Buying Rental Property

July 25, 2017

Meet your New Landlord: Wall Street

The Backstory to Now…. Clients who hire me to coach them before and during their first investment property transaction ask how and when and where all the money came from Wall Street to buy so many thousands of rental homes.  Answering them takes patience and detailed explanations as this is the first time in history such a platform of investment has occurred on such a massive scale. This WSJ article does a solid job of discussing the backstory, the history, and leads with some hints about where the industry of property leasing is headed.  After all, big investors have plopped $40,000,000,000 into buying 200,000 houses as rentals. Some questions for you to ponder as you read the article: As a small, private investor:  How can you compete with these powerhouse-landlords on pricing, marketing, and profit margins? As a property manager:  What lessons can you take away from the article on […]
April 25, 2017

If you are in the real estate business and don’t own rental properties….smh.

I was chatting with a lady at a local association meeting who was nervous about her retirement coming quickly in less than 10 years.  She was, as many folks just like her, not prepared financially to put up her spurs and sip on a fruity beverage on a beach.  After lots of dialogue, it hit me like a ton of bricks. This person owned zero real estate besides her home.  And she is a licensed REALTOR.   Why would a person in the industry not take advantage of the unique opportunity they have to increase their wealth?  It boiled down to ignorance and fear for her. Literally sat there shaking my damn head…. So, the question on the table is this: Should you invest in rental properties for income when you retire? My short answer is this: 90% of you in this audience probably fall into the damn ignorant stupid foolish category if you […]
January 4, 2017

Luxury Apartment Boom–is it going Bust?

If you own or are considering owning high end apartments as rental properties, do yourself a favor and check out this article from the WSJ. When a reporter uses vocabulary including “rough conditions” and “slash rents” and “deep concessions” and “glut of supply” ALL in the same sentence, that’s a not-so-subtle hint of the valuable information in the news article. Luxury Apartment Boom Looks Set to Fizzle in 2017 – WSJ Certainly, every market segment from first-time renters to move-up renters to empty-nesters has an ebb and flow to it.  It’s capitalism and the forces Adam Smith described centuries ago. What you do with this information is the critical point and take away. Depending on your current interests, this could also be a buying opportunity for some savvy investors to pick up units from distressed landlords. As always, here’s to your pursuit of Financial Freedom!    
October 31, 2016

Unless you’re already a Millionaire you might want to read this….

Forbes recently published a concise article on how real estate investing can help you become a Millionaire. Yes, there are plenty of folks making this claim, but I do like how this author augments it with counterarguments that it’s not for everyone.  In other words, it is not easy.  Doable, but not easy. Here’s the link to the article: http://www.forbes.com/sites/brandonturner/2016/10/18/4-things-you-need-to-become-a-millionaire-through-real-estate-investing/#119bf80732b8 (Sidenote:  If you’ve been a student in any of my courses for the Indiana Association of REALTORS (IAR) continuing education classes, MANY of his bullet points will look extremely familiar as we covered these in granular detail.)  
August 4, 2016

Is the sky falling on asset prices or should we just wring the neck of that screaming chicken to shut him up?

“The U.S. Treasury’s Office of Financial Research noted this week that stocks have reached today’s valuations “only ahead of the three largest equity market declines in the last century.” Certainly NOT what I wanted to read while sipping my first cup of coffee this morning.  WTF??? But….as in all good thought-provoking pieces it’s valuable. Yes, a bit of a butt-puckering scary article but still valuable. Here’s why I think it’s valuable: If asset prices plummet, we will see opportunities to pick up new properties from distress situations.  So perhaps keep some of your powder dry to seize these rare market fluctuations. It’s time to re-evaluate each of the properties in your portfolio in a kind of stress-test scenario.  For example, do you know what the Break Even rent value is for each of your properties?  (Hint:  If you don’t know how to calculate this, send me a message and I’ll walk you […]
April 12, 2016

Liar Loans making a Comeback….future opportunity to buy more Rental units?

Have you seen this movie yet? If not, don’t worry….you will soon possibly be re-living it in just a few years. According to this WSJ article, similar loans are coming back around. (ADA Moment here:  Did ANYONE on Wall Street or in the lending world learn a damn thing since 2008 real estate meltdown?) Sigh….. Ok, now that I have that out of my system, here’s the link to read the entire article.  Liar Loans making a comeback Here’s my thoughts on this situation: Keep some of your powder dry.  With the reintroduction of these types of higher risk loans, this implies there will be good opportunities in the next 3-5 years to pick up more distressed properties. Greed is good….for you and I to take advantage of others hubris and ignorance.  Just make sure you don’t get too greedy.  Pigs get fat–hogs get slaughtered! Take stock of your current […]
March 9, 2016

Housing Market Recovery–Split like Charles Dickens classic….

Today’s WSJ published an article about the US Housing Market recovery diverging into two recoveries.  Reminds me of the Dickens classic a bit…. Essentially, lower priced inventories are vanishing fast while inventory on the higher end piles up.  While on the surface this might seem like “Economics 101” (and it does reflect some of that light) there is more to the story, especially as it relates to your rental portfolio positions and future purchases. WSJ Housing Market Takes on Split Levels 030816. Here’s some of the highlights from the article: On the low end, after a slow recovery from the housing bust, first-time buyers are finally returning to the market, bolstered by still-cheap mortgages. But after years of little new construction, inventory is still tight. High-end buyers, meanwhile, are more sensitive to the stock market’s struggles this year.           So…..how does this information impact your rental […]
January 30, 2016

Foreclosure Report Q4 2015 for Indianapolis areas

The most recent numbers for Q4 2015 foreclosures are published.  Here’s a link to the full report:  MIBOR_FSS_2015-Q4 If you’ve been having trouble finding that ‘value-add’ property, this report will give you the insights…. As always, I’m here to assist if you need help. Dan Baldini is a leasing and property management coach. He helps Landlords and Property Managers streamline their rental operations to maximize earnings, so they can achieve Financial Freedom faster.  He is also the Founder of Polaris Real Estate & Polaris Property Management, LLC and has been an Adjunct Professor in the College of Business Finance Department at Butler University in Indianapolis where he taught Real Estate Investing. He is an active real estate investor himself, owning and managing a portfolio of investment properties in the Indianapolis markets.  He has been active in real estate since 1996 with a specific focus on rentals and investment properties. Dan also is a licensed real estate Continuing Education […]
October 9, 2015

Use your rentals to help pay for kids college

Did you know there are options to use rental properties to help pay for your kid’s education? Here’s an article describing the IN’s/Out’s on exactly this strategy: Using Rental Property for College Education Expenses As always, if we can assist, call or click. Dan Baldini is the Founder of Polaris Real Estate & Polaris Property Management, LLC and has been an Adjunct Professor in the College of Business Finance Department at Butler University in Indianapolis where he taught Real Estate Investing. Dan focuses his practice on the residential real estate markets including Indianapolis, Carmel, Zionsville, Fishers and other surrounding areas. Dan continually seeks out new resources for Team training and education in order to keep all the Team members skills on the leading edge of real estate best practices. He is an active real estate investor himself, owning and managing a portfolio of investment properties in the Indianapolis markets. A resident of the Northside area since 1979, Dan […]
October 2, 2015

Millenials ARE INDEED moving to suburbs….and the impact on mass transit plans

Over the past few years, State and city officials have been GaGa over introducing enormous plans for mass transit to Indiana and Indianapolis, specifically.  The  most recent projections I’ve read include the estimate of approximately $1.1 Billion over the next 10 years. The urgency behind such a huge undertaking?  The theory that Millennials aren’t moving to the suburbs, but only want urban areas to reside and they demand mass transit, otherwise they will not relocate to Indy. In other words, it’s about trying to attract them to Indianapolis for high paying jobs. Uhhh…..only one small tiny problem with their hypothesis:  they have zero quantitative data about this projected human behavior pattern on which they are gambling tax payer money. Today’s Wall Street Journal doesn’t help their argument either.  Case in point:  Millennials are the FASTEST GROWING class of car buyers.  Here’s the entire article: Somehow, their choo-choo train idea seems to […]