966: Top Investors Reveal Their Worst Real Estate Deals (DON'T Repeat Them!)

The rental market could finally be returning to stability after a wild past four years. Since 2020, we’ve seen rent prices skyrocket almost overnight, with huge asking price increases for single-family homes, multifamily apartments, and everything in between. But that trend quickly reversed as the fight against inflation began, mortgage rates rose, and would-be homebuyers sat still, not knowing whether to stay renting or search for a home. But, a return to “equilibrium” may be coming soon, and that’s good news for landlords and renters alike. To break it all down, Zumper’s Anthemos Georgiades joins the show to share his team’s latest rent data. Anthemos brings some surprisingly good news for landlords, from new month-over-month rent growth data to consumer preferences shifting to a more renter-focused lifestyle; now may be the moment landlords have been waiting for as renter demand looks promising and rates stay high. We’ll also discuss the inflation lag effect our rental market has caused and how to stay on top of current rent prices.  Has the dream of homeownership died? And if so, how do YOU attract the long-term renters who want to make a home out of your house (while paying YOU rent!)? Stick around for this rental market update every landlord needs to know about. Support today’s show sponsor, Rent App: the free and easy way to collect rent! In This Episode We Cover Rent growth updates and why rents for some units are starting to climb Single-family vs. multifamily demand and which asset is seeing the most strength  Why Anthemos is predicting a return to “equilibrium” for landlords this summer  The massive effect rent has on inflation and how housing shifts the economy  Is the “American Dream” dead? Why young Americans are ditching homeownership Where to find free, up-to-date rent price data so YOU can make the most from your rental  And So Much More! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-975 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Want to really stand out in your market? A few renter-friendly interior design ideas can make a world of difference, elevating a run-of-the-mill property into one that attracts tenants and guests and stays occupied year-round. Today’s guest has some affordable, do-it-yourself (DIY) design hacks centered around “maximalism,” the design trend you can’t afford to not know about.   Welcome back to the BiggerPockets Real Estate podcast! If you want to boost your property’s value, keep renters happy, and get even MORE cash flow from your portfolio, you’ve come to the right place. Today, interior designer Tay “BeepBoop” Nakamoto joins the show to share some of her most popular rental design tips. Regardless of your investing strategy, whether you own short-term rentals or are flipping houses for a profit, you won’t want to miss out on these enormous value-adds. The best part? They are extremely cost-effective, easy to implement, and, most importantly, reversible!   In this episode, Tay delves into maximalism—the interior design trend that is taking the world by storm in 2024—and shares how you can seamlessly integrate this popular style with your rental properties. She even shares some of the best places to find furniture, décor, and materials, as well as some common pitfalls to avoid when tackling your own home renovation projects! In This Episode We Cover The best renter-friendly, do-it-yourself (DIY) design hacks for rentals How to implement maximalism throughout your rental properties Why you must know your limits when making design changes Where to find budget-friendly furniture and décor for your property How landlords can benefit from keeping up with the latest design trends Common pitfalls to avoid when tackling your own home design projects And So Much More! (00:00) Intro (01:17) What Is Maximalism? (04:31) Fixing Up Her First Home (11:02) Renter-Friendly DIY Projects (20:50) Common Pitfalls & Cosmetic Changes (26:42) How to Implement Maximalism (27:49) Connect with Tay! (28:24) Boost Your Property's Value! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-974 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Want to retire early? Real estate investing might be your best bet. Looking to boost your cash flow and expand your real estate portfolio, too? In today’s show, we’re sharing how to use home equity to build wealth the RIGHT way, plus the “portfolio architecture” secrets that enable you to retire earlier than you thought. Whether you’ve got one rental or a hundred or are just starting to dig into real estate investing, we’ve got the investing information you need on this Seeing Greene to reach true financial freedom. First, an investor sitting on $300,000 of equity asks what he should do: sell his current rental property and buy more OR convert the single-family home into a multifamily investment. The answer isn’t as clear-cut as you’d think. Next, we discuss whether ARMs (adjustable-rate mortgages) vs. fixed-rate mortgages are your best bet for a lower mortgage rate. Plus, we'll share the five BIG mistakes new real estate investors can make. Finally, David describes “portfolio architecture” to an investor who wants to retire by age fifty. He CAN get it done, and you can, too, IF you follow David’s massive passive income plan!  Want to ask David and Rob a question? If so, submit your question here so they can answer it on the next episode of Seeing Greene, or hop on the BiggerPockets forums and ask other investors their take! In This Episode We Cover How to retire earlier with rental properties by strategizing your “portfolio architecture” Using home equity to invest and whether you should renovate a property or sell it and buy more rentals  Adjustable-rate mortgages (ARMs) vs. fixed-rate mortgages and the “rate roulette” you could be playing Five real estate investing beginner mistakes you should avoid when using the BiggerPockets Forums  How to explode your cash flow by converting your long-term rental into a short or medium-term rental  And So Much More! (00:00) Intro (01:31) Buy More Rentals or Convert Current One? (07:33) ARM vs. Fixed- Rate Mortgages (16:43) 5 Mistakes New Investors Make (21:08) Portfolio Architecture (Retire Early!) (32:05) Moving “Lazy” Equity (42:09) Note Investing 101 (51:12) Starting a Business (53:50) Ask Us Your Question! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-973 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

What sets apart the wealthy from the wannabes when investing? Knowing how to find real estate deals! You’ll be ahead of ninety-nine percent of investors if you know how to find off-market real estate deals and discounted on-market properties. Today, we’re giving you everything you need to know to find real estate deals in your market, no matter your budget, and even if you have zero real estate investing experience. Henry Washington, co-host of On the Market and author of Real Estate Deal Maker, is on to condense his seven years of investing into simple steps YOU can follow to find undervalued real estate. You’ll learn what a great real estate deal is, how to spot one even if you’ve never invested, why buying right is what REALLY makes you rich, three steps to start finding deals today, and the beginner mistake that’ll stop the deals from coming your way. Plus, Henry even shares the hidden on-market deals ANYONE can find (if they’re up to it). If you follow these steps, you’ll have a steady stream of real estate deals flowing your way. But if you don’t, you could waste years of building wealth waiting for the right deal to fall into your lap. So, are you going to take action or make excuses?  In This Episode We Cover How anyone in any real estate market can find undervalued real estate deals The three steps to finding discounted deals and why most people give up too soon Hidden on-market deals that anyone with a real estate agent can find  The biggest beginner mistake you can’t afford to make (it’ll could cost you…) Why you DON’T need a ton of time and money to start finding off-market real estate And So Much More! (00:00) Intro (02:08) What Makes a Great Deal? (06:34) How You Really Make Money (08:10) 3 Steps to Find Deals  (16:21) Biggest Beginner Mistake  (20:37) Learning From the Best  (23:29) Hidden On-Market Deals (29:09) Most People Won’t Do This  (33:02) Beginner Steps to Take (35:26) Grab Henry’s Book Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-972 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

We’re almost halfway through 2024, and the housing market is at a standstill. Mortgage rates are high, inventory is low, buyers have fewer choices, and many homeowners refuse to put their properties up for sale. But could things change in the second half of this year if interest rates fall and inventory improves, even if ever so slightly? We brought Redfin Chief Economist Daryl Fairweather on this BiggerNews episode to get her team’s latest 2024 housing market predictions. First, Daryl explains how our stubbornly strong economy put the Federal Reserve in a challenging position and whether or not we could hit the magic two-percent inflation rate goal. Will buyers ever get a break in this tough housing market, and could lower interest rates improve things? Daryl shares what she thinks will happen once the Fed finally cuts rates, how low rates could go, and whether or not this will heat home prices up yet again. Some “unusual demand” may come late this year for housing, but will agents, brokers, and sellers see the traditionally hot summer season they’ve been waiting for? We’re answering all these questions and more with this housing market data leader on this BiggerNews episode!  Support today’s show sponsor, Rent App: the free and easy way to collect rent! In This Episode We Cover 2024 housing market and mortgage rate predictions from Redfin’s Chief Economist  How our economy has stayed so stubbornly strong EVEN with rate hikes  Homeowner control and why buyers may be in an even worse position AFTER rates fall Improving housing inventory and what’s contributing the most to more homes on the market Why inflation may NOT need to hit the two-percent target for the Fed to lower rates The “lock-in effect” explained and why more homeowners with low rates could start selling And So Much More! (00:00) Intro (01:38) A Stubbornly Strong Economy (07:03) Housing Is STILL Hot? (13:23) Mortgage Rate Prediction ((18:29) Will Inflation Fall? (20:56) 2024 Predictions (23:53) An Opportunity for Investors Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-971 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Before you start investing in real estate, make sure you hear this episode. Almost every beginner ends up making these five big real estate investing mistakes. Some cost money, some cost time, but all of them cost you peace of mind and push you further away from achieving financial freedom. We’re breaking down these five big mistakes so you can avoid them and start building wealth faster! Dave Meyer and Rob Abasolo are back today to discuss the five common real estate investing mistakes to avoid. From buying bad deals to doing wrong calculations, getting stuck in analysis paralysis, and beyond, even our expert investors have fallen into these beginner traps a few times. However, their previous mistakes could make you money as they share exactly how to avoid these rental property investing pitfalls. If you want to invest in real estate but are stuck, scared that you’ll make the wrong move, jump into today’s episode and take notes. If you can avoid these real estate investing mistakes, you’ll not only end up richer but with far less grey hair than even the most savvy investors. Let’s get into it! In This Episode We Cover The five biggest real estate investing mistakes that beginners make (and YOU can avoid) Why even a profitable rental property can be the “wrong” deal for you  The one thing that most new investors leave out when they’re analyzing real estate deals The “sacrifices” you can make to get the money for your first or next real estate deal  Why you should NOT borrow money to buy your first investment property  The problem with real estate partnerships and why they’re so easy to get wrong An antidote to analysis paralysis that’ll stop you from sitting on the sidelines  And So Much More! (00:00) Intro (01:25) 1. Buying the Wrong Deal (05:57) How to Avoid Bad Deals (07:14) 2. Analyzing Wrong (11:09) 3. “Lacking” Money (23:23) How to Do Partnerships (25:49) 4. Getting “Stuck” (29:01) Escaping Analysis Paralysis (31:12) 5. Doom and Gloom (34:18) Talk to THESE People Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-970 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Your rental properties are sitting vacant—what do you do? Do you sell or lower your rent price to spark some interest? Will reducing your rent open you up to bad tenants? We’re getting into exactly what you should do in this sticky landlording situation, and many others, in this episode of Seeing Greene. This time, we’re sharing wisdom on what to do when you can’t find tenants, how to invest with just $15,000 in 2024, which rental property mortgage to pay off first, and whether to keep or sell your newly renovated rental. As usual, your real estate investing experts, David Greene and Rob Abasolo, are on the show to help answer any investing question you can think of. Our first video submission comes from a new investor who is completing his first BRRRR (buy, rehab, rent, refinance, repeat). With only $15,000 in the bank and a desire to build a real estate portfolio, what’s the BEST way to use such a small amount of cash? Next, a landlord with multiple rentals wants to know which mortgage to pay down first: her primary residence or her other rentals. An out-of-state investor with a vacant property struggles to find a tenant even after lowering his rent price. A medium-term rental owner with a burnt property asks whether to sell or re-rent the property after his insurance-paid renovations are completed. Want to ask David and Rob a question? If so, submit your question here so they can answer it on the next episode of Seeing Greene, or hop on the BiggerPockets forums and ask other investors their take! In This Episode We Cover Struggling to find tenants? What to do if you think your rent price is too high  Building a real estate portfolio with just $15,000 and why you must use the “BRRRR method” Paying off your mortgage early and whether to prioritize loan balance or interest rate when picking which property to pay off The huge danger of using a HELOC (home equity line of credit) to pay off a property What to do after you renovate/rebuild a rental property—keep or sell it? And So Much More! (00:00) Intro (01:24) Build a Portfolio with $15K? (10:43) Which Mortgage to Pay Off First?  (20:22) I Can’t Find Tenants!  (30:00) Sell or Keep Renovated Rental? (35:30) Ask Us Your Question!  Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-969 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Want to know how to make millions WITHOUT owning real estate? Rental arbitrage is the strategy for you. And maybe you’ve heard about it before, but we promise you’ve never heard anything like this. Today’s guest is bringing in millions of dollars through “guaranteed” rental arbitrage contracts that last YEARS. You heard that right—guaranteed rent for years, often at the highest price on the market. And you don’t need to own a single rental property to try this strategy. So, how do you get started? If you’re looking to make big money with big deals but don’t have the deep pockets to buy a hundred-unit apartment complex, Noble Crawford has what you need. After choosing his wife’s health over his day job, Noble realized he needed an income stream he could depend on—one that wouldn’t be ripped away from him when life’s challenges arose. He learned about Airbnb investing and, by default, rental/Airbnb arbitrage. When the opportunity came for him to house medical students in need, he jumped at the chance and found a seriously lucrative investing avenue. In today’s episode, Noble will walk through exactly what you can do to start making tens of thousands, if not millions, with rental arbitrage. Plus, he’ll share how to get the deeply-desired government contracts that guarantee you top-of-the-market rent for YEARS. In This Episode We Cover How to use “rental arbitrage” to invest in real estate without owning a single property  The lucrative government housing contracts that can make you millions (seriously!) How Noble gets up to $10,000 per month per unit with these lucrative cash flow contracts Crucial first steps to starting your rental arbitrage empire (don’t get these wrong) Exactly where to find and how to get in touch with agencies that are looking for housing  And So Much More! (00:00) Intro (01:23) Cash Flow “Contracts” (04:38) $10,000/Month from ONE Rental? (09:23) Leaving His Job (12:20) Moving from Airbnb to Contracts (18:44) How to Compete for Contracts (26:30) How to Get Started (35:01) Connecting with Agencies (36:53) You NEED This Document Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-968 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Almost overnight, multifamily investing went from red-hot to something not even the most experienced investors would touch. After interest rates went up, rent growth stalled, and apartment supply flooded the market, the apartment investing industry became the ugly duckling of real estate. Owners struggled to get tenants and had huge balloon payments due, and no one was there to save them. But one man predicted that this would happen before anyone else—Brian Burke. After seeing a crash on the horizon, Brian sold off most of his multifamily real estate portfolio and did it at just the right time. Now, he has a new prediction that could make apartment investors very happy. But a market turnaround won’t come quickly, and if you want to ensure you don’t make the same mistakes most multifamily investors made in 2020 - 2022, you’ll need to hear this BiggerNews episode.  In this BiggerNews, Brian walks through everything that went wrong with multifamily real estate, signs it’s time to sell your properties, and some hope on the horizon for 2025 that most investors have no idea about. Support today’s show sponsor, Rent App: the free and easy way to collect rent! In This Episode We Cover A multifamily real estate update and Brian’s buying plans for 2024 and 2025 The “sobering reality” of the perfectly timed “traffic accident” that hit multifamily all at once  Why as soon as you sense “irrational exuberance,” it may be time to sell your real estate  An optimistic prediction from Brian on when multifamily could finally get back on its feet Syndication struggles and what every syndicator/investor should be doing NOW  Why the multifamily oversupply may NOT be a problem in the coming years  And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Property Manager Finder Join BiggerPockets for FREE Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area Expand Your Investing Knowledge With the BiggerPockets Books Be a Guest on the BiggerPockets Podcast Ask David Your Real Estate Investing Question Dave’s BiggerPockets Profile Dave’s Instagram BiggerPockets’ Instagram Listen to Dave on the “On The Market” Podcast See Dave at BPCON2024 in Cancun! On the Market Podcast 214 – What to Know About “Capital Calls” As Multifamily Syndications Get “Squeezed” w/Brian Burke Book Mentioned in the Show The Hands-Off Investor by Brian Burke Connect with Brian: Brian’s BiggerPockets Profile (00:00) Intro (01:57) "Irrational Exuberance” (08:52) Investors Get Hungry (11:34) Developers Come In (14:34) The Sobering Reality (19:01) Distressed Properties (22:02) Don’t Buy Anything? (23:41) Long-Term Multifamily Predictions (26:30) Syndication Struggles Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-967 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Think you've got a bad real estate deal? We doubt it comes even close to what we’re about to share. Today, the experts are in to talk about bee-infested rental properties, risky flips, “wholetail” failures, and other ways that they’ve lost money with real estate deals gone wrong. Why are we sharing such horrific stories? Because we want YOU to be able to avoid the same fate on your first or next investment property. Take a seat, get some popcorn, and pray that your properties won’t turn out like this… First, Henry Washington from the On the Market podcast shares his recent luxury flip…or should we say, luxury “flop.” This property was poised to make him up to a six-figure profit, but it didn’t work out that way. One simple mistake ruined this real estate deal and forced Henry to slowly pay away all his profits to a hard money lender. Next, our own Rob Absolo talks about the dangers of NOT looking at the comps when doing a “wholetail” deal and how you could easily find yourself with a home worth less than what you put into it. Finally, the deal of all horrible deals comes out…David Greene’s deal. Where do we even start? Permit problems, mold, bee infestations, and NO way out—this short-term rental gone wrong is costing David hundreds of thousands of dollars, and with little light at the end of the tunnel, he may be forced to do something drastic. So, how do YOU avoid these nightmarish real estate deals? Stick around so you know exactly what NOT to do. In This Episode We Cover Three of the worst real estate deals our investing experts have ever done Why not knowing your neighborhood can cost you BIG on your next house flip The danger of hard money loans and the massive interest they come with Why you NEED a partner/mentor in your area to confirm a property’s worth The so-called “landlord-friendly” state that’s actively trying to ruin David Greene  How nosy neighbors can end up costing you hundreds of thousands of dollars  Whether or not our investing experts regret investing in real estate after this  And So Much More! (00:00) Intro (01:24) A Risky Luxury Flip (06:02) Final Numbers and Exit Plans (09:19) Henry’s Mistake (11:14) An Overpriced Wholetail (15:04) Rob’s Mistake (23:23) The City Ruined My Real Estate (32:43) David Lost HOW Much!? (36:19) How to Avoid This (39:07) Do We Regret It? Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-966 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices