Top Real Estate Trends for 2020

Well, hello … 2020! 

It’s a new year and a new decade … and it’s a TERRIFIC time to talk about the top trends in real estate investing. 

Many factors are affecting the path real estate is heading down this year … demographics, economics, technology, politics, energy, and interest rates. 

So sit back and take note … these are the top trends in real estate in 2020. 

In this episode of The Real Estate Guys™ show, hear from:

• Your trending host, Robert Helms
• His trendy co-host, Russell Gray

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Trends in single family homes

Today we’re going to focus on some of the top trends that experts are predicting for 2020 in real estate. 

Real estate markets are diverse and always changing. On the demand side, the way that people interact and use real estate is essentially the same … but nuances change and create opportunities for investors. 

On the supply side … we have whatever we have built at this moment and the plans that developers and builders have to put more inventory into the ground. 

When it comes to real estate, you’re always looking at supply and demand and the flow of people and money. 

Let’s start with Realtor.com and its housing market predictions for 2020. Remember that these predictions have to do with single family homes. 

The National Association of Realtors is calling a 4.8 percent growth in home prices and a 1.8 percent decrease in existing home sales. 

That’s a modest growth in price and less sales for a variety of reasons. 

If we stopped right there, you might say that it doesn’t sound like a great real estate market to be in … BUT we’re not stopping there. 

To us, these predictions mean that most of the opportunities are going to come in niches .. and we’ll dive into that later. 

But keeping with the big picture, nobody is predicting a huge rise in interest rates … they’ll probably stay consistent. And overall, mortgage rates will remain low. 

That’s good for a couple of reasons. 

Obviously, to acquire property with leverage, you’d like to see a low interest rate. And if you already have a property with higher interest rates, your properties have better profiles today. 

The National Association of Realtors (NAR) also ranks markets that they see as having a potential increase in growth … both in sales and in price. 

The number one market that they chose only has 0.3 percent growth in sales projected … but 8.1 percent projected in price growth. 

That market is Boise, Idaho. 

Other markets that made the top 10 include Tucson, Arizona; Columbia, South Carolina; Colorado Springs, Colorado; and Memphis, Tennessee. 

Along with growing markets, the NAR predicts which markets will decline in both sales prices and number of sales. 

Those markets include Chicago, Dallas, Las Vegas, Miami, and San Francisco. 

The NAR said that the offset of the decrease in demand in some areas is that there will be new housing starts. 

In fact, according to Fannie Mae’s economic and strategic research group, new home starts will jump from a 1 percent increase in 2019 to nearly 10 percent in 2020. 

Niches that make sense

One trend that we have been talking about for some time is senior housing. 

The demographics are undeniable … look at how powerful the baby boomer generation is moving through all phases of their economic life … and now they’re entering their senior season. 

Anything related to seniors is going to probably be pretty solid for the next couple of decades. 

You hit a season of life where you need some special assistance and accommodations. 

There are lots of places to play … from the 55 and older communities to assisted living and residential assisted living to skilled nursing and memory care facilities. 

There is demand here that will be exceeding supply … and you don’t have to be a rocket scientist to recognize the signs. 

The next niche has some overlap when it comes to seniors … and that’s multifamily.

Multifamily has been huge in terms of demand for many years, and that’s been both good and bad … the bad part is that we’ve had a lot of money chasing a particular set of increasing assets. 

There has been a demand for multifamily on the tenant side and on the investor side … and on the investor side, the demand has meant a decrease in return. 

For 2020, we anticipate growth to be in the niches within multifamily .. like 55 and over apartment campuses or millennials looking for micro apartments. 

Micro apartments are small apartments that cater to younger tenants … usually fairly affordable … in city centers with unique amenities like shared workspaces. 

Another great trend … and one of our favorite niches … is resort property. 

This is a wide niche … but we tend to like the higher end as opposed to spring break on the cheap. 

It’s hard to go out and buy a 400 room hotel … but there are other ways that people are investing in resort properties. 

Some will allow you to own an individual unit that operates as part of a big resort or a hotel. There’s also the segment of vacation rentals in condos or single family homes. 

Not your cup of tea? Maybe take a look at agriculture instead. 

There are so many opportunities to come alongside successful operators in this space and invest offshore. 

The great thing about agriculture is that the underlying industry is probably not going anywhere … every human and animal needs to eat. 

The population is growing … and we are going to need more food. 

Take care with trends

Looking for real estate investment trends can reveal great opportunities. 

The only caveat … and this is true of any property that is use or trend specific … is that if that trend or use changes, it can be hard to repurpose. 

Anytime you are investing in a trend, you want to make sure it’s a trend that has some longevity to it. 

And remember that anytime a niche gets hot … it gets CROWDED. So, the earlier you adopt it, the better. 

For on 2020 real estate trends … listen in to the full episode!

More From The Real Estate Guys™…

• Sign up for The Real Estate Guys™ Free Newsletter
• Check out all the great free info in our Special Reports library.
• Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
• Stay connected with The Real Estate Guys™ on Facebook,  and our Feedback page.

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.

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Getting Off to a Great Start in the New Year

The start of a brand-new year is a great time to reflect on lessons learned and make bold plans for the future. 

It doesn’t matter if you’re just starting out or starting over … the possibilities are endless!

We’re sharing practical tips for getting off to a great start in this new year … and new decade. 

In this episode of The Real Estate Guys™ show, hear from:

• Your practical host, Robert Helms
• His practical joker co-host, Russell Gray

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Vision, Mission, and Values

For our last show of the decade, we’re going to talk about how you can gear up and prosper in a brand-new year. 

When you have clarity of vision, strategy and tactics become evident. 

We all want to know how to make money in real estate … but sometimes the true vision isn’t that clear. 

It’s a great time in history to be thinking about clarity of vision because we’re entering 2020 … and we all want to see with 2020 vision. 

So, today we are talking about how you can figure out how to go from where you are to where you want to go. It starts with getting a vision in your mind of what success looks like for you. 

Anytime we have a challenge or an uncertainty, we sit down and ask ourselves … what is the vision? What are we trying to accomplish? What is the why?

You only have so much. You only have so much energy. You only have so many resources. You only have so much focus … so you need to know what to say yes to AND what to say no to. 

If you can get a clear vision … and articulate that vision to other people … then everyone knows what they need to do without micromanaging. 

On the other hand … if you lay the ladder of success against the wrong building, you’re going to get to the top, look around, and realize you are in the wrong place. 

Your vision isn’t peripheral to your investing … It’s fundamental. It’s the foundation of everything you do. 

Vision, mission, and values are three different things … but together they can really chart your course. 

As we said before, vision is what success looks like in very clear terms. Mission isn’t about what success looks like … it’s the why behind what you do. 

Mission is the reason what you are doing matters. 

The best missions … in our experience … are those that are about making a difference for the better. 

This could be with your community, or for a spouse, for your children, for your friends, for your employees … if you get up every day and are motivated to support someone else and make the world better … that’s a mission. 

Values are really about the methodologies … what you’re willing to do and what you are not willing to do. 

A great exercise is to sit down and come up with the six top values in your life … the things that really matter to you in life. 

Stephen Covey says that highly effective people begin with the end in mind … all of these things help you do that. 

Today, we’re going to give you some tools that you can use to actually get to where you want to go. 

Start, Stop, Continue

One of our favorite tools is what we call Start, Stop, Continue. 

Simply put … at the end of the year, you step back and look at the year and see everything you’ve done and ask, “What are the things that I should continue doing?”

This could be a particular area, market, or partner that has served you well. 

Then, you have to ask, “What are the things that I need to stop?” Maybe it’s the way you spend your time or a personal or business partnership. Maybe it’s a market that you need to get out of. 

After you have decided what will continue and what will stop, it’s time to ask, “What should I start doing?”

These could be new habits, new beliefs, new partnerships, new markets, new product types, new activities, or new people.

This is an exercise that requires you take time, sit down, and confront the brutal facts. 

There may be things you are doing every week that aren’t serving you well … and these aren’t necessarily bad things. 

Sometimes you have to say no to the good in order to say yes to the great. 

If you’re busy … like most successful people are … you don’t have a lot of extra time. So, you have to make room in your schedule either through delegation or by removing items from your docket. 

You can’t really create more time … but you can leverage time. 

Once you have determined how to bring more good energy into your life, you need to create a productive structure to get it done. 

Then, you establish clear goals, strategies, and action plans because you can allocate them into the structure. 

Zero-based Thinking 

The next tool in our arsenal is something we learned from Brian Tracy many years ago. It’s called zero-based thinking. 

The question you ask yourself is, “Knowing what I know now, what would I do differently?”

Knowing what I know now would I get into this relationship? Knowing what I know now would I get into this particular deal? Knowing what I know now would I get into this marketplace?

And if the answer to any of those things is “no,” now is the time to change your course. 

Maybe your accountant isn’t that great … but they’ve been your accountant for so long you just haven’t ever really considered leaving. Now may be the time. 

Sometimes what you find yourself looking at is a personal relationship. If there are people in your life that don’t affect you in a positive way, it’s time to cut ties. 

Zero-based thinking only works if you are willing to be brutally honest with yourself. You have to admit your mistakes. 

But if you can, you can set yourself up for your best year yet. 

For more tools for getting off to a great start … listen in to the full episode!

More From The Real Estate Guys™…

• Sign up for The Real Estate Guys™ Free Newsletter
• Check out all the great free info in our Special Reports library.
• Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
• Stay connected with The Real Estate Guys™ on Facebook,  and our Feedback page.

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.

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Podcast: Top Real Estate Trends for 2020

Low Vacancy and No Deferred Maintenance with Build to Rent

Vacancy is the enemy of real estate investment. But no fear!

You can invest in a property with zero deferred maintenance and a whole lot of attraction to tenants. 

Smart builders are helping real estate investors dramatically reduce the risk of vacancy and expensive repairs. 

Listen in as we chat with a man who is creating build to rent properties in some of the best rental markets in the United States … and see what opportunities await investors like YOU.  

In this episode of The Real Estate Guys™ show, hear from:

• Your helpful host, Robert Helms
• His deferring co-host, Russell Gray
• From Fourplex Investment Group, Steve Olson

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Discover build to rent

Today we’re going to talk about an interesting niche within real estate. 

More and more, we’re seeing builders who don’t build property to sell to an owner occupant … they’re selling to investors instead. 

It’s called build to rent. 

With millennials fighting student debt and not forming households or buying property as soon in their life, it’s a great time to get into the rental game. 

We’ve dabbled in this niche ourselves … though it wasn’t firmly established at the time. 

We’d catch a builder in a phase of development and say, “What if we came in and bought the rest of your inventory?”

It was a real win-win. The developer no longer had to question which properties would sell … and investors could get inventory that they otherwise wouldn’t. 

The tenants benefitted too. They got to move into these brand new, beautiful properties. 

As the niche has grown, it has only become better. 

Now, you have builders building with the landlord and the tenant in mind … which means you can do some value engineering that maybe you wouldn’t do if you were selling to owner occupants. 

All of this means bringing product at a more competitive price … which means a better ROI. 

Our guest today is Steve Olson of Fourplex Investment Group (FIG). FIG builds brand new fourplexes in a variety of markets … ready for investors to swoop in and swoop up profits. 

Creating a valuable niche

The days of buying a home for less than it costs to build are gone. In many cases, developers, builders, and investors are finding that it’s more economically viable to just build new. 

If you want to be in the investment property business … you’ve got to find somewhere to get inventory … and you have to look at shifts in the marketplace. 

Two major demographic shifts are happening. 

One, baby boomers are looking for something more convenient … a managed community with some amenities to it. 

Two, millennials are more likely to rent than to buy … homeownership is getting more expensive, and many of them have a distaste for it. 

So, people want to live in these build to rent properties … you just have to pick the right markets. 

“More importantly, I think, you need to pick the right sub-markets within those solid markets. You’ve got to get to know the neighborhoods,” Steve says. 

And when you are building to rent, you’ve got to be able to look out at the horizon and be confident that there will be tenants in the area in 18 months … or more … however long it takes to get property standing. 

Steve and the team at FIG build brand new fourplex units … beautiful homes that are attached and have parking. 

They are an upscale rental … built in communities that allow them to offer amenities and services. 

“The idea is that we have to balance two worlds. We have a bunch of different investors but the feeling of a cohesive community. We do this by creating uniform standards through an HOA,” Steve says. 

As far as the tenant knows, they’re in a townhome complex or apartment complex. They have amenities. There is a property manager they report to … the same experience across the board. 

HOAs aren’t always popular … but that’s usually because homeowners are too busy to be bothered to come to meetings and be involved. 

Investors aren’t like that. 

Owners that are investors are very interested in the long-term health and viability of the complex. 

This type of investment is especially suited for someone who thinks a little more long term. The average investor doesn’t come in, buy a fourplex, and flip it to another guy in a year. 

With FIG’s approach, there is a certain amount of value engineering that can take place. 

“We deliver units cheaper than almost anybody I know of, but you have to strike a balance so you aren’t paying for it down the line,” Steve says. 

For example, Steve and his team have started using as a standard luxury vinyl tile floor … it’s meant to take a beating. 

“It looks good, like wood, but you can drag a couch across it. The dog can run around on it, and it’s still going to last a long time,” Steve says. 

But everything else is meaningless if you don’t talk about markets. 

The right markets for fourplex investment

A market is where we find tenants … so Steve and the team at FIG are very conscious of the markets they choose to build in. 

“Strategically, we’re looking for population growth. We’re looking for employment. You can get past a lot of things if you have those two things,” Steve says. 

FIG started in Utah in the Salt Lake City metro. Then, they expanded into markets in the Houston metro and into Boise, Idaho. 

Boise has tons of growth with jobs coming in from the Northwest and other less business-friendly states … and the vacancy is really low across the board. 

The team is also moving into the Phoenix metro area. 

For more information on this investment niche, listen in to the full episode!

More From The Real Estate Guys™…

• Sign up for The Real Estate Guys™ Free Newsletter
• Check out all the great free info in our Special Reports library.
• Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
• Stay connected with The Real Estate Guys™ on Facebook,  and our Feedback page.

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.

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Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Podcast: Getting Off to a Great Start in the New Year

Podcast: Low Vacancy and No Deferred Maintenance with Build to Rent

Financial Strategies to Reposition Equity for Maximum Profit & Security

Financial Strategies to Reposition Equity for Maximum Profit & Security

 

Don’t leave money sitting around … put it to work and make some money!

Is your equity lazy?  Is it idly sitting on your balance sheet doing nothing to generate cash flow … It needs to go to work for you!

No one understands this better than Billy Brown. 

Billy is an investor and lending solutions guru who specializes in Bridge and Permanent lending solutions for real estate portfolios. 

They problem solve so their clients get the highest leverage and ROI possible on every deal … and the first step is optimizing your current portfolio.  Not only will you discover higher ROI’s … 

But you’ll protect your equity from bursting bubbles! 

Sure, you could sell everything and sit on cash … But what’s the return on that? Not good.

Or you could reposition your equity for wealth preservation, privacy, and increased cash flow!

In this exclusive webinar, Billy joins with our very own Russell Gray to show investors like YOU how to do just that. 

Watch this webinar to learn:

✓ The pros and cons of non-recourse lending

✓ Strategies for using equity in existing properties as the down payment for a new acquisition

✓ How to protect your equity from bursting bubble

✓ And more!

Keep your money safe AND put it to work for you! 

Get started by filling out the form below to access Financial Strategies to Reposition Equity for Maximum Profit & Security.

Ask the Guys – Long-Distance Landlording, Property Management and More

Welcome back to an all-new edition of Ask The Guys!

Today, we’ll be answering listener questions. So listen in for our best real estate tips and tricks!

A disclaimer … we are not tax advisors or legal professionals. In our Ask The Guys series, we give ideas and information … NOT advice.

In this episode of The Real Estate Guys™ show you’ll hear from:

• Your tipster host, Robert Helms
• His tricky co-host, Russell Gray

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Broadcasting since 1997 with over 300 episodes on iTunes!

 

 

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How do I find a property management company?

This question comes from Lee, in Bay City, Michigan. He wants to know whether we have any advice for finding—and vetting—management companies.

He says he’s investing in his area, but the only management companies he can find are run by real estate agents on the side. He has a day job, and doesn’t have time to manage on his own … so he wants to find a reputable company that’s up for the task.

He also asks whether he should move out of his local area, since there aren’t many management companies.

We always say you should invest where the numbers make sense … but you also need to invest in places where you can find a great team.

In the long term, your property manager is the most important person on your team. So if there aren’t any great property management solutions where you live … perhaps it’s time to expand your geographic investing boundaries.

Start by refining your personal investment philosophy, then look for a market that both matches your goals and has the management companies to fill your needs.

You don’t want single-point failure. Make sure the company you choose aligns with your philosophy. Ask them, “Who supports you, and how?”

You want to make sure their compensation model is aligned with your best interests. In other words, when you earn money, they do too.

And choose your property management company BEFORE you buy your properties. They can be an excellent resource for finding properties and asset class types that will work well for both of you.

Remember, you can’t scale up without putting the right team in place. Getting a great property manager on your team helps you find the professional distance you need to run your business properly.

How do Section 8 rentals work?

Laura, from Naples, Florida, wants to know how Section 8 rentals work and how she can acquire affordable housing in her investment market.

First, a few things about Section 8. Section 8 is housing subsidized by the Department of Housing and Urban Development (HUD). But it’s administered by local public housing agencies, so it’s not always available and differs across the country.

Section 8 can be great because a portion of the rent is paid by the government. You basically have a guarantee you’ll get most of your rent on time, regularly.

But tenants in this housing can be a tough crowd … sometimes they don’t blend well with other, non-Section 8 tenants. For that reason, we like a property to be all Section 8 or none.

A great resource for learning about Section 8 is Mike McLean, who has published a book called the Section 8 Bible and has some great online resources, too.

Affordable housing can be a good place to be because of stagnant purchasing power … but make sure you’re playing close attention to the program from which funding comes.

And keep in mind … the devil is in the details. If you’re not managing the property yourself, make sure your property manager is well acquainted with Section 8.

Should I invest now, or later?

Casey, in Lehi, Utah, has been listening to the podcast, and now he has a pressing question.

Casey has saved up $100,000 to invest, but he wants to know whether he should invest now or wait until the market takes a dive. He mentions worries such as rising interest rates, an unstable dollar, and inflation.

Let’s start with a premise … markets will either do well or poorly in the future. We know that. We also know that when the market hits the bottom, you can only go up.

Real estate is a long-term, buy-and-hold business. But it is interest-rate sensitive, so you want to make sure you lock in long-term financing if you invest now.

It’s also good to keep some liquidity for if and when the market does go downhill.

Something we like to say is, “Opportunities are like busses. Another one will always come along … but you have to get on the bus at some point.”

The way we see it, Casey has a few options …

1. Invest in things that are likely to do well, even when the market is bad, particularly mid-level rentals and below. There will always be demand for housing, especially mid-range housing.
2. Invest in a forced equity situation … a neighborhood or property that has room for improvement, which you can force upward in value. This will help you mitigate downward pressure to the dollar.
3. Invest in a bigger market … this provides stability, as these markets have more ballast during tough times.
4. Step in on the debt side of the market by lending money to other investors.
5. Work with an experienced syndicator who is more likely to get investments right, even when times are more precarious.

Remember, when you’re in property for the long haul, most of the time you’ll be fine. The key is to structure deals so you can weather the ups and downs.

Another thing to consider … the price only matters when you buy and when you sell. In between, it’s all about cashflow.

Real estate is one of the best inflation hedges if you structure the financing properly relative to cashflow … but you can’t fledge against inflation if you don’t do anything at all!

How do I create residual income with little savings?

Jeff, in Fountain Hills, Arizona, says he is in an interesting situation.

He doesn’t have any income, but he has enough cash to live on for 24 months. In the meantime, he wants to figure out how to create residual income that will pay for his living expenses going forward.

Jeff is looking at building a balance sheet of passive income sources.

But right now, he has time, labor, and energy he can put to work. And since he’s not holding on to a chunk of cash, the active investor route is a good one.

Some options …

1. Force equity by fixing and flipping.
2. Earn cashflow by fixing, holding, and renting.
3. Become a syndicator and use other people’s money to make great investments. It’s our favorite way to go full-time, fast.
4. Try wholesaling.

Basically, what Jeff needs to do right now is to build up his investment capital so he can start getting some cashflow.

But before he does that, we suggest he invest in education and build relationships. Get the right tools in your toolbox and the right advisors at your back before you go big.

Can you recommend turnkey management companies?

Keith hails from East Sandwich, Massachusetts. He recently bought a home through Mid South Homebuyers and is ready to buy another.

The problem? He’s on the waitlist at Mid South. In the meantime, he’s looking for another turnkey company that manages the houses it sells.

One disclaimer … we don’t know anybody quite like Terry Kerr at Mid South.

But we do know lots of other great folks.

The idea of a turnkey provider is that they do the whole thing … find the properties, get them in great shape, put tenants in, and manage the rentals.

But before you look for a provider, think about the type of property, market, and team you want.

Then go ahead and search our provider network for someone who can help fill your needs. We don’t guarantee anyone on the list, but we do promise we’ve spent a lot of time with them on the ground and have seen enough to trust them.

Should I attend Secrets of Successful Syndication now, or later?

Gene, in Boston, Massachusetts, is an investor who owns two duplexes. He wonders whether he should attend our signature Secrets of Successful Syndication conference now, or later in the year when he has more experience.

We’ve gotta say, we really think the key is for investors to come early and often.

This conference is designed for investors who already have a portfolio and are ready to take the next step.

But even if you’re just starting out, it’s a great way to get around what we call “evidence of success” and learn the power of networking.

Experience is something you can accumulate through other people. And syndication is all about having the experience to make good investment decisions.

So, for those who want to move forward, we recommend you start as soon as you can.

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More From The Real Estate Guys™…

• Sign up for The Real Estate Guys™ Free Newsletter
• Check out all the great free info in our Special Reports library.
• Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
• Stay connected with The Real Estate Guys™ on Facebook,  and our Feedback page.

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.

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Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!