FAR 185 The Harvest Expected Air Date: 9/10/18 Opening Real estate investing is like the weather - it’s always changing. But it’s unlike the weather in that you usually have to wait more than 5 minutes to see the change. With real estate, a multi-trillion dollar industry in the United States, you have multiple impact points each with their effect, but individually are like using a bumblebee to steer a barge into port. Example, Compass, opening a new office in Atlanta, talking about their use of proprietary technology to dominate the realty brokerage market. They will no doubt gain market share because of their deep pockets. But will they dominate? Unlikely. They represent a generation of investors enamored with technology and blinded by their own preference to machines over human interaction. But the entire company misses the point. Real estate sales require presence, that presence requires supervision, the supervision requires a trust, a set of ethical guidelines, enforced by a regulatory agency and ultimately there are licensed people - Realtors. When people are involved both as buyers and as representatives, relationships matter more than technology. Compass will survive, but will disappoint investors unless they master the people side of this. And their effect on the real estate market? Negligible at BEST. Most likely it will go completely unnoticed by most. Larger impact is seen through the activity of the government: interest rates, policy change, taxation. Interest rates: Direct impact on affordability and home sales. Policy Change: Example: loosening of capitalization requirements for lenders - more money and more creative loans available. Taxation: The tax laws passed last December have significantly affected home sales in the more expensive markets. Prices are dropping up and down the eastern seaboard. Soon to follow will be the luxury market Chicagoland and the west coast. We are tracking the changes, the impact points, and are sharing with you on what is becoming the fastest growing real estate show on the air. Today we are going to talk about the hot new markets in flipping houses, the decline of returns in flipping houses, a new bill in congress designed to ultimately eliminate Fannie Mae and Freddie Mac, and one of the MOST important factors millenials use when deciding to buy a home. This plus many of your questions coming up. How to contact us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn We now have a profile at houzz.com for what it’s worth. Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:
- September 12, Chantelle Owens at Flipping Atlanta, Tax Liens
- FlipStarter October 13, Atlanta, GA
- Lunch with me every Wednesday.
- Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It’s a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
- Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.
News!
- https://www.cnbc.com/video/2018/09/06/rep-hensarling-why-ginnie-mae-is-better-than-fannie-and-freddie.html
- https://www.cnbc.com/2018/08/31/millennials-put-pets-first-when-buying-a-home.html
- https://www.cnbc.com/2018/09/05/its-better-to-rent-than-to-buy-in-todays-housing-market.html
- https://www.cnbc.com/2018/06/22/americas-best-states-to-live-in-2018.html?recirc=taboolainternal
- https://www.realtor.com/news/trends/home-flippers-heading/
- https://www.realtor.com/news/trends/forget-hgtv-surprising-new-hottest-markets-home-flipping/
- https://www.attomdata.com/news/market-trends/home-sales-prices/q2-2018-u-s-home-sales-report/
- https://www.cnbc.com/2018/09/04/starbucks-openings-predcit-higher-home-prices-says-harvard-study.html
Topic: The Harvest. Bring in this years crop between now and December. Plant the seed for next year in November and December. Comment Line calls and Questions Call 404-369-1018, press 1 and leave your message! Emails: Questions@flippingamericaradio.com Tell us where you’re from!
- Candace, Boulder, CO, “The market here for buying a flip house is intensely competitive. I’m wondering if I should move to another area, buy deals with less profit, or try a different strategy.” When asked “what strategy she had in mind” she replied “lending.”
- Orville, Villages of Ocala, FL “I am an accredited investor and heard you mention a fund you were involved with. How do I get more information about it?”
- Carson, Jacksonville, FL “A friend sent me a copy of your talk on analyzing market trends and all I can say is thank you! This talk encouraged me to look into a different market over the weekend and I already have a new project under contract. What are the early signs of an area turning around?”
- Ophelia, Tampa, FL “I bought a couple of rental properties from one of those national gurus and instead of cash-flowing $200-300 per month, I’m actually losing money on them, when you add up all the extra expenses each year. What am I doing wrong? They told me these were good deals. I can’t afford to lose money each month.”
- Fernando, Austin, TX “I’m having a hard time understanding the rates and terms of hard money lenders. Everyone is different and the terminology is hard to follow. I think I understand LTV, but I thought the loan would be a percentage of the ARV. It’s something different - a lot less. And what is LTI? I’m like “well sure, yeah of course” with the lender because I don’t want to look stupid, but I’m not sure what we are even talking about.”
Motivational Thoughts for the day
- Expect problems and eat them for breakfast. Alfred A. Montapert