All Forum Posts by: Kevin Rodriguez

Great question, especially in today’s market climate! Flipping during a bear market or high-inflation period can present some unique challenges, but it’s still possible to profit if you approach it carefully. Here’s how each factor might play into your strategy:

1. Bear Market: When home prices are declining, flipping can be riskier because the value of the property could decrease during the renovation period. In these conditions, investors typically focus on faster, lower-cost flips that add clear, high-value improvements without overextending time or budget. Shorter holding periods also help mitigate risk, so working with a reliable contractor is key. In a bear market, it’s essential to buy well below market value and stick to high-demand features buyers are prioritizing.
2. High Inflation: During periods of high inflation, the cost of materials and labor often increases, cutting into profit margins. However, in inflationary environments, real estate can be a safer investment than other asset types because home prices often stabilize or increase over time as more buyers look to real estate as a hedge. To protect your margins, it’s crucial to have a solid understanding of costs upfront, consider negotiating long-term prices with suppliers, and prepare for possible delays in renovation schedules.

In both scenarios, it’s often safer to focus on markets with strong fundamentals (stable job market, population growth) and properties at or below the median home price in the area to appeal to a broad buyer base. If you’re new to flipping, aligning with a mentor and real estate professional ie (Realtor/Mortgage Broker) who has experience with flips can provide extra insights, helping you mitigate risks. Let me know if you’d like to discuss financing options that can give you more flexibility during uncertain times!

I recommend working with a Mortgager Broker we have options that allow you to close under and LLC, NO FICO, No Income etc.

Normally around 25% downpayment. Let me know if you have any questions at all! 

Congrats on taking the first steps toward investing—your vision and planning are impressive! With your goals in mind, here are some thoughts on each approach to help you decide what might work best for your situation:

1. BRRRR Strategy: The BRRR (Buy, Rehab, Rent, Refinance, Repeat) method can accelerate portfolio growth, but it does require strong contractor connections and careful planning. Since your job is demanding, and you're balancing family responsibilities, starting with BRRR could add stress without established connections. To get started, consider networking in local real estate groups to find reliable contractors or partnering with experienced BRRR investors who can help navigate initial projects. This way, you might mitigate some risks and get guidance for your first rehab.
2. Single-Family Investment for Cash Flow: Starting with a single-family property in a stable, affordable market might align well with your goals. Single-family homes in cash-flow-positive areas tend to be easier to manage, especially if you use professional property management. This could allow you to build equity steadily, reduce the immediate demands on your time, and potentially refinance in a few years to access funds for future investments.
3. Alternative Approach: Small Multi-Family Property: If you're open to it, a small multi-family property (like a duplex or triplex) can combine elements of both strategies. Multi-families offer more cash flow potential than single-family homes and are often easier to manage than a BRRR, giving you the chance to grow without the same level of involvement.

Given your busy schedule and family responsibilities, a single-family or small multi-family might be a good start, letting you get familiar with property management while earning stable cash flow. Once you've gained experience and have a trusted team, BRRRR could be a great second step. Let me know if you want insights on financing options! Happy to connect.

You're absolutely right—some investors still flock to cities like New York and San Francisco, even though these places come with more tenant-friendly regulations. Here’s why:

1. **Population Density and Demand**: In areas with high population density and ongoing demand, rental units can command premium rents. Even with stricter regulations, investors see consistent demand and potential for appreciation over time. Major cities often attract a steady flow of renters due to job opportunities, lifestyle appeal, and proximity to amenities.

2. **Long-Term Appreciation**: In markets like New York and San Francisco, property values tend to appreciate significantly over time. Despite the challenges, many investors see the potential for capital gains as outweighing the operational complexities. Long-term investors, in particular, might be willing to take on the higher short-term challenges for the prospect of substantial appreciation down the road.

3. **Institutional and Foreign Investments**: Large institutional investors and foreign buyers often have the capital and resources to weather tenant-friendly regulations. For these players, real estate in global cities is seen as a stable, long-term asset. They may be more focused on portfolio diversification and long-term growth rather than immediate cash flow.

4. **Local Expertise and Strong Property Management**: Many investors who succeed in landlord-unfriendly cities do so because they’ve partnered with experienced local property managers or have an in-depth understanding of the local regulations. Good property management can mitigate some risks and handle tenant issues more effectively.

Ultimately, some investors are drawn to these markets because they see the unique long-term benefits as outweighing the challenges. If you’re exploring similar investments, careful planning, a solid legal understanding, and possibly a local partner can make a big difference. Let me know if you’re considering specific markets or need tips on financing strategies in these areas!

Hi there! It’s fantastic that you're interested in exploring real estate as a way to use your free time productively. I work with many professionals who, like you, have a demanding full-time job but still manage to dive into real estate investing.

Many find it’s entirely possible to balance both, especially if you start with smaller projects, like single-family rentals or "house hacking" (where you live in one unit and rent out others). With the right strategy, you can leverage the flexibility of real estate to suit your available time and financial goals. Many investors in similar positions begin by building a network and learning the basics, such as understanding financing options, which can often be more flexible and approachable than people expect, especially for those just starting out.

One suggestion is to set clear financial and personal goals so that you know what you’re working toward with each investment. Also, consider connecting with local real estate meet-ups or online communities like this one! It’s a manageable and rewarding way to build something on the side—and down the road, who knows? It may even provide financial freedom and flexibility in your career.

Let me know if you have questions about financing or would like guidance on how to get started!

There is a lot of speculation in the market that investors should not buy real estate during a bear market or high inflation period. But the fact is, in the long term, if you own property then your money has a constant and safe return on investment.

In a bear market, investors worry about the value of their investments. Since real estate is one of the most popular investment vehicles, it's understandable why so many people want to know if it's a good time to buy. This article will help provide some insight into that question.

First, it is crucial to understand that the real estate market and the stock market are two different markets. When you buy stocks, you are buying a share of a company's future growth. You have no guarantee that the company's value will increase or decrease but you have every reason to believe that over time it will do well. This growth cannot be guaranteed though, since it all depends on what happens in their respective economies. There are also very strict regulations on who can invest in the stock market. In comparison, when buying real estate you have a guaranteed asset because, unlike the stock market, during inflation, real estate prices tend to increase too so it is clear why some people prefer owning real estate over any other type of investment.

While investing in a single, high-risk stock may pay off big rewards, diversifying your portfolio is key to protecting your wealth. Inflation erodes the value of our money, meaning goods and services cost more over time. This makes houses an excellent hedge against inflation because houses generally hold their value over time, can cash flow, and often provide tax advantages. Even with rising prices due to inflation. High inflation means that people will be looking for products that can store their wealth (aka "liquidity"), such as gold, cryptocurrency, or real estate.

So why buy real estate during inflation? The simplest answer is that it's an asset that retains its value even during inflation periods. That being said, when it comes to housing prices nationally and locally, there are many factors besides inflation to consider besides just property values. From recent history, mortgage rates historically are low even today, compared to the past. You can see this chart above which shows the interest rates going back to 1971 for a traditional 30-year fixed mortgage. Generally speaking, mortgage rates are still at historic lows across all fixed-rate products.

Even though the stock market has had its ups and downs, real estate has historically been a good investment. Furthermore, mortgage rates are still at historically low levels, which makes now an ideal time to buy.