This episode of the Wealth Builders Podcast features a discussion between Karen Conrad Metcalfe and real estate attorney Bill Bronchick on the current state of the real estate market and creative financing strategies for investors.
With over 32 years of real estate experience, Bill advises investors to focus on buying and holding properties for long-term wealth, rather than waiting for the “perfect” time to buy. Tune in to hear from an expert in real estate investing. Weathering Market Cycles: Lessons from a Seasoned Real Estate Attorney.
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Episode Show Notes
Real estate market trends
- Bill Bronchick discusses national real estate market trends, including increasing supply and seller’s market in some areas.
- Market still has a slight seller’s advantage, but inventory is increasing.
- Prices are stable despite more houses on the market, but supply is still below average.
Real estate investing
- High-end apartments have too much supply, leading to rent drops.
- Single-family homes in lower-income areas are the best investment choice.
- Sellers can receive income through payments and reducing tax liability.
- Spreading tax liability over the loan term can save on capital gains.
Creative financing strategies for real estate investors.
- Find free and clear properties through public records and brokers.
- Use creative financing strategies to acquire property outside of traditional methods.
- Bill explains how to lease a property from an owner to control it for cash flow, with the option to buy it at an agreed price.
- He also details how to sublet the property to tenants, including single families or Airbnb guests, for additional income.
- He suggests using homes as senior care facilities, offering cash flow and potential property appreciation.
- Karen and Bill discuss using homes for shared office spaces, potentially benefiting from mixed residential and commercial locations.
- Creative financing options for real estate investors, include partnering with others for down payments and using retirement accounts.
Investing in real estate with an IRA or FHA loan.
- Bill explains how to invest in real estate with an IRA, using a boutique custodian.
- Bill provides help with this process, and can be reached for suggested alternative financing options for real estate investors.
- He explains the FHA 203K loan program for homebuyers, including down payment options and eligibility requirements.
- Homebuyers can use 203K loans to purchase and renovate properties, with the option to move in after renovations are complete.
- He believes interest rates will likely decrease in the short term, benefiting mortgage rates and the market.
Real estate investing for long-term wealth.
- Karen and Bill share stories of real estate investing mistakes and lessons learned.
- Bill advises buying and waiting for market cycles to increase long-term wealth.
