BiggerPockets Daily

Choosing between commercial and residential real estate is a big decision for investors. If you choose the wrong strategy, you could be in over your head and potentially lose money. We’ve created an investing in commercial real estate for beginners guide to help you understand what it means to invest in commercial real estate and what it requires. Learn more about your ad choices. Visit megaphone.fm/adchoices

With house flipping activity remaining high across the country, many investors are wrestling with this question: Is house flipping ethical? There are two sides to the argument, both of which we detail here. The Quick Basics of House FlippingThere is more to house flipping than what you see on television. It takes money, knowledge, and expertise to flip a home for a profit. What is house flipping?House flipping involves purchasing real estate at a low price, renovating or refurbishing it, and then selling it for a profit. This process typically aims to complete these steps quickly to maximize return on investment. Learn more about your ad choices. Visit megaphone.fm/adchoices

As an investor, you have many options when it comes to where you put your money. Day after day, whether you are driving to work or watching your favorite reality TV show, you’ll see advertisements telling you to invest in gold, stocks, digital currency, mutual funds, etc. And because of those ads, people have become familiar with those types of investments. But very few people are familiar with trust deed investing, although it’s a form of investing as old as money itself.  Learn more about your ad choices. Visit megaphone.fm/adchoices

As part of its goal to increase affordable mortgage access for homebuyers in the United States, Fannie Mae announced in December that it would accept attorney-opinion letters (AOLs) in place of title insurance with more mortgages. While AOLs have been allowed by the government-sponsored enterprise on select mortgages since 2022, the decision expands eligible mortgages to include condo units and properties with homeowners association (HOA) restrictions, potentially assisting more first-time homebuyers with the high costs of homeownership by trimming about $1,000 off their mortgage closing costs. The Community Home Lenders of America expressed support for the alternative as a way to tackle homeownership affordability challenges. But the American Land Title Association (ALTA), the nation’s largest title insurance trade organization, has consistently pushed back against attempts to allow title insurance alternatives, citing gaps in protection for homeowners and lenders.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Goals provide us with direction and purpose, acting as the foundation for every significant endeavor. Your goals should be written down, but they don’t need to be lengthy or complex. How to Get StartedYou can start with just the following items: Current situation: What is your current or anticipated financial capacity within a reasonable time frame? Get preapproved for an investor loan to determine your accessible credit limit. Financial end goal: Typically, this refers to an income goal, like earning $10,000 a month in today’s dollars. Time frame: The less time you have to reach your goal, the more initial capital and credit you will require. However, goals by themselves are not enough. Goals without an action plan are merely daydreams. Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you searching for your next big wealth-building strategy? Looking for ways to strengthen your portfolio? If so, it may be time to add passive investments to your portfolio if you haven’t already, specifically through turnkey. Turnkey real estate is an increasingly popular option with a range of benefits, making it an appealing choice for individuals seeking passive income and long-term wealth accumulation. Typically speaking, a turnkey property is fully renovated and ready for immediate rental or occupancy, often managed by a property management company, either affiliated with your turnkey partner or a trusted third-party vendor.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Despite recent challenges in the commercial real estate space, one area has become surprisingly popular among institutional investors: retail.As demand for office space has declined, retail seems to have picked up, despite a tumultuous 2023. According to the Wall Street Journal, private investors snagged $1 billion more in retail assets than they sold in the third quarter of last year. Predictions for retail over the coming year are strong, with many expecting retail to be a bright spot in an otherwise lackluster CRE space.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Cash-out refinancing is pretty common in real estate investing. An investor will cash in on the equity they have on an existing property and then use those funds toward a down payment on their next property. Rinse and repeat.That complicated process may soon be unnecessary thanks to a new fintech company.Downpayments, a Miami-based financial tech startup, has come up with a way for investors to tap their existing property equity to buy new properties—no refinancing required. Here’s how it works and what investors need to know about it. Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s been nearly four years since COVID-19 burst onto the global stage. We’ve returned to normal, but “normal” just doesn’t mean what it used to.  Domestically, Americans are feeling worn out. Social tensions are high and have been for a couple of decades. Conservatives and the right wing waste no time in blaming it on the commander-in-chief. Meanwhile, the left repeatedly insists not enough is being done by the government, pointing to healthcare, education, and housing as some of the issues where further intervention is needed.However, both parties largely fail to grasp the full scope of the issue, including its root cause: money, and specifically, global money. Learn more about your ad choices. Visit megaphone.fm/adchoices

The 70% rule in real estate can be helpful when comparing properties and making a final determination on which one is the best investment. Understanding the ins and outs of this rule is imperative to using it to your advantage. What Is the 70% Rule?The 70% rule is a formula commonly used by real estate investors as a barometer when purchasing distressed properties for a profit. The formula calculates the maximum amount to pay for a given property once two key factors—the after-repair value (ARV) and estimated repair costs (ERC)—are considered. Learn more about your ad choices. Visit megaphone.fm/adchoices