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On The Market

26: Rates Drop Below 5%, Opendoor’s $62M Mistake, and Jamil’s Dead Deal

On The Market

BiggerPockets

Investing, Education, Business, News

4.8859 Ratings

🗓️ 15 August 2022

⏱️ 60 minutes

🧾️ Download transcript

Summary

Interest rates are dipping below five percent, hedge funds and institutional investors are starting to sell off their homes, and inexperienced syndicators are getting stuck with bad deals. Is this the everyday investor’s version of a miracle? Nope, it’s just another week in the wild 2022 housing market! Joining us is the entire On The Market panel to talk about which up-to-date, hard-hitting stories affect investors the most. To start, we’ll talk about Invitation Homes, one of the most prominent institutional real estate companies, and how they’re being accused of using unpermitted work to renovate their recent acquisitions. Within the same vein, Opendoor, another institutional investor, was fined a whopping $62M for “deceptive marketing”, but did they really make promises they couldn’t keep? Don’t worry, this isn’t an entirely iBuyer-only episode. Our last two stories cover commercial real estate and interest rates. More commercial deals are starting to see cracks in their literal and figurative foundation, as inexperienced investors are being slapped with higher fees and rates from banks as their properties become less valuable. But, some good news for investors is that mortgage rates have finally dropped below five percent, getting us closer to the rock-bottom rates we were used to in 2020 and 2021. But can these rates be counted on, or will they skyrocket back up once the Fed has had enough? In This Episode We Cover Why hedge funds are hurting and failing to keep up with maintenance on their properties The “deceptive marketing” tactic OpenDoor used to lure in new customers How rapid “repricing” is changing the way commercial real estate deals are done Jamil’s $2.5M mistake and why you should always focus on your own area of expertise Low interest rates and why banks are offering them even as the Fed pushes for increases 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 Subscribe to The “On The Market” YouTube Channel Find an Investor Friendly Agent in Your Area Dave’s BiggerPockets Profile Dave’s Instagram Henry's BiggerPockets Profile Henry's Instagram James' BiggerPockets Profile James' Instagram Jamil's BiggerPockets Profile Jamil's Instagram Kathy's BiggerPockets Profile Kathy's Instagram Invitation Homes Opendoor Rapid Repricing Interest Rates Hear More About Jamil’s $15M Wholesale Deal Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-26 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

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0:47.9

Buy low, sell high. Very easy to say, but not always so easy to do. For example, high interest rates are hurting the

0:55.8

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In a frequently shifting market, deciding how to invest can be overwhelming. You need a partner

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