Our 2024 Real Estate Deals and 4.75% Mortgage Rates on Rentals?!

Episode #947
Want a low mortgage rate? We mean a really low rate-like 4.75% in 2024 low. What about half a million in profit on a sneaky development deal? Or, maybe you’d settle for a quick house flip that pockets you $55,000 on a bad day. These aren’t made-up numbers; these are REAL deals that our expert investing panel is doing in today’s hot, hot housing market. And if you know where to find deals and steals like these, you, too, could be taking home huge profits like they are! Thankfully, they’re sharing all their secrets on today’s episode!
David and Rob are taking some time off to play pickleball, while Dave Meyer and the entire "On the Market" podcast panel join us today! In this show, we’re talking about the real estate deals getting done in 2024. Each expert brings in a deal they’ve recently done and showcases how they found it, what they bought it for, how much cash flow or profit they’re going to make, and advice to help YOU repeat these home-run real estate deals.
First, Dave will share about a cash-flowing on-market rental property he bought (while abroad!) thanks to his inventor-friendly agent. Kathy Fettke gives tips on getting a low mortgage rate on your next new construction rental and how doing so could massively boost your cash flow. Henry Washington walks through a quick flip that will make him $55,000 on the low end and the ingenious way he found this deal. And finally, James Dainard talks about the almost unbelievably good development deal he’s doing in Seattle that will profit $500,000 (yes, that’s half a million!).
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4 Vital Points to Consider BEFORE Getting Into New Construction:
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James Dainard: www.biggerpockets.com/users/j...
Kathy Fettke: www.biggerpockets.com/users/k...
Show notes at: link.chtbl.com/BPRE
00:00 Investing Challenges of 2024
01:19 Investing Challenges of 2024
08:17 1. Cash-Flowing On-Market Rental
14:41 2. New Construction with a 4.75% Rate!
20:44 3. $55K House Flip Profit!
26:11 4. Making $500K with DADUs!

[@MegaSuperEnrique]

16:25 if I like new, they like new, and will take good care of it WRONG!!! that's when you REALLY need to have restrictions in place for tenant acceptance

[@Starkham]

Hit 247k today .Thank you for all the knowledge and nuggets you had thrown my way over the last months, Started with 11k in last year 2023

[@tomster0126]

I travel in person to every out of state market we invest in, thoroughly drive & scour the area, talk with locals and personally meet with realtor and property management. Must have confidence in the PM team before even considering making an offer.

[@dhowto3005]

Very helpful information. I really appreciate it! Thanks!

[@REIwAlexY]

"it will cash flow" cash flow how much? whats CoC? there were no metrics given to judge independently if was good deal for you or not. "we bought for X with Y down. it is projected to cashflow Z and so will give us an estimated CoC of XX%" would be much more informative. Cathy did a good job quickly giving rough numbers so anyone can see that its a great deal

[@alicechodkowski4066]

I love the creativity by all of you! I am going to try to implement some of them. Thanks!

[@ThatGratefulGuy]

Personally, im afraid anyone getting into a property wil be the "bagholder" as the economy slows drastically over the next year or so.

[@iamkeithandrews]

It's a reminder that in real estate, adaptability and persistence are key. Always something new to learn in this ever-evolving market!

[@CV-nn7jj]

Kathy said we get 7 rate cuts this year. Kathy also said we have a super strong economy. I personally know so many people getting laid off right now and homelessness is skyrocketing everywhere. There’s a lack of strong paying jobs in the economy right now. Super strong economy for Kathy because she’s rich.

[@LarossaConstruction]

I think that these higher interest rates work as long as investors stop overpaying for these deals. I am really focused on finding deals that require a bit more work which lets me get a far better deal on the front end. When I'm all in for under 80% of value the interest rates don't hurt nearly as bad.

[@brady_morgan]

Something I have always struggled to understand is how real estate outperforms inflation. By doing so, the affordability gap will always be growing as values increase more than wages or costs of other goods. How is that sustainable? It cant go on like this forever can it? I know that the asset prices are a result of supply and demand which are not getting better, but I just dont see how real estate can outperform inflation forever, seems unrealistic. Another great episode, big thanks to all the hosts for their time and knowledge!

[@boris256b]

Indeed that has been the case for the last 50 years or more, as affordability has been decreasing. But eventually more and more markets become like the Midwest, as population growth slows and demand for real estate decreases.

[@ThatGratefulGuy]

Great article in the Atlantic discussing this conundrum recently.

[@anikdasdigital]

Your videos are amazing. I really like it. I am a new subscriber to your channel. Can I talk with you Bigger pockets?

[@youdqtube]

Kathy, how can I buy 1 to 3 of these duplexes?

[@reyessuarez4978]

How do you know the grade of the neighborhood if it’s A .B. or C ?

[@jamesjanotta2363]

Please do one of these a month

[@nanayoseto9968]

Am I a big idiot or she just bought a 1.2% CAP property?

[@CliffNotesAnesthesia]

Let’s see what the future holds 😬 so much uncertainty in the market but we shall see what’s next.

[@kevinhesspschamp8889]

so many empty houses in my area kind of scared to buy...

[@BJ-fu4zy]

You better buy them!

[@shelleygreyrealtor]

I don't get why you would be afraid if they are empty. Some people, especially when overseas, park their money in real estate and don't care if it sits empty. Them doing that makes me feel more comfortable to invest, not less.

[@cubicleinvestor2553]

@@BJ-fu4zy I don’t think it’s as simple as some would like you to think. If the buyer is leveraged to the hilt, or does not have the equity to sell at a price where rents make sense, I would not advise to buy. In my area you are seeing houses that have been listed for higher rents that are required to service the debt, but the rental demand is not there at that price. The houses are coming on the market now, but fail to cash flow or even come close at current prices.

[@MattHall83]

@@shelleygreyrealtorThat theory only works (for most people) if the home cash flows or you have 8+ months in reserves

[@cubicleinvestor2553]

@@shelleygreyrealtor that’s just an appreciation play, not running numbers and is less investing, and more gambling imo.

[@dmitryp4219]

Ok

[@dennishowland7495]

Don’t be good in the future day guess hillbilly appliance selfie as fast as well I know that makes

[@REIwAlexY]

sir, please use some punctuation my guy... This sentence makes no sense.

[@juanmercado3931]

James deal sounds sooooo made up!

[@ThatGratefulGuy]

It's only 'under contract' as well. I would be interested to see what due diligence shows. That likely won't be disclosed on this show Positive stories only allowed here - even untrue ones with disingenuous spins.

[@jamesdainard4242]

We’re building it right now! Stay turned!

[@jamesdainard4242]

@@ThatGratefulGuy were already closed and foundations are in!

[@ThatGratefulGuy]

@@jamesdainard4242 I'm glad to hear it. I hope it works out!

[@BARAKATINVESTint]

Now is a very good time to invest in Turkish real estate on the Mediterranean coast in the city of Mersin, because prices have been adjusted and an increase in real estate prices in Turkey is expected at the end of this year and the beginning of next year. At the end of 2024, an international airport will open in the city of Mersin and prices will rise even more.

[@williammckown1736]

This guy is a joke

[@flsupraguy]

Man this channel has gone downhill big time.