializes in distressed assets, and he says the need for companies to repay or refinance mortgages will lead to a so-called “reckoning” that will (quote) “dwarf the 2008 financial collapse.” (2) Madura is calling the mix of high interest rates and a frozen capital market a “distress bubble.” He says distress is happening sooner than expected, and the impact could ripple through the market. As more and more borrowers face the need for refinancing, we may see more of them heading for the exit. Distress Creates Investing Opportunities Of course, that kind of distress creates investing opportunities, but Madura sees it as potentially too much of a good thing. He says: “There are huge rows of office buildings in Chicago with 50% vacancy rates. Do you want to convert that many office buildings to residential? That only goes so far.” That doesn't mean commercial investors should ignore office space. Real estate strategist Andy Graiser says that some investors believe they should wait for a better deal later this year, but he says it might be wise to grab a deal now if it's a good property, and the numbers make sense. He says: “The demand is out there.” Oxford Economics expects somewhat of a downturn. Its research shows a (negative) -2.2% total return for commercial real estate in 2023. In 2022, that figure was a (positive) 4.2%. The retail and hotel sectors are expected to be the only ones that will end the year with a positive total of 1.8% and 1.2% respectively. A decline of 5% is expected for residential property. (3) Reshuffling of Real Estate Fortunes Although real estate experts anticipate another difficult year for commercial properties, they are also seeing the beginning of a reshuffling of real estate fortunes. Bei Capital founder Collin Lau told Bisnow that he expects interest rates to peak, plateau, or potentially decline in the first quarter. He says: “As interest rates start to normalize, that will bring investors back to the market.” The Bisnow article goes into more depth on the topic. You can reference that article and the others mentioned int this podcast in the show notes at newsforinvestors.com. Our plan at Real Wealth is to wait until commercial property values find their floor, as we believe values are still uncertain and in some cases, a free fall. We expect to be more active in underwriting commercial property sometime in mid to late 2023. Meantime, we are focused on acquiring single-family homes in both cash flow and growth markets. With interest rates up, fewer people can afford to buy a home but still want to live in one. The demand for renters is strong, yet competition among buyers is low. Sellers are discounting prices and even paying points to buy down the rates, increasing cash flows. This is also why we are focused on building our single-family rental fund, that has an 8% target return with very conservative underwriting. You can find out more at GrowDevelopments.com. And if you want to build your rental portfolio, visit newsforinvestors.com where you will get data on the strongest rental and growth markets nationwide, along with referrals to experienced brokers and property managers in those markets that come highly recommended by RealWealth's over 66,000 members. Thanks for listening! Links: 1 - https://www.marketwatch.com/story/the-party-is-over-in-commercial-real-estate-heres-what-to-expect-in-2023-11671711842 2 - https://www.bisnow.com/national/news/top-talent/distressed-asset-specialists-see-deals-in-reckoning-that-dwarfs-08-collapse-116944?utm_source=outbound_pub_58&utm_campaign=outbound_issue_63533&utm_content=link&utm_medium=email 3 - https://www.bisnow.com/london/news/capital-markets/youre-probably-going-to-lose-money-in-2023-but-theres-light-at-the-end-of-the-tunnel-116993

Surge in Rent Control Activity Expected in 2023

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Play Episode Listen Later Dec 23, 2022 5:52

Rent growth has been slowing down in step with the economy, but it's still running hotter than it was before the pandemic. And that's expected to encourage more jurisdictions to consider and or pass rent control legislation. Even Florida is turning towards rent control as an answer for high rents. 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 Bisnow reports, rents remain “painfully high” for many Americans, despite slower rent growth for both single-family and multi-family rentals. (1) Year-over-year single-family rent growth hit a high of 13.9% in April of last year, but has been slowing down for the last five months. It's still in the double digits, but is now 10.2%. Florida metros have seen the highest SFR rent growth with Miami and Orlando at the top of that list. (2) It's a similar situation for apartments but rent growth has come down further. Annual rent growth hit a record high of 17.6% in 2021. It's now down to 4.6% year-over-year, although that's still a healthy gain for landlords. (3) Rent Growth vs. Wage Growth Because rent growth has outpaced income, many households are finding it more difficult to pay their rent. According to the U.S. Census Bureau, more than 19 million renter households paid more than 30% of their income on housing from 2017 to 2021. That's defined as “cost-burdened” by the Department of Housing and Urban Development. Housing costs vary from market to market, but the National Multifamily Housing Council, which advocates “against” rent control, has identified a number of markets that could become rent control battlegrounds in the coming year. These markets are identified in the NMHC's 2023 Rent Control Outlook report. (4) Four Rent Control Risk Levels The report separates the potential for rent control activity into four categories. Tier one includes states where “active state or local legislation action is expected.” Those states include: Colorado, Illinois, Florida (which has been notoriously opposed to rent control), Maryland Massachusetts, Nevada, and Washington State. Tier two includes states where the potential for state or local legislative activity is “elevated.” Those states include Connecticut, Hawaii, Michigan, New Mexico, and Rhode Island. Tier three includes states where rent control activity is expected, but will probably not get approved. Those states include Arizona, Kentucky, North Carolina, Pennsylvania, and South Carolina. The last category is where rent control expansion is an ongoing threat. California and New York are among those states, of course, along with Maine, Minnesota, New Jersey, and Oregon. Rent Control Minefield for Investors Rent control can be a minefield for investors, especially if they purchased a property under one set of rules, and then the rules change. It costs money to run a rental business, and when rents are controlled, rent revenues suffer. Investors may be less likely to put money into rentals, which could impact repairs on existing rentals and/or reduce the overall supply and make it harder for renters to find housing. A cap on rents could also reduce the value of the property. Bisnow cites a study published in October by Duke Financial Economics Center. It found that property values declined 6% in St. Paul, Minnesota during the first three months after rent control was implemented last year. That's for all rental and non-rental properties. For rental properties alone, values were down an additional 6% to a total of 12% due to lower future rents. The report says that lost property value essentially transferred that value from the owners to the renters. White House Silent on Presidential Executive Order While the NMHC anticipates activity at the local and state levels, some rent control advocates are floating the idea of an executive order by President Joe Biden that would impose some sort of rent control. So far, the White House has been silent on that matter. It did enact a housing plan in May that would “ease the burden of housing costs” but that plan did not include rent control. It just offered general policy proposals that include zoning reforms, new kinds of financing, and federal dollars for affordable housing. As what might be seen as a follow-up to this, a coalition of more than 2,500 nonprofits and public agencies wrote a letter to Congress asking for affordable housing legislation. The letter is addressed as a “Call to Invest in Our Neighborhoods” or ACTION. Specific requests in the letter call for a 50% expansion of the Low-Income Housing Tax Credit and a lower Private Activity Bond financing threshold of 25%. It is currently at 50%. According to a Realtor.com survey, 70% of landlords said in October that they plan to raise their rents over the next year. That is down from about 72% last spring. You'll find links to the reports I mentioned in the show notes at newsforinvestors.com. You can also join RealWealth for free while you are there for access to all our real estate news, educational material, and data on individual markets. Please remember to subscribe to our podcast and leave a review! Thanks for listening! LInks: 1 - https://www.bisnow.com/national/news/multifamily/as-rents-spiked-this-year-so-did-the-push-for-rent-control-116806 2 - https://www.corelogic.com/intelligence/corelogicannual-single-family-rent-growth-decelerates-for-fifth-consecutive-month-and-seasonal-patterns-return/ 3 - https://www.apartmentlist.com/research/national-rent-data 4 - https://www.nmhc.org/news/nmhc-news/2022/2023-rent-control-outlook/

The Hollywood Note Investor w/ Marco Bario

The Real FI

Play Episode Listen Later Dec 20, 2022 64:28

Our guest Marco Bario transitioned from a career in the Hollywood TV and film industry to become a full-time real estate note investor. Today, Marco is the President and Founder of Porch Swing Funding, a niche and focused business that allows those owning seller-financed mortgage notes to sell their future payments for immediate cash. Marco's investment history includes passive commercial syndications, SFRs, and various iterations of note investing. Tune in to learn about what jurisdictions are best suited for note investing, and how to purchase seller-financed notes for pennies on the dollar!You can connect with our guest online at https://porchswingfunding.com/ where you sign up for his newsletter. Do you have any questions you'd like for us to answer on the show, or a success story you'd like to share? Shoot us an email to info@TheRealFI.com and we'd be happy to connect with you. And If you haven't done so already, please leave us a glowing 5 start review on your podcasting platform–it would really help us out!You can connect with you hosts on instagram:James on Instagram: @James_RippeonPatrick on Instagram: @RentalPropertyCoupleLet's kick the 9 to 5!Decide. Commit. Take Action!

Keeping up with Real Estate Data Sources for 2023 (LA 1918)

Land Academy Show

Play Episode Listen Later Dec 19, 2022 12:45

Transcript: Steven Jack Butala: Jack and Jill here. Jill K DeWit: Hello. Steven Jack Butala: Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala. Jill K DeWit: And I'm Jill DeWit, broadcasting from the Valley of the Sun. Steven Jack Butala: Today Jill and I talk about keeping up with real estate data sources in 2023. I'm going to tell a story here in a minute about explaining our business model to younger people recently and being laughed at pretty directly about how archaic they seem to think that it is. And then I think we all can learn something from it. Jill K DeWit: Cool. Steven Jack Butala: Before we get into it, let's take a question posted by one of our members on the landinvestors.com online community. It's free. Jill K DeWit: Ryan wrote, "Hi all. I'm new to Land Academy as of a few days ago. I am new to land in general, but not to SFRs. I've done one land deal within the past month which has led me into Land Academy. I've watched Land Academy 3.0, I'm currently rewatching the video on DataTree and pulling a list. One thing I've encountered that I would love some clarity on is when you pull your list, how are you ensuring they are not church owned, HOA owned, et cetera. In the videos, Steve searches through a couple of records, but he doesn't have a method of bulk scraping out these type of properties In your opinions, is this something to care about or you just pull your list, scrub out the assessed improvements, and then mail it? I hope this question makes sense and thank you for the feedback and I'm stoked to work and learn with you all." That's cool. Steven Jack Butala: Thank you for this question. And the question completely makes sense and it's a great one. So there's a reason I put it in this episode. So here's the deal. There are amazing improvements and ways to pull data, scrub it, and actually create a mailer and get it in the mail. If I talk about all of those in chapter four of Land Academy 3.0, a substantial number of people will get freak out and abandon the idea of sending a mailer out. So I have to teach the basics on a screen. And then this environment, which I love this question, is for us to address, "Hey, there might be a better way for you." If you're a super tech savvy person. The old way works great. Is it the fastest? Nope. Is the most accurate? I think so. But there are all kinds of ways to make it faster. That's kind of what this episode is about. So the fastest and easiest way to scrub out people who own property, or entities that own property, in a mailer data set is to write a macro and YouTube's plastered with all kinds of those things and they are keywords. So I do address this in a pretty direct and simple manner in the program, just follow the program and you're going to do fine. If you want to write a macro to eliminate church owned properties and stuff, which I don't think you should eliminate churches at all. Jill K DeWit: No, I bought from churches. Steven Jack Butala: Right. Jill K DeWit: Churches are great. Steven Jack Butala: We all have. But there are place, like you don't want to send a letter to the United States government. So the US owns a lot of property and they end up in all of our data sets and they just need to be scrubbed out. You can write a real simple macro to do that. And that's what this episode's about is talking about making this more efficient. Jill K DeWit: Well, you know what I was going to say too is I bought and sold properties that are in an HOA, so I don't want those out. Steven Jack Butala: Yeah. Jill K DeWit: So you got to really take a step back and think about what you're trying to take out. Steven Jack Butala: Yeah, in general you don't want to make a data set smaller, but you also don't want to waste money on stamps On a mail on the mail. And I say stamps figuratively. Today's topic, keeping up with the real estate data sources for 2023. This is the meat of the show. A couple days ago,

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Casey Franchini is a testament to the time-tested adage of “slow and steady wins the race”. Since 2007, Casey has been acquiring rental properties one-by-one and building her portfolio. Today, she's amassed 6 SFRs that gross $100k/year, and has plans on getting into the STR space to bump up her income and FI numbers. Tune in to hear about Casey's story and building a sold rental portfolio!You can connect with our guest on Instagram @brickbybrickwealth.Do you have any questions you'd like for us to answer on the show, or a success story you'd like to share? Shoot us an email to info@TheRealFI.com and we'd be happy to connect with you. And If you haven't done so already, please leave us a glowing 5 start review on your podcasting platform–it would really help us out!You can connect with you hosts on instagram:James on Instagram: @James_RippeonPatrick on Instagram: @RentalPropertyCouple Let's kick the 9 to 5!Decide! Commit! Take Action!

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420: Crashing Rent Crisis? and Baltimore, Philadelphia, Pittsburgh Markets

Play Episode Listen Later Oct 24, 2022 44:06

In times of high inflation, don't rents have to collapse? Tenants are getting squeezed, paying more for food, gas, medical care, and everything else. Won't rents have to fall? Will this create a crisis for landlords too? If tenants can't pay the rent, landlords must still pay property expenses. Historically, what happens is opposite of what most think. So I explore what happened in high inflation 40+ years ago to forecast what will likely happen in the future. There are three reasons why rents soar in high inflation: 1) tenants move down a class, 2) doubling up as roommates, and 3) today's low housing supply and high demand. Rents are up 12% year-over-year today for both SFRs and apartments. Real Estate Pays 5 Ways™, not four or six. Get started with income property in Baltimore, Philadelphia, and Pittsburgh at: www.GREmarketplace.com/Coach Our in-house coach, Naresh, will help you. His services are free. Both urban and suburban properties are available. Urban areas often have a high Walk Score. The rent-to-price ratios in these three mid-Atlantic markets often exceed 0.9% and even 1%. Before you buy, you already have an inspection report, desktop appraisal, and placed tenant's payment history in-hand. These rowhouses are often priced at a 20% discount. 3 bed / 1 bath is common. Resources mentioned: Show Notes: www.GetRichEducation.com/420 Get started with income property in Baltimore, Philadelphia, and Pittsburgh at: www.GREmarketplace.com/Coach Rents In High Inflation: https://www.realpage.com/analytics/rents-move-high-inflation-market-look-1970s/ Current US housing supply: https://fred.stlouisfed.org/series/ACTLISCOUUS Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com JWB's available Florida income property: www.jwbrealestate.com/gre or (904) 677-6777 To learn more about eQRPs: text “GRE” to 307-213-3475 or: eQRP.co Available Central Florida new-build income properties: www.b2rdirect.com Analyze your RE portfolio at (use code “GRE” for 10% off): MyPropertyStats.com Memphis property that cash flows from Day 1: www.MidSouthHomeBuyers.com I'd be grateful if you search “how to leave an Apple Podcasts review” and do that for the show. Best Financial Education: GetRichEducation.com Get our free, wealth-building “Don't Quit Your Daydream Letter”: www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

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416: War Against STRs, Tenant Retention, Mortgage Lessons

Play Episode Listen Later Sep 26, 2022 41:12

Residential real estate has greater usefulness and is easier to understand than: agricultural, office, retail, industrial, and warehouse real estate sectors. Tenants are staying in both SFRs and apartments longer than before. I discuss three reasons for today's longer tenant retention trend. Higher mortgage rates correlate with higher home prices. In fact, in the nine times mortgage rates increased 1%+ since 1994, home prices rose seven of those nine. During recessions, mortgage rates typically fall. Both are opposite of what most people think. Resort communities are almost declaring war against short-term rentals. I explore the depth of the problem and discuss solutions. Are the wealthy at fault? People that grew up in an area cannot afford housing in these STR hotbeds. Resources mentioned: Show Notes: www.GetRichEducation.com/416 How to Raise The Rent and Keep Tenants Happy (Video): https://youtu.be/sqFwbn4yFhA 40-Year Mortgages: https://www.housingwire.com/articles/newrez- debuts-40-year-non-qm-mortgage-product/ Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com JWB's available Florida income property: www.jwbrealestate.com/gre or (904) 677-6777 To learn more about eQRPs: text “GRE” to 307-213-3475 or: eQRP.co Available Central Florida new-build income properties: www.b2rdirect.com Analyze your RE portfolio at (use code “GRE” for 10% off): MyPropertyStats.com Best Financial Education: GetRichEducation.com Get our free, wealth-building “Don't Quit Your Daydream Letter”: www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

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The Building Blocks of a Recession-Proof Investment Property