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BiggerPockets Podcast 593

On The Market Podcast 29

Learn More About Modular Homes

Will 3D Printed Houses Solve the US Housing Crisis?

What are the Differences Between Manufactured, Modular, and Mobile Homes?

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Chris' website

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-37

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36: The Real Estate Investing Strategy Smackdown and Which Will Outlive 2022? Sep 19, 2022

Show notes

High interest rates are here. The mainstream media would tell you that it’s time to sit down and have a long sob over the soon-to-be-dead housing market. “It’s over, everyone! No more deals for sale because interest rates are around 6%.” You probably don’t believe such housing market heresy, and the investing experts we’re bringing on today don't either. They’ve been investing throughout the past two decades and have come to a surprising conclusion: today is the easiest time to buy in years!

That’s right, the time-tested real estate investing authorities know that even with rising interest rates, some real estate strategies still work, and may even work better thanks to today’s climate. On with us today are Avery Carl, David Greene, Jamil Damji, and Pace Morby, all representing different types of real estate investing. From short-term rentals to BRRRRs, creative financing, and wholesaling, these experts agree that if you’re trying to make money in real estate, there’s no better time than now to start.

In a friendly cash flow cage match, we let each strategy-specific expert give the pros and cons of their preferred investing method, as well as how 2022’s rising interest rates, seller fear, and market speculation is affecting them. If you’re sitting on the fence, waiting for the right time to buy, this may be just the episode to push you over to the cash flow-collecting side!

In This Episode We Cover

The BRRRR method, short-term rentals, wholesaling, and creative finance explained

Whether or not rising interest rates are a blessing in disguise for the real estate industry

Cash flow “turbochargers” that let you build wealth far faster in real estate

The one and only “risk-free” way to start investing that works for any skill level

Concerns about each real estate investing strategy and which has the largest downside

Real estate leverage and strategies you can use that don’t involve debt

And So Much More!

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BiggerPockets Podcast 593

On The Market Podcast 29

Books Mentioned in the Show

David Greene's Book Collection

Short-Term Rental, Long-Term Wealth by Avery Carl

Connect with David, Jamil, Avery, & Pace:

Avery's BiggerPockets Profile

David's BiggerPockets Profile

Pace's BiggerPockets Profile

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-36

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35: The Unforgiving Impact That The New Home “Sell-Off” Could Cause Sep 16, 2022

Show notes

For the past couple of years, new construction homes were the envy of the neighborhood. They had brand new granite countertops, walls without holes, and sometimes a garage door! In 2020 and 2021, homebuyers were happily bidding over asking price just to get a new home, even if that meant missing appliances or garages that couldn’t even close. Now, builders are offering incentives and slashing prices to get buyers through the door. What happened?

What comes up must come down, and this rings true in the 2022 housing market. New homes couldn’t be built fast enough last year, but now, builders are trying to liquidate their homes as quickly as possible. But this doesn’t affect us everyday homebuyers—right? Not quite. These price cuts and dwindling demand could feed an even more gruesome economic beast that many of us aren’t prepared for.

On this Friday episode of On The Market, Dave is flying solo as he gives us the data and insight behind the new construction market. He also touches on the three economic impacts of this large-scale sell-off. The housing market has been bumpy over the past few months, but it may get even wilder.

In This Episode We Cover

The new construction vs. existing homes market and how they differ in demand

Why homebuyers were willing to pay a premium for new homes but now are sitting silently

How a slowing construction market could lead to an even more intense housing supply shortage

The US economy and real estate market's impact from these price cuts

Whether or not existing homes will see an uptick in demand as new construction lags

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

Is The Housing Market About to Collapse? What Investors Need to Know

On The Market Podcast 31

National Association of Home Builders Data

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-35

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34: Crash or Correction: Are We Repeating 2008’s Mistakes? Sep 12, 2022

Show notes

Home sales are starting to slump, days on market continue to climb, and price drops are becoming the new norm. Are we on the cusp of a 2008 housing market crash repeat? Or, are these eerily similar signs of a large-scale sell-off just coincidental, without much backing behind them? The On The Market Team wanted to know exactly how close we are to repeating the same mistakes from fourteen years ago, and whether or not the runup in buying activity over 2020 and 2021 could lead to a lackluster housing market for years to come.

We’ve brought our entire panel of experts back on the show so we can get an up-to-date read on everything happening in today’s housing market. With fears of a recession on the horizon, buyers and sellers live in fear of what could happen next. But are these “panicky” investors looking at the full data set that Dave and the rest of the team have been able to dig up?

In this episode, we’ll compare four of the most important metrics that could influence today's housing market to 2008 data. These include consumer debt and mortgage quality, defaults and home foreclosures, housing market inventory, and appreciation and growth rates. Are we closer to a housing market apocalypse than we thought or are media outlets using a “crash” as a fear tactic to keep homebuyers out of the loop?

In This Episode We Cover

August housing market data and whether or not real estate still looks strong

Crash vs. correction predictions and which way the market could slide

Mortgage quality stats and where modern-day homebuyers stand when compared to 2008

A massive year-over-year increase in foreclosures and how it may hurt the housing market

Demographic data that could force first-time homebuyers to get even more desperate

Lessons learned from the 2008 crash and what experts and investors warn against

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

Hear Our Interview About Foreclosures with Rick Sharga

Get Redfin’s Up-To-Date Housing Market Data

Key Takeaways From the ’08 Recession That Apply Today

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-34

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33: Could Build-to-Rent Investing Deliver a Deathblow to Multifamily? w/Fundrise’s Ben Miller Sep 09, 2022

Show notes

It’s a little strange how long it took build-to-rent real estate investing to catch on. For decades, landlords were used to buying older homes, many without renovations, and renting them out to whoever needed housing. This trend has continued up until today as numerous buy-and-hold investors buy homes well past their prime. It seems almost natural to think that building brand new homes would allow you to get the highest rent price, and that’s why so many investors, like Fundrise’s CEO Ben Miller, are so gung-ho about build-to-rent rentals.

Ben Miller knows the housing market/real estate industry inside and out. He’s helped over 350,000 real estate investors passively make profits through Fundrise’s simple and groundbreakingly open investing platform. Any investor, accredited or not, can now get a piece of the pie on a cash-flowing property, even if they don’t have enough money to buy it themselves.

Since Ben is at the forefront of this industry, it serves him well to know which areas are trending, how investors can get ahead, and the asset classes most worth investing in. He shares valuable insight on how institutional investors operate, why many active investors still choose to invest with Fundrise, real estate markets with the strongest property potential, and why build-to-rent could deal a serious blow to the multifamily and commercial office industry.

In This Episode We Cover

How any investor, no matter how much money they have, can start investing in real estate

Passive vs. active investors and which are better suited to use Fundrise’s platform

Top real estate markets and when the sun belt may start to see a shift in demand

Why build-to-rent could pose a threat to multifamily housing

Inflation, supply chain issues, and the “shadow real estate industry” no one talks about

Buying from big developers as home sales come to a halt and prices drop

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

Hear Our Interview with the Vice President of Research at the National Multifamily Housing Council

Connect with Ben:

Ben's Twitter

Ben's LinkedIn

Ben's Email

Ben's BiggerPockets Profile

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-33

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32: Housing is Unaffordable, But Could It Actually Get Worse? Sep 05, 2022

Show notes

The housing market, for most people, seems like an unaffordable investment. For years, housing unaffordability was climbing, but not fast enough to keep average Americans from buying primary residences. Now, combine rising interest rates with all-time high appreciation, and the average renter can’t afford a home in most American metros. But how did this all come to be, and is there a chance that home affordability could get even lower than it stands today?

We wanted to know how affordability in the United States compared to other similar countries around the world. Although most Americans would call today’s real estate market completely unaffordable, the data seems to point to something different. There are numerous real estate markets around the country boasting low home prices, high rents, and population growth to support any investment decision. But where are these markets?

Dave does his best in this episode to give you a quick overview of how affordability works. We also talk about what causes housing markets to become unaffordable, which metro areas are the most and least unaffordable, and how the United States ranks when put head-to-head against other economies. Thankfully, there is some good news for landlords throughout this episode, so be sure to stick to the end!

In This Episode We Cover

The three factors of an affordable/unaffordable housing market

What caused the United States housing market to become so unaffordable

Will unaffordability problems lead to a real estate bubble in the future?

The most (and least) affordable countries around the world

Whether or not affordability could get even lower as wages stagnate and interest rates rise

What investors can do to capitalize on affordable markets with growing populations

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

NAR Housing Affordability Index

Black Knight

OECD

Demographia International Housing Affordability

How Work-From-Home “Hotspots” Drove the Housing Market Even Higher

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-32

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31: Wall Street: Huge Threat or Harmless Hedge Funds? w/John Burns Sep 02, 2022

Show notes

Home prices are a big part of the housing market. But not as big as interest rates. As the Federal Reserve sets out to “kill the economy” with rising mortgage rates, researchers like John Burns dig through the data to find out what real estate investors can do to take advantage. John isn't a beginner in the real estate space—his consulting company has been doing this type of work for two decades, providing some of the biggest real estate investors with the most up-to-date information.

John isn’t optimistic about this housing market. The data he’s been collecting shows that home prices could see dramatic drops over the next couple of years and that the housing supply problem may only get worse. But, he also sees opportunities for investors that could take the place of the appreciation gains we got all too used to. John’s team participates in over nine hundred consulting studies a year, meaning if there’s one person who knows what’s happening in the housing market, it’s probably him.

In this episode, we talk about housing market predictions, how flippers got caught, why Ibuyers are less of a threat than most investors think, and what will happen to the housing supply as developers start selling off homes at break-even prices. Are we heading towards a 2008-sized cliff or could this be a small hiccup on the continuous road to real estate appreciation?

In This Episode We Cover

The new development vs. resale housing market and what they say about the economy

An unbelievable opportunity for apartment investors as homebuying dries up

Housing supply and why builders may not be in the same predicament as in 2008

Ibuyers/institutional investors and why they’re a much smaller threat than most people think

The home price “wipeout” that is coming down the pipeline for sellers

Why refreshing/remodeling homes could make a profitable comeback this decade

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 14 with Logan Mohtashami

On the Market Podcast 17 with Rick Sharga

Connect with John:

John's Real Estate Consulting

Email John for a Link to The BRRRR/Fix and Flip Survey

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-31

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30: 4.3 Million Reasons Why Multifamily is a Buy in 2022 w/Caitlin Sugrue Walter Aug 29, 2022

Show notes

Multifamily real estate has been on a tear for the past two years. This is not only thanks to 2020-induced rent growth and price appreciation but also due to simple supply and demand. As millennials, a rent-rather-than-own generation, enter into peak homebuying age, many still choose to rent—instead of buy. This presents a unique opportunity for real estate investors, as multifamily demand skyrockets while inventory can barely keep pace.

But rising interest rates are starting to make the housing market look shaky. Is there still a strong demand for multifamily, and if so, how will prices change if financing becomes more expensive while building faces a bottleneck? We’ve brought on Caitlin Sugrue Walter, Vice President of Research at the National Multifamily Housing Council, to give her take on the multifamily investing situation.

Caitlin knows the apartment investing numbers, arguably better than anyone else, and sees some movement on the horizon. She diagnoses exactly what has led to such high demand for apartment rentals, why builders got stuck in developing quicksand, and whether or not rent prices are still poised to increase as we close out 2022. She also hints at the best markets for multifamily investment in the nation and what investors can expect to happen to prices as cap rates begin rising and new interest rates take their toll.

In This Episode We Cover

The building bottleneck affecting multifamily housing and its opportunity for investors

Luxury apartment buildings and why A-class apartments have become the new norm

Rent control and why it often hurts the same people it’s trying to protect

States with the highest multifamily demand and how large industries affect it

Institutional investors, private equity, and other large buyers who are taking on multifamily

Work from home’s retracement and how it may shift occupancy in large cities

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 Work-From-Home “Hotspots” Drove the Housing Market Even Higher

Learn More About the National Multifamily Housing Council

NMHC’s Affordability Toolkit

We Are Apartments

Connect with Caitlin:

Caitlin's Email

Caitlin's LinkedIn

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-30

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29: Creative Financing: 2022’s Antidote to High Interest Rates w/Pace Morby Aug 26, 2022

Show notes

Subject to is a strategy that most real estate investors aren’t aware of. It’s often done to buy deals with no money down, surprisingly low interest rates, and without closing costs or any other upfront fees. It sounds almost too good to be true until you understand how subject to works. For the past two years, subject to deals slowly started dying out. Since homeowners had equity in their properties, there was more incentive for them to sell on the market. But, over the past few months, things have changed in a dramatic way.

Pace Morby, the internet’s creative financing poster child, has seen subject to deals explode as desperate sellers try to get out of homes they didn’t think they’d be stuck with. This presents the perfect opportunity for investors who don’t have a lot of cash but want to buy real estate as the housing market hits a soft spot. On today’s show, Pace will walk through multiple real-life deals that helped him create six-figure cash flow without any money out of pocket.

But Pace isn’t only interested in subject to deals. He’s bought numerous seller-financed properties as wealthy sellers are looking to exit without paying a high agent commission or capital gains taxes. Pace sees serious opportunities in multifamily and commercial real estate. Much of this means that more deals are available for any buyer willing enough to pick up a phone and talk to a seller. The question is: will you place the call?

In This Episode We Cover

The subject to strategy explained and why 2022 presents a perfect opportunity to try it

Creative financing and how to buy properties without using the banks or traditional lending

Building six-figure cash flow with no money down and rock-bottom interest rates

The pain vs. gain seller and which strategy works better for each seller

The antidote to high interest rates and why many sellers are willing to give you a great deal

Housing market forecasts and why sellers need to start getting more realistic

Why sellers choose to sell via owner financing and subject to strategies

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

Pace’s Episode on The “BiggerPockets Real Estate Podcast”

Subject To Real Estate Explained

Book Mentioned in the Show

Real Estate by the Numbers by Dave Meyer

Connect with Pace:

Pace/Yourself – Real Answers with Pace Morby

Triple Digit Flip on A&E

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-29

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28: Inflation Falls, Inventory Drops, and Why is Multifamily Such a Mess? Aug 22, 2022

Show notes

Single-family vs. multifamily investing. We can go on this debate for days. Small-time investors favor single-family rentals due to their low barrier to entry and ease of management. Big players and passive investors far prefer multifamily thanks to its scale and ability to bring in some serious cash flow. But, it seems that many multifamily investors have lost their way. For the past two years, buying almost any multifamily property was considered a good investment, but now things are starting to shift.

Today we bring you two separate deals, one from Henry Washington and the other from Kathy Fettke. One is a single-family flip, and the other is a “passive” multifamily buy-and-hold. You’ll hear why one of these deals got ditched while the other should fetch a handsome return. This top-level analysis can help you debate future deals, as some properties look far better on paper than in real life.

We’ll also touch on the latest inflation news and an update on housing market inventory. One story shows some hope of the economy recovering, while the other could spell troubling times for investors coming up ahead. In the “News vs. Noise” section, you’ll hear exactly why a housing market crash may be delayed a bit longer and how more money could be pumped back into the economy, stimulating sales and boosting buyer activity.

In This Episode We Cover

Deep dives into two live deals that Henry and Kathy have been presented with

The latest inflation numbers and some promising signs of real economic growth

Why home listings dropped by double-digit percentages and how this will affect the housing market

Real estate syndications and how past successes are putting today’s deals in jeopardy

Aggressive underwriting and why every passive investor MUST vet the deal before they invest

1031 funds and using Delaware statutory trusts (DSTs) to limit your tax burden

The tell-tale signs of a great rental market in 2022’s changing economy

And So Much More!

Links from the Show