980: Does Buying a Business Beat Real Estate Investing in 2024?

Military real estate investing is perhaps the easiest way for veterans to reach financial freedom. Today’s guest is a prime example, going from broke recruiter to “military millionaire” in just FIVE years. And get this—military real estate isn’t just for service members. Everyday investors can take advantage of certain perks, too!   During his first seven years in the U.S. Marine Corps, David Pere was a serial spender, blowing each paycheck and saving very little money. But when a friend recommended the personal finance classic, Rich Dad Poor Dad, things finally clicked, and David realized the unique investing opportunities the military provided. Within four months, he had taken advantage of the favorable VA loan and bought his first house hack!   In today’s episode, you’ll learn how the military puts you in a great position to take financial risks early in your career. David takes a deep dive into VA loans, their benefits, their requirements, and what buyers and sellers should know. He even shares the best-kept secret in military investing—the Interest Rate Reduction Refinance Loan (IRRRL) program—which makes it EASY for investors to score a better interest rate! In This Episode We Cover How veterans can build wealth through military real estate investing Why the VA loan is the “best primary residence mortgage in the world” What YOU should know about VA loans (even if you’re not a service member!) What sellers and buyers need to know about assuming VA loans How to find a lender that specializes in military loan products Refinancing with the Interest Rate Reduction Refinance Loan (IRRRL) program And So Much More! (00:00) Intro (01:14) Buying His First House Hack (05:57) Military Real Estate Investing 101 (09:11) VA Loan Benefits & Requirements (14:57) Reusing VA Loans & Finding Lenders (18:24) Assuming VA Loans & the “IRRRL” (23:14) HUGE Military Investing Advantages (26:21) Connect with David! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-982 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

High interest rates are stopping you from investing, so what do you do? Wondering how to prepare for a recession if one hits soon? Should you sell your rentals and pocket some cash, or will you regret dumping your performing properties to secure some short-term safety? These tough questions can’t be answered by just anyone, so we have our expert investors David Greene and Rob Abasolo on to help you navigate through the most financially puzzling parts of real estate investing. In this Seeing Greene, we’re tackling topics like how to prepare for a recession as a landlord, what to do when high interest rates kill your deals, and whether you should build an ADU (accessory dwelling unit) or simply park an RV on your land and rent it out instead. But that’s not all; a contractor wants to know how to work with investors while making even more money. Is he barking up the wrong tree, or is going the investor instead of the residential route a better choice for those trying to grow their contracting business?  Plus, how long a tenant turnover should take and whether your property manager is moving too slowly. All that, and much more, is coming up in this Seeing Greene show! In This Episode We Cover How to invest in real estate during a high interest rate environment (and find lenders!) Whether or not to sell your rentals if a recession hits in the near future  Renting out an ADU vs. an RV and which will make you more money and come with a lower cost  The power of compound interest and David’s genius method to pay off properties fast Tenant turnover times and how long it should take for your property manager to find new renters  How contractors can get consistent work from investors by doing this  And So Much More! (00:00) Intro (01:37) How to Invest with High Rates (07:24) Renting Out an RV? (14:00) Questions from the Comment Section (15:41) Sell Rentals to Recession Prep? (23:56) What Contractors Must Know (33:58) Subscribe for More Seeing Greene! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-981 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

Today’s guest makes up to $100,000 per year, PER investment, by buying businesses. Yep, you heard that right. We’re not talking about a few hundred bucks a month in cash flow like most rental properties get you. Instead, you can make a living by buying a business “no one wants,” which is exactly what Matt DeBoth is doing. Matt saw the writing on the wall after building up a sizable real estate portfolio. Low interest rates flooded buyers into the housing market, putting those with properties to sell in a great position. So, Matt sold many of his rental properties and wondered where he should put the money into. Over the next year, he spent his days researching businesses to buy, talking to business brokers, and eventually landed on a local pizza franchise. Matt was able to turn it around, and after months of hard work, he’s collecting serious cash flow from a business that only takes a few hours a week to manage! If you want to buy yourself a six-figure income stream and feel like now is the perfect time to take a pause from real estate investing, Matt’s story may be just what you need to get started. He shares how much it costs to buy a small business, how to manage it, what to look for in business investment opportunities, and what you can do TODAY to get started! In This Episode We Cover How to create a six-figure income stream by buying small business franchises  Buying the businesses “no one wants” and how to easily spot an investing opportunity Why a poorly run business can mean tremendous potential for you to make more money The low-money-down small business loans that Matt is using to buy businesses  How to manage your business the right way so you only need to work a few hours a week  Who should (and shouldn’t) buy businesses, and how to pick one  And So Much More! (00:00) Intro (01:34) Buying When No One Else Would (04:02) House Hacking an Apartment? (06:09) Selling Off His Rentals?! (13:06) Ditching Rentals to Buy Businesses  (15:32) Buying His First Business (17:45) Finding Investment Opportunities  (21:07) $100K/Year Income Streams?  (24:55) Managing the Businesses  (28:28) Who Should Buy Businesses?  (30:58) How to Get Started Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-980 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

Mortgage rates were supposed to be going down by now, but what happened? Even in late 2023, many housing market experts predicted that we’d be seeing high to mid six percent mortgage rates at this point and hovering around the high five percent rate mark by the end of the year, but the Fed isn’t showing any sign of lowering rates soon. Some experts even believe rates could go UP again this year as the job market stays hot and the economy sees unprecedented strength. This begs the question: What IF mortgage rates remain high? It’s a reality many of us don’t want to see, but 2024 could end with minor, if any, rate cuts, keeping monthly mortgage payments high and affordability low. So, what should an investor do in this situation? Sit on the sidelines? Invest in a different asset class? Pray to Jerome Powell? While that last option may be worthwhile, top real estate investors are saying that NOW is the time to buy BEFORE rates fall. What do we mean? We’ve got the entire expert investor panel from On the Market here to give their take on what investors should do IF rates don’t fall. From house flipping to long-term buy and hold rentals, our nationwide panel of investors shares exactly what they’re doing to make money even with high interest rates. Plus, we’ll give our predictions on when rates could fall, what will happen to housing inventory, what young people should do NOW to get their first house, and why investors need to “reset” if they want to thrive in this high rate housing market.  Support today’s show sponsor, Rent App: the free and easy way to collect rent! In This Episode We Cover Mortgage rate predictions and when interest rates could finally start falling  What should investors do IF mortgage rates stay high throughout 2024 The “lock-in effect” and whether or not high rates are leading to lower inventory  The homes that are flying off the market in many areas (and the ones that are sitting) How young people can creatively get into their first home or investment property Why investors MUST “reset” their expectations if they’re to build wealth in this housing market  And So Much More! (00:00) Intro (04:45) When Could Mortgage Rates Fall? (13:48) Inventory is Getting Gobbled Up (19:56) Can Young People Make It?  (24:19) Investors Must "Reset"  Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-979 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

“The stack” method is how to buy rental property faster than you thought possible. With so many real estate investing beginners wondering how to build a real estate portfolio, especially in today’s market, Dave Meyer, VP of Market Intelligence at BiggerPockets, decided to reintroduce “the stack” on today’s podcast. In it, he’ll show you exactly how someone with zero real estate investing experience can go from one to two to three rentals and beyond by following this simple framework. If you’ve struggled to buy your first rental property or never made it past the first deal, this is the episode to watch. Dave walks through how you can use “the stack” method to explode your real estate portfolio, the three simple steps to start buying rental properties today, and the one tool top real estate investors use to buy more real estate and find financial freedom faster. Beginner or investing veteran, if you’re feeling stuck but want to reach your financial goals, this might be just what you need. Sign up for BiggerPockets Pro to get unlimited access to the rental property calculator and all the tools from today’s video. Use code “FIRSTPOD24” to receive 20% off!  In This Episode We Cover How to buy your first, second, or third rental property using “the stack” method The easiest way to find real estate deals in today’s market, even if you have no experience  How to analyze a rental property in just minutes with the BiggerPockets Rental Property Calculator Financing and funding your first/next deal and why it’s not as hard as you think The best real estate investing tool for those who want to explode their portfolios  Why real estate is the perfect investment for financial freedom  And So Much More! (00:00) Intro (00:35) How to Buy Your First Rental Property (02:53) Achieving Financial Freedom (05:03) Scared to Invest? (09:44) "The Stack" Method (12:11) 1. Finding Deals (14:20) How to Analyze a Rental Property  (25:36) 2. Finding Financing/Funding  (28:34) 3. Finding Direction (31:14) 3-Step Recap (32:40) What Pro Investors Do Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-no-number-2 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

If you want to grow your real estate portfolio faster, make more money with less headache, and achieve whatever financial dreams you desire, you need one thing—a real estate team. Most people don’t realize that the top real estate investors rarely do everything themselves. Instead, they’ve hand-picked real estate investing rockstars to grow their businesses FOR them. We’re talking investor-friendly agents, lenders, contractors, property managers, and more. If you can find the right people to fill those roles, you’ll be able to grow your passive income faster than you thought possible. So, where do you find them? Dave Meyer and Henry Washington are back to give a masterclass on building your real estate team. They’ll walk you through each role—real estate agents, lenders and brokers, insurance agents, property managers, and contractors—describing what to look for, red flags to run from, and exactly where you can find the best of the best in your market. Get this right, and you’re on a fast track to real estate riches, but get it wrong, and you could delay your financial freedom! Ready to build your investor-friendly real estate team? Check out BiggerPockets’ free team-builder to find agents, lenders, and more in your area!  In This Episode We Cover How to build an investor-friendly real estate team from scratch  The sign of a great investor-friendly agent and clear red flags experienced investors notice Why some lenders will lend to you much more easily than others  Why Henry ALWAYS uses an insurance broker (NOT an agent) to find policies  How to incentivize your property manager to make you more money (NOT just collect fees!) A unique way to find quality contractors in your area and how to inspect their work BEFORE you hire them  And So Much More! (00:00) Intro (02:24) Real Estate Agents  (12:15) Lenders and Brokers  (22:08) Insurance  (25:27) Property Managers (34:26) Contractors  (44:07) Where to Find Your Team Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-978 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

Every investor would love some extra cash flow…but at what cost? Does it make sense to go all in on a large down payment so that more money trickles in each month? If you want minimal debt, have no plans to scale, and are confident that your new property will appreciate, perhaps. But if your goal is to buy more rental properties and build your portfolio as quickly as possible, there are much better ways to leverage your cash position. In this Seeing Greene, we help a new investor navigate this exact scenario when buying his first property!   Next, we hear from someone whose earnest money deposit (EMD) is wrapped up in a failed medium-term rental. Should she cut her losses and walk away from the deal or weather the storm until the property can cash flow? Stick around to find out! Finally, we chat with an investor who has gone over his rehab budget and finds himself knee-deep in high-interest credit card debt. David and Rob walk him through the steps that will allow him to consolidate his bad debt and turn a ROUGH situation into MORE rentals! Get a BIG incentive on turnkey rentals from today's show sponsor, Rent to Retirement. Visit them at RentToRetirement.com or text "REI" to 33777!   In This Episode We Cover Whether you should ever force cash flow with a larger down payment The BEST first rental property to buy (and how much money you’ll need) Saving up for ONE property versus buying multiple rentals Creative ways to get out of a BAD deal (and when to ride it out instead!) How to get back in the green after overshooting your rehab budget And So Much More! (00:00) Intro (01:30) Which Rental Should I Buy? (07:34) The Medium-Term Rental Fiasco (15:23) Comment Section Callout (19:06) Help, I’ve Gone OVER Budget! (33:05) Ask Us Your Question! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-977 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

Can you start investing in real estate with just $15,000? Yep, and mobile home investing is how you do it. We know what you’re thinking, “I don’t want to own trailers! I want to invest in “real” houses where the “real” money is at!” That’s what today’s guest John Fedro thought too some twenty years ago when he stumbled into mobile home investing, which, at the time, was even too embarrassing for him to share. But, over the past two decades, this at-first “embarrassing” investment has made him wealthy, and if you follow his lead, it can do the same for you. John has successfully made money with mobile homes in various ways: buying and flipping, wholesaling, renting, and seller financing, the main topic of today’s episode. He provides a masterclass on how to make money buying and selling mobile homes, where you essentially take on the role of the bank. However, it’s crucial to be cautious. Mishandling this could lead you into an ethical gray area and potentially harm your buyer. On the other hand, getting it right can create a win-win situation for both the buyer and seller while making you wealthy.  John shares his whole strategy, plus how he’s getting into deals for $15,000 and often making DOUBLE his money and $400 per month (or more) cash flow per door when he seller finances these properties. If you want a way to get into real estate investing without a ton of cash but with the potential to make a serious return on your money, this may be your winning strategy. In This Episode We Cover The three “levels” of mobile home investing and how much each costs to get into The danger of seller financing the wrong way and how it can hurt your buyer Why you MUST background check EVERYONE you seller-finance a mobile home to One thing that new mobile home investors overlook that can ruin your properties The exit strategies you must know about to avoid losing money on your next deal Whether or not we would invest in mobile homes (and our concerns with seller financing)  And So Much More! (00:00) Intro (02:32) Seller Financing...Mobile Homes? (11:18) Win-Win Seller Financing  (16:52) 3 "Levels" of Mobile Home Investing (22:08) How Much to Invest?  (23:53) Cash Flow and Profit Numbers (26:51) What to Look Out For (32:38) New Investors, Do THIS!  (33:52) Would WE Invest In It? Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-976 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

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