On The Market

Home flipping, wholesaling, and BRRRR-ing rental properties are all solid options in the real estate investing space. But, as most experienced investors know, different markets favor different strategies. In some markets, flipping outweighs the risk of renting out a property, while in others, something like the BRRRR strategy is a no-brainer. In 2022, after two years worth of wild appreciation and huge rent raises, which strategy is the best for investors?We couldn’t have this sort of debate without our buy-and-hold expert, Henry Washington, our master house flipper, James Dainard, and our wholesale addict, Jamil Damji. Together, they each bring their own unique outlook on these strategies and give advice on which is the best to use for certain types of deals. Henry, James, and Jamil bring real-life deals to debate, and you’ll hear how experts analyze properties, even with just basic information.If you’ve enjoyed listening to On The Market, we would love it if you gave us your feedback on the On The Market BiggerPockets Forums. Participate in our audience feedback survey or give us your take on the current housing market. Let us know what you think so we can keep making episodes that help you on your investing journey!In This Episode We CoverWhether or not secondary home sales will see a drop off after record purchases How the “Lock-In” effect could cause housing inventory to shrink even moreThrowing away a $2.5M wholesale deal to build far greater wealth Wholetailing vs. flipping and how to know which strategy works for which propertyWhether to BRRRR or flip a property and the long-term effects of your decision Short-term rental sales and whether or not vacation rental occupancy rates will declineAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseHow the "Lock-in Effect" Will Impact the Housing Market for DecadeDemand For Second Homes Is Way Down From Last Year’s BoomConnect with Dave and Our Panel of GuestsDave’s BiggerPockets ProfileDave’s InstagramHenry’s BiggerPockets ProfileHenry's InstagramJames’ BiggerPockets ProfileJames' InstagramJamil’s BiggerPockets ProfileJamil's InstagramKathy’s BiggerPockets ProfileKathy's InstagramCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-9 Learn more about your ad choices. Visit megaphone.fm/adchoices

When we talk about recession indicators, we usually talk about things like housing price drops, mass layoffs, heavy unemployment, and overleveraged consumers. It seems like every time you turn on the news, someone is touting a return of the great recession, without much to back it up. Since the housing market plays such a pivotal role in the economy, we decided to have a housing market recap with our expert investors Henry Washington, James Dainard, and Kathy Fettke, to see if their metrics point to a recession.In a strange time like 2022, almost every real estate investor is starting to get nervous. Home prices continue to rise, and inventory is almost as low as it’s ever been, but at the same time, high interest rates don’t make buying expensive homes attractive anymore. Is there still any juice left to squeeze in this year’s housing market, or are we on a fast track to foreclosures, price cuts, and peak buying opportunities for investors?In this episode, we’ll touch on it all so you can stay confident in these wild times. Dave and our panel of experts will explore why showings have dropped for new homes, unemployment rate updates, “data traps” you can fall into, how tech stock slumps pose a threat to real estate, and how to adjust your numbers when money costs more. In This Episode We CoverThe current housing market supply and demand and what it foreshadows for the futureWhat the “recession indicators” are saying and why it differs from mainstream thought Inflation, employment, and which industry may have layoffs lying around the corner The “lock-in” effect causing most homeowners to hold instead of sell What a “recession” would look like in 2022 and planning for price dropsAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseLowering Your House Flipping Costs During High-Inflation TimesDave’s Interview with Daren Blomquist on ForeclosuresConnect with Dave and Our Panel of GuestsDave’s BiggerPockets ProfileDave’s InstagramHenry’s BiggerPockets ProfileJames’ BiggerPockets ProfileJamil’s BiggerPockets ProfileKathy’s BiggerPockets ProfileCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-8 Learn more about your ad choices. Visit megaphone.fm/adchoices

Gas prices, unemployment rates, and home sales have been headlining topics for the past two years. Every other day we’re hearing about a record surge in a certain type of asset, leaving many investors wondering when this market madness will come to an end. To help us understand a bit more about the economic indicators affecting our daily lives, we invited Planet Money and The Indicator’s Stacey Vanek Smith on the show.Stacey has an enormous presence in the economic podcasting world and has helped pioneer some of the most-listened-to content about what drives and divides our economy. Today, she talks to Dave Meyer and Kathy Fettke about the most important economic indicators that investors should watch out for. Thankfully, she brings news not just about interest rates and inflation—Stacey has some genuinely positive news about the post-pandemic economic recovery. One of the key topics of this show is how work-from-home and remote lifestyles have prompted a “real estate reset” that may potentially even out the United States housing market. If you’re a real estate investor, homeowner, or renter, this information will be crucial for decisions that will affect not only your current life but your future potential to build wealth. If you enjoyed our interview with Stacey, we highly recommend getting her new book Machiavelli for Women: Defend Your Worth, Grow Your Ambition, and Win the Workplace!In This Episode We CoverHow to recover from the “divided economy” we find ourselves in todayIs the great resignation here to stay, and if so, what does it mean for home prices?Unemployment “JOLTS” that affect labor prices and worker supply Why and how energy prices have skyrocketed and the effects that come with itThe two most important economic indicators real estate investors should pay attention toThe positive economic effects of a worldwide pandemic and global lockdown And So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundrisePlanet Money PodcastThe Indicator from Planet MoneyPlanet Money Summer SchoolConnect with Dave and Our Panel of GuestsDave’s BiggerPockets ProfileDave’s InstagramHenry’s BiggerPockets ProfileJames’ BiggerPockets ProfileJamil’s BiggerPockets ProfileKathy’s BiggerPockets ProfileConnect with StaceyStacey Vanek Smith’s WebsiteCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-7 Learn more about your ad choices. Visit megaphone.fm/adchoices

Maybe you wanted to know how to invest in real estate back in early 2020. You took some time to educate yourself by listening to podcasts and reading books. Then you went and got preapproved, found yourself an agent, and were ready to start hitting the pavement, searching for your first real estate deal. While you were on your hunt for profitable houses, the world started to shut down. Everyone was forced inside, the real estate market locked up, and you thought “maybe I should wait this one out.” Now, it’s 2022, and the housing market is arguably the most competitive it has been in decades. You missed your shot, right? Now you can never invest in real estate…or so you think. Dave Meyer, On The Market Host and VP of Data and Analytics at BiggerPockets, is here with Henry Washington, Jamil Damji, and Kathy Fettke to argue that you should still be investing in real estate. Even with rising interest rates, high home prices, and fierce competition, our expert panel agrees: there’s no better time to invest than right now. So, if you’ve been feeling like your passive income dreams are slowly slipping away, we encourage you to not only listen to this episode but take the steps outlined in today’s show. Dave and our panel of expert guests give you everything you need to make a smart, profitable, confident entry into real estate investing. You just need to take the first step.In This Episode We CoverWhy home prices continue to rise while stock indexes see year-to-date drops Where rookie real estate investors are getting stuck at the start of their journeyWhy 2020 is a great year to invest (even if the world is seemingly ending)How to invest in real estate and buy your first rental in 2022Whether or not that cash-flowing out-of-state deal will truly turn a profit The tips our experts would have given themselves at the start of their investing journey And So Much More!Links from the ShowJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseFind an Investor-Friendly Agent in Your AreaStart Investing with House HackingDownload Jamil’s Free Appraisal RulesConnect with Dave and Our Panel of GuestsDave's BiggerPockets ProfileDave's InstagramHenry's BiggerPockets ProfileJames' BiggerPockets ProfileJamil's BiggerPockets ProfileKathy's BiggerPockets ProfileCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-6 Learn more about your ad choices. Visit megaphone.fm/adchoices

Cash flow vs. appreciation has been a fiercely fought debate between many real estate investors for decades. Cash flow investors love to tout the fact that consistent rental property profits allow you a life of freedom, while appreciation investors argue that cash flow doesn’t build wealth, it merely keeps you treading water. There’s arguably no better panel to ask about this topic than America’s best wholesaler, investor, and flipper trio—James Dainard, Jamil Damji, and Kathy Fettke. James, Jamil, and Kathy have a view on the appreciation vs. cash flow topic that most investors don’t possess. All three of these investors have bought, sold, and held real estate before, during, and after the great recession, meaning they aren’t subject to the 2020 and beyond “hot housing market” stigma many new investors fall into. They’ve seen what a good, bad, and ugly housing market can look like, and, unsurprisingly, they reach almost the same conclusion.Maybe you’re a new investor, looking to buy in a high-appreciation area like South Beach or a cash-flow crazed, FI-chasing rookie who thinks the Midwest is where it’s at in terms of wealth-building. No matter where you stand on the subject, this episode will give you decades of investing context that should help you make far better returns in the long run. In This Episode We CoverRent growth, appreciation, and the surprisingly most unaffordable state in the USCash flow vs. appreciation and which strategy makes sense for which investor stageHow to force appreciation so you never have to rely on outside market conditions Why forecasting your market is far superior to trying to time itWhether or not cash flow is too slow of a strategy to build real wealth What happens to appreciation if a housing market recession is on the horizon And So Much More!Links from the ShowJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseCash Flow vs. Appreciation—What Experienced Investors Know About the Debate That You Don’tWhat Is Forced Appreciation?Why Cash Flow Beats Out Appreciation in Real Estate Any Day of the WeekConnect with Dave and Our Panel of GuestsDave's BiggerPockets ProfileDave's InstagramHenry's BiggerPockets ProfileJames' BiggerPockets ProfileJamil's BiggerPockets ProfileKathy's BiggerPockets ProfileCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-5 Learn more about your ad choices. Visit megaphone.fm/adchoices

The Fed and interest rates—what one does, the other follows. Over the past two years, we’ve seen interest rates crash to all-time lows, only to skyrocket back up to decade-long highs at the start of this month. This turbulence has swept the legs of many prospective homebuyers and has caused the housing market to go from red-hot to lukewarm in only a matter of weeks. What’s causing these rapid fluctuations and are rising interest rates the new norm?There’s arguably no one better to ask this question than Nick Timiraos, reporter and economic correspondent at The Wall Street Journal. Nick keeps a tight pulse check on The Federal Reserve at all times. In his newest book, Trillion Dollar Triage, he discusses why The Federal Reserve made the shocking moves they did in 2020, and how their decisions affect every American today.Dave Meyer and James Dainard use today’s interview with Nick as a chance to ask the how, why, and when questions about The Federal Reserve, inflation, interest rates, and the housing market as a whole. Nick discusses the warning messages that The Fed has been sending over the past few months that should give investors an inkling of what is to come in the second half of 2022. If you’re a real estate investor or casual homebuyer, these signals could dramatically shift when and how much you offer on a home.In This Episode We CoverThe main goals of The Federal Reserve and how they change markets to achieve themHow the 2008 housing market compares to the 2022 housing marketWhere The Fed thinks we’re going in 2022 and how interest rates will affect thisThe biggest factors influencing today’s high inflation rates and when we can expect to see a more normal economyThe silver lining behind a slower housing market that real estate investors should pay attention toHow investors can increase their chance of investing success in the coming yearsAnd more economic obscurities!Links from the ShowBiggerPockets ForumsThe Wall Street JournalOn The MarketDave's InstagramDave's BiggerPockets ProfileJame's BiggerPockets ProfileJame's InstagramConnect with NickNick's Twitter ProfileEmail Nick: Nick.Timiraos@wsj.comNick's Wall Street Journal ProfileCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-4 Learn more about your ad choices. Visit megaphone.fm/adchoices

When choosing a 2022 housing market strategy, you’ll need a few key ingredients. Things like job growth, population growth, affordability, and new construction are just a few ways to see whether or not a real estate market will stand the test of time. As the housing market begins to see some stalled demand and we enter into potentially “bubblicious” territory, the smart investor begins looking for the best place to park their money for the long term.Back again for our second episode of On The Market is VP of Data and Analytics at BiggerPockets, Dave Meyer, buy-and-hold addict, Henry Washington, head honcho of wholesaling, Jamil Damji, and our resident Californian, Kathy Fettke. This time, we’ll be touching on the latest data and news claiming that the US is starting to enter into a housing market bubble and how demand has sharply declined since interest rates have begun to rise.We also share our favorite 2022 housing market picks for investing, with some markets you’ve heard of and others you may have never thought to invest in. If you want to get ahead of the curve while dodging the housing market hype, you’re in the right place.In This Episode We CoverWhether or not low unemployment numbers will change the course of the economy in 2022Why (and how) housing market demand changed and what investors can do to take advantageThe Fed’s “housing bubble” alert that has homebuyers stalling to make offersHow expert investors research, vet, and pick their real estate investing markets The eight best housing markets of 2022, plus how to vote for your favoriteWhy 2022 may be the best time to NOT fly business classAnd more economic obscurities!Links from the ShowBiggerPockets ForumsFundriseRedfinKathy's PodcastBiggerPockets Data DropWhat the Average Homebuyer Can Learn from House-Hungry Investors (Episode)FRED Econominc Data Redfin Migration ReportPfizerJohnson & JohnsonTyson FoodsJB HuntBiggerPockets's InstagramConnect with DaveOn The MarketDave's InstagramDave's BiggerPockets ProfileConnect with HenryHenry's InstagramConnect with KathyKathy's Company WebsiteConnect with JamesJame's BiggerPockets ProfileConnect with JamilTriple Digit FlipJamil’s InstagramCheck the full show notes here: https://biggerpockets.com/blog/on-the-market-3 Learn more about your ad choices. Visit megaphone.fm/adchoices

The housing market relies on many things: market sentiment, Federal Reserve policy, supply, demand, interest rates, inflation—the list goes on and on. For most homebuyers, it may seem almost impossible to crack the code of when (or if) it makes sense to buy a home or rental property. But, as we’re seeing housing market turbulence, we’re also seeing investor activity skyrocket. What do experienced investors know that we don’t?Joining us for the first episode of On The Market is VP of Data and Analytics at BiggerPockets, Dave Meyer, real estate investing expert Henry Washington, builder, buyer, and landlord, Kathy Fettke, home flipping extraordinaire James Dainard, and arguably the biggest (and best) wholesaler in the United States, Jamil Damji.This week’s episode focuses on 2022 housing market predictions, where each guest gives their take on where the housing market may end up at the closing of this year. We also touch on how to invest in 2022, updating your investing strategy, whether to wait or invest, and the double-edged sword of debt that can make you rich, or sink your ship.In This Episode We CoverThe “professional eater” who’s buying the homes you’re losing out onOur home appreciation, rent price, and inflation predictions for 2022Pivoting your investing strategy so you can take advantage while others sit on the sidelinesUsing leverage to build wealth (without losing it all!)How rising salaries are fighting off the negative effects of high(er) interest ratesWhat institutional investors know about the housing market that you don’tAnd more economic obscurities!Links from the ShowBiggerPockets Real Estate PodcastKailyn's BiggerPockets ProfileOn The Market Youtube ChannelBiggerPockets ForumsOn The Market Data DropConnect with DaveOn The MarketDave's InstagramDave's BiggerPockets ProfileConnect with HenryHenry's InstagramConnect with KathyKathy's Company WebsiteConnect with JamesJame's BiggerPockets ProfileConnect with JamilTriple Digit FlipJamil’s InstagramCheck the full show notes here: https://biggerpockets.com/blog/on-the-market-2 Learn more about your ad choices. Visit megaphone.fm/adchoices

Investing with confidence requires staying informed. But with news sources giving conflicting takes on the economy, it can be hard to sift through the headlines and find the relevant information. Join On the Market, a BiggerPocket’s Podcast, presented by Fundrise, every Monday for a fun, fact-driven glimpse inside the world of real estate, personal finance, and economics. Learn more about your ad choices. Visit megaphone.fm/adchoices