Real Estate Investing Just Changed Drastically (Something Big Has Happened)
ฝัง
- เผยแพร่เมื่อ 30 มิ.ย. 2024
- Sign-up for Limitless Tickets: limitlessexpo.com
Ken and Danille McElroy explore the critical changes in real estate investing that you need to be aware of. From rising expenses to the pitfalls of adjustable-rate loans, we cover everything you need to know to stay ahead in the market.
You can listen to an audio replay of this live stream on Ken and Danille's podcast! Follow your favorite platform with the links below!
Apple Podcasts: apple.co/3jDqftx
Spotify: spoti.fi/31GUDwW
Check out the Limitless conference and sign up: limitlessexpo.com Use KEN10 to get 10% off your registration.
Follow Ken on social media at: x.com/kenmcelroy
• • •
Be sure to click the bell to be notified when the next informational video is posted!
Visit Ken's Bookstore: kenmcelroy.com/books/
•
ABOUT KEN:
Ken is the author of the bestselling books The ABCs of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABCs of Property Management, and has an upcoming book: "ABCs of Buying Rental Property: How You Can Achieve Financial Freedom in Five Years." Ken is a Rich Dad Advisor.
Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.
Ken's company: mccompanies.com/
•
DISCLAIMERS: Any information or advice available on this channel is intended for educational and general guidance only. Ken McElroy and KenMcElroy.com, LLC shall not be liable for any direct, incidental, consequential, indirect, or punitive damages arising out of access to or use of any of the content available on this channel. Consult a financial advisor or other wealth management professional before you make investments of any kind.
Although Ken McElroy and his affiliates take all reasonable care to ensure that the contents of this channel are accurate and up-to-date, all information contained on it is provided ‘as is.’
Ken McElroy makes no warranties or representations of any kind concerning the accuracy or suitability of the information contained on this channel.
Any links to other websites are provided only as a convenience and KenMcElroy.com, LLC encourages you to read the privacy statements of any third-party websites.
All comments will be reviewed by the KenMcElroy.com staff and may be deleted if deemed inappropriate. Comments that are off-topic, offensive, or promotional will not be posted. The comments/posts are from members of the public and do not necessarily reflect the views of Ken McElroy and his affiliates.
2024 KenMcElroy.com, LLC. All Rights Reserved.
#KenMcElroy #realestate #investing #realestateinvesting #newrules #propertyexpenses #rentalmarket #insurancecosts #propertytax #HOAfees #maintenancecosts #adjustablerateloans #mortgagepayments #flippinghouses #homeimprovements #locallaws #affordablehousing #markettrends #2024realestate #investmentstrategies #housingmarket #realestatetips #propertymanagement #investmentrisks #economictrends #realestatemarketchanges
If you enjoyed this video, please consider sharing it with someone who would find it valuable.
Your support helps us grow and motivates Ken to create more content for you
good advice. Lots of falling knives for the foreseeable future.
speculation is not investing. Investors create value. Speculators don't create anything.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
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
Thank you for all the encouragement!.
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
great advice, thank you for sharing your knowledge ❤
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!
Ken - you are a successful person and sharing you knowledge with us every day. Thank you and may God bless.
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!
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.
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.
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?
What do you think will happen with markets in the north east?
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
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.
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.
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
Can you afford your home next year? If not, what's your plan b?
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!
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?
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.
Just watched for 20 minutes waiting for you to tell me what change drastically
I hope it all works out to have RFK at Limitless
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.
Audio sounds subpar…even with those high-priced Shute mics. Strange…
Louder please
Normally, fixed rates are best. Variables just make things too uncertain.
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.
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
I try to do all the work on my home which I own myself
First month for free but you take the deposit no matter how clean renters keep the property. I don’t feel bad for landlors
Thanks Guys! Very insightful. Hoping for an email today1
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
We don’t feel bad about your overhead cost. It’s a bubble machine that will collapse, hopefully taking the wales with it. You can’t keep passing cost to the renter or home owner. It will fall apart
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
!!!I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks will be appreciated
You need an expert. I'm guided by Adviser Bruce Murdock a widely known consuitant.
I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Bruce Murdock, for his expertise and exposure to different areas of the market.
My colleagues had a good laugh at me when I told them I started my journey with $50k capital and how I accumulated over 6 figures within a span of 7 months. They never believed me until I pulled out my P&L.
I know that learning the ins and outs of the market isn't for everyone, that's why personally, Bruce Murdock oversees my investments.
Without a doubt! Bruce Murdock is a trader who goes above and beyond. he has an exceptional skill for analyzing market movements and spotting profitable opportunities. His strategies are meticulously crafted based on thorough research and years of practical experience.
nice! once you hit a big milestone, the next comes easier.. How can i reach him, if you don't mind me asking?
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…
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?
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!
Get a better camera set up. Cmon man
I think they may solve some problems @Stainless Oompa Loompa
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!
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.
Their sounds system is bad
What tiny house convention are yall thinking of going to?
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 ♥️♥️🙏🙏🇺🇸🇺🇸
I try to not purchase properties with HOA.
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.
Raise your camera up higher.
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.
This is not one of your better quality videos. Audio and visual are terrible. I couldn’t get through the entire video
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…😊
Being in Texas it’s not as bad as there is no state tax. The tax on our homes and investment homes are high. But it’s still a good state to invest in.
What about the insurance premiums which have increased more than other parts of the country? It also depends on taxes, some areas are significantly higher. Looking at moving from Midwest and the cost of living there almost seems higher. Have they done anything to help with property taxes?
👍🏼
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.
CA state law allows 1200 sf ADUs and some even 1400 sf
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.
offense/defense....offense via appreciation/speculation, defense via costs cutting/passive & steady income...sure, offense is more fun (string of hot dates/etc) but defense is more rewarding (steady relationship built on trust/mutual benefits)...
She needs to start spending money on food.
You are right. I just cancelled my desire to go to Limitless lol
Guys the sound quality on this one is terrible :(
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
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.
Boomers are still fighting upzoning at every planning meeting. It's like a campfire story listening to them talk about renters.
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.
You will own nothing and be happy
Public officials in local municipalities are now criminalizing homelessness
quack quack
Tiny home convention? Where?
My ear buds are maxed out and can not clearly hear either of you 😢
Recrssions will bring all proces down
They can only push people to a certain limit.
The prices of single family homes aren't going to go down??? They already are.
Hostels like outsite are exploding..
you can't print money out of thin air ....shits about to blow
this whole time i thought Danille was Ken's daughter LOL.
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.
If people buy tiny houses then normal houses will never go down . People need to be patient and rent
Trump
The next 5 years will be terribly painful for real estate investors. We need to have massive clearance of housing inventory. Tump gets elected and two things - first, kick out 10 million illegals, second, ban private equity from buying up houses, or just tax them heavily.
Z IS DEAD
Idaho baby is the place to be, flee blue states
Everything is an F story right now. Taxes, Insurance, Inflation,
Donald Trump is the special guest speaker?
Holy lip collagen.
How about hostels?
Why would anyone buy real estate now? How will you feel when you lost half your equity in a few years?
Pretty depressing prognostication overall. America the land of opportunity is officially dead. You will own nothing and be happy.
*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
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
this guy keeps predicting the end of real estate appreciation only to get proven wrong a few months later
ken is one of the biggest RE bulls, aside from kiyosaki... if he seems at all bearish thats a BAD sign for recent buyers and the over leveraged. he has a massive stake in RE