Inflation is still above historic levels. The real estate marketplace is losing steam. Interest rates remain stubbornly high, and we have a growing deficit (so the future outlook on rates isn't great. This leads me to think that the money might be easier made soon IN the deal verse ON the deal.

Ray, that's what I was thinking to begin with. Glad it was not the case.

I do not think the rates are stubbornly high. If anything I think they were crazy low for a while and have maybe evened out a little?

While I have not put myself into a transaction for a while I do have a FSBO lead that I plan to approach this week. It's in a pretty hot town. Have yet to look it up on the county records to see if maybe they are in trouble.

I agree with Zero - rates are not stubbornly high, they were just too crazy low for awhile. Zero percent interest? WTH is that?

We haven't purchased anything since 2021. We've spent any purchase cash we might have used to finally renovate a few ADUs that were sitting around for too long so it was sort of like getting new places. Still have a tiny one to do.

Because prices. Interest doesn't matter, but price does.

Saw a new listing today. A beautifully done tiny home (1-bed 1-bath 600 square feet) on a tiny lot (7000 square feet) on a tiny canal that floods...they want $250k. We have 9 units in the same neighborhood (none on flooding canals though) and didn't spend more than $50k for any of them.

Without doing a RTO on a house, I am offering it available for a qualified USDA buyer. This place rents for about $1,100. Given today's interest rates for mortgages, the PITI on this place is $1,225.

I force my residents to use Clear Now if they are even considering any kinda purchase from me. Reporting on time payments of $1,100 is good but how can you make it even better for both me and the resident?

How about telling them that if they pay $1,250 that you will provide a $2,000 non-refundable seller's assist. They pay that extra $1,500 a year and they get that reported on their credit report and you toss in that kicker $500. How does that work? Has anyone mentioned price yet? USDA loans typically need 6% seller's assist, so what did I do to this one-year lease?

ON - you set the price you let the buyer decide. Great while it is a sellers' market

I really need to find the time to talk with you.

The bank always make money.

My long term goal was paid for houses. But I found the millions in equity don't do much. Rent can only go up so much.

Rents have increased (yay) but market values have increased more than and beyond the rent increases. The $250k house rents for only $1500 max. The $350K home rents for only $2300.

I have shifted from holding to cashing out those houses and 1031ing into INVESTING the money in Triple Net commercial RE with DSTs.

I skip paying tax on the sale so I get to use ALL the money, they borrow my pre-tax money for their RE, and I watch the checks autodeposited into my account.

Fewer rentals to manage, no headaches or hassles on those investments, easy income for Wifey if I'm gone, easy for my heirs to inherit when the time comes. (not that I'm planning for that soon! I already cheated death once!)

BRAD

The bank always make money.

My long term goal was paid for houses. But I found the millions in equity don't do much. Rent can only go up so much.

Rents have increased (yay) but market values have increased more than and beyond the rent increases. The $250k house rents for only $1500 max. The $350K home rents for only $2300.

I have shifted from holding to cashing out those houses and 1031ing into INVESTING the money in Triple Net commercial RE with DSTs.

I skip paying tax on the sale so I get to use ALL the money, they borrow my pre-tax money for their RE, and I watch the checks autodeposited into my account.

Fewer rentals to manage, no headaches or hassles on those investments, easy income for Wifey if I'm gone, easy for my heirs to inherit when the time comes. (not that I'm planning for that soon! I already cheated death once!)

BRAD

Work ON the business, work less IN the business.

Some of the top leading ways to become a millionaire (which we learned this week doesn't mean that much):

1) Operate a profitable business

2) Own real estate

3) Inherit money

4) Gambling

So what's Coach Ray talking about here?

" Without doing a RTO on a house, I am offering it available for a qualified USDA buyer"

He is selling it outright instead of rent to own.

He gets more money than expected because he raised rents a little to help with the 6% assist that the buyer will need.

He still comes out ahead. If they bail they do not get the 2k back.

I see this as working great, as long as you can take the cash from the sale and put it back into the pipeline to keep the CF going.

Still have one place I am selling on contract. I need to take that extra CF and put it into something else instead of living on it.

Unfortunately I find myself just living with the new CF.

Have another house I am considering selling as the yard is funky. But the current tenants don't care and pay well.

Called about a FSBO yesterday. I now know why the signs are still up in a hot town. She wants way too much for it. It needs work as well. Not a great place. It wouldn't CF even without the rehab. I asked about owner financing. She just wants out. Even after explaining the cap gains aspect.

She dropped the price by 20k and was adamant about that being the lowest she would go. Still don't think it would work. It is above OO retail.

Taxes are not current for Spring. No mortgage.

Looks like she might have gotten the place in 2017. Same last name as the female that bought it in 2003.

Bought in 2003 for 54.5k. Place is in disrepair, and she admitted some problems inside. She was asking 140k and dropped to 120k.

In this area if it was OO purchased I doubt you could sell it for 80k.

I think that maybe her kid had it and she has taken it over. No mortgage listed so maybe she bought the kid out?

Nothing else show up for the seller in this county.

Previous owner shows up with a much nicer property around 2017 under the man's name. Looks like maybe someone died and they got the new property.

Maybe mom bought the other one and decided to sell?

Either way it is far more than I would spend, even without the problems on the inside.

I know the small numbers confuse a lot of people but this is not a hopping area.