13: Why Investors MUST Change The Way They Buy Real Estate in 2022 w/James Dainard

On The Market

BiggerPockets

Investing, News, Education, Business

4.8 • 858 Ratings

🗓️ 20 June 2022

⏱️ 63 minutes

🔗️ Recording | iTunes | RSS

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Summary

House flipping, rental property investing, wholesaling, and every other type of real estate investing has had an incredibly profitable run-up over the past two years. Days on market shrunk as buyer demand soared and supply dried up. Flippers, rental property investors, and everyone in between saw profit margins they couldn’t have imagined before. But, now that may all change. Rising interest rates have stopped many would-be homebuyers from making offers, forcing them back into renting instead of sending in over-asking bids. Now, home equity and flipping profits are starting to see a lag, as mortgage applications significantly slow down, showings become far less crowded, and price cuts become the new norm. Are we at the beginning of a real estate recession, and if so, how can we best prepare to still profit during the downturn? James Dainard, master flipper, investor, and “On The Market” guest, has had to readjust almost every way he analyzes real estate deals. He’s managed to cash in some serious flipping profits over the past two years but understands that this year will be different. He shares exactly how smaller landlords, real estate investors, flippers, and wholesalers can “pad their profits” so they don’t get burnt on their next real estate deal. In This Episode We Cover Why price drops have doubled even though many homes are selling above asking price Seller FOMO (fear of missing out) and why now may be a great time to find phenomenal deals Why cash flow has reemerged as the most important investing metric for rental property owners The 1% rule and why using it on every property could cost you money Readjusting your expectations as a flipper and how to “pad your profits” the right way Whether or not you should “trade up” your rental properties to protect your portfolio And So Much More! Links from the Show BiggerPockets Forums BiggerPockets Agent Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Dave’s BiggerPockets Profile Dave’s Instagram Mortgage Applications Decrease in Latest MBA Weekly Survey Nearly 1 in 5 Sellers is Dropping Their Price Connect with James: ProjectRE with James Dainard Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-13 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Buy low, sell high. Very easy to say, but not always so easy to do. For example, high interest
0:07.2	rates are hurting the real estate market right now. Demand is dropping and prices in a lot of
0:12.2	markets are falling, even for many of the best assets. So it's no wonder the Fundrise
0:17.3	Flagship Fund plans to go on a buying spree expanding its billion dollar real estate
0:22.7	portfolio over the next few months you can add the fundrise flagship fund to your portfolio in
0:28.9	just minutes and with as little as $10 by visiting fundrise.com slash pockets fundrise.com
0:35.7	slash pockets carefully consider the investment objectives,
0:39.5	risks, charges, and expenses of the Fundrise Flagship Fund before investing. This and other
0:44.9	information can be found in the fund's prospectus at fundrise.com slash flagship. This is a paid
0:50.9	advertisement. In a frequently shifting market, deciding how to invest can be overwhelming.
0:55.7	You need a partner that has a proven track record, BAM Capital.
0:58.6	They've navigated the Great Recession, COVID, and even the current interest rate environment, delivering max returns.
1:04.4	If that track record isn't impressive, then I don't know what it is.
1:07.4	Bam Capital is a trusted multifamily syndicator with over $1.3 billion in transactions.
1:12.7	Their disciplined investment strategy targets cash flow stability, capital preservation,
1:17.4	long-term appreciation, and accelerated tax benefits. Join Bamcapitals 1,200 plus investors across America
1:23.5	at biggerpockets.com slash bam. That's biggerpockets.com slash BAM.
1:29.4	Wondering where the bigger pockets community gets the best rental property insurance,
1:33.9	start at Steadily.com.
1:35.8	Steadily landlord insurance protects against property damage,
1:38.5	loss of rental income, and liability claims.
1:40.9	With lightning fast quotes, superior coverage,
	...

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