On The Market

Join the Future of Real Estate Investing with Fundrise

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

How Does Money Work? The Complete Guide to Monetary Systems

Planet Money Episode 553: The Dollar At The Center Of The World

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-97

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96: The Biggest Real Estate Tax Loophole You’ve (Probably) Never Heard Of w/Brandon Hall and Kyle Mast Apr 17, 2023

Show notes

What if we told you there was a real estate tax loophole that would help you write off most of your income without becoming a real estate professional or going through some precarious property scheme? If you’ve heard stories of wealthy investors making MASSIVE profits through rental properties and walking away with a near-zero tax liability, this could be the strategy that they were using. But, if you want to know what it is and how to use it to your advantage, you’ll have to tune in.

We’ve brought on not one but two financial powerhouses to explain the ins and outs of this rental property tax loophole. Brandon Hall, CPA, and Kyle Mast, CFP, have used this exact loophole to shave their tax liabilities down dramatically. The requirements to take advantage aren’t complicated, but you must be a rental property investor of a specific type of property. And not all CPAs will know how to do this, which is why you must find the right one BEFORE you file!

In this episode, Brandon and Kyle will talk about how to unlock this tax loophole, the requirements you’ll need to hit, the logistics of using it, and the red flags you’ll need to keep an eye out for when giving it a go. In a few simple steps, you could eliminate your income taxes in a completely legal way, BUT you’ll want to make sure you follow Brandon and Kyle’s suggestions to a tee.

In This Episode We Cover

The real estate tax “loophole” that allows you to write off a SIGNIFICANT portion of your income

Real estate professional status and how those that don’t make the cut can still write off BIG deductions

The requirements you’ll have to hit to realize this real estate tax deduction

Bonus depreciation, cost segregation, and why NOW is the time to take advantage

Depreciation recapture and what to do to avoid paying taxes in the future

Red flags to watch out for when trying this strategy and whose advice you can actually trust

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 Money Podcast 200: A Personal Finance Masterclass with Kyle Mast

Kyle's Twitter

Kyle's Website

Connect with Brandon:

Brandon's BiggerPockets Profile

Brandon's Facebook Group

Brandon's Podcast

Brandon's Website

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-96

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95: Dealing Dirt: Is Raw Land the Most Underrated Asset of 2023? w/Daniel Apke Apr 14, 2023

Show notes

Land investing may be the newest way to make cash flow in today’s increasingly difficult housing market. With more and more investors fighting over real estate deals that break even at best, land investors are sitting pretty, with an almost unlimited supply of new investments and an even more robust pipeline of potential buyers. And while land investing may not have the passive income potential of a rental property, there are still numerous ways to take home some serious cash flow by dealing dirt.

Daniel Apke fell in love with land investing after a long history as a serial side hustler. He tried everything from ghostwriting romance novels to setting up stores online, but nothing gave him the financial freedom that land investing did. Then, thanks to a helpful tip from a mentor, Daniel was able to start buying land at SIGNIFICANT discounts. He would then flip this land on or off-market to anyone willing to buy, allowing him to walk away with a handsome payday WITHOUT dealing with tenants, toilets, or trash.

Now, Daniel has built an entire business out of flipping raw land, and the perks of a property-less lot may pique your interest. Whether it’s low competition, no permitting hassles, or the ability to exit multiple ways, land investing could be an attractive alternative to rental property investing as competition gets tough. If you think there isn’t much under the surface of these dirt deals, you’d be wise to stick around!

In This Episode We Cover

Finding financial freedom through land investing and how you can repeat Daniel’s system

Land flipping explained and where to find the most profitable lots of raw land

The BIG bottlenecks you’ll face when selling land and how to get past them with creative financing

The land-buying business model and how to buy, analyze, and sell dirt

Off-market land and the best method to find undervalued lots with low competition

Subdividing and lot splitting to make the most out of a large plot of land

Land demand and whether or not this type of activity will last for years to come

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

The Risks and Rewards of Investing in Raw Land

Connect with Daniel:

David's BiggerPockets Profile

David's Instagram

David's Website

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-95

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94: Commercial Sellers Get DESPERATE As Big Deals Die Off Apr 10, 2023

Show notes

Commercial real estate has seen a severe drop in demand. From office buildings to multifamily and more, rising mortgage rates and unwavering cap rates are making commercial real estate a gamble more than a grounded investment. But, when buyers start exiting the market, sellers get desperate, and this chain reaction allows committed commercial real estate investors to scoop up deals worth millions more just a few years back. We have a couple of those deals coming up on this episode!

We’re back with another audience deal show. This time, we’re walking through two commercial real estate deals with serious potential, but their prices don’t match reality. First, we talk to Ben Mashat, who recently went full-time into real estate investing after scaling a successful wholesaling operation. He’s got a MASSIVE deal opportunity—a five-story office building with seven-figure potential profits. The problem? A price tag that doesn’t match today’s commercial property market.

Next, we hear from Heidi De La Torre, who’s looking at a multi-unit beachside property with impressive price comps nearby. But, with zoning issues and a seller that can’t make up their mind, Heidi is struggling with which move to make as she debates taking on a project with this many pitfalls. As always, our panel of expert investors will give their suggestions on what our guests should do next and whether these deals are even worth chasing!

In This Episode We Cover

The state of commercial real estate and why sellers are getting desperate as the buyer pool dries up

NOI (net operating income) explained and ENSURING yours is accurate before you get a deal under contract

The downside of office investing and why so many buyers are straying away from this property type

The cap rate debate and whether or not this metric is the most important factor when deciding on a deal

Property zoning, code violations, and how unpermitted builds could COST you

Wholesaling large deals and details you’ll NEED to find qualified buyers

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

Listen to Our Residential Audience Deal Review Show

Commercial Real Estate Could Crash, But Are Everyday Investors Impacted?

Cap Rate: What Is It and How to Calculate It

Books Mentioned in the Show

Real Estate by the Numbers by Dave Meyer

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-94

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93: Ponzi Schemes, Property Fraud, and How to NOT Fall for a Real Estate Scam Apr 07, 2023

Show notes

Real estate scams and Ponzi schemes have been around for centuries, but with the advent of the internet, social media, and digital banking, more and more scams and schemes have been popping up. You might think that only the uneducated or ill-informed fall prey to these monetary predators, but you’d be wrong. Just recently, two of our expert guests, James Dainard and Jamil Damji, were ripped off in Ponzi schemes that the federal government intervened in. Thankfully, James pulled out his principal earlier on, realizing what was happening. But Jamil was blindsided, leaving him with a seven-figure loss.

Both James and Jamil were brave enough to share their stories, and more importantly, the entire On the Market panel have come together to break down how NOT to get scammed on your next investment. Kathy Fettke, a syndicator herself, describes EXACTLY what to look for when passively investing in a deal and why inexperienced operators have become the norm in 2023. Next, Henry Washington shares what you MUST do to ensure a contractor doesn’t run off with your money and how to pace a project, so you aren’t left with an empty bank account and half-done home renovation.

Then, we’ll switch gears as Jamil gives actionable steps to ensure your wholesaler brings you a real deal. Finally, James highlights which lenders you should or shouldn’t use and how inexperienced investors are getting strapped with loans that could liquefy their deals all at once. To finish the episode, James and Jamil give the nitty-gritty details of the Ponzi schemes they fell victim to and how even experienced investors can be taken advantage of.

In This Episode We Cover

Losing a million dollars on one investment and the telltale signs of a Ponzi scheme

How to vet your syndicator/operator and why track record means EVERYTHING

Paying your contractor in stages and the reason Henry will NEVER pay for a project all at once

The documents you NEED to confirm when buying a deal from a real estate wholesaler

“Backyard lenders” and why flippers/BRRRRers should consider taking loans that are close to home

The “affinity fraud” Ponzi scheme and why you should NEVER invest based on faith

A $650M movie rights scam and how James noticed the red flags before any other investor did

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

10 Glaring Red Flags That Indicate Your “Great Deal” May Be a Costly Scam

Watch the “American Greed” Episode on The Movie Rights Scheme

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-93

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92: 2 Real Deals in 2023 That Could Come with Big Red Flags Apr 03, 2023

Show notes

Don’t think you can find cash flow in a high-priced market like Florida? What about doing a fix and flip with today’s rising rates and high-priced renovations? Don’t know if your rental’s zoning could sprout numerous red flags on a sale? We’ve brought some On the Market listeners in live to go over the deals they’re doing in 2023, which concerns they’re coming up with, and how they’re building wealth while battling against the economic tidal wave hitting the housing market.

Michael Yi and Matt McMains, two of Henry Washington’s mentees, have been trying to hit home run deals in Florida. Michael was able to lock down an underpriced rental property that has almost unbelievable cash flow but with some zoning red flags that could catch him off guard in a sale. On the Panhandle, Matt is weeks away from closing on an out-of-state flip, but with rates jumping up and property holding time getting pricey, expert flipper James Dainard advises caution when getting into a deal like this.

One thing is for sure; there are still plenty of ways to profit with investment properties, EVEN in today’s wild housing market! So stick around, and hear exactly how you should be doing your deals as 2023 unfolds.

Want to talk about your real estate deal on the show? Email Kailyn@biggerpockets.com with all the nitty gritty details!

In This Episode We Cover

The overlooked Florida city that has BIG cash flow potential in 2023

Rental property zoning and how to ensure your designation WON’T ruin a future sale

Rental renovation tips and which materials to use for which type of renter

Hard money loans and how rising interest rates are making holding costs sky-high

When to negotiate your deal (EVEN if your due diligence period is up!)

Flipping vs. renting vs. wholesaling, and when to walk away from a deal

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

Try RentRedi on Your Next Rental Property

Connect with Michael & Matt:

Michael's BiggerPockets Profile

Matt's BiggerPockets Profile

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-92

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91: The Fed Starts Playing “Mind Games” as Rates Rise, Home Prices Fall Mar 31, 2023

Show notes

Last week, the Federal Reserve both surprisingly and unsurprisingly raised rates. For weeks leading up to this meeting, investors had a glimmer of hope that the historical rate hikes would end and that we could finally look forward to a time of reasonable mortgage rates and sustainable home prices. But, even with high rates, the housing market has taken some surprisingly strong wins. We’ll get into today’s top real estate-related stories in this episode!

Welcome back to another correspondents show where our “housing market data without the hysteria” expert guests bring in some of the most hard-hitting headlines that could affect real estate investors. Dave starts by professing his deep respect for Jerome Powell’s decision to hike rates even higher and goes into why the Fed could be playing “mind games” with the American people. Next, Henry hits on how home price drops just hit a new threshold not seen in over a decade!

Back on the residential side, James breaks down the good news for February home sales, but soon after, Jamil and Kathy touch on commercial real estate stats that have banks, lenders, and investors starting to sweat. But, what could be bad news for some is great news for others, and if you’ve been looking to pick up steals and deals during a time when competition is low, now may be the PERFECT time to get in the market!

In This Episode We Cover

Interest rates rise again as the Fed plays “mind games” with the American public

Home price updates and why the housing market just crossed into 2012 territory

Housing market momentum and why homebuyers have gotten back into the game

The commercial real estate crash and why CRAZY deals could be around the corner

Liquidity tightening and why raising capital and getting mortgages could become a lot harder

The HUGE opportunity to invest in a certain asset class that could make a big comeback

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

Watch Our Interview with Mark Zandi, Chief Economist at Moody’s Analytics, On the Recent Bank Failures

Stories from Today’s Show:

Home Prices Drop

February Home Sales

Commercial Real Estate Prices Slide

Liquidity and Commercial Real Estate

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-91

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90: Scapegoat or Savior: Did Wall Street HELP the Housing Market? w/Ermengarde Jabir and Thomas LaSalvia Mar 27, 2023

Show notes

Back in 2008, the housing market was in freefall. With foreclosures at record highs, homeowners nationwide had to return their residences to the banks. The problem? Banks didn’t want them. Big banks never wanted to be conglomerate landlords. So, who did they pass the homes off to? Institutional investors, REITs, and iBuyers that many real estate investors fear and also blame for today’s real estate problems. But is today’s affordability crisis really Wall Street’s fault, or is there someone else to blame?

Back from Moody’s Analytics, we’ve got Thomas LaSalvia and Ermengarde Jabir on the show to explain the situation. Over the past few years, there has been quite a lot of bad blood between single-family rental investors and institutional investors on Wall Street. For small, mom-and-pop investors, these large landlord conglomerates seem to be stealing homes, making it harder for new investors to get into the housing market and even more challenging for first-time homebuyers to get a primary residence. But, the data points to something different.

Ermengarde and Thomas explain exactly what institutional investors have been doing as of late, how they may have saved the housing market during the last crash, whether or not they’re still buying in today’s market, and how they’re affecting everyday homebuyers. We’ll also touch on pricing, affordability, and why new construction is kicking starter homes off the to-build list.

In This Episode We Cover

What led to the 2008 housing crash and how Wall Street stepped in to stabilize prices

How institutional investors have been growing over the past decade and their plan for the future

Single-family home construction and why first-time homebuyers AREN’T the target market

Homeownership, America’s “renter nation,” and whether or not Wall Street is stealing homes from buyers

Why institutional investors ONLY buy in specific real estate markets (and where they’re buying now)

Who owns the most single-family rental properties across the country

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

SVB’s Risky Bailout and The Bank Run “Domino Effect”

How Did A $200B+ Bank Collapse In 48 Hours?

On the Market 81 with Thomas

Is Wall Street Ruining the Housing Market?

Get the Latest Real Estate Insights from Moody’s Analytics

Connect with Ermengarde & Thomas:

Ermengarde's Email

Thomas' Email

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-90

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89: The BIG Economic Implications of US Bank Failures w/Mark Zandi Mar 24, 2023

Show notes

Bank failures were a thing of the past—until a couple of weeks ago. After Silicon Valley Bank’s (SVB) fall from grace and numerous other regional and small-time banks going under, Americans are holding their cash with an iron grip, not knowing whether or not a recession or soft landing could be on the horizon. And with more economic instability comes more fear, panic, and doubt from the general public. Thankfully, we’ve got Mark Zandi, Chief Economist at Moody’s Analytics, to share some economic truths (instead of crash-fueled terror).

Mark knows the economy inside and out and understands the true impact behind these bank crashes. He gives his opinions on whether or not this series of bank crashes could lead to an even greater recession, why the government was forced to build a bailout, and how real estate and the economy will be affected as we try to rebuild from this fragile system collapsing. And, if you’re worried that the big banks could start to crumble under their own weight, Mark has some information that’ll quell your fears.

But we’re not just hitting on bank news. Mark shares how a “slowcession” could occur throughout the US, leading to a lackluster economy as unemployment grows and GDP growth slows. He also gives mortgage rate predictions and discusses the one real estate type that could be in BIG trouble over the next few years.

In This Episode We Cover

Silicon Valley Bank’s (SVB) collapse explained and why big banks aren’t worried

The social-medial-fueled panic and fear cycle that is hurting the economy

The bright side of a bank bailout and how to avoid a systematic collapse

Recessions vs. “slowcessions” and why the latter WON’T be a soft landing

Real estate prices and which property type could go BUST over the next few years

Mortgage rate predictions and why we wouldn’t hold our breath on three-percent rates

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

SVB’s Risky Bailout and The Bank Run “Domino Effect”

How Did A $200B+ Bank Collapse In 48 Hours?

Connect with Mark:

Mark's Website

Mark's Podcast

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-89

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88: Entering a "New Era" of Higher Prices, Interest Rates, and Employment w/Joe Brusuelas Mar 20, 2023

Show notes

Unemployment was supposed to be much higher by now. With the Federal Reserve increasing its rate hikes over 2022 and into 2023, the labor market should have cracked already. But it hasn’t, and many mainstream investors have struggled to determine why. With a higher cost of capital, businesses should be more selective with who they’re hiring and keeping, but instead, we’re seeing the labor market have much more power than they’ve had in the past. So, did we successfully dodge an employment crisis, or is a rude awakening coming our way?

Joe Brusuelas, principal and chief economist for RSM US LLP, knows that we’re thinking about unemployment all wrong. As a leading economist with over twenty years of experience, Joe has seen multiple recessions, crashes, and unemployment crises. He knows exactly what it would take to make the labor market snap and push the country into a recession. Joe breaks down precisely what the Federal Reserve has been planning, when its interest rate hikes will finally take effect, and what the future of the labor market looks like.

He also touches on how we may be entering an entirely different era of the economy, one with tight employment, higher interest rates, and higher inflation than we’ve been used to. This directly affects almost every consumer in America, and investors can get ahead of the economy by knowing when this unemployment scale will finally balance. So don’t sit on the sidelines and be surprised when these economic forces take shape. Tune in!

In This Episode We Cover

Why unemployment has been so low and when the Fed’s interest rate hikes will kick in

How employment is calculated and why qualified workers are so hard to find

“Labor hoarding” and the real reason big tech is so easily laying off workers

Unemployment rate predictions and whether it’ll be like the last recession

Entering a new era of the economy and why higher inflation, interest rates, and employment could be in our future

US immigration and how restricting foreign worker flow has caused a “tight” labor market

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