You asked, and we answered! In today’s episode of The WealthBuilders Podcast, WB Coaches Karen Conrad Metcalfe, Troy Peterson, and Mike Davis address your burning questions about real estate investing, business, and wealth building. Learn how to work smarter, not harder, as a wealth builder and investor on today’s power-packed episode! Click the player below to watch, or listen on your preferred podcasting platform. Keep scrolling to read the shownotes!
Viewer Questions Part 1: Interest Rates, Single Family Homes, Divine Connections, & More
Is this the right season to buy a home with high interest rates?
- You don’t wait to buy real estate, you buy real estate and wait.
- In the 1970s, the average 30-year mortgage rate was at 7.5%, similar to where we are today. If people would have said, “I’m going to wait until rates go down to buy real estate”, they would have had to wait until the 90s to buy. Between that point in time, houses quadrupled in value.
- If you are buying a personal home, you still have to crunch the numbers to see if you can afford it. If it’s an investment property, you still have to run your formulas to ensure the property will cash flow.
Are there any resources or something that I should be doing to help with getting lower insurance rates?
- Hire an insurance broker who can help you shop and find the lowest rates with the best coverage.
Where does average appreciation play into a formula for determining a good real estate investment?
- We don’t factor in appreciation when calculating a good investment because it’s a bonus. If the property produces cash flow and works with our other formulas, history shows that it will appreciate in the long-run.
- It is wise to evaluate if an area is growing before you invest there. For example, are there new businesses and development happening in the area? That is a good sign that experts are projecting growth, too.
- If you hold the real estate for two cycles, then you’re going to have a lot of wealth.
- If you can afford to take hits on your income (which we don’t recommend), you can invest in high appreciation markets like California or Colorado Springs.
What are the most important factors to consider to determine if buying a single family home is a good choice?
- For a personal home, the most important thing to consider is if it makes you happy and you can afford it. For an investment property, two of the most important things to consider are income and crime rate. Always know how you will make money from the property before getting into an investment.
How can I find a local team to help me choose property?
- Connect with a realtor who invests in real estate themselves. Pray over the relationship and ask God if it’s a good fit before jumping into any decisions.
- If available, join a local real estate club.
Zillow or Redfin?
- Both have their benefits. The Rental Zestimate on Zillow can help you gauge what properties are renting for in the area, but you need to do more digging than just a cursory glance. Examine what similar properties are selling for in the area, and pay attention to whether they are updated or not.
Should we consolidate debt to a 0% credit card?
- It’s not ideal. Sometimes they attach a funding fee of two or 3% to the transfer which negates the whole 0% philosophy. If you get a new credit card and it’s got a 10 or a $20,000 limit at 0%, then you consolidate your debt on that max it out, you will wipe out your credit score. To maintain an optimal score, you need to keep your credit below 33% of your limit.
How do you go about finding those divine relationships in business?
- The number one relationship to maintain is your relationship with the Lord. Spend time praying and thanking Him for divine connections before you actually meet them.
- Proverbs 18:24, NKJV: “A man who has friends must himself be friendly, But there is a friend who sticks closer than a brother.”
- Position yourself in an atmosphere or environment with like-minded people. For divine connections in business, come to things like WealthBuilders events, or join coaching programs.
