Welcome To 7% Interest Rates...

...The Fed did what everyone expected at todays meeting

they raised interest rates by .25%

in an effort to tame inflation

let's face it - everything costs more these days

this is the 1st increase by the Fed Rates in about 3 years

so while its not the end of the world

it does affect purchasing power for most buyers

and it remains to be seen if it has an effect on home prices

listen in to today's show for all the nitty gritty details

The Accidental Landlord Conundrum...

...is a situation facing far more homeowners than most people realize

and if you are in this situation

there is a very good chance that someone you know is facing the same thing

• you cannot sell your home for a price that makes sense
• you have a compelling reason to move
• you never intended to be in the property rental business
• you don't have the time or resources to manage a rental property
• you have no desire to be a landlord

and yet many people will end up choosing to rent out their home

the vast majority will end up hiring a property management company

and they end up getting 4 benefits that they may not have known upfront

• monthly cashflow
• someone else paying down their mortgage balance
• property appreciation to build equity and wealth
• tax write offs to reduce what they pay to the IRS

listen in for all the details

Maybe It's Time To Get Your 1st Investment Property...

...it has been the #1 way to make money for more than 100 years

it has even outperformed the stock market during that time

There are so many ways to get in the rental game

I think everyone knows that you will need a way to pay for it

cash is king

if you choose to finance, then you should plan for a 20% down payment

you will need to decide if you want to do long term or short term rentals

you can absolutely manage it on your own

although many people to choose to hire a management company

you may very well need a rental license

so be sure to check into any restrictions before making any offers

if you choose to purchase without the help of an agent

you will need to do your own due diligence in many areas

the majority of investors choose an agent that specializes in rentals

so definitely do your research before hiring an agent

so that you get the level of expertise that is just right for you

listen in for my thoughts on how to get started

DSCR Loans For Investment Properties...

...is something that many landlords aren't familiar with

Debt Service Coverage Ratio

helps investors that run out of traditional methods

to obtain financing for real estate purchases

most investors start of with home loans from a bank

where they use their personal income and credit

to qualify for the loan

DSCR uses the uses income from the property

which is very useful for an investor with a large number of properties

2 Years Later - Buyer Broker Agreements...

...some buyers are not aware that they even exist

let alone that they are required for an agent to provide real estate services

for those that work in the industry

this can seem to be almost unbelievable

but lets face it

most people move every 7-10 years

and if you aren't looking to move

you really don't have much reason to learn about it

the short story is that an agent cannot work with a buyer

without having a signed agreement in place

which makes it crystal clear that the agent:

• will be earning a commission
• the amount of compensation
• who pays for it
• how long the agreement will last

keep in mind that no one is required to use an agent

and that commissions are negotiable

an agent can provide you with a copy of the agreement

for you to review and ask questions

today's show gives you the details

Is The Open House Dead...

...as a real estate strategy

In the current real estate market

an Open House may be actually be very ineffective

now stay with me

I am not saying that they will never work

but its become more of an impulse item

most people going to open houses these days

are actually on the way to do something else

and happen to become browsers after seeing a sign

with all of the information available on line

most buyers that are ready to purchase now

prefer to book private showings

for the homes that they want to see in person

listen in to todays show to get the scoop on whats changed

Is the Price Of A Home Really Out Of Reach...

...quite often its actually within reach when you do the real math

We live in a time where many people are very accustomed to

• the daily coffee purchase
• lunch and dinner deliveries
• subscriptions for all kinds of things
• amazon daily deliveries
• new expensive cars each year

I am not telling anyone to give up those things

but they do end up being a large and often unnecessary

variable expense in the majority of family budgets

which leaves less money each month to pay for a home

interestingly - many people are renting the place they live in

and nothing wrong with that either

but a $2,000 per month rental

is $24,000 per year that is not building your wealth

• its not earning any interest
• its not an appreciating asset
• it does not provide any tax benefits
• its not a way to save for the next home

today's show breaks down the math that might just make a difference for you

If Your Home Sale Isn't Going Too Well...

...You really only Have 2 Levers To Pull to change things

Price And Time - thats it

Many homes are lingering on the market unsold

and sellers are having a hard time facing the real reasons

that their homes aren't selling this year

its easy to blame

• the market
• the economy
• the war in Iran
• their agent

but the real reason is very likely to be something different

its the home seller is refusing to accept the current market conditions

so these sellers will use the time lever and wait it out

provided that they have enough time available for the market to increase

• they have to get "their price"
• they refuse to "lose money" on their home
• they have always made money selling a home
• they have "way too much money into it"

other sellers will have more urgent situations and take a pricing action step a bit downward

or invest a significant amount of $$$ to upgrade the home to meet the price they need it to be

the most effective strategy though is to simply price it where homes are actually selling

and get on to where you really need to be

today's podcast gives the inconvenient truth on how the market is playing out

The US Treasury Just Made A Move...

...That Might Help Home Buyers

They are back to buying bonds again

which typically lowers the yields that bond holders receive

and in turn may very well lead to downward pressure on interest rates

keep in mind that it was only last week

where it was widely predicted that the Fed would increase rates

at their meeting next month due to inflation

so we have a situation where things are changing rapidly

now this doesn't mean that rates will plummet to 5%

but it does mean that rates might have a better chance

of going down instead of up in the next 30 days

which is good news for home buyers and sellers alike

and we may just see a little increase in market sales

during the months of September and October

before the news headlines zero in on the mid term elections

listen in for my take on what happens next

FSBO Sellers Biggest Mistake...

is definitely allowing their ego to dominate their sales strategy

most people that choose to sell on thier own

want to avoid paying a real estate brokers commission

and feel confident that they can get their home sold on their own

they also tend to overprice their homes

and its the worst combination possible

buyers realize that when no agents are involved

that there should be a discount on the price

so when the list price is actually higher

there is a massive disconnect

and its a big reason why 85% + of FSBO sellers are not able to sell their home

making matters worse is a cavalier attitude towards a buyers showing experience

buyers frequently struggle to freely view the home

as the seller follows them all over like an unwanted tour guide

to the point of discomfort that the buyers just choose to leave

quite often sellers get defensive when a buyer makes comments on the property condition

and get upset when they ask tough questions

it makes for an awkward showing to say the least

today's show goes super deep into why a sellers ego can kill most deals