BiggerPockets Real Estate Podcast

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(00:00) Intro

(03:18) Active vs. Passive Investing

(09:13) Who Should Passively Invest?

(14:45) Better Returns with Passive Investing?

(19:20) Who Should Actively Invest?

(25:42) Real Estate Note Investing

(28:59) Best Active and Passive Investments

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1025

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A Better Retirement After Buying Just ONE Rental (and Never FOMO-ing) Sep 30, 2024

Show notes

Mike Baum owns just one rental property, but this one property alone has changed his life. It’s allowed him to become such an investing expert that he’s constantly being asked for his opinion on the BiggerPockets forums, and he provides some of the most well-thought-out investing advice on the internet. So why does he have just one rental property, and why doesn’t he grow using his expertise? The answer isn’t that obvious.

You wouldn’t know it, but Mike is permanently disabled. After overworking so hard that he ended up losing his vision, he was placed on disability for the rest of his working career. This high achiever was forced to slow down and find something else that could replace his day job. Shortly after his diagnosis, he found BiggerPockets and turned a family vacation home into a short-term rental.

Now, he’s got systems and processes that help him self-manage with very few headaches, and he will probably keep this property as his one and only rental for life. Why didn’t he “FOMO” in when everyone was gobbling up real estate in 2020? Why didn’t he grow his portfolio to become the next tycoon? Mike has some clear answers for why he did what he did, and after listening to him, you might change what you want, too.

In This Episode We Cover:

Why you DON’T need a large real estate portfolio to find financial success when investing

Why Mike tells beginner investors that they should NOT buy a short-term rental property

The systems and processes Mike made to automate his vacation rental self-management (so he works less!)

One thing you should do NOW before you start investing in real estate (it’s free!)

The real result of “FOMO” investing and how to stop shiny object syndrome from blowing you off course

And So Much More!

Links from the Show

Short-Term Rental & Airbnb Investing Forum

Ask Your Question on the BiggerPockets Forums

Grab the Book, “Short-Term Rental, Long-Term Wealth”

Investing in Short-Term Rental Properties: A Beginner’s Guide & How to Get Started

Connect with Mike

(00:00) Intro

(02:34) Losing Sight After Overworking

(05:24) Empty Lake House?

(08:52) Managing a Vacation Rental

(12:20) Know This BEFORE You Buy

(17:17) Just ONE Property

(20:56) No-FOMO Investing

(26:21) A “Very Interesting” 2025

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1024

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BiggerNews: 2 Real Estate Markets That PROVE Cash Flow Is Alive in 2024 Sep 27, 2024

Show notes

Cash flow is hard to find in 2024, but these real estate markets have plenty of it. Since so many previously “cash-flowing” markets have seen rising prices, higher expenses, and limited housing inventory, we went back to the drawing board to reevaluate which markets in the United States offer the most cash flow potential. Today, we share these markets and hone in on two specific ones with real-life on-market examples to prove that cash flow is still possible.

But before we get into that, we’re sharing the cash flow formula even beginners can use to quickly calculate whether a rental property will cash flow. Then, we describe what type of cash-on-cash return WE target in today’s market and list some of the most cash-flowing markets of 2024.

Want to see real cash-flowing rental property examples? We’re hopping over to BiggerPockets Deal Finder as we quickly analyze two separate rental properties in two cash-flowing markets to prove that these properties do sport some serious cash flow. Don’t believe us? Head over to BiggerPockets Market Finder, where you can see the nation’s top rent-to-price investing areas (that’s where the cash flow is!).

In This Episode We Cover:

Two cities that have cash-flowing rental properties for sale RIGHT NOW

Precisely how to calculate cash flow for rental properties (and why most investors do this wrong)

The optimal cash-on-cash return we target that properties must meet before we bid on them

The 1% rule explained and whether or not it’s still worth using in 2024

When to sell a cash-flowing rental, even if it’s making you mailbox money every month

And So Much More!

Links from the Show

BiggerPockets Real Estate Investment Calculators

On the Market

BiggerPockets YouTube

Try BiggerPockets Deal Finder

Learn All the Rental Property Formulas with “Real Estate by the Numbers”

See Dave and Henry at BPCON2024 in Cancun!

Top 10 Real Estate Markets for Cash Flow in 2024

Connect with Henry

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1023

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

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What to Invest in When You’re NOT Buying Real Estate Sep 25, 2024

Show notes

Struggling to pick what to invest in, especially when real estate prices and mortgage rates are still so high? Many investors are sitting on the sidelines, saving cash for their first or next investment property, but nothing seems to work out. So what do you do, keep your money socked away or invest in other assets that aren’t real estate while waiting for the right time to pull the trigger? We know many of you are in this position, so today, we’re sharing what we’re investing in that ISN’T real estate.

This may be a surprise, but even some of the most well-known investors in the BiggerPockets universe aren’t 100% in real estate. Dave Meyer, Brian Burke, and Mindy Jensen all don’t have even half of their net worths in real estate investments. As such respected real estate investors, what else are they putting their money into that ISN’T more rental properties?

In this episode, you get to peek into our investment accounts as we share exactly what we’ve been investing in, how we diversify our investment portfolios, and the “riskier” assets we put our money into that you may not even know exist. So, if you’re struggling to buy real estate or just don’t think investment properties are for you, worry not; you can still build wealth without purchasing a property.

In This Episode We Cover:

Alternatives to real estate investing that we’re investing in NOW

Diversifying your investment portfolio and why you SHOULDN’T hold just one type of asset

The “riskier” investments that we’re making and how much money we allocate for them

De-risking your portfolio by buying safer, passive, less volatile assets

What beginners should do to build wealth even with a small(er) amount of money

Whether to continue waiting on the sidelines or start investing NOW

And So Much More!

Links from the Show

BiggerPockets Money Podcast

On the Market

Get Banking Built for Landlords with Baselane

Invest Passively with Brian’s Book, “The Hands-Off Investor”

See Dave and Mindy at BPCON2024 in Cancun!

Real Estate Isn’t Enough—Here’s How Three Pro Investors Diversify Their Portfolios

Connect with Brian

Connect with Mindy

(00:00) Intro

(03:16) How Much Real Estate We Own

(06:33) Allocating Your Cash

(11:17) "Riskier" Investments

(18:40) What Beginners Should Do

(27:51) Diversifying Your Real Estate

(35:32) Wait to Buy?

(38:49) What We WANT to Invest In

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1022

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

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Turning One Property into an Entire Portfolio by Doubling Down on This Niche Sep 23, 2024

Show notes

“Glamping” investments have slowly become massive money-makers in the real estate industry. What used to be someone setting up a tent and potentially a portable toilet for guests looking to get into nature has now become a full-blown luxury business that travelers will pay good money to get a taste of. One large glamping property allowed today’s investor, Garrett Brown, to replace his music producer job and reach levels of success most short-term rental investors can only dream of.

Garrett owns a ten-acre piece of land in a lake town outside Houston, Texas. Even though many non-Texans won’t be familiar with the area, local travelers flock to it to escape the big city. Since buying the property, Garrett has made some serious expansions, such as building cabins (and even geo-domes) with WiFi, running water, and the creature comforts many of us don’t want to live without.

Plus, Garrett is doing it all while getting most of his bookings directly from social media. That’s right, he has (mostly) cut out Airbnb and other middlemen booking platforms, so he keeps much more of the profit and even gets his guests to upgrade with “add-on packages” that make the deal even sweeter. You can do it, too, but you’ll need to hear how Garrett does it in this episode!

In This Episode We Cover:

Why “glamping” has become such a popular (and profitable) version of short-term rental investing

The “sixty-thirty-ten” rule that helps you identify the best areas for short-term rentals

Leaving your career to build income streams that don’t take up all of your time

How to get seventy to eighty percent of your guest bookings through direct booking

Why you should offer your guests “add-on packages” that help make YOU more revenue

The reason you should “start small” when building out your glamping sites

And So Much More!

Links from the Show

Put Your Vacation Rental on Autopilot with Hospitable

Grab the Book, "Short-Term Rental, Long-Term Wealth"

See Dave and Garrett at BPCON2024 in Cancun!

Investing in Short-Term Rental Properties: A Beginner’s Guide & How to Get Started

Connect with Garrett

(00:00) Intro

(01:49) Music Producer to…Real Estate?

(08:50) His First House Flip

(11:50) Switching to Short-Term Rentals

(18:11) Buying 10 Acres and Building Cabins

(23:57) Can Anyone Do This?

(30:21) Getting Guests Through Social Media

(34:33) Start Small!

(36:31) Learn from Garrett!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1021

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

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BiggerNews: Renters Regain Control and a New Rent Price Forecast for 2025 Sep 20, 2024

Show notes

Rent prices have come down to earth after their meteoric growth of 2020 - 2022, but what will they do in 2025? Will we continue to see slow (or no) rent price growth, or could lower interest rates push more households to form and demand to jump? With so much multifamily housing supply and the Fed’s recent rate cut decision, we’ve got a lot to unpack on this BiggerNews episode. Thankfully, we have Apartment List’s Chief Economist, Igor Popov, to help us.

We’re talking about rent prices: where they are, where they’re going, and what’s impacting them in 2024 (and into 2025). Unsurprisingly, we’ve got a lot of multifamily supply—apartments are giving huge concessions to lease up. But what if we told you we were oversupplied AND undersupplied at the same time, and in a few years' time, demand could heat up again?

Igor gives a rare 2025 rental market forecast, his take on what’s impacting rent growth, and whether the “oversupply” of multifamily is hurting single-family rental investors’ chances to get higher rents.

In This Episode We Cover:

A 2025 rental market forecast and whether we’ll see rents grow, decline, or flatten next year

The areas where all the rental money is moving to (things have REALLY changed)

More renter control as the oversupplied multifamily market searches for tenants

Why the housing market is currently in a dangerous flood-drought combination

Will sluggish multifamily rent prices push single-family rents down with them?

And So Much More!

Links from the Show

Invest in Turnkey Properties with REI Nation

Apartment List Research

Grab Dave’s Newest Book, “Start with Strategy”

What Happens to Rent Prices When 1,000,000 New Units Come Online in 2024?

(00:00) Intro

(03:55) Anything But “Normal” Rent Prices

(08:54) Money is in Suburbs

(12:59) More Renter Control

(17:00) Multifamily vs. Single-Family Rents

(18:09) Lots of Supply, Not Enough Supply

(23:08) 2025 Rent Prediction

(25:52) Learn More from Igor!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1020

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

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Don’t Do What I Did On Your Next Property…w/Craig Curelop Sep 18, 2024

Show notes

Can your mistakes make you a millionaire? If you’re like Craig Curelop and learn from what went wrong, then yes! Craig is now financially free, with millions of dollars in equity, thousands in monthly cash flow, and a thriving business. But, back when he was starting, he made a few mistakes that cost him a sizable amount of money, took years of time away, and put serious stress on his shoulders while trying to grow his real estate portfolio. Thankfully, you can take his lessons to heart, so YOU don’t have to make them yourself.

Today, we’re talking about one of Craig’s real estate deals that went wrong. What was supposed to be a profitable out-of-state BRRRR (buy rehab rent refinance repeat) investment quickly turned into contractor scams, danger, theft, and even…love. Yes, love is part of it, too. Craig lost a significant sum on this deal, but if you follow his advice, you don’t have to repeat the same mistakes.

Even though this was a property from hell, Craig still kept investing, eventually reaching financial freedom and living his dream life. Something WILL go wrong when you start investing in real estate—just make sure it wasn’t what Craig went through.

In This Episode We Cover:

Real estate investing mistakes that lost Craig money on his first out-of-state investment

Interviewing agents and why it isn’t enough to work with someone based on a good feeling

The easy way to avoid a contractor taking your money WITHOUT doing work

Why a cheap deal doesn’t mean it’s a good deal (be really careful)

Cutting your losses early and when you should give up on a project that’s going south

Why you MUST check references on everyone you work with on a real estate deal

And So Much More!

Links from the Show

Grab Craig’s Book, “The House Hacking Strategy”

Contractor Nightmares: 5 Red Flags to Watch For and How to Escape a Bad Hire

Connect with Craig

(00:00) Intro

(02:04) House Hacking 8 Times!

(05:28) One Really Bad BRRRR

(14:41) Worst Contractor Ever?

(25:59) Finally Selling It

(27:54) The Good Ending

(30:10) Failing Fast

(34:45) Should I Fire My Property Manager?

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1019

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

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Why Your Small Town Is (Probably) the Best Place to Buy Rentals Sep 16, 2024

Show notes

Your small town might be the best place to invest in real estate, even if it’s got only a few thousand residents. We know—everyone has told you to go to the bigger, growing cities where you can chase appreciation, but today’s guest might change your mind. He was able to scale to over twenty rental properties in just a few years, all by buying in his rural Ohio town that you’ve probably never heard of. Even better? He bought the rentals with none of his own money, AND he was cash-flowing THOUSANDS per month. So how do you do it, too?

Josh Bauerle tried to invest in real estate back in 2006. What was supposed to be a “quick flip” turned into a thirteen-year investment, which (thankfully) made a bit of money by the end. After taking a decade off from real estate investing, he got back in the game, first by buying a rental from his father and then by purchasing a twelve-unit real estate portfolio from a local friend. He then scaled FAST to a serious amount of rentals, all in a tiny town with a small population.

After that, he stumbled upon the best-kept cash flow secret in real estate investing: section 8 rentals. Today, Josh is sharing how he did it without using his own money, and how you can do it, too, whether you’re in a sizable city or a small town.

In This Episode We Cover:

Why living in a small town is a HUGE advantage for real estate investing

Seller financing 101 and how to buy rental properties without getting a traditional loan

Using other people’s money to build a rental property portfolio

Section 8 rentals, the pros and cons, and why they get you MORE rent than regular rentals

The simple way that Josh has found his off-market real estate deals with social media

And So Much More!

Links from the Show

Get Free Property Management Software for Landlords with Hemlane

Grab Dave’s Newest Book, “Start with Strategy”

The Pros and Cons of Accepting Section 8 Housing

Connect with Josh

Invest in Turnkey Properties with REI Nation

(00:00) Intro

(01:27) A Failed "Quick Flip"

(05:47) Taking a 10-Year Investing Break

(09:17) Buying 13 Units at Once

(15:13) Quitting His Job/Business

(18:26) Using Other People's Money

(20:11) Moving to a Bigger Market

(23:53) Making More with Section 8

(30:10) Scaling Fast!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1018

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

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BiggerNews: The Fed Is Finally Ready to Cut Rates, but How Low Will They Go? w/WSJ’s Nick Timiraos Sep 13, 2024

Show notes

The next Fed meeting is crucial for real estate investors and the economy. So, what will the Fed do? Are we getting the 0.25% rate cut that many experts predict, or will a 0.50% rate cut come due to further weakening of the economy? The job market is already struggling, and the Fed needs to make a move—fast. The question is: will whatever they do next be enough to stop us from falling into a high-unemployment economy? We’re getting into it in this BiggerNews!

We brought in the chief economics correspondent for The Wall Street Journal, Nick Timiraos, to give us the latest update on the Fed, what could happen in September’s Fed meeting, and what’s in store for rate cuts. Nick agrees that this meeting is more crucial than most and that the decisions made could significantly impact the economy and real estate.

How many rate cuts will we get this year? How big will the rate cuts be? And who’s deciding these rate-cut decisions in the first place? Nick knows the Fed better than almost anyone and shares exactly what they’re thinking and where they believe rates are headed in today’s episode.

In This Episode We Cover:

2024 Fed rate cuts and how big the first one could be at the next Fed meeting

Why rising unemployment is putting even more pressure on the Fed to make a move

Whether or not home prices could shoot back up once mortgage rates fall

How many rate cuts is the Fed expecting to make in 2024 (more than we thought before!)

The “signal” that the Fed is sending with their decision in the next Fed meeting

And So Much More!

Links from the Show

Try Baselane, the One Platform for All Your Property Banking & Finances

Thrive in Any Market with “Recession-Proof Real Estate Investing”

Find Investor-Friendly Lenders

The Fed Is Planning to Cut Rates Soon. Here’s How Investors Should Prepare

Learn More from Nick

Invest in Turnkey Properties with REI Nation

(00:00) Intro

(02:10) The Fed Explained

(03:59) September's Crucial Fed Meeting

(07:05) Who Decides the Rates?

(13:23) 0.25% or 0.50% Rate Cut?

(17:27) Risks to Real Estate

(23:30) Unemployment is Rising

(29:33) Rate Cut Predictions

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1017

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

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How to Scale Your Real Estate Portfolio So You Build Wealth, NOT Burn Out Sep 11, 2024

Show notes

Scale smarter with Kathy and Rich’s new book, Scaling Smart!

Own real estate? Feeling burnt out? Then you need to listen to this. You've wondered how to scale your real estate portfolio so you can make more money and finally reach financial freedom. And then, at some point, you realize you own rentals and are making money but have zero time. Now, you’re burnt out, wondering where that “financial freedom” went and how you can get back to it. But you’ve got an entire business riding on your back. You can’t stop, so what do you do? Don’t worry—we have the secret.

Kathy and Rich Fettke felt like this a decade ago. Kathy was so stressed that she had zero interest in growing her business any bigger than it was. It was already taking so much out of her, and the stress was only rising. She turned to her husband, Rich, to help coach her into a better position to scale the business instead of blindly growing it. Now, in 2024, Kathy and Rich have amassed a sizable real estate portfolio, run an investor-centered business, and are doing more in less time with less stress.

If you want what Kathy and Rich have, stick around and pick up their new book, Scaling Smart, where they teach you how to scale your business the right way, outsource to free up time, and STOP chasing “more” when it’s coming at the cost of your family or time freedom. Want to scale the right way and build a business, not burnout? Don’t miss this episode.

In This Episode We Cover:

How to scale your real estate portfolio (or real estate business) the right way

Why “growing” isn’t always the right move and could lead you to stress, burnout, and unhappiness

Making your first hire and how to design the perfect structure for your portfolio

Why you need to STOP doing the things you hate and get someone on your team who loves to do them instead

The two major hurdles most real estate investors face when scaling (and how to overcome them)

Knowing your “why” and how to have time freedom instead of mindlessly amassing wealth

And So Much More!

Links from the Show

Grab Rich and Kathy’s New Book “Scaling Smart”

Property Manager Finder

See Dave, Kathy, and Rich at BPCON2024 in Cancun!

How to Build a Real Estate Portfolio & Quickly Scale Your Investments

Connect with Kathy

Connect with Rich