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good advice. Lots of falling knives for the foreseeable future. speculation is not investing. Investors create value. Speculators don't create anything.
If anything, it's likely to get worse. Affordable housing will soon become unaffordable. Therefore, I advise taking action now because today's prices will seem like bargains tomorrow. Until the Fed takes more decisive action, I expect we will see hysteria due to rampant inflation. You can't just halfway rip the band-aid off.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Melissa Elise Robinson is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
When are you guys going to fix your levels? Usually Ken is at 5 and Dan is at 10... today Ken is 10 and she's 5. I'm constantly adjusting the volume to hear one of you
We run multiple pawn shops businesses and can tell you people are maxed out, they are making payments on credit cards and loans are hitting all time highs at all the shops
YES!!! that's exactly her name (Mrs Elizabeth Regina Nelsen) so many people have recommended highly about her and I'm just starting with her from Brisbane Australia🇦🇺
Wow. I'm a bit perplexed seeing Elizabeth Regina Nelsen been mentioned here also Didn't know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super
The key to financial stability is having the right investment suggestions for a diverse portfolio. Many investment failures and losses happen when you invest without proper guidance.
I sold all of my Oregon properties and only invest in Florida, Texas, and Tennessee now due to Oregon's strict landlord requirements, rent control, squatters, crime/drugs, and rent moratoriums especially during the plandemic. Lesson learned, don't buy in a blue state
Hey there, I would like to connect with you regarding the sale of your property in Oregon. I’m thinking about selling my duplex in Portland, and buying something in GA . Is there a was we can connect?
@@antoinedavis9892 I'm not familiar with GA market but your options tax-wise would be 1031, or sell and try to find something else to offset. A CPA can guide on the tax situation. Realtor would be best bet for the sale unless you go FSBO to save on the realtor costs but it may be harder to market depending on the area. All the best!
@@antoinedavis9892 I'm not familiar with GA but if it's an investment property your best options would likely be a 1031 to avoid cap gains tax, or to sell the duplex and then offset with a purchase if you're not going to 1031. Tax professional would be important to consult. You can offset the cap gains w/realtor expense and other house expenses so keep track of everything. If duplex is primary you may be able to avoid tax on $250k (single)/$500k (married), tax pro could help here. Find a good realtor in GA, and prop mgr if investment (good prop mgrs are extremely hard to find!). All the best!
Thank you so much for addressing the real inflation rate. I have a couple properties and I always come here for good advice, but honest to God I am so tired of people saying that the inflation rate is only 20% or anything even close to that.
You all are finally on the verge of saying it “DEPRECIATION” I’d argue, instead of fighting tooth and nail to try to force a deal to work, continue doing whatever you’re already doing and save up 1-3 more years of income and THEN do everything the same except have WAY better options to chose from at lower base price AND lower mortgage rates. THEN cash flow is a lot more strait forward. If you already own properties, you’re fine, so long as you didn’t buy them post 2021. Even if you did buy them post 2021, you’re property will only be “in the red” for half a decade or so, which doesn’t matter if it’s cash flowing and you don’t HAVE to sell it. Everyone is so afraid to admit that the market is correcting, even though that’s the NUMBER ONE driver of today’s inflation. We NEED a correction, rip off the bandaid. A few will get burned but that’s part of life. You only loose money if you HAVE to sell
Institutional investors have purchased homes must put them on the market! We need supply ! They are a monopoly! Should be illegal! Apartments then will have stable rent in the future! Institutional investors will make money due to rise in prices!
Watching your channel now makes me feel really bad for my daughter who just purchased a house in OC Ca at its high peak market. This is a selling market, not buying market.
There is no right or wrong time to purchase your primary residence, as your primary residence is not an investment according to Robert Kiyosaki. If you need one, just buy one.
with the never ending inflation rate + immigration i doubt the housing will crash soon it will keep going up this guy is trying to buy homes for cheap for himself.
Market will come around later. CA still selling at higher prices because there is still incoming demand. On a positive note, property taxes can decrease with lower valuation.
Real estate has nothing to do with real estate. Real estate is a currency debasement play, debasing at 6% a year. Real estate is the only way people can play the currency market, get cash flow, and benefit from inflation, meaning currency debasement. The profits in stocks, bonds, real estate are nothing more than debasement, currency speculation, a massive IOU bubble. When will it end? No one knows. Speculation is very dangerous borrowing to take leverage. Leverage is the problem, not the price. Paid for house, who cares?
Did anyone else noticed the guy in the chat with the $213M debt in Chicago and 300 doors. Which then claims his net is only $1.4M a year? I would be embarrassed to show those figures. Math doesn’t lie folks. He answered his own statement of why people are making fun of him. The arrogance of some people is unbelievable. like the old saying goes "It's better to remain silent and be thought of as a fool then to open your mouth and remove all doubt".
In need of advice. I'm in a good place to buy a new 2900 sft 580k home next to the new Olympus in Clermont Fl. Its a huge sports complex and town center being built right next door, literally. I'm concerned I should wait the next year due to overpriced homes but builder is offering 4.9% free refi for 3 years and again I can afford it. I'm just afraid it's going to drop 100k over the next year. This is so frustrating. Thoughts?
It’s a time to be an observer, in this market, I’m not an investor, but during the last bank crash, 2008, there was a housing crash after. I watched a property in Florida go from 500,000.00 to 260,000.00. My realtor said don’t give more than 240,000.00. That’s what I offered and bought it at. I watched this property for a year. This was a 7 bedroom, 4 bathroom house, pool, enclosed, nice area. 5,300 sqft. It was completely furnished too. It was in Davenport, Polk county. Orange tree groves. So your right very over priced then, and over priced now. People should move slowly, and study the market, know the regulations etc. Best wishes ♥️♥️🙏🙏🇺🇸🇺🇸
I know that you said these are normal rates and it’s supposed to be this way, but what is different is that back in the 80s even with high interest rates a man could support his whole family without needing the women to work. Now both parents have to work, even making $100,000 a year is barely enough to support yourself not even including a family with kids. So this is not normal.
The rate at which prices are increasing is not tolerable at all. Income hasn’t changed from past 3 years but goods are costing thrice. I feel obliterated. Also have a feeling that it’s a new type of crisis and the scam will be revealed after 3-4 years from now.
I and my wife own single home family rentals. we have $200,000 left on mortgages. We are now the possibility of maintaining $70,000 annual income by selling and investing in stocks and bonds. How does this work out?
There will be more supply in the market as people sell their homes to lower their overhead. An economic downturn is coming. And actually it's already here.
Prices are coming down. It takes time. Inventory is not an issue. Lots of inventory coming on line in the next several years. Days on mkt increasing. This is the cycle. Very normal. Dont confuse monetary inflation with shortage of supply.
Not really. Days on market have increased as interest rates increase (again). Mostly the crappy properties stay on the market a long time. Moderately decent properties on up to great ones, go quickly if they come onto the market at all. Don't confuse the demand for mortgages with the demand for residential real estate. Those are not the same thing.
Sold a couple properties just to get out of some rentals for cash while I can. Both properties I had to come down 5k- 12k because of appraisals. Glad I made some good money but now I need something else to invest in. Not sure what to do!
Sold a couple properties just to get out of some rentals for cash while I can. Both properties I had to come down 5k- 12k because of appraisals. Glad I made some good money but now I need something else to invest in. Not sure what to do!
When annual insurance goes from $1,500/yr to $8,000/yr with no claims, you need more income. Same with increasing property taxes and maintenance costs.
I concur with everything you talked about. We’ve been RE investors for 31 years, had an AirBnB business in the 90s and done multiple whole house rehabs with subsequent long-term leases. I never charged my tenants a cleaning fee. I did it myself. It gave me an opportunity to inspect the property and content, repair and replace where needed. We are proud to say that in all those years we had 100%occupancy rate because we were good to our tenants. I also agree on what you said about financing. Before becoming a cash buyer, we locked in 30 years. And last but not least, we have a slightly different strategy and are currently out of the market (but low, sell high, hold for the duration of the cycle) and will re-enter when the time is right.
Thanks for this. I am just getting started but realized the numbers don’t work right now. So I will invest in other areas and patiently wait to jump in.
I like your approach, especially in times like this. I worry there will be a great taking over the next few years and many people loaded up with rental properties tied to mortgages may fall into some sort of debt trap. $2T annual interest payments on the national debt by EOY 2025 with declining revenue in 2023 of $4.44T. In this currency crisis that will evolve into a sovereign debt crisis who knows what government will do. I listen to Jason Hartman's podcast a lot, but we just have the house we live in and no rentals. It would have been nice to get involved in real estate many years ago.
@@Wavetheory85 Hartman is a very smart guy HOWEVER he has been in that upper percentile so long that he has lost the boots on the ground intel with the average home owner. He is making his base case off investors like him with low mortgage rates or even own the units outright. He is also under the belief that since roughly 50$-60% of all mortgages are below 4% that they will never be forced to sell. In my area those people with those 4% mortgages on the higher priced ($750k+) units are not slowing their spending. They are still eating out weekly, 2-3 vacations a year, new cars/boats/ATVs ect. I talk to them and they are not worried about the APRs on those items because they are convinced that in a year or two rates will be back to 4% and they can pull cash out of their house to pay everything off. In 2008 it was the people in the middle that got killed and lost everything plus those who got into homes that had no incomes to back it up. This time it is going to be the upper 15% of income earners that get burned because they will not adjust their standards of living to compensate for changing times.
Don’t forget on Airbnb that the customer and host have to pay Airbnb fees. And then usually 8-10 percent on occ taxes. Sometimes 15 percent. So that 250 cleaning is closer to 300
Tiny house, electrical bicycles, rice and beans. That is what people are being forced into, living on less willingly. In 1964, one million dollars bought FIFTY (50) new houses. In 2022, one million dollars buys TWO (2) new houses. This is debasement. Being paid in IOUs, pretending to pay, using pretend fake money, is criminal. We decline. Civilization declines. Dishonest weights and measures causes nation decline. People are forced to reduce quality of life. This is all by design. The 1% never had it so good, inflated into being billionaires.
Maybe I should start cleaning up my rental properties myself? I was at CrossFit with my longtime friend... You guys lost me. Thanks for all the good times (first time listener)
The politicians don't want to be blamed for an increase in a renter's rent due to an increase in a landlord's property tax. Imagine if each renter gets an individual tax bill from their state assessor's office for occupying their unit.
@Ken. We are retired living in the west valley and assume you are in the Phoenix markets. We are hoping the raw land just north of the 101 across the Mayo Clinic Hospital gets developed. We want to buy at that location. Are you aware of anything going on? Thanks. Robert
The only way you can't pass on insurance increases to tenants is if you are the only one facing them. If everyone's insurance goes up it gets baked into the market and the end consumer ultimately absorbs it. The other affect higher cost of insurance will have is lower property value, especially on multi family. Cost of doing business affects cap rate and cap rate influences investment. As real estate becomes a worse deal, more capital will shift to stocks and small business. Also, there is an entire demographic of long term renters who refuse to live in apartments. Just building apartments is not a guarantee SFD rents will soften. It can have that effect...but not guaranteed. The relevant metric for those of us sitting on SFD's is supply and demand for SFD. If the overall economy worsens, more families might be willing to regress into apartments...but in my experience it's more likely that grandma moves in and helps with rent. Every market responds differently so I won't be surprised by anything but I believe for SFD prices to drop, they have to build considerably more SFD's than are being condemned. Just adding apartments will have a limited effect on SFD rents and property values.
People have lost sight of what a house is for, a place to sleep. With inflation (debasement), houses have become cash machines, free money like free stock profits. If I made million dollars in apple stock I can buy a free house for one million dollars. I have a friend that did that. People buying houses in Florida for cash are buying FREE HOUSES, from stock inflation (debasement). My father in law made more money in retirement than working as a teacher for thirty years (inflation, debasement). Labor loses with no assets to inflate.
I agree with your read on where the market is pointed and what to do about it. Frankly inflation across the board at the rate it's increased in the last several years isn't going to be a good thing. We may require a big crisis coming out of nowhere to shake things out, and that'll be tough for even the smartest people.
One of the positives I see in this down cycle is Ive been able to dispute all my property taxes being too high. The county based the value of my properties at the peak market value when thats not the case anymore. For example, one of my properties they taxed me based on a value of 522k. I was able to bring it down to 450k LOL. Another property I had was valued at 465k and I got it down to 400k. I also noticed the tax assesor office that handles the disputes were extremely busy and understaffed so I dont think they fought back much because they had so many appointments for dispute. Or they really just want to pinch everyone and dont think we'd fight back LOL
We have an investment condo that has a large special assessment at the end of the year, and since it's a 50 year old building will probably continue to have issues like this. We have a good cap on it, but the condo market is peaked out in our market also. Considering selling.
My realtor recently sent me an article saying that, starting on July 1st, setting a minimum income equal to 3 months rent to qualify for renting is no longer allowed. Have you heard anything about that?
I'm moving out of the country this is just getting stupid now lol. I love America and our history dearly. But I'm 20 and the risk vs reward ratio just isn't there.
I agree with you, we bought a lot in CA almost 3 yrs ago and put a halt due to the outrageous cost of just the permits on a modest home ...85k on just permits ....this is something know one talks about. I had no idea permits were so much !!!!
@@sophiavega1777 I’m in the same boat in Arizona. 3 years into my project and finally got permitted last March. Breaking ground Sept. my cost to build will easily be in the $800 per square foot range when it’s all said and done. So, no, I’d never sell this property at a loss. It’s way too much work to get NEW construction out of the ground. The only place I see price cuts are on old houses that need work or raw land. Nobody with new construction needs to drop prices. New can’t be replicated without considerable time and expense.
@@jasoncrandall Thank you for sharing, you are way ahead of us. I am really nervous and discourage, its going to be way more than anticipated. We will probably not break ground until another year or two. My daughter moved back home so she can save. the home is for her ....thank you and I wish you the best of luck ....
Great show, as usual… I love watching you guys, and you have brought so much information and light to people’s lives. The amount of hours you have saved people could equate to a lifetime of not understanding. On a side note, my wife and I always talk about how Danielle is a beautiful, put-together real woman, and you don’t see that much anymore. Please don’t let the pressure of fame and aging alter your thoughts about beauty and keeping up with the trends. We lived in a prominent neighborhood, and my wife almost went down the road to many things of beauty to alter her looks to keep up with everyone. I begged her not to do this as she would not be the woman I fell in love with. Now, she’s happy that she did not go down that route. If I crossed the line, I’m genuinely sorry, but some people need to hear this from outside their circle sometimes. Thank you both, and I wish you success and happiness and that you receive all of your dreams, no matter how small. Keep painting your own picture of life!
Also, all the people hiring cheap contractors for the last 40 years, who are using workers that aren't part of the system have just about eliminated the contracting industry, at least for legit contractors. You can't run a legitimate business for a long time now. This is why the quality has gone down significantly and is going to get much worse now.
I help my buddy start his contracting business and do the marketing... he makes 50k a month profit without doing any work. Any contractor complaining is either lying to you or has no idea how to market yheir small business.. It's been the easiest way to get rich the past 4 years.
We have 2 condominiums that are very expensive to keep. Any good rental companies that you could recommend? Any ideas of how to make passive income? Thanks
In a general sense, yes, you need to look at the HOA Documents and understand what the process is. It can be a long and complicated process and may differ from state to state. There may be commonly owned areas that may still need to be jointly maintained and cared for.
Just sold in Washington to an unsolicited buyer that was jammed up in a 1031 exchange! I did not want to sell so I told the buyer to pay value plus 25% Cap gains. He paid it all!!! So happy to be out of Washington apartments after 21 years…
I agree some cities will continue to raise property taxes. Others will not raise taxes by large percentages since commercial properties are losing value.
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good advice. Lots of falling knives for the foreseeable future.
speculation is not investing. Investors create value. Speculators don't create anything.
where's the link to the video you mentioned at the end?
If anything, it's likely to get worse. Affordable housing will soon become unaffordable. Therefore, I advise taking action now because today's prices will seem like bargains tomorrow. Until the Fed takes more decisive action, I expect we will see hysteria due to rampant inflation. You can't just halfway rip the band-aid off.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Do you mind sharing info on the adviser who assisted you?
Melissa Elise Robinson is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Wow, her track record looks really good from what I found online. i just searched her name and messaged her and I also scheduled a call with her
Holy lip collagen.
When are you guys going to fix your levels? Usually Ken is at 5 and Dan is at 10... today Ken is 10 and she's 5. I'm constantly adjusting the volume to hear one of you
apologies! We are on the road this summer so working on getting it right out of the studio
We run multiple pawn shops businesses and can tell you people are maxed out, they are making payments on credit cards and loans are hitting all time highs at all the shops
GLORY!!!, $555k every 3weeks! I can now afford anything and also support God's work and the church.
Please how do I go about it, am still a newbie on investment trading and how can I make profit?
It's Elizabeth Regina Nelsen doing she's changed my life. A BROKER-like her is what you need.
YES!!! that's exactly her name (Mrs Elizabeth Regina Nelsen) so many people have recommended highly about her and I'm just starting with her from Brisbane Australia🇦🇺
Wow. I'm a bit perplexed seeing Elizabeth Regina Nelsen been mentioned here also Didn't know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super
I'm a long term investor, I withdrew my profits of over £61,000 during the covid-19 pandemic.
Francine Duguay program is widely available online.
I appreciate the professionalism and dedication of the team behind Francine’s trade signal service.
Trading with an expert is the best strategy for beginners and busy investor s who have little or no time to monitor their trades.
The key to financial stability is having the right investment suggestions for a diverse portfolio. Many investment failures and losses happen when you invest without proper guidance.
It was quite challenging to understand the different trends on my own until i found out about Duguay. Trading made easy.
Ken - you are a successful person and sharing you knowledge with us every day. Thank you and may God bless.
I sold all of my Oregon properties and only invest in Florida, Texas, and Tennessee now due to Oregon's strict landlord requirements, rent control, squatters, crime/drugs, and rent moratoriums especially during the plandemic. Lesson learned, don't buy in a blue state
Hey there, I would like to connect with you regarding the sale of your property in Oregon. I’m thinking about selling my duplex in Portland, and buying something in GA . Is there a was we can connect?
@@antoinedavis9892 I'm not familiar with GA market but your options tax-wise would be 1031, or sell and try to find something else to offset. A CPA can guide on the tax situation. Realtor would be best bet for the sale unless you go FSBO to save on the realtor costs but it may be harder to market depending on the area. All the best!
@antoinedavis9892 you mean like a 1031 exchange?
@@projectsspecial9224I’m just looking to see how he did on his sell…trying to get a temperature of the local market.
@@antoinedavis9892 I'm not familiar with GA but if it's an investment property your best options would likely be a 1031 to avoid cap gains tax, or to sell the duplex and then offset with a purchase if you're not going to 1031. Tax professional would be important to consult. You can offset the cap gains w/realtor expense and other house expenses so keep track of everything. If duplex is primary you may be able to avoid tax on $250k (single)/$500k (married), tax pro could help here. Find a good realtor in GA, and prop mgr if investment (good prop mgrs are extremely hard to find!). All the best!
Thank you so much for addressing the real inflation rate. I have a couple properties and I always come here for good advice, but honest to God I am so tired of people saying that the inflation rate is only 20% or anything even close to that.
exactly
Terry. 49 year landlord. My fourth cycle. You are spot on with your info.
You all are finally on the verge of saying it
“DEPRECIATION”
I’d argue, instead of fighting tooth and nail to try to force a deal to work, continue doing whatever you’re already doing and save up 1-3 more years of income and THEN do everything the same except have WAY better options to chose from at lower base price AND lower mortgage rates. THEN cash flow is a lot more strait forward. If you already own properties, you’re fine, so long as you didn’t buy them post 2021. Even if you did buy them post 2021, you’re property will only be “in the red” for half a decade or so, which doesn’t matter if it’s cash flowing and you don’t HAVE to sell it.
Everyone is so afraid to admit that the market is correcting, even though that’s the NUMBER ONE driver of today’s inflation. We NEED a correction, rip off the bandaid. A few will get burned but that’s part of life. You only loose money if you HAVE to sell
Institutional investors have purchased homes must put them on the market! We need supply ! They are a monopoly! Should be illegal! Apartments then will have stable rent in the future!
Institutional investors will make money due to rise in prices!
Normally, fixed rates are best. Variables just make things too uncertain.
Watching your channel now makes me feel really bad for my daughter who just purchased a house in OC Ca at its high peak market. This is a selling market, not buying market.
There is no right or wrong time to purchase your primary residence, as your primary residence is not an investment according to Robert Kiyosaki. If you need one, just buy one.
@@benny871this is what most people don't understand. Buy when you need to and what you can afford and don't try to time the market like a day trader.
with the never ending inflation rate + immigration i doubt the housing will crash soon it will keep going up this guy is trying to buy homes for cheap for himself.
Sellers need buyers
Buyers need sellers
As long as one can afford it and plan on living there long term , there’s no such thing as the perfect market
Market will come around later.
CA still selling at higher prices because there is still incoming demand.
On a positive note, property taxes can decrease with lower valuation.
Real estate has nothing to do with real estate. Real estate is a currency debasement play, debasing at 6% a year. Real estate is the only way people can play the currency market, get cash flow, and benefit from inflation, meaning currency debasement. The profits in stocks, bonds, real estate are nothing more than debasement, currency speculation, a massive IOU bubble. When will it end? No one knows. Speculation is very dangerous borrowing to take leverage. Leverage is the problem, not the price. Paid for house, who cares?
Audio sounds subpar…even with those high-priced Shure mics. Strange…
Just watched for 20 minutes waiting for you to tell me what change drastically
Do large real estate companies lobby the local governments to prevent more supply?
Well, most of San Francisco is barred from building residential above 4 stories
@@alexmack956 Yes, as one example of many.
@@alexmack956is it because an earthquake or tsunami zone?
@@projectsspecial9224 no, certain buildings were allowed to build higher
Did anyone else noticed the guy in the chat with the $213M debt in Chicago and 300 doors. Which then claims his net is only $1.4M a year? I would be embarrassed to show those figures. Math doesn’t lie folks. He answered his own statement of why people are making fun of him. The arrogance of some people is unbelievable. like the old saying goes "It's better to remain silent and be thought of as a fool then to open your mouth and remove all doubt".
You will own nothing and be happy
In need of advice. I'm in a good place to buy a new 2900 sft 580k home next to the new Olympus in Clermont Fl. Its a huge sports complex and town center being built right next door, literally. I'm concerned I should wait the next year due to overpriced homes but builder is offering 4.9% free refi for 3 years and again I can afford it. I'm just afraid it's going to drop 100k over the next year. This is so frustrating. Thoughts?
This is not one of your better quality videos. Audio and visual are terrible. I couldn’t get through the entire video
Real estate is overvalued… price to income is far out alignment. Correction is very long over due
It’s a time to be an observer, in this market, I’m not an investor, but during the last bank crash, 2008, there was a housing crash after. I watched a property in Florida go from 500,000.00 to 260,000.00. My realtor said don’t give more than 240,000.00. That’s what I offered and bought it at. I watched this property for a year. This was a 7 bedroom, 4 bathroom house, pool, enclosed, nice area. 5,300 sqft. It was completely furnished too. It was in Davenport, Polk county. Orange tree groves. So your right very over priced then, and over priced now. People should move slowly, and study the market, know the regulations etc. Best wishes ♥️♥️🙏🙏🇺🇸🇺🇸
Bidenomics?
I know that you said these are normal rates and it’s supposed to be this way, but what is different is that back in the 80s even with high interest rates a man could support his whole family without needing the women to work. Now both parents have to work, even making $100,000 a year is barely enough to support yourself not even including a family with kids. So this is not normal.
The rate at which prices are increasing is not tolerable at all. Income hasn’t changed from past 3 years but goods are costing thrice. I feel obliterated. Also have a feeling that it’s a new type of crisis and the scam will be revealed after 3-4 years from now.
I and my wife own single home family rentals. we have $200,000 left on mortgages. We are now the possibility of maintaining $70,000 annual income by selling and investing in stocks and bonds. How does this work out?
There will be more supply in the market as people sell their homes to lower their overhead. An economic downturn is coming. And actually it's already here.
Why not self insurance. What’s the worst can happen. 200 per month liability insurance $2 million coverage?
Trump
Prices are coming down. It takes time. Inventory is not an issue. Lots of inventory coming on line in the next several years. Days on mkt increasing. This is the cycle. Very normal. Dont confuse monetary inflation with shortage of supply.
Not really. Days on market have increased as interest rates increase (again). Mostly the crappy properties stay on the market a long time. Moderately decent properties on up to great ones, go quickly if they come onto the market at all. Don't confuse the demand for mortgages with the demand for residential real estate. Those are not the same thing.
@@buddyrevell511 look at FL, TX, TN, AZ, etc. Lots of inventory increasing.
@@buddyrevell511 inventory is increasing all over the country. That's a fact.
Sold a couple properties just to get out of some rentals for cash while I can.
Both properties I had to come down 5k- 12k because of appraisals.
Glad I made some good money but now I need something else to invest in. Not sure what to do!
Sold a couple properties just to get out of some rentals for cash while I can.
Both properties I had to come down 5k- 12k because of appraisals.
Glad I made some good money but now I need something else to invest in. Not sure what to do!
Property tax throwing up for schools for other people's children
What do you think will happen with markets in the north east?
So retirees.. get ready to get a part time job to pay for your yearly home expense increases going forward. The easy days may be over.
When annual insurance goes from $1,500/yr to $8,000/yr with no claims, you need more income. Same with increasing property taxes and maintenance costs.
The retirees I know are already working 2 PT jobs. Inflation is like a thief in the night .
Or move to SE Asia…😊
Louder please
I concur with everything you talked about. We’ve been RE investors for 31 years, had an AirBnB business in the 90s and done multiple whole house rehabs with subsequent long-term leases. I never charged my tenants a cleaning fee. I did it myself. It gave me an opportunity to inspect the property and content, repair and replace where needed. We are proud to say that in all those years we had 100%occupancy rate because we were good to our tenants. I also agree on what you said about financing. Before becoming a cash buyer, we locked in 30 years. And last but not least, we have a slightly different strategy and are currently out of the market (but low, sell high, hold for the duration of the cycle) and will re-enter when the time is right.
Thanks for this. I am just getting started but realized the numbers don’t work right now. So I will invest in other areas and patiently wait to jump in.
I like your approach, especially in times like this. I worry there will be a great taking over the next few years and many people loaded up with rental properties tied to mortgages may fall into some sort of debt trap. $2T annual interest payments on the national debt by EOY 2025 with declining revenue in 2023 of $4.44T. In this currency crisis that will evolve into a sovereign debt crisis who knows what government will do. I listen to Jason Hartman's podcast a lot, but we just have the house we live in and no rentals. It would have been nice to get involved in real estate many years ago.
@@Wavetheory85 Hartman is a very smart guy HOWEVER he has been in that upper percentile so long that he has lost the boots on the ground intel with the average home owner. He is making his base case off investors like him with low mortgage rates or even own the units outright. He is also under the belief that since roughly 50$-60% of all mortgages are below 4% that they will never be forced to sell. In my area those people with those 4% mortgages on the higher priced ($750k+) units are not slowing their spending. They are still eating out weekly, 2-3 vacations a year, new cars/boats/ATVs ect. I talk to them and they are not worried about the APRs on those items because they are convinced that in a year or two rates will be back to 4% and they can pull cash out of their house to pay everything off. In 2008 it was the people in the middle that got killed and lost everything plus those who got into homes that had no incomes to back it up. This time it is going to be the upper 15% of income earners that get burned because they will not adjust their standards of living to compensate for changing times.
That is amazing that you had AirBnB in the 90’s, considering that the company started in the mid to late 2000’s. Truly ahead of your time!
He should stick to multifamily.
Don’t forget on Airbnb that the customer and host have to pay Airbnb fees. And then usually 8-10 percent on occ taxes. Sometimes 15 percent. So that 250 cleaning is closer to 300
A piece of advice, please don't be so close to the camera.
Can you afford your home next year? If not, what's your plan b?
Tiny house, electrical bicycles, rice and beans. That is what people are being forced into, living on less willingly. In 1964, one million dollars bought FIFTY (50) new houses. In 2022, one million dollars buys TWO (2) new houses. This is debasement. Being paid in IOUs, pretending to pay, using pretend fake money, is criminal. We decline. Civilization declines. Dishonest weights and measures causes nation decline. People are forced to reduce quality of life. This is all by design. The 1% never had it so good, inflated into being billionaires.
Idaho baby is the place to be, flee blue states
Maybe I should start cleaning up my rental properties myself?
I was at CrossFit with my longtime friend...
You guys lost me. Thanks for all the good times (first time listener)
The politicians don't want to be blamed for an increase in a renter's rent due to an increase in a landlord's property tax. Imagine if each renter gets an individual tax bill from their state assessor's office for occupying their unit.
I try to do all the work on my home which I own myself
@Ken. We are retired living in the west valley and assume you are in the Phoenix markets. We are hoping the raw land just north of the 101 across the Mayo Clinic Hospital gets developed. We want to buy at that location. Are you aware of anything going on? Thanks. Robert
Get rid of vacation rentals they're ruining everything. Nobody likes living next door to them
The only way you can't pass on insurance increases to tenants is if you are the only one facing them.
If everyone's insurance goes up it gets baked into the market and the end consumer ultimately absorbs it.
The other affect higher cost of insurance will have is lower property value, especially on multi family.
Cost of doing business affects cap rate and cap rate influences investment. As real estate becomes a worse deal, more capital will shift to stocks and small business.
Also, there is an entire demographic of long term renters who refuse to live in apartments. Just building apartments is not a guarantee SFD rents will soften. It can have that effect...but not guaranteed.
The relevant metric for those of us sitting on SFD's is supply and demand for SFD.
If the overall economy worsens, more families might be willing to regress into apartments...but in my experience it's more likely that grandma moves in and helps with rent.
Every market responds differently so I won't be surprised by anything but I believe for SFD prices to drop, they have to build considerably more SFD's than are being condemned.
Just adding apartments will have a limited effect on SFD rents and property values.
I don't know why people get on these podcast and say that there is a shortage of housing. There is no shortage of housing they have over built..
Hello MC team,
Great knowledge.
I would be happy to help when you or your clients need decorative concrete restoration services 🤓
12:25 then people will start using hotels again. Taking advantage of points and perks instead of paying more for an airbnb in many cases
People have lost sight of what a house is for, a place to sleep. With inflation (debasement), houses have become cash machines, free money like free stock profits. If I made million dollars in apple stock I can buy a free house for one million dollars. I have a friend that did that. People buying houses in Florida for cash are buying FREE HOUSES, from stock inflation (debasement). My father in law made more money in retirement than working as a teacher for thirty years (inflation, debasement). Labor loses with no assets to inflate.
15:02 fixed rate all the way. Prices need to adjust to higher interest rates. Or inflation will keep them both up
I’m buying in developed countries. 2003 I bought in Cape Town, 7 years I sold that property at 4 X
Busy buying in more developed areas….
would love to hear more about where, i am also interested in this
Literally now my rent is half my income, if it increases more I will have to file bankruptcy and get rid of all my other debts just to live.
Property taxes have gone up 80pct since 2021for my rental
Great I am going to make a lot of money in real estate and end up making videos for TH-cam as my job 😢 good strategy keep it up guys
First month for free but you take the deposit no matter how clean renters keep the property. I don’t feel bad for landlors
Get a better camera set up. Cmon man
We are traveling right now and working on it.
I agree with your read on where the market is pointed and what to do about it. Frankly inflation across the board at the rate it's increased in the last several years isn't going to be a good thing. We may require a big crisis coming out of nowhere to shake things out, and that'll be tough for even the smartest people.
I think they may solve some problems @Stainless Oompa Loompa
One of the positives I see in this down cycle is Ive been able to dispute all my property taxes being too high. The county based the value of my properties at the peak market value when thats not the case anymore. For example, one of my properties they taxed me based on a value of 522k. I was able to bring it down to 450k LOL. Another property I had was valued at 465k and I got it down to 400k.
I also noticed the tax assesor office that handles the disputes were extremely busy and understaffed so I dont think they fought back much because they had so many appointments for dispute. Or they really just want to pinch everyone and dont think we'd fight back LOL
What state are your properties in?
Thanks Guys! Very insightful. Hoping for an email today1
quack quack
We have an investment condo that has a large special assessment at the end of the year, and since it's a 50 year old building will probably continue to have issues like this. We have a good cap on it, but the condo market is peaked out in our market also. Considering selling.
Doesn’t the place and area of the property still determine the value? If so what states are the best to invest in if I’m a first timer for cash flow?
Raise your camera up higher.
My realtor recently sent me an article saying that, starting on July 1st, setting a minimum income equal to 3 months rent to qualify for renting is no longer allowed. Have you heard anything about that?
In some states / cities that may be true. This stuff is normally governed on a local level.
Their sounds system is bad
I'm moving out of the country this is just getting stupid now lol. I love America and our history dearly. But I'm 20 and the risk vs reward ratio just isn't there.
Doing the same, to Philippines in Sept.
Already gone! Good luck in the USA
chon buri
@@brictator I will go >; )
Already going to see my secret spot in 2025 sick of nursing home style leaders being an embarrassment
Thanks!
Where do you two live?
Cost to build is still outrageous and probably never coming down so that’s going to reflect in sales prices long term.
I agree with you, we bought a lot in CA almost 3 yrs ago and put a halt due to the outrageous cost of just the permits on a modest home ...85k on just permits ....this is something know one talks about. I had no idea permits were so much !!!!
@@sophiavega1777 I’m in the same boat in Arizona. 3 years into my project and finally got permitted last March. Breaking ground Sept. my cost to build will easily be in the $800 per square foot range when it’s all said and done. So, no, I’d never sell this property at a loss. It’s way too much work to get NEW construction out of the ground. The only place I see price cuts are on old houses that need work or raw land. Nobody with new construction needs to drop prices. New can’t be replicated without considerable time and expense.
@@jasoncrandall Thank you for sharing, you are way ahead of us. I am really nervous and discourage, its going to be way more than anticipated. We will probably not break ground until another year or two. My daughter moved back home so she can save. the home is for her ....thank you and I wish you the best of luck ....
I hope it all works out to have RFK at Limitless
Thank you for all the encouragement!.
2518 & 2520 N 20th St, Omaha, NE 68110, say can you tell me some more about this property is it a good buy for first time investors
👍🏼
Florida prices always go up, not down.
People said the same thing in 2005
What state capped the rent?
Great show, as usual… I love watching you guys, and you have brought so much information and light to people’s lives.
The amount of hours you have saved people could equate to a lifetime of not understanding.
On a side note, my wife and I always talk about how Danielle is a beautiful, put-together real woman, and you don’t see that much anymore. Please don’t let the pressure of fame and aging alter your thoughts about beauty and keeping up with the trends.
We lived in a prominent neighborhood, and my wife almost went down the road to many things of beauty to alter her looks to keep up with everyone.
I begged her not to do this as she would not be the woman I fell in love with. Now, she’s happy that she did not go down that route.
If I crossed the line, I’m genuinely sorry, but some people need to hear this from outside their circle sometimes.
Thank you both, and I wish you success and happiness and that you receive all of your dreams, no matter how small.
Keep painting your own picture of life!
Z IS DEAD
Great!👍
Boomers are still fighting upzoning at every planning meeting. It's like a campfire story listening to them talk about renters.
My ear buds are maxed out and can not clearly hear either of you 😢
Also, all the people hiring cheap contractors for the last 40 years, who are using workers that aren't part of the system have just about eliminated the contracting industry, at least for legit contractors. You can't run a legitimate business for a long time now. This is why the quality has gone down significantly and is going to get much worse now.
I’ve heard a contractor say this recently He said he’s better off running a handyman business than being a general contractor
@@beatdown3361 you can do whatever you want but you won't be making really what you should. Everyone has made compromises to survive.
I help my buddy start his contracting business and do the marketing... he makes 50k a month profit without doing any work. Any contractor complaining is either lying to you or has no idea how to market yheir small business.. It's been the easiest way to get rich the past 4 years.
Pretty depressing prognostication overall. America the land of opportunity is officially dead. You will own nothing and be happy.
Everything is an F story right now. Taxes, Insurance, Inflation,
We have 2 condominiums that are very expensive to keep. Any good rental companies that you could recommend? Any ideas of how to make passive income? Thanks
They can only push people to a certain limit.
Is there a way for a community with HOA vote to remove the HOA?
In a general sense, yes, you need to look at the HOA Documents and understand what the process is. It can be a long and complicated process and may differ from state to state.
There may be commonly owned areas that may still need to be jointly maintained and cared for.
She needs to start spending money on food.
Public officials in local municipalities are now criminalizing homelessness
You are right. I just cancelled my desire to go to Limitless lol
Guys the sound quality on this one is terrible :(
Just sold in Washington to an unsolicited buyer that was jammed up in a 1031 exchange! I did not want to sell so I told the buyer to pay value plus 25% Cap gains.
He paid it all!!!
So happy to be out of Washington apartments after 21 years…
CA state law allows 1200 sf ADUs and some even 1400 sf
What tiny house convention are yall thinking of going to?
Recrssions will bring all proces down
I agree some cities will continue to raise property taxes. Others will not raise taxes by large percentages since commercial properties are losing value.
If commercial property tax collection is down, it seems residential taxes would go up, to cover the losses.