Why Rising Interest Rates Are Good for Real Estate Investing
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- čas přidán 3. 07. 2024
- Rising interest rates are being met with some negativity from investors. Deals don’t make sense anymore, cash flow is becoming almost extinct, and those who could qualify just a year ago are barely making the cut. How could mortgage rates almost doubling over the past year make buying real estate possible, let alone profitable in 2022? David Greene, veteran real estate investor, says that now is the time to buy!
Welcome back to another Episode of Seeing Greene, where David hits on some time-sensitive questions surrounding the world of real estate. We touch on private money lending, the housing market and interest rate updates, how to “gift” a down payment, real estate partnerships, goal setting, and who should stay away from house flipping. If you’re just starting your journey in real estate investing, this is the episode to listen to!
Want to ask David a question? If so, submit your question here (www.biggerpockets.com/david?u...) 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!
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Books Mentioned in Today’s Episode:
Long-Distance Real Estate Investing: store.biggerpockets.com/produ...
Buy, Rehab, Rent, Refinance, Repeat: store.biggerpockets.com/produ...
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The Richest Man in Babylon (BiggerPockets Edition):
store.biggerpockets.com/produ...
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@davidgreene24 or / davidgreene24
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Episode #672
Show notes at: www.biggerpockets.com/blog/re...
00:00 Intro
02:41 Quick Tip
03:53 Keep, Sell, or Refinance?
08:38 Private Money and Partnerships
12:42 Buying with High Interest Rates
21:14 Questions from The Comment Section
23:45 Can You Gift a Down Payment?
28:17 Are DSCR Loans Worth It?
31:16 Advice for New House Flippers
39:16 How to Set Bigger Goals
50:17 Ask David Your Question!
Great episode. Would definitely love to see episodes where David walks properties and discusses his thoughts. Thanks!
We definitely want to see David deep dive into what he looks for and likes in a property deal!!!
Agree!
David, I have been watching your videos for over a year now. I have been investing in real estate for the past 15 years and almost 2 years ago I was able to leave my 9 to 5 and “live off of my investments” while learning more with people like you who share all their experience. Not only I found you super knowledgeable in real estate but now I can see your growth as a person, wanting and encouraging others to become better human beings. Loved this episode!!
We are investors looking for wealth and if we ads the ingredient to become better persons every single day, then we are successful already as we are now.
Thanks for all you do! Really appreciate it! I am 100% with you.
Love your podcast and think it is a great idea for you create episodes of you walking through potential deals!!!
First off, great podcast! Second, I would love a deal walkthrough video. There are some out there, but always good to hear from a reputable source.
Yes to walkthrough. Thanks for your advice.
I’m such a big fan and learn so much from you and the answers to these questions! Your advice is so thorough, well spoken and easy to understand!! Thank you David!!
Love seeing Greene! Would love the walk through idea. Love the show!
I love seeing you in different background and scenery!!! And, more out-of-state deal deep dives!
This is the best free advice I've gotten from any source. I'm blown away by the quality of the content.
Absolutely loved the advice at the end! 🙏🏽
Yes. Different backgrounds and locations is nice. Evaluating properties would be great. Thank you, love all your episodes.
Great show!!
The goal setting section was extremely helpful.
Her to support, take the challenge, execute and succeed. Thank you David!
I'd also appreciate a deal walk-through video/ series. I'd really like to see how funding is calculated with a 1st lien hard money lender and a 2nd lien gap funder. If I could get your perspective on this, I'd really appreciate it. I'm in the middle of a deal now that I don't feel confident in my analysis when it comes to analyzing the two loan terms.
Thank you for the great podcast. Please show us a walkthrough video!!
Thanks again David
Yes, would like to see details of deal deep dive for both properties you buy and those you don’t buy. Thanks!!
Love, love, love the content and breaking down the hurtles!!
Love the property walk-through idea.
Yes definitely do walkthrough deep dive videos they’d be very helpful
I always watch your shows over because I know I’m gonna miss something great! Great content like always!
Great video David. Looking forward to the next video
I loveeeeee your advice David! Gosh you’re such a PRO!
Yes David please make videos of you walking through houses!!
Great insight on setting goal. I become big fan of you after this episode. Keep it up.
Yes, more property walk through episodes.
Walkthrough is a great idea. Please do it.
I'm joining the "deep dive club"! I would love to see David walk an actual property he is considering, break down what attracted him to it, what his feedback is on the back end, and what he ultimately did with it..hint hints, before and after pics!! Thank you for keeping the Green Gold coming! :))
Yeah we wanna see David do walk through on properties
David is the best advice-giver ever! Also, would love to see some of your
properties!
I've listened to you guys for years at 1.5-2x speed your last bit of advice was the single greast thing I've heard.
Be the greatest person you can be. I replayed it twice on normal speed
Great show D!
Absolutely that would be totally awesome to see you in action so we learn if its a good deal or not
Would be awesome to see walkthroughs!
This a great podcast I love the advice u give us !!! Thank you sir !!!
Definitely would love to see you walk through properties 😃
DEFINATELY want "Deep Dive" episodes! Would love to have you run through a bunch of deals and explain why you do or don't like. Thanks!
David love this episode of this seen Green. Particularly because you did not only teach real estate but the advice that you gave was just priceless .?keep doing what you doing bro you just amazing man I learned a lot every time I listen to anything your part of.. Great episode
Yes! Let's walk some properties! Cool idea 💡
Walk thru idea sounds great
Yes I would like to see deal walkthroughs and the different backgrounds add a little bit more spice to the videos.
One of the best advice..
Yesss! More deal deep dive!
Very great insight. The idea of chasing cash flow resonated with me. Thank you.
Also, thank you for everything you do it’s been really helpful in many ways. 😅
The bit about chasing excellence really spoke to me! Thanks for this.
Also would like to add that when you guys are funny is great! We are learning and most of the times I am very focused and conventrated in what you say and when you drop something funny its a plus👍👍👍
The whole video is great, but that section on striving for excellence is pure gold.
we need to see walkthroughs!
I love hearing you talk about growing in virtues. It is so important. Thank you for preaching about this. We need more people like this David. Keep up the beautiful work you are doing. God is good.
Thank you for this great information. Yes I would also like to see your in person walk-throughs of all properties you go to please. Getting started without a mentor is very hard so obtaining that "hands on approach with someone like yourself is much appreciated. Keep the good stuff coming!
OMG David! What an episode! This is one of those "make sure you watch until the end". The very last part about having "excellency" as a goal is just powerful. I am 100% with you. Two of investor that are sort of my "mentors" are owners of restaurants where I used to work as a waitress many years ago before I became a nurse. They both invest heavily where my husband and I invest now, and these two investors are happy to answer any question I have. Why? Because when I worked for them as a waitress I gave them my best.
I know the answers you gave this episode were kind of general, but I appreciated it because I feel like it can be applied to more people in general. Many of the answers definitely spoke to me.
You are just great David! Thank you for what you do!
David "More analogies than Jim Carrey has faces" Greene , thank you so much for answering my question about better goal setting. I have listened to your response 3 times and am so inspired. It's exactly what I needed to hear and I will put it into action by becoming the quality of person that can handle the reward of pursuing excellence. I love your mindset and appreciate when you zoom out and have these bigger picture sorts of conversations. In my opinion, these conversations are more valuable than any deal deep dive that you might do, because I suspect that you are more successful due to your mindset than because of your raw deal-finding talent (though you're amazing at that too, no doubt). I don't actually know Dave Van Horn but I should reach out to him because I've never actually met a Vanhorn that I'm not related to, plus he just sounds like an awesome guy. I look forward to reading your future book that you referenced about goal setting.
I’d like to see a walkthrough, would be helpful for real estate agents too
I would love to see more deep dive and property walk throughs. Specifically from a beginner investors perspective.
Excellent show. Would love to see more of the areas David is in, why did you decide on them, what drove you to these specific investment properties? Thank you for fantastic show and education.
Please show David completing a walk through and then deep diving on a property. Thank you.
Interesting take on the effect of higher interest rates. I've heard other big names say that the higher priced areas that experienced the most appreciation in the last few years, will be the ones that drop or dip the most. And the lower priced areas will dip less.
Would absolutely love the deal-deep-dive video! Also, I was really encouraged by you talking about pursuing excellence. Being in school on a fellowship that doesn't allow me to receive income from any source other than them, I am limited in the action I can take now, so I am learning all I can and saving what I can. I have always had the mindset of pursuing excellence, solving problems, and being competitive with myself. I am encouraged that with this approach I will be able to make things happen!
Absolutely agree, we would love to see the way you work through potential deals!
Agreed
Yes yes and Yes definitely we would love to see different backgrounds and different areas and you walk properties and analyzing them all of it sounds good do it
Great advice
Love the desert vibes, great episode!
P.S.: I totally bragged to my real estate investors friends, and my Facebook friends, about you answering my question on a previous episode. And then you mentioned the same question on a second episode!!!!! I was shocked!!!
David you are my favorite ever, I hope the universe bring me to be part of your team just to learn from you, I can see your purest heart and soul beside your load of knowledge ❤, I just enjoy listening to you all day long, best wishes for you ❤
Like the location. The lighting and angle there is also way better than the studio.
Please walk thru properties explaining why or why you didn’t invest. Thanks for all the GREAT education!!!
Waking through potential home buys would be awesome content!
Deal deep dive walking though all the steps and your checklist as to why that property and how you determined the price
Would love for you to do a deal walk through and I enjoyed this video
Property walk-through’s would be awesome!
Please make more videos walking and talking through a deal you are making and it’s pros and cons. Thanks!
Thank you so much for the clear and concise information regarding the DSCR loan. With limited current income, I was always told I would have to pay all cash for any investment. This opens up a whole new realm of opportunities. Thank you again 🙌. Teresa
I like the idea is a property walk through
I live in Arizona hope you are liking the stay.
Yes David, let's see you walking through a property and giving a live example of your process of choosing, or not choosing a property. Thanks for all you do!
Newbie here! It would be great to see David go through potential properties!
Yes deal deep dive on what you are buying now!
Definitely want to see David Deep Dive shows, especially if you do Bay Area ones.
Hello, I've been watching Bigger Pockets videos for the past couple years. It's because of you guys that I refused to give up on purchasing my first home post-pandemic as a self-employed individual. You also are the reason that I am gearing up to purchase my second property soon using the creative strategies that I've learned from your CZcams videos. That being said, I am in agreement with many of the other commenters. I would love to see some of your personal deal deep dives. Specifically I'm interested in how you negotiate the deal with the seller and also how you deal with contractors.
“Get comfortable with the fact that goals will always change.” - David Greene
I did write that down to my saved quotes!
David Big Money Greene
Yes to the deal deal dive please!
We want to see an episode where David is walking through a property; we can see the deal, and then he can break down what he liked or didn't like about it.
Yes absolutely I would love to see you walk through a property or multiple properties pointing out what you like what you don't like pitfalls hidden gems any of those kind of things that would be absolutely spectacular
In the first story with the 16 bed apt, you did not actually listen to the guy. You talked about how maybe he should sell his property in Colorado as you mentioned markets like Idaho are “exploding.” But his property is actually in Rexburg Idaho - not in Colorado.
No, that's not correct. He did listen, but got the state wrong. That is just one detail.
always has to be one
@@user-ru2hf1sg4e lol
@@JakeRichardsong no he actually gave him wrongful advice based on him getting the state wrong while using the state he’s actually in as a reference to a completely contradictory advisement! Looks like 2 people didn’t listen here..
I would love to see the deal deep dives of you walking through the property, what to look for, what you liked and disliked!
Please show us a deal deep dive!!
Hold it. Time is on your side.
Do more deal deep dives
Greetings from PHX! If you're gonna be in the area and have transportation I'd suggest going to Tratto on 20th St and Camelback, Barrio Cafe on 16th St and Thomas, or Valentine on 7th Ave and Indian School. You won't regret any of those choices for a damn lovely dinner. I know you don't drink, but if any in the party do, Valentine has ridiculous cocktails and Tratto's wines are superb. Barrio has the best horchata you'll ever drink though.
On the one where the guy wants to buy a house that his brother would use as a primary residence, it depends on the state law but I think they could buy as tenants in common as his brother's primary residence, co-borrow the loan, and the loan would still be a primary residence loan. I've looked into that where I am.
I would love to see you walk through properties sharing how your brain works as you progress through finding deals!
Definitely do a walkthrough. Especially a brrrr deal because who wants to see a walkthrough of a pristine property.
David, I've compared extensively dscr and commercial loans extensively since I've had to finance 12 separate purchases this year. some advantages of commercial not mentioned here include significantly lower closing costs at purchase. I normally pay less than $1,000 to close on a commercial loan but several points on a DSCR. interest rate is also usually 1% are more lower. with that in mind would you still choose a dscr loan every time? I'm open to calling in during the show to discuss
Hi David, how can I get notified of events you are hosting near Phoenix?
Would love deal deep dives especially multi family ones.
Do it! Walking properties is a great way for us to see a property through the eyes of a veteran!
Don’t sell your apt building in Rexburg. Try to cash out refi and get your initial investment back.
Just got a new house closing this October 21st trying my first short term rental wish me luck 🎉