774: Seeing Greene: Bleeding Rentals, Bad Flips, and The Safe Haven For Your Cash

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 4 June 2023

⏱️ 61 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Buy real estate or face your dollar’s demise. While this may sound like doomsday prophesying or over-bullish investor attitudes towards properties, the fact is that most investors today won’t make it. With inflation raging ahead, home prices double-digit percentages higher than they were a few years ago, and food and energy costs spiking, your cash isn’t safe. The value of your money is burning, and your bank account won’t be able to extinguish the flames. But there is still hope to build wealth. Welcome back to a macroeconomic Seeing Greene episode where David tells you what he really thinks about today’s inflationary economy. If you want to grow your wealth while prices pop off, this is the episode to tune into. But it’s not just CPI rate rants this time; David will also advise on what to do when down payment requirements more than double at the last second, why Midwest “cash flow” markets aren’t what they seem, building vs. buying an ADU (accessory dwelling unit), and when to sell a rental or flip that is bleeding money every month. Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can hop on a live Q&A and get your question answered on the spot! In This Episode We Cover: What to invest in when inflation is eating away at your hard-earned money Down payment requirements and what to do when you can’t close with low money down Cash flow vs. appreciation and using “portfolio architecture” to build the BEST portfolio possible Buying vs. building an ADU (accessory dwelling unit) and which will make you wealthier as a result How to make money on a house flip gone wrong (even if it’s in a rough neighborhood) Negative equity and whether or not to sell a rental that is losing value What to do with $30K in today’s expensive investing environment And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch BPCON2023 Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area Hear Dave on the “On the Market” Podcast Subscribe to the “On The Market” YouTube Channel David's BiggerPockets Profile David's Instagram David’s YouTube Channel Work with David Read Up-to-Date Real Estate Articles and News Stories BiggerPockets Podcast 759 You Won’t Believe It. Inflation Finally Peaked—Here’s The Proof Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-774 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	This is the Bigger Pocket's Cash Show, 774.
0:04.3	When we look at money as a store of energy, it really opens up a framework to understand this better.
0:09.4	You're looking at one way the property is making revenue or losing money, which is cash flow.
0:14.0	That's a form of energy, because the house puts off this energy in the form of cash,
0:19.2	which you put in a savings account, that's energy that you're saving.
0:22.6	Well, the house is losing energy, and that it's bleeding equity every single year.
0:27.3	Let's go on everyone. This is David Green, host of The Bigger Pog is Real State Podcast here today
0:32.0	with a seeing green episode for you. In this format of show, I take questions from you,
0:36.2	our listener base, and I answer them directly for everybody else to hear so that they realize
0:41.2	they're not crazy. We're all going through the same things, and we all get to learn from the
0:45.6	experience of others. Today is a fantastic show where we go deep. Maybe deeper than we've ever
0:50.8	got. On topics like what everyone forgets to think about when adding to a property. If you're trying
0:56.6	to add square footage, build an ADU, this is something you need to know. What to ask yourself
1:01.6	on a property you own, but are unsure about? How to know if you're in a situation that you don't
1:06.5	love the deals, and I sell it, should I keep it, I simplify that for you with something that you'll
1:10.4	probably never forget. What is scaring you about the economy right now, and what is scaring me?
1:15.4	This is something that I don't think anybody else is talking about, and I try to be the person to
1:19.6	say that things that nobody else says. So in today's show, you're going to hear exactly what I think is
1:23.8	going on with the economy that everybody else is avoiding talking about, as well as specific advice
1:28.5	for what to do with $30,000, where to buy, what type of assets to add to a portfolio, and more
1:35.2	on today's scene green. But most importantly, if you would like a chance to ask your question,
1:39.8	please go to biggerpox.com slash David. The link is in the description. If you pause this, you can
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.