Is legislation changing the real estate game??

You're not gonna want to miss this!

February 13, 2024

Good afternoon! This is Investor Cheat Code. The goal is to blow your mind with content and bribe you into loving us at the end with a free download 👇🏻

Here's some of the highlights for this week:

  1. Proposed tax on investors holding over 15 single family properties

    /

  2. Is going into business with family a good idea? The Kwak brothers - from 0-83 deals in 1 year

    ?

  3. Why there will be more investors in the market in 2024

  4. Links to some of the top real estate articles on the Internet

    /

  5. Download my quarterly planning template

NEWS YOU SHOULD KNOW

The Big Shift: Investing in Single-Family Homes

Hey guys!

A major shift might be on the horizon for us real estate investors.

The Policy Wave Rolling In

You've probably heard murmurs about it.

Senator Tammy Baldwin is at it again – she’s proposing legislation that could shake up our marketplace.

A Tax to Tackle Affordability

The plan?

Slap a tax on investors holding over 15 single-family homes.

Big ambitions lie behind this – imagine liberating $50 billion to create 3 million affordable homes.

Community First: The Driving Force

What's the goal?

Preserve community integrity by helping locals own homes instead of renting from out-of-state landlords.

Indeed, ownership instills a different level of care for one’s neighborhood.

The Investor's Market Share

But how big is the impact?

While last year saw a dip, investors still snagged a solid 16% of all single-family homes.

In Wisconsin alone, the number was around 13% in the same period.

Real Life, Real Impact

Take a look at Milwaukee.

Homeownership has plummeted while out-of-state landlordship quadrupled since 2005.

Companies like VineBrook Homes are big players, owning roughly 1,000 homes in Wisconsin.

The Proposed Tax Brackets

Let's get into the details.

- Own 16-25 homes? You're looking at a 1% purchase price tax.
- 26-100 homes? That’ll be 3%.
- More than 100 homes? Prepare to fork out 5%.

The Other Side of the Coin

No surprise, not everyone's on board.

Original article posted here

QUOTE OF THE WEEK

“Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.” 

– Jack Welch, former GE chairman and CEO

Current Avg Mortgage Rates (2/13/2024)

MORE NEWS YOU SHOULD KNOW

More Property Investors Expect To Be Active This Year, Lured by Price Changes

The Dallas-Fort Worth region has claimed the spotlight as the prime destination for real estate investment in the United States this year, as per CBRE's latest survey. Despite facing challenges, American real estate investors are gearing up to re-enter the property market, showing a notable shift from last year's trends.

According to the 2024 U.S. Investor Intentions Survey by CBRE, over 60% of investors are gearing up to expand their property portfolios, a stark contrast to the mere 16% planning to do so in the previous year. Concerns loom regarding higher interest rates and tighter credit availability, but investors are optimistic, anticipating a rebound in deal activity during the latter part of the year.

Multifamily and industrial properties continue to top the investment preference list for 2024. Despite the challenging credit landscape, investors are eyeing opportunistic and core-plus strategies to secure higher risk-adjusted returns.

The survey, which polled 134 predominantly U.S.-based investors with real estate assets under various management scales, identified developers, private equity funds, real estate funds, and real estate investment trusts (REITs) as the key players expected to drive activity this year.

Dallas-Fort Worth retained its position as the most favored market for the third consecutive year, followed by Miami, Atlanta, Nashville, and Charlotte. High-growth secondary markets and major East Coast cities are also expected to outperform, with Dallas-Fort Worth leading in anticipated total property returns, trailed by Miami and Boston.

Contrasting the current scenario with just three years ago, Dallas-Fort Worth has ascended as a preferred market, surpassing Austin, which has slipped in rankings due to an influx of new real estate supply potentially outpacing demand, impacting property pricing attractiveness for investors.

In terms of risk factors, monetary policy emerges as the chief concern this year, with the U.S. Federal Reserve's decision to maintain interest rates, albeit with a possibility of future cuts, closely monitored by investors. CBRE forecasts four rate cuts totaling 100 basis points or 1% over the course of the year, signaling potential shifts in market dynamics.

In summary, despite prevailing challenges, the Dallas-Fort Worth region stands as a beacon for real estate investors, underscored by its dynamic economy and growth prospects, while vigilance regarding interest rate movements remains paramount in navigating investment strategies for the year ahead.

Original article posted here

WHAT I’M THINKING ABOUT THIS WEEK

Going from 0-83 deals in a year, and the best (and worst) parts about working with family.

The Kwak Brothers are the dynamic duo behind a successful YouTube channel focused on real estate investing. With their informative videos and engaging content, they have built a loyal following of viewers who are eager to learn from their experiences. The Kwak Brothers are not only skilled in real estate, but they also possess a natural talent for teaching and inspiring others.

The motivation behind starting their YouTube channel was simple - they wanted to share their knowledge and help others achieve success in real estate investing. They saw a need for accessible and practical information in the industry, and they wanted to fill that gap. Their goal is to empower individuals to take control of their financial future through real estate.

To find The Kwak Brothers on YouTube, simply visit their channel at youtube.com/thekwakbrothers. You can also search for "The Kwak Brothers" on YouTube or Google, and their channel will be one of the top results. Once you're on their channel, you'll find a wealth of informative videos covering various topics in real estate investing.

Working with family 👨‍👩‍👧‍👧

Working with family members can be both a blessing and a challenge. In the case of siblings, the dynamics can be even more complicated. In this blog post, we will explore the best and worst parts of working with siblings in business based on the experiences of two successful entrepreneurs.

The Best Part: Complementary Skills and Unbreakable Bonds 💔

One of the best parts of working with siblings in business is the complementary skills that they often bring to the table. Siblings are often very different from each other in terms of personality and strengths. This can be a huge advantage in a business partnership, as each sibling can bring their unique skills and perspectives to the table.

Additionally, siblings have an unbreakable bond that can help them weather the ups and downs of business. They have shared experiences and a deep understanding of each other that can make the partnership stronger. This sense of trust and loyalty can be a huge asset in building a successful business.

The Worst Part: Balancing Personal and Professional Relationships ⚖

While working with siblings can have its advantages, it also comes with challenges. One of the worst parts is the difficulty of separating personal and professional relationships. Siblings may find it challenging to navigate the boundaries between their roles as business partners and their roles as family members. This can lead to conflicts and strained relationships if not managed properly.

It is important for siblings in business to establish clear communication and set boundaries to ensure that personal issues do not negatively impact the business. This may involve seeking outside help, such as therapy, to facilitate healthy communication and conflict resolution.

Starting a YouTube Channel: Accidental Beginnings

One of the successful ventures that the siblings embarked on was starting a YouTube channel. This decision was not a calculated business move, but rather a result of their passion for sharing knowledge and their love for video production. They started documenting their journey in real estate and sharing their experiences, which eventually led to the growth of their channel.

Their YouTube channel became a platform for them to share their expertise, connect with their audience, and build authority in their field. While it was not initially planned as a business strategy, it ended up being a valuable tool for raising capital, finding deals, and building legitimacy in their industry.

Raising Capital: Building Relationships, Not Just Finding Investors 💵

Raising capital is a common challenge for many real estate investors. However, the siblings took a different approach. Instead of solely focusing on finding investors, they focused on building relationships with individuals who had capital to invest. They understood that raising capital is essentially a sales process, and building relationships is key to successful sales.

They shared their journey and expertise on their YouTube channel, which allowed them to connect with potential investors and build trust. By providing valuable content and showcasing their knowledge and success, they attracted individuals who were interested in investing with them. Their approach was not just about raising capital, but also about finding the right investors who aligned with their values and goals.

The Current Real Estate Market: Insights and Preparation 🏡

The real estate market has been a subject of speculation and uncertainty in recent years. Many people have made predictions about when the market will crash or if it is in a bubble. However, the siblings have a unique perspective on the market and how to navigate it.

They believe that 2024 will be a great year for raising capital, as many individuals are looking to invest in real estate as a hedge against inflation. They anticipate a record number of people selling off other assets, such as stocks and cryptocurrencies, and shifting their focus to real estate. This presents a unique opportunity for real estate investors to raise capital.

As for the market itself, the siblings have a more cautious outlook. They believe that home values and rents may decrease back to normal levels in the coming months. They highlight the importance of considering factors such as wages, income, and market trends when analyzing deals and making predictions about the market.

Conclusion

Working with siblings in business can be both rewarding and challenging. The complementary skills and unbreakable bonds can contribute to the success of a partnership, but it is crucial to establish clear communication and boundaries to avoid conflicts. Starting a YouTube channel can be a valuable tool for raising capital and building authority. Raising capital requires building relationships with potential investors rather than simply finding investors. Understanding the current real estate market and preparing for potential changes can help investors navigate the market more effectively.

You can check out the full interview here

LINKS TO CHECK OUT

DOWNLOAD - TOOLS OF THE TRADE

👉🏻👉🏻 DOWNLOAD HERE 👈🏻👈🏻

This week's download is a PDF that I use every quarter in my business. It helps me define my “Rocks” for each quarter. I found this concept in the book traction by Gino wickman. I interviewed Gino a few years ago you can check it out here

In "Traction: Get a Grip on Your Business," Quarterly Rocks are broken down as follows -

Picture Quarterly Rocks as those big, chunky objectives we set for ourselves every three months. They're like the foundation of our success strategy.

  • Focus: Quarterly Rocks provide a clear focus by identifying a few key priorities for the organization every three months.

  • Accountability: Assigning specific Quarterly Rocks to individuals or teams creates accountability, ensuring that everyone knows what is expected of them.

  • Alignment: Quarterly Rocks align individual and team efforts with the organization's overall goals, promoting unity and cohesion.

  • Measurability: Each Quarterly Rock is defined with clear metrics or outcomes, allowing progress to be tracked and adjustments to be made if necessary.

  • Flexibility: Quarterly Rocks allow for flexibility, enabling organizations to adapt their priorities in response to changing circumstances or new opportunities.

I hope you enjoy the download!

DISCLAIMER: This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.