On The Market

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 CoverThe subject to strategy explained and why 2022 presents a perfect opportunity to try itCreative financing and how to buy properties without using the banks or traditional lendingBuilding six-figure cash flow with no money down and rock-bottom interest ratesThe 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 dealHousing 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 ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileDave’s InstagramHenry's BiggerPockets ProfileHenry's InstagramJames' BiggerPockets ProfileJames' InstagramJamil's BiggerPockets ProfileJamil's InstagramKathy's BiggerPockets ProfileKathy's InstagramPace’s Episode on The “BiggerPockets Real Estate Podcast”Subject To Real Estate ExplainedBook Mentioned in the ShowReal Estate by the Numbers by Dave MeyerConnect with Pace:Pace/Yourself – Real Answers with Pace MorbyTriple Digit Flip on A&ECheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-29Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

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 CoverDeep dives into two live deals that Henry and Kathy have been presented withThe latest inflation numbers and some promising signs of real economic growthWhy home listings dropped by double-digit percentages and how this will affect the housing marketReal estate syndications and how past successes are putting today’s deals in jeopardyAggressive underwriting and why every passive investor MUST vet the deal before they invest1031 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 economyAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileDave’s InstagramHenry's BiggerPockets ProfileHenry's InstagramJames' BiggerPockets ProfileJames' InstagramJamil's BiggerPockets ProfileJamil's InstagramKathy's BiggerPockets ProfileKathy's InstagramOur Last Episode on Finding the Perfect Property MarketRedfin Reports Newly-Listed Homes Fall Most Since 2020Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-28Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate markets are local, not national. When someone says, “the housing market is about to drop,” you have to ask, “which housing market?” Every city has different migration patterns, housing market activity, building codes, and inventory. One market in the Midwest could see price jumps while somewhere on the coast sees declines. So, which markets are getting hit hardest in the latest round of price cuts and which are still on their way up?You’ll need to know the different housing market metrics before making a prediction. But you don’t have to look into the data by yourself. You have Dave Meyer by your side! Dave has been looking at a few key markets to uncover which are seeing home price drops and which are seeing appreciation. Traditionally “strong” cities are getting hit the hardest as interest rates rise and inventory comes on the market. Some cities look like they’ll see double-digit price cuts over the next two years, while others that have already seen record price growth will continue to outshine their more well-known coastal counterparts. As an investor, this is the exact type of data you need to know when making housing market decisions. The right market could lead you to financial freedom, while the wrong one could burn your hard-earned capital! In This Episode We CoverThe five most important housing market metrics to predict future price trendsWhy coastal cities are getting hit hard by recent home prices declines Which factors are causing increased prices and which are forcing down declinesLooking at long-term and short-term growth rates to forecast prices Why some markets are starting to return to “pre-pandemic” housing market conditions The ongoing affordability crisis and why many homebuyers can’t afford homes in popular markets And So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileDave’s InstagramDave’s Housing Market DataBlack KnightMoody’s AnalyticsCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-27Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Interest rates are dipping below five percent, hedge funds and institutional investors are starting to sell off their homes, and inexperienced syndicators are getting stuck with bad deals. Is this the everyday investor’s version of a miracle? Nope, it’s just another week in the wild 2022 housing market! Joining us is the entire On The Market panel to talk about which up-to-date, hard-hitting stories affect investors the most.To start, we’ll talk about Invitation Homes, one of the most prominent institutional real estate companies, and how they’re being accused of using unpermitted work to renovate their recent acquisitions. Within the same vein, Opendoor, another institutional investor, was fined a whopping $62M for “deceptive marketing”, but did they really make promises they couldn’t keep? Don’t worry, this isn’t an entirely iBuyer-only episode.Our last two stories cover commercial real estate and interest rates. More commercial deals are starting to see cracks in their literal and figurative foundation, as inexperienced investors are being slapped with higher fees and rates from banks as their properties become less valuable. But, some good news for investors is that mortgage rates have finally dropped below five percent, getting us closer to the rock-bottom rates we were used to in 2020 and 2021. But can these rates be counted on, or will they skyrocket back up once the Fed has had enough?In This Episode We CoverWhy hedge funds are hurting and failing to keep up with maintenance on their propertiesThe “deceptive marketing” tactic OpenDoor used to lure in new customersHow rapid “repricing” is changing the way commercial real estate deals are doneJamil’s $2.5M mistake and why you should always focus on your own area of expertiseLow interest rates and why banks are offering them even as the Fed pushes for increasesAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileDave’s InstagramHenry's BiggerPockets ProfileHenry's InstagramJames' BiggerPockets ProfileJames' InstagramJamil's BiggerPockets ProfileJamil's InstagramKathy's BiggerPockets ProfileKathy's InstagramInvitation HomesOpendoorRapid RepricingInterest RatesHear More About Jamil’s $15M Wholesale DealCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-26Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

What do work-from-home employees and the housing market have to do with each other? Surprisingly, a lot. At the start of 2020, as the first lockdowns were rolling in, many companies made the wise decision to allow their workers to temporarily work-from-home. As temporary became seemingly eternal, more employers started developing permanent work-from-home regulations, allowing employees to, on average, work at their residence for about half of the workweek.With this enhanced flexibility, employees were more likely to move to places their jobs didn’t confine them to. If they were used to snow and sleet, they may have moved to Arizona, Texas, or Florida. If they were stuck in urban areas like New York City and San Francisco, the more suburban allure of Boise, Denver, or Raleigh pulled them even closer. Now, these high-paid, location-flexible workers were on the hunt for houses. And as a result, home prices skyrocketed while affordability plummeted.It’s becoming more and more evident how much of an impact remote work plays on the housing market, but what can landlords do with this information? Dave has already dug through the research so you don’t have to, and he brings on this show three factors of a work-from-home “hotspot” that could forecast big home price appreciation. These three factors could point you on the path to buying in the nation’s next best real estate market!In This Episode We CoverThe latest remote work trends and whether or not working from home is here to stayHow work-from-home policies have affected productivity in the workplace The three factors of a work-from-home “hotspot” that could explode in popularityHow more remote workers affect the housing market, migration, and home pricesWhether or not a recession could end the work-from-home movement and force workers back into the officeThe real estate markets that are starting to cool after huge home price appreciationAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileDave’s InstagramThe Do's and Don'ts of Returning to the Office by Adam GrantNBER: Pandemic-Induced Remote Work and Rising House PricesListen to Our Episode with Redfin’s Taylor Marr Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-25Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Climate change and real estate. Most people would say that they’re related, but not in a substantial way. We all know that homes can flood, catch fire, or be blown away from a tornado, but how many real estate investors are looking at the climate risk data before making a real estate-related decision? Institutional investors have been using climate change data to make educated decisions for decades, so why aren’t we doing the same?Cal Inman, lecturer at UC Berkeley and principal over at ClimateCheck, saw that real estate developers were regularly looking at climate data to make decisions. As a small landlord himself, he struggled to find this same type of data for his residential properties. As fire and flooding became more prevalent throughout the United States, Cal knew that this data was imperative for homeowners, not just large-scale investment firms. Now, thanks to ClimateCheck, homeowners, buyers, and sellers can look at the climate change-related risk before they put any money into a property. Cal also shares why and where climate risk is rising, the safer parts of the US to invest in, and how different regions of the country are preparing for more elevated climate-caused catastrophes. If you’re investing on the coasts, in the plains, or anywhere in between, the data could completely change your investing strategy. In This Episode We CoverHow real estate developers use climate data to make better investing decisions Whether or not climate risk is rising and in which markets is it impacting the mostWhy coastal investors especially need to be specific about where they decide to buy What small investors can do to mitigate the risk of losing their properties to climate emergencies The impact climate change will have on US migration and renting/buying trends And So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileDave’s InstagramCheck Your Home’s Climate Related Risk with ClimateCheckRedfin and ClimateCheck’s Guide to Climate DataHow Much Risk Does Climate Change Actually Pose To Real Estate?Connect with Cal:ClimateCheckCal's LinkedInCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-24Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

The US economy has seen a couple of recessions over the past two decades. The most brutal one being the great recession, which remains an anomalous event. Fast forward twelve or so years, and we entered into the 2020 recession, one of the fastest recessions ever recorded that resulted in a massive run-up of stock, crypto, and real estate prices. Now, as a recession looms on the horizon, Americans are struggling to figure out whether or not we’re about to hit a short-term speed bump or a long-term depression.So many different economists, newscasters, and financial bloggers love to debate whether or not we’re truly in a recession. By definition, we should be, but the experts are slowly taking their time, trying to calculate the true impact of this latest economic cycle we’ve entered. But does being in a recession really matter? Yes, recessions affect almost every aspect of financial life. Labor slows down, consumer prices go up while asset prices drop, and it’s harder to make economic progress. But, is that what we’re experiencing in 2022, or is the term “recession” just propping up fabricated fear that matters far less than we think?In this bonus episode of On The Market, Dave gives his insight into whether or not the US economy has entered a recession, how this affects real estate investors, and why experts can’t agree on a definition. If you’re actively investing, Dave gives some good advice on how to keep your head screwed on straight while every news outlet plays chicken little.In This Episode We CoverWhy experts can’t agree on whether or not we’ve entered a recessionGDP decline and how inflation has outpaced our growth as an economyHow past recessions compare to what we’re going through today and what we can learn from themMortgage and interest rates and how a further economic decline could affect investorsThe three most important metrics to watch as a recession becomes more likelyThe key performance indicators that show economic growth, not declineAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileDave’s InstagramOn The Market 14 with Logan MohtashamiOn The Market 17 with Rick ShargaOur Recent Panel Discussion on Home PricesU.S. GDP Shrinks By 0.9%—White House and Experts Push Back On Recession ClaimsCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-23Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Your next property purchase might just be a 3D-printed house. Don’t believe us? With lower housing costs, immediately replaceable/printable parts, and homes that can be built in six months (or less), traditional real estate developers may find themselves in a pinch when trying to compete against these perfect printable properties. With a huge inventory shortage and housing crisis throughout the United States, 3D-printed homes may just be the ultimate solution nobody believed could happen.As a true believer, Zachary Mannheimer, CEO and founder of Alquist 3D, knew that 3D printed houses would sooner or later become the future. With labor and material costs skyrocketing and real estate development becoming eye-wateringly expensive, Zachary became keen on finding an affordable solution. His team now has plans to build 200+ homes for underserved communities and has already begun expansion across the eastern United States.And this isn’t all theory. Zachary’s team has already built multiple 3D printed homes, one of which has a family living in it. They’re facing an influx of orders and can’t keep up with demand, but are slowly building economies of scale to make 3D printed housing one of the biggest industries in America. Zachary confidently estimates that by 2025, you won’t be asking if 3D printing is possible, you’ll be asking when you can preorder your next property.In This Episode We CoverThe true cost of a 3D printed house and how labor and material costs will shrink as the industry expandsProject Virginia and how Zachary’s team is building affordable, high-quality housing for communities with rock-bottom inventoryHow to buy and build a 3D printed home by working with Alquist 3DThe new 3D printing industry that will create hundreds of thousands of jobs over the next decadeHow long it takes to build a 3D printed house and how to print your own materialsAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileHenry's BiggerPockets ProfileJames' BiggerPockets ProfileJamil's BiggerPockets ProfileKathy's BiggerPockets ProfileDave’s InstagramHenry's InstagramJames' InstagramJamil's InstagramKathy's InstagramCheck Out Zachary on This Month’s BiggerNews EpisodeWatch 3D Homes Get PrintedConnect with Zachary:Zachary’s Team at Alquist Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-22Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Is some alleviation from inflated home prices headed our way? Over the past two years, sellers have taken the housing market for a ride, getting dozens of offers on every listed house. No matter the condition, area, or age of the property, buyers were filling open houses every weekend just to make an over-asking offer on what should be a reasonably priced house. Now, the tables are starting to turn, and as a result, sellers are getting desperate. Interest rates are rising and buyers are backing out of the market by the dozen. Instead of twenty offers in a weekend, sellers are looking at two, and none of them are over asking price. This is good news for home buyers and great news for investors, as deals are becoming easier to come by while the housing market hysteria takes a breather. We brought the entire On The Market panel in this week to see where they’re finding deals, how their own markets are fairing, and what investors should look for on the horizon as demand steadily starts to slow. We also go into the future of housing inventory and how another inventory crisis could be coming soon. In This Episode We CoverJune housing market updates and why the housing market is starting to slowWhy fear-first sellers are dramatically lowering their asking prices simply to sellCould we enter into another inventory crisis and why some investors think this dip is only temporaryWhere to find deals in today’s market and why real estate agents may become a phenomenal deal source for youHow flippers and BRRRRers can prepare for housing prices to head back down And So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileHenry's BiggerPockets ProfileJames' BiggerPockets ProfileJamil's BiggerPockets ProfileKathy's BiggerPockets ProfileDave’s InstagramHenry's InstagramJames' InstagramJamil's InstagramKathy's InstagramGrab This Episode's Data Drop (Lead Indicator Data for US Housing Markets)Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-21Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate wholesaling is one of the most hated, commonly criticized, and least-trusted types of real estate investing. Most people paint real estate wholesalers as those who lie to sellers, incorrectly run comps, and try to market bad deals to unexpected investors. This is all said while top real estate investors around the country continue to buy from wholesalers. So what is it? Are real estate wholesalers a parasite to the property investing industry or are they the symbiotic counterpart every successful investor needs?To put it simply, wholesaling real estate is when a wholesaler will put a property under contract for a certain price, then market the property to investors at a higher price, and keep the difference once the property is handed off. Think of wholesalers as the middlemen between a distressed seller and a real estate investor looking for undervalued deals. In a perfect world, all three parties walk away from the transaction happy. But how often does this happen?Jamil Damji, James Dainard, and Henry Washington are on this week to talk about how to wholesale, what most wholesalers get wrong, and whether or not real estate wholesaling still works in 2022. Jamil and James are both active wholesalers, while Henry often buys his properties from wholesalers. They give a “wholesaling 101” course to any new investor looking to find deals as well as to new wholesalers trying to get their seed money started.In This Episode We CoverWhether or not a recession is here and how high interest rates may go in 2022What is wholesaling and why real estate wholesalers are so hated in the industryIs 2022 a good time to start wholesaling or should investors wait until home prices dropWhy wholesaling may be the single best way to get a world-class real estate investing educationWhich properties to wholesale vs. keep when investing and flipping contractsVetting your wholesaler and how to know you’re buying a real dealAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileHenry's BiggerPockets ProfileJames' BiggerPockets ProfileJamil's BiggerPockets ProfileDave’s InstagramHenry's InstagramJames' InstagramJamil's InstagramGrab This Episode's Data Drop (Questions to Ask Your Wholesaler)The Newbie’s Guide to Wholesaling in 7 Simple StepsThe Big Mistake I Used to Make When Qualifying Wholesaling LeadsCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-20Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices