On The Market

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Multifamily Is Likely To Start Recovering in 2024—Here’s Why

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Why Apartment Rents are Poised to Decline in Former Pandemic Hot Spots (Graph)

Jump to topic:

(00:00) Intro

(01:03) Multifamily Transactions at Rock-Bottom

(04:34) Why Volume is So Low

(06:29) Buyers Are Waiting for This

(08:38) Cap Rates Expand

(13:53) Investors Will Have to Wait

(14:57) Will Prices Keep Declining?

(17:38) Multifamily Rent Forecast

(19:36) The "Oversupply" Could Flip

(23:26) 2025 Predictions

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-226

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225: Meet the New Zero-Down Mortgage + Why Lumber Prices Are Dropping Jun 13, 2024

Show notes

Zero-down mortgages are back. That’s right. You can now get into a home with (potentially) zero dollars out-of-pocket. But wait…this is starting to sound a bit like 2008. Remember the fully-funded mortgages that didn’t require income verification? Are we back to the days of NINJA loans as homebuyers struggle with affordability, forcing them to take on zero-down loans? Not quite. We’ll explain why on this headlines show!

This time, we’re talking about the new zero-down mortgage loan. But that’s not all. One crucial housing metric has exploded, and if you sell, BRRRR, or flip houses, this is one metric you MUST pay attention to. Remember back in 2021 when lumber prices were so high that you needed to take out a personal loan to buy a toothpick? The mahogany tables have turned as we bring some good news for new construction investors and home renovators.

Lastly, we look overseas at the international housing markets that are seeing the biggest price drops and increases. We also share where we would invest abroad and whether or not we think these markets beat the good ol’ USA. Stick around for your latest housing market update on this headlines show!

In This Episode We Cover

New zero-down mortgage loans and whether they’ll lead to risky home purchases

What you must know (and do) if you’re going to buy a home with low money down

The one home price metric you should pay attention to when flipping, rehabbing, or buying new construction

Good news for new builds and why lumber has finally returned to pre-pandemic price levels

The international housing markets seeing the biggest price drops, and whether we’d buy there or not

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

See Dave at BPCON2024 in Cancun!

No Money Down Loans: How Do They REALLY Work?

Zero-down mortgages are making a comeback

A key home price metric has skyrocketed since 2019

Federal Reserve rate stagnation impacts wood products markets

3 International Locations Where Housing Prices Are Plummeting Post-Pandemic

Jump to topic:

(00:00) Intro

(01:22) 0% Down Mortgages Return

(14:13) Crucial Housing Metric JUMPS

(20:41) Lumber Prices Stabilize

(26:51) International Home Prices Drop

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-225

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224: Inside the New Law That Could Lead to a Nationwide Wholesaling Ban w/Gary Pickren Jun 10, 2024

Show notes

Wholesaling real estate may be banned nationwide within a few short years. After a new law was passed in South Carolina prohibiting the practice, other states started to follow their lead, making their own laws that limit or completely restrict wholesaling real estate. Why is this happening now, and if a nationwide wholesaling ban does get passed, are there loopholes for wholesalers to still make money assigning properties? South Carolina real estate attorney Gary Pickren is on the show to explain.

Gary is no stranger to wholesaling. He’s quick to tell you how crucial wholesaling has been to his business’s growth. But Gary isn’t trying to dance around the new laws and pretend that everything will be alright for real estate wholesalers. In fact, Gary believes that this new South Carolina law could change real estate wholesaling forever, and it may even be for the best.

We’ll describe the new South Carolina law and the legal verbiage that spells out the wholesaling ban. Gary even gives a completely legal way of getting around the new wholesaling law, but the rules MUST be followed. If you’re a wholesaler anywhere in the United States, this law directly affects you and your livelihood. Not staying up-to-date on this could, at best, cost you money or, at worst, land you behind bars.

In This Episode We Cover

Wholesaling explained and why the practice is currently in jeopardy

The newest South Carolina wholesaling law and its monumental effects on the industry

Wholesaling “assignments” defined and the risk of marketing a property in the wrong way

Whether or not this new law could lead to a nationwide ban on wholesaling

Gary’s savvy way to get around this wholesaling ban through this one type of “contract”

Whether or not this new law applies to commercial real estate wholesaling as well

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

A New South Carolina Law Would Severely Crack Down on Wholesaling

Wholesale Real Estate – What Is It & How to Get Started For Beginners

Is Wholesaling Legal? It’s Complicated

Jump to topic:

(00:00) Intro

(01:38) What is Wholesaling?

(05:33) Working Against Realtors?

(07:59) How Everything Changed

(13:52) The Real Problem with Wholesaling

(16:27) The End of Wholesaling

(20:33) Tricky Legal Language

(28:01) A Nationwide Wholesaling Ban?

(34:47) What About Commercial Real Estate?

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-224

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223: 2024 Real Estate Investing Strategy Showdown: Rentals, Flips, & New Builds Jun 06, 2024

Show notes

House flipping vs. renting vs. build-to-rent: which real estate investing strategies could make you the MOST money in the second half of 2024? At the beginning of the year, many investors believed that interest rates would be coming down, housing inventory would finally return to the market, and inflation had been defeated. But that didn’t turn out to be the case. In this ever-changing housing market, what should investors like you do to make the most money possible with the fewest risks? We asked three of our expert panelists to give their take!

So today, we’re having a friendly real estate investing strategy smackdown to pit house flipping against buy-and-hold against build-to-rent homes. Each strategy has BIG benefits but also comes with some serious risks rookie and expert investors should be looking out for. Plus, these investing strategies are NOT for everyone. We’ll discuss who should (and definitely shouldn’t) invest using each method.

2024 is not an easy real estate market, but our expert investors lay out the exact risks to avoid, how to get around them, and the best ways to build serious wealth while most Americans sit on the sidelines. We’ll talk about the enormous gains you can make even with high interest rates, what James calls the best way to find financial freedom, how to invest EVEN if you have very little time, and the one type of rental property with WAY lower insurance and repair costs.

In This Episode We Cover

The three best real estate investing strategies of 2024 and which methods we’re using TODAY

Buy-and-hold real estate and the CRUCIAL skill that will help you build a real estate portfolio faster

The costs that can kill your house flipping business, but the massive gains you can make EVEN in 2024

Build-to-rent investments and why this may be one of the easiest ways to invest in real estate

Don’t have experience or money? How to form partnerships that’ll grow your wealth even if you’re a beginner

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

How to Build Wealth With Rental Properties Through Buy & Hold Investing

Flipping Houses: How to Get Started and Everything You Should Know

Investors Are Putting Their Money in Build-to-Rent Homes at a Record Rate—What’s Causing the Frenzy?

Jump to topic:

(00:00) Intro

(01:18) Buy (Renovate) and Hold

(08:32) Who Should Buy and Hold?

(10:05) Biggest Risks

(12:04) Flipping Houses

(17:41) Who Should Flip?

(20:01) Biggest Risks

(22:57) New Construction

(31:34) Biggest Risks

(34:36) Best 2024 Investing Strategy

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-223

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222: Boomers Hoard Houses, Millennials Struggle to Buy, But Gen Z Gets Ahead w/Redfin’s Chen Zhao Jun 03, 2024

Show notes

Millennials can’t afford homes, but somehow, their younger siblings, Gen Z, can. Even with over a decade more work experience than Gen Z, Millennials still feel priced out of the housing market. So how can the younger generation, only twenty-seven years at the oldest, already be on track to beat Millennials in the homebuying race, all while mortgage rates and prices are high, inventory is low, and inflation is eating away at Americans’ disposable income? We’ve got Redfin’s Chen Zhao back on the show to explain.

Today, we’re trying to answer one question: Who is buying all the houses? With younger generations struggling to buy and more Baby Boomers aging in place, real estate investors want to know their competition and who they may be selling their homes to. In this episode, Chen breaks down the data behind age trends in homebuying, plus shares why Millennials fell behind past generations.

But that’s not all. We’re getting into the changing landscape of the “buy vs. rent” debate and whether more renters now will mean fewer homebuyers in the future. Plus, with an aging Baby Boomer generation, will we finally see the “Silver Tsunami” of housing inventory hit the market as boomers “age in place,” especially with their large share of family-sized houses? Could our housing supply problems reverse if a sizable amount of inventory hits the market? We’re answering it all coming up!

In This Episode We Cover

Why Millennials can’t afford houses, and the reason so many still don’t own homes

How Gen Z is already on track to get ahead of Millennials even with today’s economic turbulence

Buying vs. renting a home and the “mismatch” between what renters want and what landlords supply

A potential reversal of our massive housing shortage and when this could happen

Whether or not the “Silver Tsunami” will hit the housing market as boomers get older

How the increase of “aging in place” will affect home inventory as Gen Z/Millennials try to buy

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

On the Market 151 - The Math Behind Mortgage Rates and Why They’re Staying Put

Real Estate Podcast 867 - Zillow and Redfin Top Economists Give Their 2024 Housing Market Predictions

Why Are Millennials So Behind in Homeownership?

Connect with Chen:

Chen’s LinkedIn

Redfin News

Redfin’s “From Our Economists”

Redfin Report: Gen Zers and Young Millennials Took Out 40% of U.S. Mortgages in 2023

Jump to topic:

(00:00) Intro

(01:03) Are Millennials Priced Out?

(04:29) Millennials’ Lost Decade

(07:46) Gen Z is Getting Ahead

(11:08) Is Homebuying Overrated?

(16:56) The Housing Shortage Could Reverse

(19:58) Boomers Ageing in Place

(25:20) Young People are STILL Buying!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-222

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221: Home Prices Hit Another Record: Are Americans Still Right About Real Estate? May 30, 2024

Show notes

Home prices are still soaring as they hit a new record high, despite high mortgage rates and low inventory dampening demand. At some point, this unaffordable housing market must make Americans even a bit bearish on real estate, right? Well, maybe not, according to a new survey that shows what Americans view as the best investment in the long term. But these updates are just the tip of the iceberg on today’s headlines show!

We’re back to discuss the housing market’s most hard-hitting headlines and share our opinions on whether they’re fact, fiction, or pure hype. First, Americans give their take on the best long-term investment, and one asset in particular reigns supreme (sorry, it’s not crypto!). Next, will record-breaking home prices push demand down even further, forcing house flippers and home sellers to get desperate? Our experts share exactly what they’re seeing in their local markets.

Speaking of home sellers, are you selling right now? If so, there are five things you CAN control that’ll help you sell your home faster and for more, even in today’s tough housing market. Expert house flipper James Dainard gives even more tips on how he gets his flips sold at lightning speed, even during slow seasons. Finally, we touch on Airbnb’s latest party-pooping and how they’re putting hosts in the driver’s seat to protect their properties from ragers that could ruin their homes. Plus, an update on the end of endless shrimp (check out this episode for context).

Just getting into real estate investing? Catch a FREE investing webinar on how you can get in the game as a complete newbie. Ready to invest? Join BiggerPockets Pro and use code “NEWMARKET24” for 20% off, plus get access to elite investor tools to help you get more deals done!

In This Episode We Cover

Why Americans think this asset is the best long-term investment

Home price updates and what the effects could be with housing prices hitting record highs

Five tips to sell your home faster and for more money even in today’s housing market

What an expert house flipper does on EVERY home he sells to get the best price possible

Airbnb’s newest party ban and how hosts can protect their properties

An unfortunate update on one of America’s most beloved seafood restaurant chains

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

BiggerPockets Real Estate Podcast 959 - BiggerNews: 2024 Housing Market Update and Why Prices Are Still Rising

Want to Sell Your Home Fast—for the Most Money? Do This

Articles from Today’s Show:

Best Long-Term Investment

Home Prices

Home Seller Tips

Airbnb Parties

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-221

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220: Top Lenders Share “Good News” for Mortgage Rates + Trending Investor Loans May 27, 2024

Show notes

We may be close to some serious mortgage rate relief, according to today’s panel of top lenders. With interest rates finally starting to slide after cooling inflation and lackluster job growth, investors are gaining hope that we could see more affordable mortgage rates resurface after a very harsh past two years. So, what could come next? Stick around because we’ve got mortgage rate predictions and the best investor loans to look for coming up in this episode!

Caeli Ridge, Krystle, and Kenny Simpson, our expert investor-lenders, are back on the show to give their take on the commercial and residential mortgage space. All are feeling a bit more optimistic as we see rates finally trend into the six-percent range for primary residence homebuyers, with rates up another percent or so for investors. But with today’s mortgage rates still relatively high, which loans should investors use? From DSCR loans (debt service coverage ratio) to HELOCs (home equity line of credit), construction loans, and more, we’ll get into each of these loan products and share which ones investors are taking advantage of today.

Plus, if you’re struggling to find cash flow in today’s tough housing market, our lenders offer some simple but significant solutions to boost your ROI and help you build your portfolio. Do you have an adjustable-rate mortgage? If so, you MUST heed our commercial lender’s words, as you could get a surprise increase in your monthly mortgage very soon.

In This Episode We Cover

Top lenders’ mortgage rate predictions and updates on today’s rates

Why mortgage rates haven’t fallen faster and why there’s hope on the horizon

Trending loan products investors are using to build their real estate portfolios even with high rates

Why commercial lenders are getting cautious and starting to deny this one type of loan

ADU (accessory dwelling unit) lending updates and why it could be easier to get ADU funding soon

How to boost your cash flow and maximize your ROI WITHOUT buying more properties

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

On The Market Podcast 185 - Top Lenders on Mortgage Rate Predictions + Loans You’ve NEVER Heard Of w/Caeli Ridge and Krystle and Kenny Simpson

BiggerPockets Daily Podcast 1263 - Investors: Stop Worrying About Interest Rates—Here’s Why Right Now Is the Time to Buy

On The Market Podcast 184 - Fannie Mae’s Mortgage Rate “Range” to Expect in 2024 and 2025

Connect with Caeli :

Caeli's BiggerPockets Profile

Caeli's Instagram

Caeli's LinkedIn

Caeli's Website

Connect with Krystle and Kenny:

Kenny's BiggerPockets Profile

The Simpson Team's Website

Jump to topic:

(00:00) Intro

(01:07) Mortgage Rate Predictions + Update

(08:16) Trending Loan Products

(11:29) Commercial Lenders Get Cautious…

(19:41) Everyone’s Building ADUs!

(26:29) Advice for 2024 Investors

(33:07) Work with a Solid Lender

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-220

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219: Should You Pay Off Your Rental Property, Reinvest, or Buy More in 2024? May 23, 2024

Show notes

If you’re like most investors, you’ve probably asked yourself, “Should I pay off my rental property early?” With today’s high mortgage rates, troublesome inflation, low inventory, and risky economy, many investors don’t know whether it’s the right move to pay off their mortgage, reinvest in their properties, or go out and buy more. Paying down your debt gives you a guaranteed return, but with home prices still climbing, you could miss out on the sizable appreciation of getting another rental.

On today’s show, we’re going to debate which is the best move to make. Should you pay off debt, buy more investment properties, reinvest in your portfolio, or put more money down when you buy? Each investor has a different method for their next move, but thankfully, our expert panel gives their thought processes for figuring out which decision is best for your portfolio. Henry even shares his “three buckets” framework that EVERY investor should think through BEFORE investing or paying off a property.

We’ll also discuss the crucial calculations you can use to help you decide and avoid analysis paralysis if you’re stuck between choices. Plus, how a high-risk house flipper like James protects himself from downsides even during tough markets like today. Don’t pause on making moves that could help you reach financial freedom; stick around, and we’ll show you exactly how to know which moves to make in 2024’s housing market!

In This Episode We Cover

Whether to pay off your mortgage early, reinvest, or buy more properties

Why EVERY investor needs to calculate return on equity (ROE) on their portfolio

Is it too risky to invest today? Why James is making even more high-risk investments in 2024

The “three buckets” of your real estate portfolio that will help decide what you should do with your cash

What to do with extra money and how to make some serious passive income with private money lending

The only time when we would put a large down payment on a rental property

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

Should You Pay Off Your Mortgage Early or Invest?

BiggerPockets Real Estate 622 - ROE over ROI and Why Your “Cash Flow” Number is Deceiving

Books Mentioned in the Show

Real Estate by the Numbers by Dave Meyer

Start with Strategy by Dave Meyer

Jump to topic:

(00:00) Intro

(02:06) Too Risky to Invest?

(09:18) Pay Off Debt Instead?

(15:56) Value-Add and Reinvesting

(23:55) Putting More Money Down

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-219

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218: These “Subtle Risks” Could Have Astronomical Impacts on Real Estate Expenses w/John Sheffield May 20, 2024

Show notes

Owning real estate could get expensive—yes, even more expensive than it already is today. Insurance prices, property taxes, maintenance costs, and more are going through the roof, and there isn’t much stopping these costs from jumping even more. What’s accelerating the rise in these upkeep costs? Hotter summers, colder winters, and more natural disasters. Growing climate risk is making real estate deals harder and harder to pencil, and even some safer areas to invest are seeing sizable pricing upticks.

John Sheffield from ICE brings us the latest data on the financial impacts of climate risk in this episode. When we say “climate risk,” we know what you’re thinking: hurricanes, tornadoes, and wildfires. But that doesn’t even scratch the surface of what’s causing real estate expenses to jump. Areas of the US with once-cool summers are now experiencing record-breaking heat, increasing hail damage is denting roofs and breaking windows, and flooding has become the norm. These subtle climate effects have huge implications for your bottom line. So, what should you do to secure the profit you’re looking for on your next property?

John hits on the expenses that are rising the most, the areas where home upkeep costs could almost mirror monthly mortgage payments, and what investors must do when underwriting their next deal to account for this massive jump in expenses.

In This Episode We Cover

The actual cost of climate risk and the expenses that are seeing the most significant pricing surges

Why even areas without hurricanes, fires, or tornadoes are still at significant risk

Property tax problems and underfunded local governments that could quickly raise taxes

Insurance underpricing that could lead to even more expensive home protection

Areas where home prices could drop as a result of inflated home expenses

Where to find and track climate data so you know where (and where not) to invest

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums