BiggerPockets Daily

I have a proposition for you. You give me $20,000 and I’ll give you… nothing. In fact, you’ll give me another $50 to $200 per month until you go crazy or broke.Sound like a good trade? No? Unfortunately, many rental property investors make this same trade with every purchase—because they didn’t properly calculate rental property expenses. The end result? Negative cash flow. Losing money. And unfortunately, it happens all the time in real estate investing, and it leads to financial ruin.I should know—90 percent of the deals I have purchased have been from “failed landlords.”But why do so many landlords fail? Simple. They don’t do do the math. They buy properties based on emotion, gut feelings, or bad calculations and then wonder why they lose money. And there’s one calculation that trips most people up: estimating the costs required to own rental properties. Learn more about your ad choices. Visit megaphone.fm/adchoices

Would you believe me if I said you didn’t need a massive buyers list to successfully wholesale properties?So many times, real estate gurus emphasize the importance of growing your buyers list to contain thousands of names. Now, I know sending properties to thousands of people sounds much more appealing than sending a property to a small handful of individuals. I mean, the chances of selling your property are much greater if you send it to thousands of people, right?Yes, it’s very possible, but let me ask you this: Are you currently on someone else’s buyers list? If so, do you actually click and view those spammy emails? Me neither!So, I want to encourage you guys to spend less time sending blanket emails to thousands of people you don’t know and focus your energy on developing relationships with buyers you can truly count on to buy your properties.Today, I’m going to show you why a small list of names is more valuable than thousands of names on a buyers list. Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you curious about investing but not sure if it’s right for you? I used real estate investing to pursue financial independence, but I had some doubts along the way. Personally, I have only done flips and buy and holds, but here’s what helped me figure out if real estate was the way to go:1. I Laid Out My Intended RoleA fantastic first question to ask yourself is: How much or how little do I want to be involved in my investments? Real estate can serve many purposes in many different ways. For example, real estate investment trusts are almost entirely passive. No middle-of-the-night phone calls, no managing, no nothing. You can also hire (competent) property management companies to take care of your properties. This way, you can stay as involved or uninvolved as you prefer. Learn more about your ad choices. Visit megaphone.fm/adchoices

A popular topic I hear a lot about is LLCs. It’s talked about all over BiggerPockets and my YouTube channel. People pose questions like, “Should I set up an LLC? What Should I name my LLC? In what state should I set up my LLC?” …Just to list a few.People think of the LLC as overly complex. But in reality, it’s not. I’m going to boil it down for you in a step-by-step process —as well as a crash course on what an LLC is.Disclaimer alert! I’m not an attorney and I’m not a CPA (nor is BiggerPockets). I’m just a real estate investor dude, and the advice I’m giving you is my personal opinion on LLCs based on my own experience.Before we dive into the steps, let me break down what an LLC is. Learn more about your ad choices. Visit megaphone.fm/adchoices

“The more we value things outside our control, the less control we have.” – Marcus Aurelius, MeditationsIf there’s been one theme to my writing as of late, it’s been economic volatility, be it real estate prices skyrocketing, coming back down, rents skyrocketing then falling like a rock, rampant inflation, banks failing, the office real estate market falling apart, or the specter of another 2008-like real estate collapse and deep recession. Volatility has been the name of the game since at least the beginning of the pandemic. Indeed, most economists have been predicting a recession for some time in 2023, while consumer confidence is significantly below where it was in early 2022. Even prior to Covid, rates of anxiety had been increasing substantially in the United States. One paper found that whereas 5.12% of American adults experienced persistent anxiety in 2008, 6.68% experienced it in 2018. And that was before Covid. The American Psychological Association found that in 2022, “Inflation was reported as a source of stress for the vast majority of adults (83%), and the majority of all adults also said the economy (69%) and money (66%) are a significant source of stress.” Learn more about your ad choices. Visit megaphone.fm/adchoices

So far, throughout 2023, we have published several articles on DSCR loans, a loan product that continues to grow in popularity among real estate investors. These included an overview of how to get the best rate and terms, how to use advanced strategies to maximize returns, and an overview of the new small multifamily DSCR loan niche, which expands the loan product to properties with up to 10 units!As many seasoned real estate investors know, while investing in real estate and obtaining loans is a generally straightforward process, there always seem to be unique situations and wrinkles to every deal! The BiggerPockets forums routinely include questions related to DSCR loan qualifications. This overview will help consolidate helpful information for investors curious about this loan option!This article will walk through many examples of frequently asked questions on all things DSCR loans and provide all the answers you will need to navigate the lending process and scale your portfolio on the road to financial freedom. Learn more about your ad choices. Visit megaphone.fm/adchoices

Housing activity often picks up in the spring, but this year, housing affordability concerns and recession fears are impacting seasonal trends. While mortgage rates dipped enough for housing transactions and building activity to surge in February, these metrics looked sluggish for March. Many homeowners and renters are staying put, waiting out a potential recession, while those looking to move are seeking more affordable areas. As of January, almost 30% of all work was performed out of people’s homes, a six-fold increase from before the pandemic. In busy urban areas, the share is even higher. The availability of work-from-home positions coupled with sky-high prices in the busiest metros is causing people to move further away than ever before. They’re choosing smaller communities with more affordable home prices and a lower cost of living to combat budgetary pressures while also aiming for desirable locations with booming economies that haven’t yet grown too crowded with transplants.  Learn more about your ad choices. Visit megaphone.fm/adchoices

If you thought of the cast of “Friends” (but poorer), you weren’t wrong. Historically, renters have been young and single, with low to mid incomes and typically less education than their homeowning counterparts.But, over the past decade, while the rest of the world was busy hyper-focusing on millennials, something happened. The demographics among renters shifted, and not how you’d expect either. Here’s how the face of American renters has changed over the past decade, and what it means for real estate investors. Learn more about your ad choices. Visit megaphone.fm/adchoices

While the process of finding a new tenant can be relatively straightforward, the tricky part is familiarizing yourself with landlord-tenant laws. And, even if you are familiar with them, rental laws are constantly changing. That’s why regularly keeping tabs on local regulations can help you better manage your rental properties.While the best way to familiarize yourself with rental laws is to consult a qualified legal expert, this article offers a closer look at ten landlord-tenant laws that all landlords should research.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate is considered one of, if not, the best investment you can make. Housing has been very consistent throughout history, more so than any other type of investment, and outpaces inflation and the stock market. However, many people don’t invest in real estate because they assume it’s complex and requires a massive down payment to get started. It turns out that this is entirely false! Real estate can be pretty easy to get into! Whether you’re looking to go the traditional route of buying and renting out properties, renting out rooms, or buying multifamily units the same way you do stocks, there’s no shortage of investment opportunities for which you can take advantage. In this article, we’ll go over seven simple ways that you can become a real estate investor. Learn more about your ad choices. Visit megaphone.fm/adchoices