DeepSummary
David Green and Rob Abasolo, hosts of the BiggerPockets Real Estate Podcast, discuss various real estate investment topics and answer listener questions. One listener asks how to invest using private money lenders when high interest rates make deals challenging. Another listener considers selling a rental property to have more cash reserves during a potential recession. The hosts provide insights on navigating the high interest rate environment, weighing the pros and cons of selling properties, and when to prioritize cash flow versus equity growth.
A question arises about whether to build an accessory dwelling unit (ADU) or rent out an RV parked on the property for added income. Green and Abasolo debate the feasibility and potential challenges of each approach, considering factors like local regulations, market demand, and overall profitability. They also discuss the importance of finding a reliable and efficient contractor when undertaking real estate projects.
The hosts delve into the role of contractors in real estate investing, addressing a listener's concern about feeling undervalued as a contractor working with investors. They provide advice on how contractors can position themselves for consistent work, fair compensation, and a mutually beneficial relationship with investors.
Key Episodes Takeaways
- Consider equity partnerships instead of high-interest debt when investing during periods of high interest rates.
- Evaluate the potential for well-performing rental properties to at least break even during a recession before deciding to sell.
- Contractors should focus on value-added work beyond basic repairs to command higher fees from investors.
- Consistently delivering quality work and service can lead to long-term, recurring work and referrals from investors for contractors.
- Investors value responsiveness, efficiency, and clear communication from contractors.
- Explore alternative rental options like ADUs or RVs, but consider local regulations, market demand, and overall profitability.
- Build a strong financial reserve to weather potential economic downturns and maintain your real estate portfolio.
- Real estate investing strategies may need to adapt to changing market conditions, such as high interest rates or recessions.
Top Episodes Quotes
- “Debt is expensive, but I think in this instance, why go for debt when you can go for equity?“ by Rob Abasolo
- “The work that has to be done would be like, it needs to be painted, it needs new floors, something broke, it needs to be fixed, and, uh, it needs a working bathroom. You're only going to make so much money on that type of work, and the investor is always going to come and try to beat you up on the price because they're going to go to someone else that can do that work.“ by David Green
- “If you treat me right, you do a good job for me, I'm going to hire you for the rest of my career. I'm also going to recommend you.“ by Rob Abasolo
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Episode Information
BiggerPockets Real Estate Podcast
BiggerPockets
7/2/24