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.
There is a head-on collision coming in which mobile home park owners are going to refuse to do what bureaucrats and the woke media want them to do, and that’s subsidize the tenants. Essentially, society wants mobile home park owners to act as a private Section 8 society in which they keep rents ridiculously low and “subsidize” those who cannot afford to live in a modern society. Apartments are subsidized by HUD through Section 8. Mobile home park lot rents are not. You can’t have it both ways. If society wants to subsidize park residents, then that’s fine. But this narrative that park owners are “evil” if they refuse to do the government’s job for them is just plain nuts and never going to fly. You might have been able to publicly shame and brow beat good natured old moms and pops into doing the government’s subsidy dirty work for them, but private equity groups and new buyers are not gullible and are going to refuse to keep that false expectation alive. I once received a call from a city council person wanting me to let a resident live in my park despite not having paid rent for months and effectively wanted me to dismiss the eviction. I told this person that I’d be happy to call off the eviction if they wanted to personally go ahead and pay the amount due – and that I even take credit cards. I told them that if it’s that important to them then they could pay the rent directly to me every month. I never heard from them again. It’s the same thing here.
Jet Aviation entered Scottsdale in 2020 as part of its U.S. expansion strategy. In addition to this investment, Jet Aviation is on track to complete a 40,000 square-foot hangar at its Bozeman facility in July of 2023. In Houston, the company is in the process of rebuilding their 30,000 square-foot hangar and renovating their FBO lobby space. The FBO is set to be finished in June 2023 and the hangar in the fourth quarter of 2023. Additionally, the company recently completed the refurbishment of their Teterboro FBO lobby. “We are committed to investing into all of our locations in order to provide the highest standard of safety, quality and service to our customers,” shared Richard Layson, vice president of regional FBO operations in the Americas. “While Scottsdale, Bozeman, Houston, and Teterboro are key locations in our FBO network, we keep all of our facilities on a refurbishment cycle to ensure that each one of them represents the exceptional services that Jet Aviation provides.” Jet Aviation is a wholly owned subsidiary of General Dynamics (NYSE: GD) with some 4,000 employees and 50 locations worldwide. Jet Aviation’s offerings include aircraft management, aircraft sales, charter, completions, defence, FBO, maintenance and staffing. Request Press Material
In this excerpt from Ken's Inner Circle Happy Hour with Tarl Yarber, Ken, Danille and Tarl discuss the current state of investing in residential real estate based on Tarl's years of experience. This short conversation is a small preview of the conversations happening at this year's Limitless Expo. To learn more and get tickets follow this link: https://limitlessexpo.com
• ABOUT KEN: Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and has an upcoming book: "ABCs of Buying Rental Property: How You Can Achieve Financial Freedom in Five Years." Ken is a Rich Dad Advisor.
With over two decades of experience in real estate investing, Ken McElroy is passionate about sharing the good life by helping real estate investors grow and prosper. This channel is a place for Ken to discuss numerous topics connected to real estate investing, including finance, budgeting, the entrepreneur mindset, and creating passive income.
Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.
DISCLAIMERS: Any information or advice available on this channel is intended for educational and general guidance only. Ken McElroy and KenMcElroy.com, LLC shall not be liable for any direct, incidental, consequential, indirect, or punitive damages arising out of access to or use of any of the content available on this channel. Consult a financial advisor or other wealth management professional before you make investments of any kind.
Although Ken McElroy and his affiliates take all reasonable care to ensure that the contents of this channel are accurate and up-to-date, all information contained on it is provided ‘as is.’
Ken McElroy makes no warranties or representations of any kind concerning the accuracy or suitability of the information contained on this channel.
Any links to other websites are provided only as a convenience and KenMcElroy.com, LLC encourages you to read the privacy statements of any third-party websites.
All comments will be reviewed by the KenMcElroy.com staff and may be deleted if deemed inappropriate. Comments which are off-topic, offensive or promotional will not be posted. The comments/posts are from members of the public and do not necessarily reflect the views of Ken McElroy and his affiliates.
• ABOUT KEN: Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and has an upcoming book: "ABCs of Buying Rental Property: How You Can Achieve Financial Freedom in Five Years." Ken is a Rich Dad Advisor.
Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.
DISCLAIMERS: Any information or advice available on this channel is intended for educational and general guidance only. Ken McElroy and KenMcElroy.com, LLC shall not be liable for any direct, incidental, consequential, indirect, or punitive damages arising out of access to or use of any of the content available on this channel. Consult a financial advisor or other wealth management professional before you make investments of any kind.
Although Ken McElroy and his affiliates take all reasonable care to ensure that the contents of this channel are accurate and up-to-date, all information contained on it is provided ‘as is.’
Ken McElroy makes no warranties or representations of any kind concerning the accuracy or suitability of the information contained on this channel.
Any links to other websites are provided only as a convenience and KenMcElroy.com, LLC encourages you to read the privacy statements of any third-party websites.
All comments will be reviewed by the KenMcElroy.com staff and may be deleted if deemed inappropriate. Comments which are off-topic, offensive or promotional will not be posted. The comments/posts are from members of the public and do not necessarily reflect the views of Ken McElroy and his affiliates.
Join Ken and Danille as they current trend towards renter nation. You don't want to miss this conversation. Come join the discussion live at 11AM Arizona Time, 11AM PST, and 2PM EST.
FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headquartered in New York - the business capital of the world - FBN launched in October 2007 and is one of the leading business networks on television, having topped CNBC in Business Day viewers for the second consecutive year in 2018. The network is available in nearly 80 million homes in all markets across the United States. Owned by FOX Corporation, FBN is a unit of FOX News Media and has bureaus in Chicago, Los Angeles, and Washington, D.C.
"We cannot afford to give our water away frankly to anyone." A company is pumping ‘unlimited’ water in drought-stricken Arizona to grow crops for Saudi Arabia: ‘It is a scandal’ first appeared on The Cool Down.
The process of purchasing a home is an exciting and daunting experience for many potential homeowners. However, research shows that 93% of home buyers experience regret after purchasing their new abode. Several factors contribute to this high percentage of dissatisfaction, including financial burdens, unrealistic expectations, and inadequate information on the home-buying process.
One of the primary reasons for buyer's remorse is the financial strain of homeownership. Home buyers often underestimate the costs of owning a home, including mortgage payments, property taxes, and maintenance expenses. A report by the National Association of Realtors (NAR) indicates that the average homeowner spends approximately 1% of their home's purchase price on maintenance and repairs each year. Thus, homeowners who fail to consider these expenses before purchasing a home can fall victim to financial burdens that lead to regret.
In addition to financial stressors, home buyers may also experience regret due to unrealistic expectations. Homeowners may assume that their new homes will be perfect, and any imperfections will be insignificant. However, even brand-new homes can have flaws and defects that can cause significant dissatisfaction. These imperfections can range from minor cosmetic defects such as dings in the wall to more critical structural issues such as leaky roofs or faulty foundations. Consequently, home buyers who do not set realistic expectations may experience buyer's remorse.
Furthermore, the lack of knowledge about the home-buying process can cause potential homeowners great angst. Many buyers do not understand what to look for when inspecting a house, how to negotiate the purchase price or the closing process.
Homebuyers may also not know that they have the option of hiring an experienced real estate attorney or agent to help them navigate the process, which can lead to costly mistakes in the future. The problem arises when individuals who do not have complete information about the home-buying process become buyers and fail to make informed decisions.
Another factor contributing to buyer's remorse is the issue of location. When buyers do not take into consideration various factors such as proximity to work, ease of transport, and local amenities, they may end up buying a home in a less-than-ideal location. Therefore, buyers may experience dissatisfaction once they realize that the distance to work or local amenities isn't the most convenient.
Moreover, many home buyers feel overwhelmed by the multiple choices that come with purchasing a home, such as determining the size, layout, and style of their home. Hence, the majority of first-time buyers find themselves with homes that do not fit their needs. A home that is too small or too big, has an unfavorable layout or lacks essential features can lead to buyer's remorse that lasts for many years.
Closely related to the aforementioned problem is the issue of home-buying timelines. Home buyers who work under tight deadlines may feel boxed in and make rash decisions that they later regret. Research conducted by Zillow, a leading real estate website, shows that buyers take three months, on average, to find the right home. However, this time limit may put undue pressure on buyers to make a quick decision, leading to buyer's remorse.
Furthermore, another contributing factor to buyer's remorse is the emotional involvement involved in purchasing a home. Home buying is often influenced by emotions such as a desire for a house that reflects their personalities or lifestyle. While emotional factors can drive the intention of a buyer's purchase, they can overshadow the buyer's practical needs and cause them severe dissatisfaction.
Another issue particularly common to first-time homebuyers is an insufficient understanding of the terms and procedures involved in home buying. For instance, some buyers may not understand the concept of mortgage insurance or the length of the mortgage. Inadequate knowledge can result in limited bargaining power, and buyers may pay a higher price for the property due to unsound financial decisions.
Moreover, the lack of due diligence also contributes to regret among homeowners, causing them to question the level of satisfaction they get from their newly acquired property. Home buyers who fail to engage property inspectors or research various neighborhoods may be unaware of the hazards that come with the property or the area, thus leading to regret.
Finally, homeownership is a significant life decision that requires careful consideration. However, sometimes impulse decision-making is the cause of buyer's remorse. Homebuyers may feel pressured to invest their savings in property and end up making an impulsive decision without exploring other options available.
In conclusion, the issue of buyer's remorse requires careful consideration from potential home buyers before entering the market.
Are you registered for the AZREIA Phoenix Monthly Meeting yet? If not, here is a list of the top 4 reasons why you should!
SURPRISINGLY SIMPLE STEPS TO OWNING LARGE MULTIFAMILY PROPERTIES - SUCCESS IS CLOSER THAN YOU THINK
Join multifamily professional Jose Miller for an eye-opening presentation on how you can scale your investing drastically with multifamily investing. Jose will cover essential topics that will help you understand the benefits of investing in multifamily properties and how to get started.
MARKET UPDATE & TRENDS WITH SARAH PERKINS
We will provide you with an up-to-date analysis on the trends in National, Regional, and Local areas presented by Sarah Perkins. We always provide you with a very well-rounded view of our market that will undoubtedly help you make better decisions with your real estate investing business.
TRADESHOW, NETWORKING & GUEST ORIENTATION
Building your team is important for your real estate investing! Meet face-to-face with our business associates and other local real estate investors to help build your network and help your chances of success! We will open at 5:15pm for additional open networking before the meeting begins!
EXCLUSIVE DISCOUNTS ON UPCOMING EVENTS
We love to give our members that come out to our meetings the best discounts we can offer for the events we have coming up. We have amazing events and workshops that you can register for at a greatly discounted price! Join us, you have nothing to lose and everything to gain!!!
In todays How To, Patrick Bet-David discusses the concepts of anti-establishment, establishment, and obliviousness. He explores the pros and cons of each category, emphasizing the risks associated with being part of the anti-establishment. Patrick Bet-David emphasizes this with a case study on the late President, JFK.
Commercial real estate is an important sector in the U.S. economy. It includes office buildings, shopping centers, hotels, warehouses, and other properties that are used for businesses. The commercial real estate industry has a substantial impact on the nation's overall economic outlook. This essay will examine how commercial real estate affects the U.S. economy and analyze the recent trends in this market.
Impact of Commercial Real Estate on the Economy:
The commercial real estate market has a significant impact on the U.S. economy. This sector employs a large number of people. It contributes to the GDP directly through rental income and indirectly through the impact of business activities. It also generates substantial tax revenue for local, state, and federal governments. The health of the commercial real estate sector can be an indicator of the overall economic health of the country.
The economic impacts of commercial real estate can be seen in the following areas:
1. Employment:
Commercial real estate is a labor-intensive industry and provides employment opportunities for workers in various fields. Construction, maintenance, property management, and leasing jobs are just a few of the employment opportunities that the commercial real estate industry provides. These jobs not only help individuals support their families, but they also contribute to the local and national economy.
2. Business Activity:
The commercial real estate industry is closely linked with business activity. When businesses expand or relocate, the demand for commercial space increases. The demand for retail space, office space, and industrial space directly relates to business activity. In turn, business activity contributes to the overall health of the economy.
3. Tax Revenue:
The commercial real estate sector generates substantial tax revenue for local, state, and federal governments. Property taxes, sales taxes, and income taxes all contribute to the government's bottom line. This revenue supports public services, infrastructure, and other government programs.
Recent Trends in Commercial Real Estate:
Understanding recent trends in the commercial real estate sector can help us predict the future impact of this industry on the economy. Some of the recent trends include the following:
1. Office Space:
Traditionally, office space has been one of the biggest segments of the commercial real estate market. However, the COVID-19 pandemic has had a significant impact on this sector. Many companies have shifted to remote working, reducing the demand for office space. As a result, the vacancy rates for office spaces have increased and rents have declined.
2. Retail Space:
The retail space market has also been impacted by the pandemic. With many people shopping online, the demand for retail space has declined, leading to increased vacancy rates and lower rents.
3. Industrial Space:
The industrial space market has seen an increase in demand due to the growth of e-commerce and online shopping. This trend has been accelerated by the pandemic, as more people have turned to online shopping for safety reasons. This has resulted in increased demand for industrial properties, particularly those located near major population centers.
4. Urban vs. Suburban:
The pandemic has also affected the demand for urban versus suburban properties. As people have been working from home, the demand for suburban properties with larger yards and more space has increased. In contrast, the demand for urban properties has declined.
Effects on the Total U.S. Economy:
The recent trends in the commercial real estate sector have had a considerable impact on the overall economy. The decline in demand for office and retail space has led to a decrease in employment opportunities and tax revenue. The shift towards e-commerce and online shopping has had a positive impact on the industrial sector. However, the pandemic has disrupted supply chains and caused disruptions in the manufacturing sector
.
The increased demand for suburban properties has also had an impact on the U.S. economy. As people move to suburban areas, businesses that cater to these populations, such as construction and home improvement, have seen increased demand. This has led to an overall shift in the U.S. economy's structure, with more emphasis on suburban areas and less on urban areas.
Conclusion:
The commercial real estate sector is an essential component of the U.S. economy, contributing to employment, business activity, and tax revenue. Recent trends in this market, such as the decline in demand for office and retail space and the increase in demand for industrial and suburban properties, have had a significant impact on the overall economy. Understanding these trends is crucial for policymakers, investors, and businesses to make informed decisions regarding the future of commercial real estate and the U.S. economy as a whole.
The decision to buy or rent a home is a significant financial commitment, and countless factors need to be considered before coming to a conclusion. When it comes to buying or renting a home in Phoenix, Arizona, there are various expenses and benefits to consider. Therefore, research must be conducted to determine whether it is cheaper to buy or rent a home in Phoenix, AZ. This essay will analyze the key expenses involved in homeownership and renting to highlight why one option may be cheaper than the other.
Mortgage vs. Rent Payments The most significant expense when buying a home in Phoenix is the mortgage payment. The monthly mortgage payment primarily depends on the mortgage rates, the loan amount, and the repayment period. However, mortgage payments have a significant advantage over rent payments- mortgage payments remain constant, while rent payments increase every year. According to Zillow, the median rent for a two-bedroom unit in Phoenix is around $1,400. This indicates that renting a home could be more expensive in the long run than buying a home, depending on the potential homeowner's financial situation.
Property Taxes When owning a property in Phoenix, it is essential to consider property taxes. In Maricopa County, the annual property tax rate is about 0.81% of the property's assessed value. For instance, if a home's assessed value is $300,000, the annual property tax bill would be $2,430. In contrast, rent payments do not include direct property tax payments, and renters do not have to pay property taxes on the rental unit.
Homeowners Insurance This is another expense to consider when buying a home in Phoenix. Homeowners insurance is necessary to protect homeowners from natural disasters such as fires and storms. The cost of homeowner insurance usually depends on the value of the home, the location, and other factors. However, in Phoenix, homeowners insurance can range from $500 to $2,000 per year. Renters only need renters insurance to cover their personal belongings, which is much cheaper than homeowners insurance.
Maintenance and Repairs Another cost homeowners need to consider is maintenance and repairs. Owning a home means the homeowner is responsible for maintenance, repairs, and upkeep costs. From heating and cooling repair to plumbing, electrical, and landscaping, homeowners need to plan for these expenses. In contrast, renters do not have to worry about these costs as the landlord is responsible for the maintenance and upkeep of the rental property.
HOA Fees Homeowners Association (HOA) fees can be a significant additional cost for homeowners in Phoenix, depending on the community they choose to buy a home. HOA fees generally cover community amenities like swimming pools, clubhouses, and parks. However, HOA fees can add up to several hundred dollars per month, significantly increasing the monthly expenses for homeowners.
Closing Costs and Down Payment Homebuyers need to pay closing costs and make a down payment when buying a home in Phoenix, which can be a significant amount of money. Closing costs usually include fees for services such as title insurance and home appraisal, among others. Closing costs tend to range from 2-5% of the property's purchase price, which can add up to several thousand dollars. On the other hand, renters usually need to pay only the first month's rent and a security deposit when renting a home.
Investment and Appreciation
Buying a home in Phoenix is a long-term investment that can pay off in the long run. Homeownership builds equity and could appreciate over time, which means the home's value can go up, leading to a significant return on investment. Homebuyers who plan on owning the home for an extended period may save more money in the long run compared to renting, as the home’s value could appreciate. Renters, on the other hand, do not make any investment returns or reap any value appreciation.
Flexibility and Mobility One significant reason people choose to rent homes in Phoenix is that it provides them with more flexibility and mobility. When leasing a home, renters have the ability to move in and out without worrying about the hassle of property selling. However, homeowners may have to wait for some time before selling their homes, depending on the real estate market and the condition of the property.
Market Conditions and Home Availability When considering whether to buy or rent a home, the availability of homes for sale and the real estate market conditions should be considered. In Phoenix, the housing market is quite competitive, and the availability of properties for sale may be limited. This means that homeowners may have to wait longer to sell their homes, especially if they are looking for a specific price point. On the other hand, renters have the flexibility to move to a different home or location without worrying about the state of the real estate market. Additionally, renters do not have to worry about the costs associated with home maintenance and repairs, which can be a significant burden for homeowners.
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