BiggerPockets Daily

The annual percentage rate (APR) and interest rate are two critical metrics affecting the cost of borrowing money. Although both figures are related, knowing the difference between interest rates and APR is vital when comparing mortgage offers. For example, learning how APR is calculated could save you thousands of dollars on your home loan.  APR versus interest rate gets confusing because some pe...

President Biden’s proposed Budget for the Fiscal Year 2024 seeks to promote expanded access and improved affordability in healthcare and education while cutting taxes for low-income families and shrinking the deficit, but the proposed funding comes from increasing taxes on wealthy families and eliminating an important tax break for real estate investors, which Republicans will likely reject outrig...

A low-income home loan could be your answer to homeownership if you have below-average earnings. Unfortunately, insufficient income is why banks and lenders reject conventional mortgage applications. However, several home loan programs have great financing options to make purchasing a home possible for low-income families.  Let’s face it—buying a home is tough at the best of times. Even with a suf...

Any tax person will tell you that you should save a receipt for every business-related purchase, no matter how small. Even so, many landlords are not keeping a paper trail of what’s often their most significant form of monthly income: rent.  A rent receipt is a simple document that shows that your tenant is paying rent. In this article, we’ll walk you through why you need a rent receipt, how to fi...

Commercial real estate is facing stress from several directions. The primary stress is rising interest rates, which are putting upward pressure on cap rates (which pushes down asset values), making refinancing costs increasingly difficult and expensive to come by. But there is another risk arising, specifically to the multifamily niche of commercial real estate: oversupply. Recent data suggests th...

Net operating income (NOI) is a vital real estate profitability metric to help you calculate an investment property’s potential revenue. The NOI provides valuable data to determine whether to purchase a property, predict potential rental income, or raise rents to boost cash flow. The NOI formula is straightforward. You deduct the operating expenses from the gross operating income (GOI) to calculat...

Do you ever wonder how many mortgages you can have at once? In 2009, Fannie Mae updated its same borrower policy, amending the maximum number of conventional mortgages any one person can have from four to 10. However, qualifying and finding a lending institution that’ll give you more than four can be difficult.  In this post, we’ll discuss what’s required to have multiple mortgages (including an e...

It’s a nightmare scenario for any landlord. The lease expires, and your tenant doesn’t move out on time. You are then faced with the complicated decision of legally removing the tenant. After all, you cannot change the locks, cut off utilities, harass them, or do a self-help eviction. While the tenant won’t leave the rental unit, you are probably not getting monthly rent payments.  Unfortunately,...

Artificial intelligence has been around for decades, but it seemed a lot more innocuous when it was just playing checkers. ChatGPT, an AI language processing tool developed by OpenAI, can pass the bar exam. We’ve all seen and read enough science fiction material to feel a twinge of fear that robots may be coming for our jobs. But what’s more likely to happen over the coming decade is that AI will...

Real estate agent earnings vary widely based on numerous factors, including experience, location, and niche. Some agents struggle to get by while others earn a comfortable living.  However, some constants exist in how real estate agents work and get paid. For example, most real estate agents work on commission, which they earn at the end of a transaction. If you’re looking to become an agent or ar...

A condo can be an attractive choice when purchasing an investment property, especially for first-time investors. They generally cost less than single-family homes and can be easier to maintain. However, whether or not they’re a good investment depends on several factors. Ready to learn more? Read on as we uncover the answers to common questions about investing in condos.  Learn more about your ad...

Managing rental properties is a complex task, especially when it comes to keeping track of which tenants are paying on time and who has outstanding balances. If you’re not maintaining an accurate paper trail and organizing your finances, your investment property can quickly become your greatest nightmare. A rent ledger is invaluable for property managers, landlords, and accountants, as it makes yo...

Real estate properties listed as “off-market” are not publicly listed for sale. However, that does not mean that you cannot buy off-market properties. You may discover a great and lucrative real estate investment if you know how to find off-market properties.  What is the best way to find off-market sales? Are there advantages to searching off-market property sales for investment opportunities? Wh...

A wraparound mortgage is a financial option for real estate investors and traditional home buyers. In many cases, it can be a more desirable alternative to other non-conventional funding sources and can benefit both the buyer and seller. However, wraparound mortgages also come with their own set of risks, so you should be well-informed before getting into one. In this article, we’ll explain what a...

There are hundreds—if not thousands—of books on real estate, personal finance, personal development, and motivation. It’s likely you’ve heard of many of them, whether you read about them in an article or heard about them during a podcast. But what are the best real estate books for beginners? Successful real estate investors and entrepreneurs recommend everything from How to Win Friends and Influe...

There are hundreds—if not thousands—of books on real estate, personal finance, personal development, and motivation. It’s likely you’ve heard of many of them, whether you read about them in an article or heard about them during a podcast. But what are the best real estate books for beginners? Successful real estate investors and entrepreneurs recommend everything from How to Win Friends and Influe...

Bonus depreciation lets you maximize your return and minimize your tax liabilities. With bonus depreciation, you can deduct a large portion of the cost of qualifying assets during the year they were placed in service.  Unfortunately, understanding bonus depreciation, how it works, and whether it’s right for your real estate investment strategy is no small feat—but that’s where we come in.  In this...

Choosing the right real estate investment to add to your portfolio requires ample research and extensive knowledge about the market that you’re investing in. A poor decision can result in your portfolio dropping substantially in value. When markets start to dip, and the economy enters a recession, selecting the best investment becomes even more important.  The most rewarding investments are ones t...

Commingling refers to the combining or intermingling of funds that may be coming from various sources or earmarked for different purposes. As a real estate investor, commingling can help diversify your portfolio and expand your potential. As a property owner, you must clearly understand where your funds are coming from and what they’re for so that you use them appropriately. In this post, we’ll ex...

Selling your house without a Realtor may not be as complicated as you think. Although more work is involved, selling without the help of a real estate agent could be a smart financial move. You could save money on the agent fee, have more control over the sale process, and, in some cases, sell your home faster.  However, before you put a “For Sale by Owner” sign up in your front yard, it’s wise to...

I know what you’re thinking. This guy is trying to stretch the SVB headlines into a multifamily real estate investing story. It must be clickbait.  I get it. But I hope you’ll give me a moment to tell you two ways the SVB and other major bank failures could potentially benefit multifamily syndicators and investors. Then you can decide if there’s any substance to my headline.  Like all of us, I wat...

Rental properties are a fantastic source of income as long as your tenants pay rent. Unfortunately, even the strictest tenant screenings are imperfect, and even the most responsible renters can be hit with unpredictable, life-altering circumstances. That’s when rent guarantee insurance comes in handy.  Rent guarantee insurance provides financial protection if your tenants fail to pay rent. In the...

It goes without saying that investors of all stripes have been spooked by the recent collapse of Silicon Valley Bank and Signature Bank, as well as the Swiss National Bank facilitating UBS’ $3.2 billion purchase of Credit Suisse, First Republic Bank’s stock falling more than 70% and bank stocks, on the whole, being hammered. Many seem to think a 2008-like financial crisis is beginning.  While it’s...

Are you listening to the advice of the world’s greatest investors? More importantly, are you acting on that advice?  If it isn’t clear already, the latest swing banking failures show that risky bets are capable of producing devasting results. Protecting your money should be first and foremost on your mind. So with that in mind, I’ll ask again. Are you listening and acting on the strongest advice o...

A square foot is a measured amount of flat space that covers an area. Its measurement is one foot x one foot (or 12 inches * 12 inches, equaling 144 square inches), meaning that if you have a 100-square-foot bedroom, you can divide it into 100 equal squares. Regardless of your reasoning, you need to know how to calculate square feet down to the foot. Being off by even a little bit can cost you hun...