We know that home prices have increased in this country 45% since 2020, rising interest rates have caused the average mortgage payment in this country to more than double, and housing affordability is at it’s lowest level since the early 1990s. In this episode, we talk with Scott Trench from BiggerPockets about whether or not investing in real estate still makes sense.
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Real estate has always been a popular investment option, and many people wonder whether now is the best time to invest in it. In today’s uncertain economic climate, the prospect of investing in real estate can be a daunting one. However, Scott Trench from BiggerPocketsMoney, suggests that now is indeed the best time to invest in real estate.
Scott Trench believes that there are some compelling reasons to invest in real estate. Firstly, with interest rates currently at historic lows, the cost of borrowing money has never been cheaper. This means that investors can acquire real estate at a lower cost, which increases the likelihood of good returns on investment (ROI). Additionally, real estate investments offer a tangible asset that can help to protect against inflation. Rental homes, for instance, provide predictable, long-term income streams that tend to keep pace with inflation.
Another reason why Scott Trench thinks it is a good time to invest in real estate is the current high demand for rental properties. With the COVID-19 pandemic, many people have lost their jobs or suffered financial setbacks, making them unable to afford properties of their own. Consequently, there is currently a significant increase in demand for rental properties. This increased demand has driven up rental prices, making it an excellent time to be a landlord. If an investor can acquire rental properties in the right place, they can benefit from a steady stream of rental income and increase their ROIs.
Besides, Scott Trench argues that the ongoing economic uncertainty has created unique opportunities for investors. As more businesses shut down and more people lose their jobs, many will be forced to sell their properties, creating a buyer’s market. Investors who can secure financing can scoop up these properties for lower prices, allowing them to purchase more properties at more favorable prices.
In conclusion, if you are considering investing in real estate, now may be the right time to do so. However, as with any investment, it is essential to do thorough research and only invest in properties you can afford and that meet your investment criteria. Scott Trench from BiggerPocketsMoney advises that investors should be patient and not expect immediate returns when investing in real estate. Nonetheless, for those who take a long-term perspective, invest carefully, and develop a sound strategy, investing in real estate can be an excellent way to create financial stability and build long-term wealth.
I think we are too obsessed about the economy crashing. In the right sense, the economy never crashes. It just undergoes cycles, and almost always recovers. So I really don't care what the predictions are. I just want to grow my $354k portfolio. I read that people are pulling in massive profits despite the downturn. Any tips on how they do it?
This was a fantastic episode. One of my all time favorites from you guys. You asked, in my opinion, the perfect questions for someone who is looking to learn and get into the real estate space.
Would have liked a reit vs property angle on this.
Yes, get more guests!! Like you getting some more guests.. How about Grant Cardone ?
There is a scammer in the comments claiming they used an FA to make their first million, but be warned, he is using ai technology to make convincing YouTube comment scripts to lure people and even made a fake website promoting a fictional character named Susan Kay Mack and using Robyn Thompson, president of Castlemark Wealth Management as their front for their scam.
THIS IS A SCAMMER
I know people who have been waiting 10 years for the next real estate collapse and guess what? They still don’t own a house. The best time to invest in real estate is when you can afford to
Love this format as a extra to the mainstream Money Guy content
I love the bigger pockets podcast! I’ve learned a ton from them. My wife and I won’t be ready to buy a home for a few years, but I love learning as much as I can now to make a more informative decision.
Scott Trench is the man. Brian and Bo (and everyone else reading this comment)…If you haven’t read Scott’s book Set For Life, I wholly recommend it. I happen to hold Scott in quite high esteem and believe this particular book to have the most practical financial information to get the most out of not just real estate investing or stocks, but simply everyday life and the expenses that come with it. I read a good amount and I seriously implore you to check it out.
It’s great for all ages, but I would especially recommend it to younger folks who may be graduating college or roughly around that stage of life. Some true stats and tips that will save you a ton of money and uphill financial battles that you could possibly avoid with the information provided.
It seemed you guys hit it off. I hope you’ll have Scott back on in a future interview. Cheers!
Keep the guests coming
This is probably one of the best episodes yet. This guy is dropping such good knowledge and breaks things down so easily.
My question is will houses balloon again like they did from 90s to 20’s? Or will values begin to go more sideways for the next few days
The channels have different audiences bigger pockets was when I had no kids and no responsibilities and I was able to house hack. The family guy show is once you get lazy and want the safe route I wish they could expand into tax hacks like how do you get that money out at a low cost once you age or how do you sell your house within the 5 yrs to increase your net worth
That was great! Keep doing interviews. Get Graham Stephan sometime
More guests more guests more guests!!!!
Great timing with this guest. Lots of clarity provided here for me because I’m heavily contemplating my first house buy for the last few days.
Loved this episode and having guest stars. While I do enjoy having repetition to instill the FOO, it does get a bit repetitive. I think real estate is a great avenue for building wealth, especially for FIRE folks.
Great!! Always remember that what works for him might not work for you. You mustn't become a millionaire before 30 and that's still okay. Its not written anywhere that you can only become rich through a particular channel(stocks, forex, real estates etc). Most important thing is knowing when to save and when to invest. I made my first million through stocks at 40, now I'm into agriculture and it's equally lucrative and relaxing!