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The Good Stewards Podcast: Has the Mortgage Industry Been Impacted By Covid-19?

4/29/2020

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On this episode of The Good Stewards Podcast, we are joined by mortgage broker Matt Boytz to ask the all important question: What is the lending environment right now with Coronavirus and the economic lockdown? Have banks stopped lending? Are rates crazy low? Are the terms and underwriting hard? We all do our best to answer those questions:
Matt Boytz is a mortgage broker in Eugene, Oregon who we have worked with a lot. If you live in Oregon and are interested in getting a mortgage, reach out to him at [email protected].

Episode 20: 
A "Wholetale" Example
Episode 21: A Guide to Partnerships
Episode 22: Property Insurance
Episode 23: Myths of Real Estate
Episode 24: What the Pandemic Means
Episode 25: Investing in a Pandemic
Episode 26: How Covid-19 is Similar and Different to 2008
Episode 27: Building a Business
Episode 28: Are Real Estate Values Changing?
Episode 29: How we Got April Rents to Match February
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New BiggerPockets Article: What to Do with a Rental Property That Won't Cash Flow

4/28/2020

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My newest article for BiggerPockets is up, which asks the simple question: "What to do with a dud?" So what's the first step? Well, the first step is to step back and ask a few dispassionate questions.
The first thing to do in such a situation is to take the emotion out of it. Who cares if you feel ashamed of a bad purchase and think you should dump it no matter the cost? Or who cares if you really love the property and feel like you should keep it no matter what?

In business, we need to think calmly and rationally. So, we start with the dispassionate questions:

1. Does the property actually not cash flow?
2. Is it temporary?
3. Is it fixable?
4. Is it tolerable?
Once you've done that, you can ask what should be done, which requires three more questions:
  1. 1. Can you refinance your way to cash flow?
  2. 2. Is there big upside potential?
  3. 3. Should you sell?
The article walks you through each of these questions and should help you make the best decision given your situation with whatever "dud" you're dealing with. Check it out!
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I Talk Real Estate and Economics while Getting Buzzed with Alex Felice and Russell Brazil as we Talk Real Estate and Economics

4/27/2020

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Pretty much exactly what the title makes it sound like. Except, we do it for four hours! And we talk about politics, business and history as well. And Beth Traverso stops by to join us around hour two. Check it out, it was a lot of fun and I think you'll enjoy it!
Yeah, I know, I left my microphone and video camera at the office so I had to use the computer's built-in ones, which leave a bit to be desired. It's the content that counts though, so it's all good.
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The Good Stewards Podcast: How We Got April Rents To Match February

4/24/2020

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Will tenants pay their rent in April? One Wall Street Journal article said only one third of apartment renters paid in April. This appears sensational to me as that's not what I've been hearing. But we were just shy of March and actually exceeding our February rent (thus far at least). On this episode of The Good Stewards Podcast, we go into our screening and property management techniques that allow us to maintain high economic occupancy, even during crises.
Episode 19: Hiring and Firing
Episode 20: A "Wholetale" Example
Episode 21: A Guide to Partnerships
Episode 22: Property Insurance
Episode 23: Myths of Real Estate
Episode 24: What the Pandemic Means
Episode 25: Investing in a Pandemic
Episode 26: How Covid-19 is Similar and Different to 2008
Episode 27: Building a Business
Episode 28: Are Real Estate Values Changing?
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The US Media is Beneath Contempt: Russian Bounties Edition

4/23/2020

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So remember that BS story about "Russian bounties" on US troops in Afghanistan? Well, turns out it was BS. Who could have seen that coming?
The Biden administration Thursday said it didn’t have solid intelligence that Russia had offered bounties to Afghan militants to kill U.S. troops, reports that last summer shook up U.S.-Russia relations, increased tensions between the U.S. and the Taliban during a troop drawdown and prompted bipartisan condemnation over the Trump administration’s inaction.
And of course this all happened when Trump was trying to draw down troops in Afghanistan. What a coinicdence! 

Now that Biden istrying to beat the clock before Afghanistan becomes our first 20 year war, it's OK to admit it was "low confidence."

But let's look back at how the US media behaved with this "low confidence" story, shall we?

SUPERCUT:

A look back on how cable news went all in on the discredited Russian bounties story. pic.twitter.com/QaG9xAqiuR

— Daily Caller (@DailyCaller) April 15, 2021
I'll remind you that these are the clowns calling everyone outside of the mainstream liberal discourse a "conspiracy theorists."

Speaking of which, remember that Hunter Biden laptop that was an obvious Russian disinformation campaign/conspiracy theory? Well, neither Joe Biden nor Hunter Biden ever denied it and now Hunter Biden even said it "certainly" could be his in a long, disjointed answer that sounds like what someone says when they're trying to deflect the obvious truth. 

Worry not mainstream Left, a bunch of former spooks will, without evidence, claim its "Russian disinformation" and the big tech platforms will ban sharing the link and lock The New York Post out of its acocunt. Well, aside by the lack of denials and the question of how exactly Russian hackers put together tens of thousands of texts, emails and I guess photoshopped thousands of pictures, John Ratcliffe, Trump's Director of National Intelligence through cold water on that "Russian disinformation" nonsense,
“To your point earlier about his book tour and the things that he doesn’t remember over the last four years, again, there was an FBI investigation ongoing at the time, before the election. It was Hunter Biden’s laptop. The things on that laptop that the FBI and the Department of Justice have — those are real."
The media and the big tech companies are out of control and just shilling for the establishment. Something has got to bring them in line.
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Introducing The Real Estate Brothers: How to Positively Resolve Tenant Disputes

4/23/2020

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My brother Phillip and I have launched a Youtube channel that we will post videos on real estate investment and property management in particular. We'll try to keep them between five and 15 minutes, but I think these will be really helpful for new and even seasoned investors and managers.

In our first ever video for "The Real Estate Brothers" Youtube channel, we discuss how to positively resolve tenant disputes. The key is that there is always an enemy, but that enemy is never you and it is never them. Check it out!
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New BiggerPockets Article: Buy or Rent in 2020? Top Counties Where It’s More Affordable to Buy vs. Rent (for Now!)

4/22/2020

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My newest article for BiggerPockets is up. And although it was written before the Coronavirus crisis, it still has some very interesting information.

The article is based on a study from ATTOM Data Solutions that found that "owning a house was actually a more affordable option than renting in 53 percent of U.S. housing markets." Now that probably has changed a bit after Coronavirus, but it's still phenomenal. Here's how they did it,
ATTOM looked at the 50th percentile average for three-bedroom properties from the Department of Housing and Urban Development, the second quarter of 2019 average weekly wages from the Bureau of Labor Statistics, and the January to November 2019 home price data from publicly recorded sales deeds in 855 counties nationwide. And contrary to popular wisdom, ATTOM found that in 455 of those 855 counties, owning a three-bedroom home was more affordable than renting one
The article goes into much more detail on the study, so check it out.
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Oil Price Chaos

4/21/2020

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A few weeks ago, I pointed out an article that highlighted a potential problem that would have never crossed my mind: "The world could soon run out of space to store oil. That may plunge prices below zero."

Now it appears that problem may be coming to pass.
U.S. crude prices dropped more than 100% and turned negative for the first time in history on Monday as traders continue to fret over a slump in demand due to the coronavirus pandemic. The price of the nearest oil futures contract, which expires Tuesday, was the hardest hit, detaching from later month futures contracts with a drop of more than 100%.
Just today I saw the price of a gallon of gasoline at $1.51, which is less than half the price it was back in 2003!

Some oil is trading negative right now.
West Texas Intermediate crude for May delivery tanked more than 120% to turn negative for the first time in history. WTI traded at negative $3.70 per barrel. Meanwhile international benchmark, Brent crude, which has already rolled to the June contract, traded 8% lower at $25.83 per barrel. The June WTI contract, which expires on May 19, fell about 12% to $22.06 per barrel. The July contract was roughly 5% lower at $28 per barrel.
And thus we get to the "running out of space" problem that would have seemed inconceivable back in February.
With demand at near-paralysis, oil and fuel tanks around the world are close to brimming... Global oil storage is “rapidly filling – exceeding 70% and approaching operating max,” Steve Puckett, executive chairman of TRI-ZEN International, an energy consultancy, told CNBC earlier this month.
I guess at that point they would have to fire sell it. Good for consumers, but it would likely throw the whole financial system into chaos. And by that, I mean even more chaos than it is already in. 
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New BiggerPockets Article: Will Coronavirus Kill the BRRRR Method?

4/20/2020

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My most recent article for BiggerPockets picks up on the same theme as my last one; namely that cash reserves are essential for any business and particularly for real estate investors. 

This one asks a question I've seen stated as an assertion in several places: Will the Coronavirus kill the BRRRR method? (For those who don't remember, the BRRRR Method is the Buy, Rehab, Rent, Refinance, Repeat method of real estate investment. )

The answer is no. That being said, it's a little more complicated than that as some have taken the BRRRR method to mean simply buying as much as possible and overleveraging as much as possible. As I note in the article,
Overleveraging is not part of the BRRRR strategy and never has been. Yes, plenty of investors have overleveraged before and many who have done so are likely in dire straits. Perhaps such investors thought they were doing the BRRRR method, but they were most definitely not...
​
Talk of 10X growth and the like are great with many things such as productivity and efficiency, but it is something to be cautious with in regard to business growth. Quick growth often follows the 'house of cards' model where a gust of wind (such as coronavirus) will knock it down. Rapid growth rarely comes with the systems necessary to sustain such growth and also often comes with way too much debt.
Check it out!
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The Good Stewards Podcast: Are Real Estate Values Changing?

4/17/2020

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So we've gone over property management and investing in this pandemic, but we've yet to dive into what is happening to real estate prices in this uncertain market. On this episode of The Good Stewards Podcast, we dive into that critical question. A must listen for real estate investors!
Episode 18: HELOC's
Episode 19: Hiring and Firing
Episode 20: A "Wholetale" Example
Episode 21: A Guide to Partnerships
Episode 22: Property Insurance
Episode 23: Myths of Real Estate
Episode 24: What the Pandemic Means
Episode 25: Investing in a Pandemic
Episode 26: How Covid-19 is Similar and Different to 2008
Episode 27: Building a Business
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    Andrew Syrios

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