514: BiggerNews, October: How Small Landlords Can Beat the Hedge Funds 01:16:20

    <p>Once the <strong>housing market started to slide in 2007</strong>, smart investors began buying, and waiting, for rock-bottom prices to kick in. Investors were <strong>buying homes in some of the best markets for dimes on the dollar,</strong> 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, <a href="https://www.biggerpockets.com/blog/impact-institutional-investors"><strong>institutional investors</strong></a> were doing far, far more.</p><p><strong>Private equity funds</strong>, along with <a href="https://www.biggerpockets.com/blog/2013-02-25-reits"><strong>REITs</strong></a> and <strong>hedge funds</strong> knew that foreclosed homes were a steal, and their economies of scale made it even easier to turn these financially mismanaged properties into <a href="https://www.biggerpockets.com/blog/2015-07-21-whataes-important-aecf-appreciation"><strong>appreciation and cash flow</strong></a> 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, <a href="https://store.biggerpockets.com/products/first-time-home-buyer"><strong>first-time homebuyers</strong></a><strong> are competing with these economic powerhouses</strong> to lock down their first primary residence or rental property.</p><p>A man who has been covering this topic for years is The Wall Street Journal's, <a href="https://www.wsj.com/news/author/ryan-dezember"><strong>Ryan Dezember</strong></a>. Ryan has a keen understanding of<strong> what influences the housing market as a whole</strong>, why institutional investors are making the moves they are, and <strong>what this means for small mom-and-pop landlords</strong>. <a href="https://www.instagram.com/thedatadeli/"><strong>Dave Meyer</strong></a> also joins <strong>David Greene</strong> on this episode to discuss the ways small landlords can beat Wall Street at their own game.</p><p>In This Episode We Cover:</p><p><strong>Why home prices dropped </strong>to the lowest point in 2011</p><p>How the pandemic gave institutional investors<strong> more buying power</strong></p><p><strong>Who are the “wall street buyers”</strong> that are buying thousands of single-family homes?</p><p>Why you should<strong> “find the tenant” before finding your next property</strong></p><p>The<strong> “carbon monoxide” of investing</strong> that most investors aren't paying attention to</p><p>How institutional investors use <a href="https://www.biggerpockets.com/blog/2015-08-16-multifamily-myths-economy-scale-doesnt"><strong>economies of scale</strong></a> to rapidly rehab homes</p><p>What<strong> small investors</strong> can do to beat institutional investors at the closing table</p><p>And So Much More!</p><p>Links from the Show</p><p><a href="https://www.biggerpockets.com/forums">BiggerPockets Forums</a></p><p><a href="https://www.biggerpockets.com/youtube">BiggerPockets Youtube Channel</a></p><p><a href="https://www.bpcon2021.com/">BiggerPockets Conference 2021</a></p><p><a href="https://www.blackstone.com/">Blackstone</a></p><p><a href="https://www.zillow.com/">Zillow</a></p><p><a href="https://www.redfin.com/">Redfin</a></p><p><a href="https://biggerpockets.com/insights">BiggerPockets Insights</a></p><p><a href="https://biggerpockets.com/show515">BiggerPockets Show 515</a></p><p>Check the full show notes here: https://biggerpockets.com/show514</p>
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