With so many people wondering what the real estate market is going to do next, every day I’m asked whether the market is going to crash, when it’s going to crash, and what to do when it crashes. I get why the market has so many people speculating. If you’re a newer real estate investor, […]
There’s no denying the necessity of being online for your business. Email marketing strategies and a strong presence on social media are basic requirements for any business that wants to thrive, but what about the role of meeting face to face? We’re emerging from a long period where meeting in person was basically impossible, and […]
How to Invest During Periods of High Inflation As any of you know who’ve been to the grocery store or the gas pump recently, inflation is here and it’s affecting the price of almost everything. With rising costs, all of us have had the experience of not being able to buy the same items we […]
For the past decade, if you bought a house, you could count on its value growing each year. If you owned a rental property, you could also count on the market value of the rent increasing each year. Thanks to the economy growing each year, you didn’t really have to know what you were doing…...
Over one thousand investors, CEOs, entrepreneurs, and people striving for financial freedom converged at the Westin Kierland resort in Scottsdale, Arizona, last weekend for Limitless: The Financial Freedom Expo. Attendees experienced over 50 speakers and over 60 exhibitors at a fun, dynamic, and informative event where new friendships were forged, and people got to soak…...
If you’re reading this, you’re probably already closed your first deal or are making that a priority. One way that some investors give themselves an edge is by obtaining a real estate license. While the requirements vary from state to state, obtaining a real estate license usually requires taking a class and passing an exam. […]
The housing market may seem erratic and unpredictable, but the fact is, it always conforms to the same pattern of housing cycles that we’ve been seeing for almost 200 years. Even today, every housing cycle is comprised of four phases: recovery, expansion, hyper-supply, and recession. The duration of each phase of the housing cycle is…...
One of the best things about my job is that I’m constantly meeting new people. Frequently, I’ll meet people who haven’t bought their first rental property yet. Typically, they’ll introduce themselves and then follow up with a comment like, “I’m not really an investor, but…” And then we’ll proceed to have a conversation where […]
A lot of you have asked what resources and market research tools Ken uses in order to stay current, so here they are. Don’t get discouraged if you don’t understand everything you read. Education is a process that rewards persistence. Ken’s Favorite Resources Yield Pro Yield Pro is a national magazine with a focus on […]
If you’ve tried to buy a house recently, you know how stiff the competition is to get your foot in the door. With bidding wars, all cash offers, and homes going into escrow almost the instant that a “for sale” sign gets placed on the front lawn, buyers have been acting with lightning speed. In […]
Are we heading into a depression? Are we heading into another depression like the 2008 housing crash? Join Ken McElroy and Danille in a discussion about where the future of the US economy is heading.
The Value of Debt The personal finance community has very different views of debt. Some believe debt is irresponsible and should be avoided. Others believe that debt is a powerful wealth-building tool that should be leveraged. Personally, I love debt, but not all debt. Certain debt. In my opinion, you can’t love or hate debt […]
How to House Hack Your Way to Real Estate Success If you are someone who feels like owning real estate is out of reach, then you need to consider house hacking. House hacking is a great way to build a real estate portfolio. Not only do you get homeowner interest rates, but you also can […]
The home buying process can be an exciting time, but there are some important things to know, like what documents you’ll need to provide, who pays for which closing costs, and what’s involved in your due diligence. So let’s test your knowledge on the buying process.
College towns offer excellent investment opportunities, but a lot of investors are apprehensive about the thought of college students as tenants. While it’s true that college students aren’t necessarily the tidiest demographic, the fear of out-of-control college students isn’t a reason to overlook an opportunity for a cash-flowing investment.
If you have turned on a television in the last two months you have probably heard the word inflation being mentioned. Inflation is basically a tax on the poor. These small but steady increases are making it harder for those that live paycheck to paycheck to get by. Yet, there is a way to make […]
“Be Content with What You Have, but Never Who You Are” It is that time of the year, the holidays. During this time specifically, I think we go through the motions and state how grateful or blessed we are for our friends, family, and our prosperity. Yet, I think a lot of us throw the […]
Qualifying as a Real Estate Professional By default, as a real estate investor, you’re treated as a Passive Investor, which means that your deductions related to real estate may be limited. If you can, you want to get into the Real Estate Professional category so you can maximize your deductions when it comes to tax […]
Whether it’s your first deal or your hundredth, there are some things that you need to avoid when syndicating for your investments. These mistakes can range from being a major headache to a legal issue, so it’s important to keep these mistakes in mind and avoid them at all costs.
Did you know that one of the benefits of owning real estate is that some of the income you generate can be taxed at a lower rate? This is called a Capital Gains Tax, and it applies to assets that you hold for more than one year. Currently, the capital gains rate is about 20% depending on the scenario.
There are four major ways that you can benefit from these rates.
When syndicating for a deal, you have three options: register the deal with the SEC, find exemptions for the deal, or it’s illegal. 506B and 506C are the two most common exemptions for syndications, so let’s take a deep dive into the differences between the two and figure out which exemption is the best for […]
La persona promedio obtiene su flujo de efectivo de un trabajo de nueve a cinco. Este escenario es exactamente lo contrario de ser financieramente libre, porque el flujo de efectivo proviene de depender de un trabajo al que tiene que ir todos los días para recibir un pago. La libertad financiera se logra mediante la […]
How are people investing in real estate without owning any property? It’s through Real Estate Investment Trusts (REITs). These are companies that own, operate, or finance income-generating real estate. People who invest in REITs can reap the benefits of inflation and increasing rents, but there are a few things you should know about REITs to maximize your investment.
With inflation and the cost of rent continually going up, you hear a lot of politicians today talk about rent control. Rent control limits the amount you can raise the rent on your tenants annually. When you get a new tenant it typically resets and you can once again charge market rent. Rent control sounds […]
In evaluating new acquisitions and ground-up construction deals, my team and I consider what types of returns we can expect and generally frame them in terms of 4 types, which I call “The ABCD Matrix.” Enter your information below to understand what The ABCD Matrix is and how it can help you on your investing journey.
Compromise is important. To work with a team or within a company requires compromise. In fact, that is why our culture at MC Companies is so highly rated. Ross and I are willing to work with our employees to get things done. Even in my personal life with my wife and kids, I am constantly compromising […]
These six types of real estate markets are what I call “sleeper” real estate. We spend a lot of time focused on real estate as it pertains to housing. While that’s certainly a huge part of the real estate market, you may not know there are a lot of ways to invest in real estate […]
Are you a winner, a worker, or a victim?
That all depends on your mindset. In this download, I break down the “be, do, have” concepts and help you find the path to success.
When new investors get started, they want to do everything themselves. They are either concerned about the cost or they feel they are not at the point where they need a team. You need a team from the beginning. It is the first step.
Do you ever wonder why the education system doesn’t teach you how money works? Most people assume the system just needs to be updated to include this part of the curriculum, but the truth is they don’t teach you because they don’t want you to know. Let me break it down, the general education system […]
The housing market may seem unpredictable, but the fact is, housing cycles always conform to the same patterns we’ve been seeing for almost 200 years. Each housing cycle is comprised of four phases: recovery, expansion, hyper-supply, and recession. For real estate investors, knowing how to respond to each of these phases will empower you to […]
I celebrated my birthday this past weekend with my family and close friends. In my downtime, I took some time to reflect on the year and put together some real estate and life lessons I have learned throughout my younger and now more wiser years. I hope you enjoy my top ten and make sure […]
Let me tell you a story. One evening I was looking through viewer emails and one particular email caught my eye. It wasn’t someone looking for advice. It wasn’t someone who wanted to invest with me. It was a 13-year old kid named Steven. He wrote me a lengthy story about how he wasn’t doing […]
How to Invest Your Money in Your 20s (with Money Honey Rachel) How DO you get started with real estate in your 20s? Do you REALLY need lots of money to get started? Join Ken McElroy and Rachel Richards, author of Money Honey, in a discussion about how to be a real estate investor your […]
If you’re not sure where your money is going, it’s time for a budget. A defined plan can help give you more control over how much and when to spend. With a budget, you can not only keep track of where your money is going but also have more control over the process. Without a […]
As many of you know I spoke this weekend in Miami for the Rebel Capitalist event hosted by George Gammon. When deciding what to speak about I took into account George’s saying of “End the Fed.” Sure, that would be great, but it’s not going to happen anytime soon. However, what if instead of ending […]
I was just asked at a charity event the other night if I was still running MC Companies. I replied, “Yes I am.” while laughing. I will tell you, I am pretty busy running MC Companies while also launching the learning platform KenMcElroy.com. So why did I start this learning platform? That is a great question […]
Hidden Forces in the Housing Market… As many of you are starting to realize (myself included) this isn’t your typical housing market bubble and crash. We have a loss of jobs, many people in forbearance, and many tenants and landlords behind on payments. Yet, the housing market is on fire. Why is this? Because the […]
If you’ve been considering an investment in real estate or buying a home, you may have found yourself looking at short sale listings. But what exactly is a short sale? A short sale occurs when a lender allows a homeowner to sell their property for less than they owed on the existing mortgage. This process […]
There have been a lot of tax law changes from the new administration, so how you normally structure your tax write offs may not be the best way to do them this calendar year. Today, I am joined by Tom Wheelwright who is a very knowledgeable CPA and we are going to discuss all things […]
While many of the events of last year were unpredictable and unprecedented, we’re now at the time of year when we need to address a very predictable and recurring event: paying your taxes. If you’re a real estate investor, there are numerous deductions you can claim, including some you may not be aware of.
Before I get into the particular deductions, my number one piece of advice is to hire an experienced CPA. While it may be tempting to save some money by doing your own taxes, real estate tax law is extraordinarily complex and you could easily wind up paying more than necessary. It will be well worth your time and money to hire a CPA to make sure you follow the best approaches for your deductions and you take advantage of all of them.
Finding the Right Short Sale Property
If you’ve been considering an investment in real estate or buying a home, you may have found yourself looking at short sale listings. But what exactly is a short sale? A short sale occurs when a lender allows a homeowner to sell their property for less than they owed on the existing mortgage. This process allows the lender and the homeowner to avoid the lengthy and costly foreclosure process. Unlike regular home sales, in a short sale, the lender is actually the one approving the sale
Primary markets as most of you know are suffering. What we are seeing is a lot of secondary markets by the big cities are heating up as the cities cool down. For example, as Washington DC cools, Virginia Beach heats up. Same with San Francisco -> Sacramento and Los Angelis -> Riverside. The truth is, these more expensive cities were already at their tipping point prepandemic. The pandemic only accelerated it.
Real estate investing is going to get a bit trickier and take it from me you want to have a true “expert” leading you in your journey. I wanted to share with you some common mistakes I see investors making when they first start out in real estate.
I see this misconception happen all of the time. “Well my realtor says ____________ about the market.” That blank is always something like “Buy now or you’ll miss out” or “The market won’t go down anytime soon” or my favorite “This isn’t 2008.” Yet, guess what? Realtor’s were saying that in 2008 as well ha.
People often times miss this very important question. They try and measure the cashflow of the future value, or they say they don’t mind feeding it some money each month. To be direct, it is only a good investment if it cashflows based on the rents and expenses of today, not the future rents you think you will get five years from now. Cashflow is the most important thing when deciding on a rental property.
I am going to show you how to look at a Zillow listing and decide if the property is cashflow positive or negative. Obviously, I want you to dig into these numbers and verify the rent and expense numbers, but start with just the basic calculation. If the numbers don’t work on the initial calculation, then it is not worth your time. If the numbers do work, it is time to move into due diligence and verify the rental and expense amounts. FYI in this hot market, most listing don’t work. That is why it is up to you to always look at the new listings and run the numbers daily.
Return to Orchard Canyon follows three family members who are doing their best with what life has handed them. David, one of the protagonists, has recently lost his “secure” formerly lucrative day job when he brings his teenaged daughter to visit his elderly father in David’s hometown of Sedona, Arizona. David is so embarrassed by his job loss that he asks his daughter not to tell his father. Despite David’s worries at the outset, Return to Orchard Canyon is ultimately about transforming your path and using life’s setbacks to discover what you truly want to do
A correction is coming to the real estate market and I expect to see it early next year. Each downturn is very similar to the next. We have high unemployment, and housing prices that are extremely inflated. Yet, people keep asking me, “how can you say it’s going to crash when prices are skyrocketing? If I keep waiting, I’m going to miss out on the buying opportunity!” So let me put a few things into perspective for you. This is a supply and demand issue. That is what inflates and deflates prices: inventory versus demand for housing
If you find yourself saying or thinking, “it won’t happen here,” I need to give you a reality check. Denial is not an investment tool. In fact, you can’t be a successful investor if you don’t understand market cycles. When a correction occurs, it generally happens everywhere in the country. Of course, some areas are affected more than others, but every city and every state is eventually affected.