In this week’s edition of Real Talk, Real Estate, we’re tackling some important financial topics, including the pros and cons of using a HELOC to pay off high-interest credit card debt. This is a common issue many of us face, and I’ll be sharing some practical insights on how to navigate it.
Additionally, we’ll be exploring ways to maximize rental profits, such as converting a garage into an ADU. It’s a topic I’ve spoken a lot about in the past, and it’ll provide some great insight.
Don’t forget, I’ll be releasing new podcast episodes every week. Your questions are a big part of this, so please feel free to submit them. I’ll do my best to address them in future episodes. You can submit your questions HERE.
As always, the goal of this podcast is to provide real, no-nonsense advice from people who are actually in the trenches of the real estate industry. There’s no fluff, just straightforward information that you can use. If you haven’t already, make sure to subscribe so you don’t miss any episodes. APPLE, SPOTIFY, YOUTUBE
There are signs that the commercial real estate (CRE) market may be bottoming out, but there are still challenges to overcome:
- Transaction volume: According to Moody’s, commercial real estate transactions are gradually recovering, with three consecutive quarters of year-over-year increases in office sales.
- Real estate stocks: Real estate stocks have been recovering in recent months, with the publicly traded real estate investment trust market appearing to have bottomed out a few months ago.
- Foreclosures: A surge in commercial property foreclosures may indicate that the market is approaching a bottom.
- Office market: The office market may be approaching a bottom, with owners of large office properties selling at a discount. However, vacancy rates remain at record highs.
- Debt: One-fifth of the $4.7 trillion of outstanding commercial mortgages held by U.S. lenders and investors will come due in 2024.
- Opportunities: There may be opportunities in more specific areas of the market, such as student housing communities.
Tune in to YouTube this Monday September 16th at 7:00 PM EST, when I’ll be speaking live on the Fresh & Fit Money Monday podcast to discuss finance and investing strategies.
The Biden administration is proposing new rules to close a loophole allowing foreign companies, mainly from China, to avoid tariffs by shipping products worth $800 or less directly to U.S. consumers. This move aims to reduce U.S. reliance on cheap Chinese imports and boost domestic industries, but it could lead to higher prices for shoppers using popular sites like Temu and Shein. The exemption has also raised concerns about unsafe imports, including drugs, slipping through. While the proposal is seen as a first step, lawmakers are pushing for further legislative action to address the issue comprehensively.
Often, when people are in a new situation, they tend to go with the first person they talk to. For example, if you needed a lawyer and you’re not familiar with the legal field, you’d probably trust what that lawyer is telling you. That’s not necessarily wrong, but not all lawyers, vendors, or anyone you hire are the same. As a general rule, I always interview at least three people before making any hiring decision—whether it’s for a lawyer, contractor, cleaner, or anyone else.
I learned this after having a consultation with someone. After that initial conversation, I felt like I had no other options. They were going to try to help, but they didn’t seem optimistic about success. Since I didn’t have much experience in that area, I assumed they were probably right. Later, I found out the person who referred them knew this, which is why they offered me someone from their second or third tier of recommendations. I then decided to get a second consultation, and this new person had a completely different attitude—much more proactive and confident in finding a solution.
The lesson here is that while you might not have all the information upfront, by speaking with a few different people during the hiring process, you’ll usually get a clearer picture of the best way forward and who is best suited to help you.
I wanted to share a quick update on a flip I’m working on. The cabinets and tubs are in, and now comes the tricky part—choosing fixtures. Do they really make a difference? I believe they do. While it’s not necessary to go with top-of-the-line options, it’s important that the fixtures look nice and are reliable. For one, you want them to match throughout the house. Beyond that, you don’t want them breaking or causing issues for renters or buyers. When I’m renting a property, I tend to choose fixtures that are both nice and durable. Most renters won’t care much about how fancy the fixtures are, but they do care that they work. The more durable they are, the less maintenance they’ll need, which means fewer calls from tenants because you tried to save a few dollars.
Conventional: 6.625%
VA: 5.625%
FHA: 5.625%
DSCR: 6.875%
If you’re in the market for a loan and need assistance, our team at The One Brokerage is here to help. Visit our website here to explore our loan options and find the right financing solution for your real estate goals and email us at intake@theonebrokerage.com to speak to one of our loan officers.
