514: BiggerNews, October: How Small Landlords Can Beat the Hedge Funds

Once the housing market started to slide in 2007, smart investors began buying, and waiting, for rock-bottom prices to kick in. Investors were buying homes in some of the best markets for dimes on the dollar, and have seen massive profits whether keeping them as buy-and-hold rentals, BRRRR deals, or flips. While small investors started buying a couple of houses a year, institutional investors were doing far, far more. Private equity funds, along with REITs and hedge funds knew that foreclosed homes were a steal, and their economies of scale made it even easier to turn these financially mismanaged properties into appreciation and cash flow kings. As institutional investors began fixing up these homes, listing them for rent, and later selling them, the entire market moved in an upward direction. Now, first-time homebuyers are competing with these economic powerhouses to lock down their first primary residence or rental property. A man who has been covering this topic for years is The Wall Street Journal's, Ryan Dezember. Ryan has a keen understanding of what influences the housing market as a whole, why institutional investors are making the moves they are, and what this means for small mom-and-pop landlords. Dave Meyer also joins David Greene on this episode to discuss the ways small landlords can beat Wall Street at their own game. In This Episode We Cover: Why home prices dropped to the lowest point in 2011 How the pandemic gave institutional investors more buying power Who are the “wall street buyers” that are buying thousands of single-family homes? Why you should “find the tenant” before finding your next property The “carbon monoxide” of investing that most investors aren't paying attention to How institutional investors use economies of scale to rapidly rehab homes What small investors can do to beat institutional investors at the closing table And So Much More! Links from the Show BiggerPockets Forums BiggerPockets Youtube Channel BiggerPockets Conference 2021 Blackstone Zillow Redfin BiggerPockets Insights BiggerPockets Show 515 Check the full show notes here: https://biggerpockets.com/show514

Episode 514 of the BiggerPockets Real Estate Podcast podcast, hosted by BiggerPockets, titled "514: BiggerNews, October: How Small Landlords Can Beat the Hedge Funds" was published on October 5, 2021 and runs 73 minutes.

October 5, 2021 ·73m · BiggerPockets Real Estate Podcast

Summary

Once the housing market started to slide in 2007, smart investors began buying, and waiting, for rock-bottom prices to kick in. Investors were buying homes in some of the best markets for dimes on the dollar, and have seen massive profits whether keeping them as buy-and-hold rentals, BRRRR deals, or flips. While small investors started buying a couple of houses a year, institutional investors were doing far, far more. Private equity funds, along with REITs and hedge funds knew that foreclosed homes were a steal, and their economies of scale made it even easier to turn these financially mismanaged properties into appreciation and cash flow kings. As institutional investors began fixing up these homes, listing them for rent, and later selling them, the entire market moved in an upward direction. Now, first-time homebuyers are competing with these economic powerhouses to lock down their first primary residence or rental property. A man who has been covering this topic for years is The Wall Street Journal's, Ryan Dezember. Ryan has a keen understanding of what influences the housing market as a whole, why institutional investors are making the moves they are, and what this means for small mom-and-pop landlords. Dave Meyer also joins David Greene on this episode to discuss the ways small landlords can beat Wall Street at their own game. In This Episode We Cover: Why home prices dropped to the lowest point in 2011 How the pandemic gave institutional investors more buying power Who are the “wall street buyers” that are buying thousands of single-family homes? Why you should “find the tenant” before finding your next property The “carbon monoxide” of investing that most investors aren't paying attention to How institutional investors use economies of scale to rapidly rehab homes What small investors can do to beat institutional investors at the closing table And So Much More! Links from the Show BiggerPockets Forums BiggerPockets Youtube Channel BiggerPockets Conference 2021 Blackstone Zillow Redfin BiggerPockets Insights BiggerPockets Show 515 Check the full show notes here: https://biggerpockets.com/show514 Learn more about your ad choices. Visit megaphone.fm/adchoices

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