The 2025 Housing Market is Right here!

Dave:
Pleased New 12 months everybody and welcome to the BiggerPockets podcast. We all know all of you might be most likely right here trying to begin your yr, whether or not actual property investing or personally off, and at this time we received a model new episode for you the place we’re speaking about what to stay up for right here in 2025 and from the place I sit the place I’m taking a look at all the info within the day-to-day of actual property investing, I believe there’s a lot to be enthusiastic about for the upcoming yr and in at this time’s episodes we’re going to speak about particular methods and a few ways that you would be able to reap the benefits of as we head into a brand new yr. For this episode, I’m bringing on a few my pals and so they’re all fellow traders, James Dard, Kathy Ficke, and Henry Washington. You might know them as my co-host from available on the market podcast, however I assumed it’d be enjoyable to have them on to listen to completely different views from completely different profitable traders who use completely different methods, have completely different targets, and the way every of them are going to method this upcoming yr.
Earlier than we get into that dialog although, I simply wished to rapidly provide you with a little bit of a heads up and overview of a few of the subsequent few episodes as a result of now we have some tremendous good exhibits deliberate for you that we’ve been engaged on for a few weeks and I need to let you already know what’s arising on Friday. We’re going to spend a while setting the scene for 2025 and I’m going to truly share with you my predictions about what’s going to occur within the housing market within the upcoming yr and hopefully that will provide you with some info so to make knowledgeable selections about methods to get began this yr or methods to scale your portfolio. Then on Monday, I’ve a extremely enjoyable present plan for you all. I’ve been engaged on this for some time, however I’ve type of been taking this type of long-term view about actual property investing, about monetary independence, about the place your entire economic system and housing market has gone, and I’ll simply provide you with a preview that I really feel tremendous optimistic and tremendous excited in regards to the prospect of actual property investing going ahead and I’m going to spend the episode on Monday simply sharing with you why we’re going to get into some long-term developments.
We’re going to speak about long-term targets, we’re going to speak in regards to the realities on the bottom, however I actually hoping to share with you a blueprint or a plan that I believe just about anybody can comply with to pursue monetary independence utilizing actual property beginning right here in 2025 and going ahead, so be sure that to tune into that episode. With that, let’s deliver on James Henry and Kathy Henry, let’s begin with you. When you’re making an attempt to construct monetary freedom over 10, 15 years from now, what would you think about at this time right here in 2025?

Henry:
As a passive investor?

Dave:
Yeah, somebody who’s simply, they received a full-time job, they’re making an attempt to maneuver up their retirement, get monetary independence 10 years from now.

Henry:
Yeah, a few methods. Very first thing I’d do is begin with the place I dwell, so if I might home hack, I’d most likely do this. It’s simply the simplest method to get began in your yard, so utilizing some type of home-owner occupied mortgage like an FHA or a standard or a VA and shifting right into a one to 4 unit after which clearly there’s a variety of components right here, however let’s say if it was simply me and I used to be single, I’d undoubtedly be making an attempt to do this. If it was simply me and I didn’t have any children with a spouse, I’d undoubtedly be making an attempt to do this and if it was me and I had one or two children, I’d undoubtedly be making an attempt to do this as a result of all of that, you may nonetheless dwell fairly comfortably. You may go get your self a 3, two, even a 4, two, a 4, three duplex on either side and dwell in it and the amount of cash you’d have the ability to put in the direction of shopping for your subsequent property by not having to pay your mortgage each month as a result of someone else is a lot nice.
So one technique is simply do this for 2 or three years in a row. When you purchased a brand new multifamily utilizing an proprietor occupied mortgage three years in a row, you’re speaking six to 10 doorways relying on what number of items these properties have, after which you may simply let these issues sit for 30 years and you should have a heck of a retirement supplemented with out having to go do something loopy that we speak about on this present on a regular basis. You may simply actually dwell in a multifamily for the following three to 5 years, make that sacrifice and you can be set as soon as these issues are paid off

Dave:
And truthfully, it’s not that massive of a sacrifice.

Henry:
It’s not that massive of a

Dave:
Sacrifice. It’s actually not that massive a deal when you can sit the surface. It’s a very small worth to pay.

James:
When did monetary freedom not turn into a sacrifice, proper? Completely. You bought to do some sacrificing to get

Dave:
There. Yeah. What would you do, James? What could be your one factor you’ll give attention to in 2025 for those who’re simply getting began?

James:
I imply, I like what Henry stated. I imply simply getting within the recreation, for those who’re model new, you bought to get within the recreation to get within the recreation. Proprietor occupied financing, you’re getting a less expensive price, you may have much less cash down, there’s completely different financing that’s out there to you, and I believe we might see some inflationary interval over the following 12, 24 months and meaning housing might additionally get dearer.

Dave:
Rents might go up,

James:
Rents might go up, every little thing might go up and the very last thing you need is to get choked out by bills yearly and also you simply can’t get financial savings in the place the additional expense simply prevents you to avoid wasting. The way you create a financial savings account is getting within the recreation proprietor occupied, purchase the property, let appreciation create your new financial institution for you as a result of it’s costly on the market proper now, and so I do assume you need to get into it as an energetic flipper although. I do assume relying in your targets, for those who received to develop money, you bought to take a look at some extra excessive money circulation operational issues and you may nonetheless do this, like proprietor occupied short-term leases, flipping midterm leases, these are issues that require extra work.

Henry:
Yeah, I imply you may proprietor occupied flip although too. I imply that’s a good way to get began is simply to do a dwell in flip as a result of you then’re not paying the capital good points. When you transfer right into a home and it takes you two years to repair it up, you flip round and promote it. I imply you can flip round and promote it, make 50, 60, 70 grand tax free since you lived in it for 2 out of 5 years. The proprietor occupied is a tremendous method to get began. Passive or energetic.

Dave:
I believe the dwell and flip is essentially the most underrated method to get began in actual property. That’s sake.

James:
The dwell and flip modified my complete life.

Dave:
Inform us.

James:
I imply we’re on what property quantity six. I imply my spouse minimize me off now I believe I’m formally minimize off. Oh man, I ran that prime rev till the tip and we landed the place we wanted to land. If I went for quantity seven, it’s not going to be a tax financial savings. It’s going to be half a lack of my wealth, however
There’s a breaking level, however simply shopping for, creating that tax free shifting once more, transfer it once more. I imply we speak about sacrifice, the dwell and flip. The very best factor for my part is don’t be choosy about the place you’re going to dwell. Purchase the very best deal. It’s a two yr factor, you keep there, you promote it, you’re taking that tax after which we rolled it each time that tax financial savings went proper into the following property since you create that, you may go purchase one thing that wants extra work, proper? As a result of the stuff once you’re an proprietor occupied purchaser to do the repair up work, you bought to provide you with your down fee and the money out of pocket that makes it only a battle to do that, however by shopping for it, promoting it, get the tax financial savings each time we have been in a position to promote it, then go purchase one other property with 10% down, take the remaining financial savings, put it into our building after which enhance it once more. And by doing that, I imply we’re speaking actual cash at six occasions at a 500 grand tax-free hit.

Kathy:
For individuals who don’t know, you must dwell there for 2 years. You may lease it for 3 years after you allow, after which once you promote it, for those who’re single, you get $250,000 of the rise in worth tax free. When you’re married, you rise up to $500,000 tax free and it’s possibly laborious to think about enhancing a property that will increase in worth by 500,000, but it surely’s very doable, particularly in excessive worth markets like California

Dave:
And also you get residential owner-occupied financing to purchase the deal too. You may put much less cash down generally you can put 5 10% down, you get a decrease rate of interest. There’s so many causes to do it. It’s like for different individuals it’s a variety of the advantages of home hacking, but it surely’s only a massive fairness hit as an alternative of the long-term constructing. It type of goes again to what we talked about passive versus energetic,

Henry:
And I need to level one thing out as a result of we’re all speaking about what we’d do, but it surely’s not simply what we’d do. That is one thing that all of us both did or actively do. My second deal was a home hack and it modified my life. James is promoting his final live-in flip proper now. Dave, I do know you lived in a home hack and Kathy’s residing in a single proper now. That is so highly effective that all of us do it. All of us have completely different funding methods, however all of us do that one which has to let you know one thing

Dave:
That’s so true, this concept that, I imply I do know Wealthy Dad, poor dad received lots of people into this business and that’s nice, however in that e-book they speak about how your major residence is just not an asset. I believe that’s an enormous mistake. I by no means purchased into that one large mistake that

James:
Boils my blood after I hear that’s the worst piece of recommendation I’ve ever heard. Now it makes generally sense to lease over purchase. I do assume that in sure markets, however oh, just like the tax financial savings it can save you on that. It’s absurd.

Dave:
Yeah, it doesn’t make sense. I believe for some people who mindset shift of like don’t go purchase your dream residence. Which may not be a very good funding. That’s true, however for those who simply blanket proper off your major residence as a method to construct wealth, that’s loopy. That’s such a great way to do it. Everybody does it and I believe particularly for those who’re getting began within the subsequent yr, that to me is such a great way to get into the sport

James:
And I believe getting began for subsequent yr, crucial factor for anyone, you must know debt. That’s the largest factor, what entry to capital you may have. So anyone’s new go get pre-qualified.

Dave:
Sure.

James:
The primary technique you’re going to do is to learn the way a lot cash you will get. Then create your plan. Everybody skips that. They’re like, I would like the deal. I’m like, what sort of financing you get? I’m unsure,

Dave:
Dude. It’s the identical factor. Individuals are like, oh, I don’t know the way a lot I might let. It’s like actually there’s mortgage officers. Their complete job is to let you know how a lot cash you may borrow and so they’ll do it without cost and so they’re desperate to do

Kathy:
It and so they’ll let you know what that you must do to get there. Proper, precisely what that you must work on.

Dave:
That’s the simplest factor to do. Thanks for saying that James. That’s such a very good level. I believe that folks get loads actually type of intimidated by how a lot mortgage charges have gone and so they assume, oh no, I can’t do it or I can’t make it work. Once they don’t even have a solution to particularly or personally what their state of affairs’s going to be, what their rate of interest’s going to be, what their LTV must be. And for those who don’t know that you just actually can’t, such as you stated, begin taking a look at offers as a result of you may’t underwrite a deal with out understanding what you’re paying in your debt except you’re shopping for for money, which isn’t quite common. Okay, time for a fast phrase from our sponsors, however once we come again we are going to get into it about a few of the realities of the present market and we’ll speak about methods that do and don’t work. So stick round, welcome again traders. We’re right here speaking about what we’re enthusiastic about right here in 2025, so let’s leap again into it. Alright, properly that is nice recommendation to date, however Kathy, I received to ask you now, we’ve taken a few of the good ones. We’re going to place you within the sizzling seat in your technique for getting began in 2025.

Kathy:
Yeah, the very first thing is to offer your self an audit. Have a look at the place you might be in life. Are you simply beginning out? Are you searching for a profession and you actually into actual property Then make actual property your profession that like I stated, there’s so some ways to make it your profession and any one in every of them goes to provide the info that you must be higher at it. Like I stated, for those who simply get a job as a property supervisor, consider all of the stuff you’re going to study for those who turn into an actual property agent. Consider all of the stuff you’re going to study, a title agent, no matter. There are such a lot of jobs in actual property building that may allow you to for those who’re simply beginning out and for those who’re simply beginning out on any profession and also you’re not making some huge cash, you then may have the ability to do a couple of flips and substitute your revenue.
So it simply relies upon. Do an audit and let’s say you have already got a profession and you’ve got cash, you want your profession, you then simply need to make investments, like we talked about, passive investing. Then that you must actually put aside, actually research. That might be the following factor. Research methods to do it as a result of I’ll give my niece who I like, I’ll use her for example. She’s an actual property agent, does superb, actually profitable actual property agent, and she or he stated to me the opposite day, I used to be making a lot cash and I spent all of it. Why didn’t someone simply inform me to speculate? And I checked out her and stated, do you even know who your auntie is? Was it to your aunt? I wrote a freaking e-book on the subject. Okay, okay, don’t blame anybody however your self for not setting apart some cash to speculate.
She’s like, I’d most likely be retired now for those who’re getting cash, you’ve received to a minimum of put 10% apart to spend money on no matter you’re investing in. So one of many hardest issues once you earn a living is that half of it, you get up to now in life the place you’re like, oh my gosh, I make all this cash every now and then you go, I pay a lot in tax, I don’t even take that cash residence. I work so laborious for it. So understanding the tax advantages too of investing. A physician came visiting to our home the opposite day who lives close by and I simply assumed he made a bunch of cash, however he has so many bills that it’s sort of laborious to maintain up and save. However his spouse is a stay-at-home mother and what I attempted to elucidate to him is for those who make your spouse type of the true property investor and she or he takes care of all of the investments and manages your future portfolio, you will get so many tax advantages. It’s going that will help you get there quicker. So when you have cash already, then the next move is to study to simply research like loopy to know the alternatives which can be there for you.

Dave:
Nice. Yeah, I like it. Completely self-educating. Be taught this enterprise that you just need to get into. So many individuals need to go and rush to the enjoyable half, which is shopping for offers or promoting offers is much more enjoyable once you get the cash, however studying goes to set you as much as have many acquisitions, many tendencies over the course of your profession.

Kathy:
Sure.

Dave:
All proper. Properly I’ve two fast items of recommendation for individuals who need to get began. Primary is follow. We talked about studying and educating your self, however truly put these issues into follow and particularly speaking about analyzing offers. Go on the market and simply begin taking a look at as many offers as you may. Do what James stated. Go speak to a mortgage officer, do your life audit, determine that stuff out after which simply get some follow in every little thing you do. You must do it poorly for a short time and also you’re going to get higher at it. And by chance analyzing actual property offers, it’s not truly actually that arduous, however for those who discover ways to do it, for those who do it 20 occasions, for those who do it 50 occasions once you’re truly able to go purchase the deal, you’re going to really feel actually assured in your quantity is it’s going that will help you truly pull the set off.
In order that’s my primary recommendation. When you’re sitting right here in January, 2025, do every little thing we stated after which simply go follow, discover ways to analyze offers. You’re going to get good at it fairly rapidly, I promise you. A second factor I’d say is don’t sleep on outstate investing. I do know that is controversial, however I truly assume that on this type of new period of actual property investing the place issues are a bit bit dearer, that trying to inexpensive markets is a good way to get began. When you’re in an costly market, take a look at a dwell and flip. We simply talked about how nice it’s take a look at proprietor occupied methods, however if you wish to be tremendous passive, for those who simply need to pay a property supervisor to do stuff, I do that. Have a look at out of state markets the place you should purchase duplexes for 250 grand or 300 grand or 400 grand and get some cashflow and is it going to retire you this yr? No, it isn’t most likely going to retire you this yr, however for those who mission out lease progress for 10 years, you’re going to be sitting fairly and so simply have that persistence. Take into consideration trying elsewhere for those who don’t dwell in one in every of these markets that’s inexpensive. So these are my two items of recommendation.

Kathy:
I simply need to make a touch upon what you stated, Dave, as a result of I believe there’s nonetheless a lot confusion about energetic versus passive. So individuals want fast cash. They want cash at this time to dwell on. They want cashflow at this time to cowl their prices and to have additional to have the ability to make investments, after which you may have passive, which isn’t essentially going to offer you something at this time, however it can for the long run. It’s investing within the inventory market. You’re not getting cashflow from that, however you’re taking a look at your future. So these two issues get confused loads and it’s actually necessary to establish which one it’s. Are you actively making an attempt to earn a living to pay your payments or are you shopping for one thing for 10, 20 years from now? And as quickly as you will get actually clear on that technique, you then’ll know what to do
As a result of with a brand new investor it’s like what are you making an attempt to do? Are you making an attempt to earn a living at this time? As a result of there’s plenty of methods to earn a living in actual property. You may be an actual property agent, you can be a mortgage dealer, you can be a property supervisor for those who wished to simply get in and study the enterprise, you can be a flipper. That’s one other step of being sophisticated. You’re going to want to borrow cash and so forth. Let’s say I simply did a training name with someone everyone knows and he was like, I need to earn a living from flipping, after which he realized I don’t actually prefer it, and I’m like, properly, you already know what? You’re actually good at what you do. Why don’t you do the factor you do for the cash to make at this time

Dave:
And

Kathy:
Use that cash to speculate for the long run? Proper?

Dave:
Yeah, a complete %. I believe he simply broke James’ coronary heart when somebody stated that he didn’t like flipping, however

Kathy:
It’s simply not

Dave:
For everyone.

James:
No, it’s not. It’s not for everyone.

Dave:
I completely agree and I believe it’s this humorous factor. Yeah, Kathy, you stated it very properly in my e-book, and Jay Scott got here up with this, however he calls one half of it like transactional revenue. You could commerce your time for cash to dwell off of, proper? That’s your transactional revenue facet. Then you may have your passive revenue facet to construct long-term wealth, create principally some annuities in order that once you retire you may have that cashflow coming in each single month, however they’re not the identical factor and you may select, you may have the choice to do each of them In actual property, like Kathy simply stated, you will get your transactional short-term revenue from actual property, however you don’t should. That’s an optionally available piece. Henry and James have each chosen to do this. I select not to do this. I do sort of work in actual property, however I truly work for a software program and media firm.

Kathy:
I’ve had medical doctors who make one million {dollars} a yr need to be flipping. It’s like, dude, simply whatcha doing. You spent 10 years making an attempt to be a physician except you hate it. Why would you need your new energetic revenue to be a completely completely different enterprise? I dunno.

Dave:
No, I agree and I believe the excellence is it’s not trivial. It’s truly fairly necessary as a result of what occurs once you confuse these two varieties of revenue, it may be a bit bit paralyzing I believe once you get into actual property otherwise you need to get into actual property and also you’re taking a look at offers at this time and say, Hey, I’m solely going to get a break even cashflow a bit bit higher than break breakeven cashflow. That’s not 1% rule. That’s not a ten% money on money return. Properly for those who’re not utilizing this cash to gasoline your quick time period wants, then who cares? You ought to be shopping for belongings which can be going to carry out over the lifetime of your portfolio, which could possibly be 10 years, it could possibly be 20 years, it could possibly be 30 years. But when that confusion I believe prevents so many individuals from getting in. I personally purchased a bunch of offers final yr as a result of I’m investing for 10 or 20 years from now and it’s fairly simple for me to establish belongings that I believe are going to be nice 20 years from now. If I used to be making an attempt to switch my revenue subsequent yr, it could get an entire lot extra sophisticated and I must do an entire bunch of additional work that frankly proper now I’m not keen to do. So for everybody listening as we’re beginning a brand new yr, take into consideration these items and what you’re making an attempt to perform and that actually type of units the framework so that you can construct a purchase field and to develop a method as we head into 2025.

James:
Properly, and I believe it’s necessary too, energetic versus passive. Like Kathy stated, over 5 years they did properly. That’s the purpose of holding properties is that long-term appreciation, however then take into consideration the way you need to be an energetic or passive investor. You could be passive and nonetheless not have to attend 5 years. True.
You may do laborious cash loans as an alternative. There’s so many alternative methods. You don’t should be a flipper to become involved in flipping. You could be the lender for flipping and make 10 to 12% in your cash and one to 2 factors on that mortgage. You may as well make investments with the flipper or you may spend money on growth. You may make investments with somebody like Kathy who does larger transactions. That places a deal collectively the place you may make that increased return. It’s nearly selecting the asset class, however actually it’s additionally about what’s your threat tolerance. That’s the largest factor individuals want to consider is the more cash you attempt to make over 12 months, the upper threat goes to be

Dave:
One hundred percent.

James:
A five-year maintain goes to be extra secure. You’re defending your investments and if you wish to do laborious cash loans, it’s a bit bit riskier. You need to flip a home, it’s going to be riskier creating, it’s going to be riskier, however you bought to make that selection your self and that’s why it’s actually necessary for individuals to put in writing down on a bit of paper the place they need to be in 12 months, three years and 5 years

Dave:
Primarily based

James:
On the place you need to be. Select your threat.

Dave:
Properly that’s a very good query. What are your targets for this yr? Henry? I’ll begin with you

Henry:
Man. My targets for this yr, I sort of hold the identical enterprise targets annually. I just like the earn a living, I like the extent of enterprise that I’m at, so my targets for subsequent yr are we need to flip 20 properties this yr we did 18 after I totaled it up final week.

Dave:
Good dude.

Henry:
So we did 18 in 2024. We need to do 20 to 25 in 2025 by way of rental properties. We’re scaling again. I’ve grown my portfolio to some extent that I’m snug with. I’m going to proceed to purchase, however I’ll solely purchase properties which can be no-brainers to purchase by way of location and cashflow. Cashflow in yr one and two or I’ll solely purchase when my accountant says that you must purchase X quantity extra so that you just don’t should pay taxes on the revenue you’ve made all over the place else. In order that’s what’s going to find out what I purchase.

Dave:
Yeah, so we have been simply speaking about energetic versus passive and we have been type of saying you can nonetheless purchase, a minimum of I do purchase long-term leases for the long-term, however you’re saying you’re slowing down however you’re in a novel place since you use your actual property as your short-term revenue as properly. So how are you making that call about what leases to do and focusing a few of your portfolio and progress on long-term and a few of it on short-term? How do you assume that via and set these targets for the yr?

Henry:
What I select to maintain and monetize as a rental versus flipping actually has loads to do with how I discover offers. As a result of I’m advertising for offers off market persistently, I’m actually protecting those that take advantage of monetary sense and that I like essentially the most. And so I’ve received about 9 energetic initiatives happening proper now and a kind of solely these I’ll hold as a rental, however the one I’m protecting as a rental is in an space that does rather well with short-term leases. I’m shopping for it at a worth level that I might lease it out at a long-term rental and it’ll cashflow very properly. I paid $45,000 for it and it’s price 2 75 all mounted up

Dave:
Fairly good unfold

Henry:
And so I can lease that factor for 1800 bucks a month and make, it’s in a market the place it could do properly as a short-term rental so that can maximize the cashflow or I might flip round and flip it. And so the rationale I like protecting that one as a rental is due to the worth level that enables me to monetize it in a number of methods. So if one thing goes dangerous with plan A, I’ve received a plan B and plan C. The second motive I’m protecting that one as a rental is as a result of I can monetize it as a short-term rental and I purchased it so properly so I can get most cashflow as a result of I purchased it so properly and I’d a lot moderately hold that asset as a result of I can get most cashflow versus simply promoting it and taking the cash and turning it into one other property.
Then the third motive is simply way of life basically. I wish to have a property that’s proper by a lake and I can use it after I need to and take my children there and in order that that’s sort of the advantage of advertising and discovering your personal offers. After which you may perceive what are your standards for wanting to maintain a property and you may hold those that makes essentially the most sense to you. You may purchase these identical 9 properties and also you won’t hold this one. It might be completely different for you. So it’s nearly understanding what you need by way of a return after which what are your exits after which selecting the one which makes essentially the most sense for your small business and your loved ones.

Dave:
Alright, we received to take another fast break, however stick to us. We’ll be proper again. Hey everybody, welcome again to the present. Alright James, what are your targets for 2025?

James:
2025? Really one in every of my greatest targets is to get my passive flipping enterprise entering into Arizona.

Dave:
Oh cool. Good.

James:
We landed right here. I’m an operator up in Seattle. I don’t need to function in two states. I’ll possibly on a really small scale, but it surely’s extra about simply assembly that community and offering funding and financing so I can get this steam rolling down within the desert so I’m going to be moist and dry. These are the 2 spots that we invested in

Dave:
Only for everybody so is aware of James, been an operator in Seattle, runs a giant flipping rental enterprise, does every little thing there, however you moved to Arizona and so that you’re saying you don’t need to begin an entire operation the place you’re doing the precise flips your self in Arizona, however you need to type of construct a extra passive enterprise the place you reside exterior of Phoenix or in Phoenix.

James:
And the rationale I need to do it extra passive is I’m a agency believer for those who’re doing one thing properly and it’s working, don’t simply neglect about it. I see this occur on a regular basis. They’re like, oh, I need to go do that now, I need to go do that now. However then they go away this factor that was a very good revenue producing system behind and so Seattle’s busy for us. It’s my yard, I do know it just like the again of my hand. That is the place I’ll at all times make investments. As I made that plan, I’m like, I don’t have time to function each. So how do I do that’s I received to associate up with operators down in Arizona. I’m nonetheless going to do what we do in Seattle and my different objective is to additionally choose up some rental properties in Arizona as a result of I’m a yard investor, I’ve solely purchased rental properties in Washington state and now I can diversify a bit bit completely different kind of market, completely different kind of politics.
I’m going to select up some rental items there and I’m going to give attention to the smaller stuff. I like two to 10 as a result of we purchase a variety of 20 to 50 items in Seattle. I wish to hedge towards no matter our partnership’s doing as a result of it balances out my portfolio. So if we’re shopping for 30 to 50, I’m going to purchase smaller personally and as a partnership, if we go to smaller, I’m going to purchase larger and that approach it balances me out as an investor, however I’m actually excited to get this taking place in Arizona and simply to select up some extra leases.

Dave:
I completely agree. I imply, properly I’ll get to my targets later, however I truly assume this yr is an efficient yr to purchase rental properties. I do know the cashflow is not so good as it as soon as was in yr one, however I believe there may be a variety of long-term developments which can be pointing in the direction of rental properties being an ideal enterprise as they’ve at all times been and I don’t assume they’re going to get any cheaper. So I agree with you that rental properties are most likely a very good one. Kathy, what are your targets? You’re observing, however I do know you’re observing the market, however I’m certain you may have some targets as properly.

Kathy:
Oh yeah, for certain. I imply we’re sticking with what we all know, which is rental property, discovering the most popular markets, serving to different traders spend money on these markets that we’ve been doing for 20 years no matter what’s happening. And anytime I veered from that I sort of received myself in bother. So identical to James simply stated, we’re sticking with what we all know, which is getting forward of the trail of progress, getting in entrance of the place the expansion is and shopping for rental properties in these areas. So extra of that. But additionally there was the IMN single Household rental convention only in the near past. I do know Henry was there. One of many slides that they confirmed was this demand for construct to lease nonetheless with 20 25, 20 26 being most likely the best demand and but the bottom stock for it as a result of so many builders have sort of gotten worn out with the upper rates of interest.
However with our group and the financial institution relationships that now we have, we’re in a position to make the numbers work. So extra syndications, now we have one proper now in San Antonio. We plan on doing one other one within the Dallas space, so we anticipate to do a couple of extra construct to lease syndications and likewise like I stated, actually maintaining a tally of business actual property, multifamily, probably industrial as these loans come due and we’re in a position to negotiate some actually good costs within the constructing facet of our enterprise. It’s at all times solely labored out once we might get the deal actually low cost simply

Kathy:
Like

Kathy:
It’s actual property. So once you discover a distressed landowner or builder and you may sort of save them from the issue that they’re having, you may make the numbers work and that’s what we’ve been doing for 15 years and assume we’ll have a variety of alternative in 2025.

Dave:
Superior. Properly good luck. I agree with all these factors. It seems like excellent targets

Kathy:
After which personally for certain, extra leases. Yeah, and if the tax cuts and jobs act sort of will get renewed the place you get the one hundred percent bonus depreciation, I believe I’ll be getting some short-term leases as properly. These tax write-offs are insane

Dave:
And I believe there’s an excellent likelihood that’s going to occur.

Kathy:
Yeah,

Dave:
Properly I’m fascinated by my targets and I’m principally ignoring your whole recommendation the place you’re saying stick to what you already know as a result of as you may know, I’m partnering with James and we’re flipping a home and I’m doing one thing I do know actually nothing about. I’ve by no means flipped a home, however fortunately James is instructing me. So I really feel like this can be a good alternative. So that’s my one objective is to efficiently full my first flip with James. It actually all depends upon James. I’m not doing something. So hopefully my objective is that simply James continues to be good at what he does,

Kathy:
Man, I’d transfer to Seattle simply to have that chance. That’s superior.

Dave:
Hey,

James:
Demo simply began. Dave, we’re rolling.

Dave:
I prefer it. That’s superior. Properly my different targets are simply to your level, Kathy, James, all of you may have been saying that is simply type of sticking with my long-term technique, which is simply persevering with to amass rental properties. I’m hopefully going to purchase 5, eight extra items someplace within the Midwest. I love to do one multifamily syndication a yr. That’s type of one thing I’ve been doing for the previous couple of years. When you’re in that enterprise, they often have a 5, seven yr halt. I’ve been doing this for 5 years now. So hopefully they’ll begin to promote, possibly not this yr, however in a few years they’ll begin to promote and repay and that can turn into a extra predictable supply of revenue and liquidity for me. After which my different objective is to assist individuals, actual property traders acknowledge the alternatives which can be right here in 2025.
I dunno for those who guys see this, however I really feel like there’s a variety of unfavorable sentiment about actual property investing business proper now. And I get it, it’s a very completely different world than the place we have been a few years in the past, however from the place I sit and I’ve spent a variety of weeks doing this over the previous couple of weeks simply taking a look at completely different asset lessons, taking a look at the way forward for actual property, I nonetheless assume actual property fundamentals are nice. I nonetheless assume that the long run could be very brilliant and I don’t personally see another asset class that may provide the identical potential to construct monetary freedom as actual property. And as we have been saying, it doesn’t take two years, it doesn’t take 4 years except you’re beginning with tens of millions of {dollars}. However if you wish to put 10 years into this enterprise, I nonetheless assume you will get monetary freedom simply in addition to you’ve at all times been in a position to. I simply assume individuals have these expectations which can be type of leftover from this Goldilocks interval of some years in the past which can be unrealistic. And so my hope on a private stage exterior of my very own portfolio is to assist individuals see that there’s simply large alternative right here to get began in actual property, to construct your portfolio even when you have it. And I’m excited for it. I actually consider it and hopefully you guys will help me work on that one objective.

Henry:
I’m all in for that.

Dave:
Completely. Alright, one very last thing earlier than we get out of right here James. What’s the one factor exterior of actual property that you just’re excited for in 2025?

James:
Like investing

Dave:
Sensible? No, no, simply basically. Outdoors of actual property occasions,

James:
He’s, I can not

Henry:
Compute, it’s essential to

James:
Earn money.

Henry:
Folks

James:
Have a variety of hobbies and I at all times say my pastime is getting a deal completed. That’s what I like doing. However for 2025, one in every of my targets is to get a bit bit extra passive and to spend a bit bit extra time serving to teaching.

Dave:
Okay. You didn’t reply the query. That has nothing to do with actual property. We’re skipping you. No

James:
Teaching my son on his baseball group. No teaching baseball. There you go. No actual property teaching, baseball sports activities.

Dave:
Yeah. Yeah, actual life teaching. We received him. Okay. What about you Kathy? What’s one thing you’re searching for to

Kathy:
That’s superior. My daughter is basically into charity and she or he did this volunteer factor in Denver and Wealthy went and we received within the public sale. We paid for it, however a visit to Nepal with the individuals who placed on the muse. So a part of it’s going to the orphanage there and seeing what we donated to superb. And the opposite is like Nepal, in order that’s thrilling.

Dave:
So cool. That’s superior. All proper, see James, there’s a very good exterior. What about you Henry?

Henry:
The factor I’m most trying ahead to is in 2025, I have a good time 10 years married to Jessica and so that really occurs subsequent month and we’re going to take a cruise in another country and simply hang around with one another and I’m tremendous enthusiastic about that. However two issues I’m enthusiastic about which can be barely, which can be just about associated to actual property is one, BP Con 2025 goes to be insane. I can not watch for that.

Dave:
Can’t wait.

Henry:
Las Vegas, wait,

Dave:
When you guys dunno, Henry and I are planning to go for 3 weeks to Las

Henry:
Vegas. Sure. Oh god, it’s going to be insane. After which the opposite factor I’m tremendous enthusiastic about in 2025 is shopping for a cope with you,

Dave:
The lake impact cashflow.

Henry:
Yeah. Shopping for a lake impact cashflow. Take care of Dave this yr.

Dave:
Yeah, going to the Midwest.

Henry:
Going to the Midwest and consuming sandwiches and shopping for lake impact cashflow offers. So I’m tremendous enthusiastic about these issues.

Dave:
Properly, I’m too, however you sort of cheated. You talked about actual property stuff, however I prefer it. That’s

Henry:
Good. Sure,

Dave:
I’m excited for these two issues. Assist. That is going to be very enjoyable. All properly, my private factor is, for those who guys don’t know, I’ve lived in Europe for 5 years. I simply moved again to america and I’m excited to be again within the States to see my pals and my household and to be nearer to all of you and simply proceed doing what I’m doing. All the things’s good. I’m excited. Yay.
Alright, properly thanks all a lot for becoming a member of us for this episode. This was a variety of enjoyable. I hope you all had a beautiful New 12 months’s, a beautiful vacation season, and I used to be excited as all of us are about investing, constructing our portfolios, shifting in the direction of monetary independence right here in 2025. In case you are on the practice, which I hope you might be, be sure that to take a look at available on the market, be sure that to take a look at the BiggerPockets podcast. Be certain to take a look at the entire belongings that now we have right here at BiggerPockets. All of them exist for you that will help you obtain monetary freedom via actual property. So come again to the podcast and be part of us each week as all of us work collectively to realize our monetary targets. Thanks a lot for listening to this episode, and we’ll see you quickly.