Hello everyone and Welcome to another

episode of Selling Greenville your

favorite real estate podcast here in

Greenville, South Carolina, I'm your host

as always Stan Mccune I'm a realtor right

here in the Greenville area and if you

need a Greenville realtor you can find

all my contact information in the show

notes I'd be happy to talk to you send

me a text shoot me an email give me a

call I'd be happy to talk to you to

discuss any of your real estate needs

here in Greenville or even outside of

Greenville because I've got a network of

Realtors outside of this Market that I

work with as well so let me know contact

info in the show notes and as always if

you like this show please subscribe to

it please leave a rating leave a review

if you're watching on YouTube like

comment all of those things anything

that you can do it just takes a click or

a press or whatever but that really

encourages me and also gets to show out

to more people which is what I'm trying

to do so please do those things that's

all I ask of you guys today we are

going to talk about rental

portfolios and I've been hearing some

Rumblings within the investor

Community about how there have been more

rental portfolios coming on the market

this year than previous years and

usually, these Rumblings come with a

suggestion or at least a little bit of

an innuendo right that maybe rental

properties aren't performing like they

used to and maybe people can no longer

afford property holding costs like taxes

Insurance Etc or perhaps the holding

costs themselves are increasing as at a

faster rate than rents are and as such

the projected net income of a property

no longer makes sense for the owner I've

been hearing these sorts of

Rumblings and I feel like it's worth

addressing from my perspective right

because I work with a lot of investors

I have over the years had multiple

rental portfolios that I have listed for

different people and I feel like

it's worth addressing what I am seeing

on the ground from my perspective with

all of the people that I'm talking to

rather than there just being this

suggestion this innuendo out there well

H A lot of people are selling off rental

portfolios these days there must be

something wrong not necessarily and

we're going to get into that in just a

second but I want to start by by just

clarifying for those listening or

watching this EP episode what is a

rental portfolio very simply a rental

portfolio isn't a single-family house or

a duplex a rental portfolio would be

multiple properties sold together could

be multiple properties on the same lot

could be perhaps a bunch of condos next

to each other whatever the case may be

multiple properties sold together as one

very

simple now with that in mind I want

to kind of lay some groundwork right

before I address the main concern

that perhaps there are issues in the

rental market that are nefariously

causing landlords and landladies to

have to sell off rental portfolios in

the past they wouldn't have sold off

first off I want to address that

immediate concern right the implication

that we have more portfolios being sold

now than in the past let me start by

saying this that's only true if the past

only goes back to the year 2020 what do

we know about real estate between 2020

and 2022 well we've talked about this

before but as a recap mortgage rates

were absurdly low and the result was

that a lot of properties were bought

up as rentals during that period of time

and needless to say with owners having

really really low rates you know 3% 3

and a half 4% nobody wanted to sell

right we had that stretch from 2020

through roughly mid to the end of 2022

with these low

rates people get properties under a

low rate they don't want to sell and

those who maybe would have normally sold

during that period of time a lot of

those people had an opportunity to then

go and refinance and get an even better

cash flow than they were getting before

and so obviously they don't want to

sell now their property is performing

even better than it was so since the

pandemic nothing has been normal nothing

has been normal since the pandemic

that's a really really important context

but before then rental portfolios

commonly were sold right the fact that

we're seeing more rental portfolios than

we have the past few years is not that

meaningful right we're seeing more

single-family homes on the market than

we did in 2022 and 2021 that's because

inventory back then was absurdly low

and so really it's not that much

different than the single-family Market

when it comes to these rentals

portfolios if we go back roughly 10

years the very first rental properties

that I ever purchased was actually a

a lot of 100 units right that were all

sold by the same seller that were all

listed in MLS imagine if MLS right now

got flooded with a 100-unit rental

portfolio we haven't seen that since

then right that was 10 years ago so we

need to keep that context right if we're

comparing anything to the past 3 to four

years we're not making a fair comparison

because the past 3 to four years have

been extremely weird and that's

primarily as I already said because we

had this artificial period of easy money

right for this roughly three-year period

of time and that artificial period being

three years

that's long enough that it started to

feel real and now people have forgotten

what actual reality feels like right

well guess what we're being reminded of

what real and reality feels like and it

feels like rental portfolios commonly

being sold off so this part of what

we're

experiencing is what we would say

regression to the mean right we're

seeing more rental portfolios and it

feels like a lot in comparison to the

past few years because it is but if we

go back actually historically 5 years 10

years it is following normal trends for

for the Greenville market now I can't

speak to other markets right this is a

Greenville podcast we are talking about

Greenville real estate specifically if

you're listing in from another Market it

might be completely different real

estate is super duper local nothing that

happens here impacts Boise or Austin or

Las Vegas or San Francisco so keep

that in mind if you're an out-of-date

listener know we have a bunch of them

additionally okay with all of that

groundwork I've got some more groundwork

here we need to remember that a lot of

rental portfolios are leveraged with

five-year loans right the 30-year and

15year fixed-rate mortgages that are

essentially government subsidized that a

home buyer can get FHA Loans

conventional loans you can't buy rental

portfolios with those loans right you

could buy in theory a duplex a Triplex

or quadruplex but you couldn't buy a

package of say two duplexes with a

conventional loan the government

doesn't allow that it's not allowed so

you have to go to a actually

a commercial lender typically or a private

lender or perhaps even a hard money

lender with something like that if

you're trying to finance a specialized

loan trying a specialized

portfolio like

that and here's the thing the vast

majority of those types of loans right

because they're high higher risk for the

lender most of those loans are only

going to be 5ye loans they typically are

not going to give you a 10 15 20 30 in

particular a 30-year loan on a portfolio

of rental properties so typically it's

going to be 5year loans and when those

loans come to maturity then decisions

have to be made right the the borrower

has to get a new loan or they have to

pay the old one off or maybe the lender

that they're with credit union

Commercial Bank or whatever maybe they

have a way for them to refinance that in

house but regardless decisions have

to be made once that 5-year term comes

up and guess what any five-year

portfolio loan made in 2018 was due last

year and so I don't know how many

portfolios were sold last year that were

sold due to a loan coming to maturity

but all the way back in 2018 2018 feels

like an eternity ago but there were a

lot of loans made in 2018 any 5-year

loan that was made during that period of

time which would have been most rental

portfolios sold during that time was due

last year any that were purchased in

2019 are due this year so you have to

keep that in mind for some a lot of

these rental portfolios are leveraged

and for some borrowers they have

loans that are coming due this year year

and remember rates if if you if you

bought in 2018 2019 and now you're

trying to refinance this year rates are

roughly 3% higher than they were back

then and so this might mean that a the

borrower can no longer can no longer

afford the new loan terms and or B the

numbers no longer work for that specific

property with that borrower's right for

whatever reason but that doesn't mean

and this is very important that

doesn't mean that the number won't work

for another borrower with a different

set set of rental property parameters

and that borrower might purchase the

property have maybe they purchase it

cash or maybe they purchase it with

financing they might have a very good

property on their hands it's very

important anyone that's listening is not

an experienced investor hear me hear me

loud and clear here just because a

property doesn't work for another

investor doesn't mean it can't work for

you

that's very important right because I

have purchased rental properties over

the years that were on Market guess what

I had to beat out other people other

investors there there was a multiplex I

bought a few years ago that was coring

with investors, I had to go super

aggressive in order to purchase that

property I bought it for a higher price

than anyone else was willing to buy it

for was it a great investment yes it was

a great investment for me I sold that

property not that long ago made a lot of

money, while I owned it, made a lot of

money when I sold it and so it's very

important not to read too much into what

other people are perceiving numbers

don't work for other people who care do

the numbers work for you that is all

that matters is the property worth x

amount to you maybe the property is not

worth to you what it is to another

person doesn't matter all that matters

is what it's worth to you and what

you're not numbers are that's very very

important don't read into what other

people are doing per se obviously you

don't want to completely ignore it if

nobody else is interested in a property

that could be an indication that maybe

there's something wrong with it um but

it's very important to do all of your

analysis independently don't be

concerned about the analysis that other

people are doing

additionally okay we've got a lot of

additionally in here but we need to

understand the context right there's so

much context and when people are making

these suggestions that you know there's

something broken in the rental market

it's usually without this context so

hopefully, this context is helpful for

you guys to kind of think about the

market holistically it's important to

remember that the vast majority of

rental portfolios are sold off MLS

either off Market entirely or by Brokers

not utilizing MLS for instance

commercial brokers again when money is

easy these things never get blasted out

to the public these rental portfolios

they don't get blasted out to the public

usually because they are gobbled up

very quickly off Market or off MLS at

least but when rates go up now there are

fewer people that can buy less demand

now marketing becomes more important now

you start to see more of these

portfolios being blasted out on MLS

or in groups or via commercial

brokers and so that's important

content now with all of that context in

mind let's deal with the real situation

at hand is there something the fair is

happening that isn't completely obvious

within the Greenville rental market well

let's start from the top the rental

market undoubtedly has cooled from a few

years ago this is what also what happens

when Easy Money dries up right Easy

Money boosts rents when that easy money

goes away then people tend to to try to

stay where they are are not make any

major changes and that has a a trickle

down effect on the rental market

properties that had waiting lists of of

people two years ago are struggling

to fill vacancies in 2024 airbnb’s are

floundering and this is all a nationwide

Trend due to an oversaturated Market in

general with more rental rentals than

renters when it comes to certain

properties in certain areas okay and

we've definitely seen it here it's a

nationwide Trend but it's also a

Greenville Trend I've seen it with my

own rentals I talked to a lot of other

investors the rental market and the

Airbnb Market have both cooled

substantially the past year okay now how

does this compare historically right

because I have said earlier in the show

it I am not a big fan of comparing the 2024

to 2022 or 2021 because 22 and 21 were

very weird years historically so what

does the market feel like to me it

kind of reminds of 2014 to 2015 the

market was similar then where there

wasn't as much easy money as other times

the economy still wasn't great and it

wasn't uncommon to see multi-month

vacancies for rental properties it feels

very similar to that period of time yet

again and again was the market bad

back then not historically speaking but

if you compare to 2020 to 2022 then yes

it would appear that way and so if we're

comparing the rental market now versus a

couple of years ago is a worse

Market but if we're comparing it to the

past 10 years not necessarily there are

there would be comparable years in

terms of of this market and so I think

that that's very important context

nobody in 2014 2015 was saying man the

Greenville rental market is really slow

right now but our market right now in my

opinion is comparable to then and people

are saying wow it's really slow right

now it's just because we've got recency

bias right it's been such a hot market

for several years we got used to

that we thought that it was always

going to be that way and that's just not

the case it's slowed down it's regressed

to the mean, this is to a certain

extent natural and healthy now I alluded

to holding costs let's talk about that

for a second expense like property

taxes Home Owners Insurance liability

insurance

Etc have those gone up in recent years

and are they pushing landlords out of

the market I would say yes and no okay

right they've definitely gone up but so

has rent right expenses have gone

up but also income has now and we're

talking about the past several years now

I don't see too many people and this is

the more important detail I don't see

too many people that are selling their

rental portfolios because they aren't

cash flowing due to expenses I just

haven't personally run into that so

because honestly if your property is not

cash flowing for you how are you going

to sell it to someone else it's not

going to cash flow likely for them

either and this is particularly true

when it comes to multi-family I will say

there are some exceptions when it comes

to single-family packages I've seen some

people sell off some packages of you

know four five 10 single family

properties and in those instances when

people are selling off you know a

package of single-family properties

sometimes the cash flow is a little bit

tenuous on some of that so I will say

that but when we're talking about you

know small multi-family Properties

apartment complexes things of that

nature generally speaking I am not

running into the situation where these

aren't cash flowing and people are

having to to get out of it the only

exception to that would be if you got a

landlord that just hasn't raised rents

in 20 years hasn't done any repairs to

the property and now is just trying to

offload the property because it's way

more than they can handle usually those

S sell off MLS there are some currently

if you're looking on MLS there are some

fixer up

small multi-family properties that

are like that out there that would be

the only exception to the rule but

generally speaking, that is not what I'm

running into when it comes to these

these portfolios that we're seeing

coming

online now do I see some people passing

up some potential buyers passing up on

opportunities because they're concerned

about what their holding cost will be

yes absolutely lots of hesitancy on this

front from buyers people getting

squeezed from taxes getting squeezed

from mortgage rates getting squeezed

from homeowners insurance getting the

squeeze from all over the place um and

and so that has for sure impacted

demand for some of these portfolios and

so this contributes to some of these

portfolios lasting longer on Market than

maybe they would have in an easy money

era right if you just alleviate the

squeeze from one of those levers if you

just alleviate the cost of

financing that has a dramatic impact on

people's numbers and what they can

afford and how attractive a portfolio

might be so perhaps there is more

active inventory for these portfolios by

virtue of there being less demand not

so much because there are more sellers

than usual that to me seems more

reasonable we have more active inventory

less because of there's just way more

sellers coming into the market and more

because there's just fewer buyers and so

some of these portfolios are

starting to stack up and kind of Linger

on the market

so where then are these sellers coming

from well besides the ones I've already

mentioned a lot of them are the older

generation just getting out of rentals

they're you know people don't realize

it's it's honestly it can be exhausting

being a landlord or a landlady

people that have done it for 20 30 40

years they're ready to get out they're

tired they're ready to be retired

um a lot of the older generation tend to

not like property managers they want to

self-manage well it's a lot of work

eventually you get to be too old to do

that um and we've been we've been

seeing a lot of this and guess what

we're going to be seeing a lot more of

this in the future because the boomer

generation sits on a massive stockpile

of real estate and as they age out they

will be selling those properties off

or passing those properties onto their

heirs the majority of whom are likely

to sell those properties off because let

me tell you most of the time when rental

properties are inherited those the

people inheriting those properties they

don't want them right they just want the

money they don't want to have to worry

about they don't want to have to step

into management, they don't even know the

tenant that's in there they don't

know what the property what work the

property needs to have done they just

want to sell the property and just get

their money I've also seen a large

portion of people just needing to

liquidate property and get equity for

one reason or another right no again

nothing nefarious just they've got a

property that has a lot of equity in it

and they're like you know what I need

this Equity I need this money and

these types of occurrences are random

and unpredictable but they happen with

more regularity when you guess it you

they happen sorry, let me rephrase

that they happen with more regularity

when as you can probably guess money is

more expensive than it has been in the

past right because people now are in a

situation where they've got this Equity

but in order to hold on to it costs

them more money because money isn't

coming as easy maybe they need to

borrow money for a business or they

would like to borrow money for a

business but now they've that the cost

of doing that is much more expensive

than it was and so it's like okay well

where can I get more money if this loan

is going to cost me too much or maybe I

I don't qualify for this loan well I've

got these rental properties and I've got

equity in them I might as well sell

those off and take advantage of the

equity that I have in some cases I see

people assessing their broader portfolio

and picking specific properties they

want to sell off for one reason or

another maybe it's a property where they

have more debt than others right they

they might look at you know they've got

30 properties and they're like you know

what if I sold off these 10 these 10

doors then I could be debt free so

why wouldn't I do that I don't want to

have to pay debt you know pay debt

servicing anymore I just want to get rid

of all of that and so I've seen that

maybe it's a property that really

doesn't fit the rest of their portfolio

for instance, maybe you've got you know

four or five single-family homes but

everything else that you own is in a

single apartment complex I've seen

sellers do that where they're like I

just want to sell off these single

family homes and just keep all of my

real estate in this apartment complex

very very common I've seen this over and

over and over again these are the most

common reasons I am seeing and hearing

people selling these portfolios off

again if there was anything nefarious to

it I would tell you guys I'm not afraid

to complain about you know property

taxes and homeowners insurance we've

talked about that on the show the

costs of of repairs and maintenance

we've talked about all of these things

at other times in the show but I'm just

telling you boots on the ground I'm not

hearing people saying that they're

trying to liquidate rental portfolios

because of those expenses or because of

of rents being low not hearing that I

think it's important as well to say to

look at what we're not seeing right I've

told you what I am seeing what I'm

not seeing is defaults and again

Nationwide we talked about this on the

show as well people are not going in

historically speaking not defaulting on

their loans on their mortgages and I

haven't seen any examples of people

selling off rental portfolios due to

running into potential foreclosure

issues and so the result of that is

that many of these portfolio sellers

really aren't all that motivated unless

they really really need that money for

something they might be in kind of a

take it or leave it point of view and

I've trust me I've seen this over

and over again where it's like you know

what if I here's what I'm willing to

sell it for if I don't get that

then I'm just going to hold on to it

like it's cash flowing it's not causing

me any problems I'd like to sell it and

do something else do a 1031 exchange or

or you know use that money into some

other investment but maybe they're

okay with not doing that if they're

not going to hit the amount of money

that they want I'm seeing that over and

over again as well and so a lot of

these sellers they willing to test the

market to see what they can get and

if they can't get what they want they

will hold on to the property and just

continue continuing on long story

short the Dynamics in the rental

portfolio space aren't really all that

different than they are in the single

family space right now right we already

I already compared it and said just

as inventory has gone up in single

family so has inventory in in rental

portfolios financing being more

expensive than recent years is impacting

both supply and demand older people are

selling some are choosing to avoid

this space this rental portfolio space

altogether due to the expenses involved

Etc these are all the exact same

Dynamics that I'm experiencing in the

single-family market and the reality is

that real estate as a cash flow engine

okay I'm just going to be honest with

you guys right because I'm not just this

I'm not just the type of realtor

that's just like oh yeah investing in

real estate makes use tons of money and

it's always a great option and

you're just missing out

listen the reality

is that real estate as a cash flow

engine isn't quite the dream that it was

a few years ago because the cost of

money has gone up but real estate is

still a very good asset for an

investment portfolio in my opinion this

is not investment advice but from a

tax standpoint which this also is in tax

advice I talk to your accountant and

investment adviser about these things

but it still makes a lot of sense for

a lot of people to have in their

portfolio particularly if you're a cash

buyer particularly if you're a cash

buyer because you can avoid all those

concerns about the cost of money

the cost of financing and so I think

that that's that's very important we

had you know this this stretch from 2020

to 2022 where everyone wanted rental

properties because it was like wow it's

so cheap to to buy this property now

that the cheapness has gone away to a

certain extent people are pulling back a

bit but that doesn't mean that real

estate isn't a good value anymore you

got to take it Case by case and assess

things from your P actual standpoint for

yourself specifically it's going to be

different for different people now maybe

you've been thinking about buying a

rental portfolio or investment Pro

properties but you're on the fence

you're concerned about all that's

happening I'm going to give you three

concluding thoughts and you can go take

those thoughts and use them however you

would like first

off and this is just common sense but it

Bears repeating run your numbers and

have realistic expectations okay when

you're assessing a rental portfolio

or investment properties in general and

and I think that this is what a lot of

people don't realize when they're when

they're purchasing in investment

properties you really shouldn't expect

to make any money the first year that

you're holding a rental property you

need to be prepared

to maybe even lose a little bit of money

but you need to be prepared at least to

break even if you make money your first

year holding a rental property that's

great that's a bonus okay that's

shouldn't be the expectation now when

some hear that they will swing to the

other side of the fence and run Ultra

conservative numbers and then say well

I'm only going to buy a rental property

that makes me this this much cash you

know per month right away and fits these

specific criteria and you know right

from day one is a great

property usually what I find from these

people is they never buy anything okay

and so that's where you need to

have realistic expectations part of the

realistic expectations is knowing that

the properties might not cash flow might

not be as great as Bigger Pockets says

that they are but some of it is as

well recognizing that

hey it might still be a good investment

even if it doesn't cash flow you know

doesn't hit the 1% rule doesn't do all

these things it just it depends again on

everyone's situation and again

there's nothing if you look at all of

this and you decide you know

what I'm never going to find a property

that fits what I'm looking for as an

investor there's nothing wrong with that

real estate investing isn't for anyone

it's not for everyone it's only for

certain people not everyone is a real

estate

investor and so that's really important

important have like sit down have a

serious conversation with yourself with

your spouse with your partners whatever

about whether you truly have the risk

tolerance to be a real estate investor

you might not because I run into a

lot of new investors that they

want to completely eliminate risk out of

the equation they love the idea of real

estate because it's much less risky than

for instance Bitcoin or the stock market

or whatever the case you have full

control over that property and so it has

a lot less risk but you can never

eliminate all the risk and the people

that come to me and you know immediately

are telling me about essentially how

they want to eliminate risk and

they might not say it that way but what

they're describing to me you know how

they want a property that is

already making all sorts of money and

that hits this Rule and that you know

doesn't need any work and that has never

had this problem or that problem that

might not be a realistic approach okay

you might need to reconsider whether

real estate investing is really for you

so run your numbers but also have

realistic expectations for whether both

for what the market has out there and

also for you as an investor be

introspective and willing to

recognize if you are not a good

candidate for real estate investing

which not everyone is point number two

which just brings me to is that scared

money

don't make money one of my favorite

phrases and particular in real estate

I see scared money all the time right

people who make decisions from a

scarcity mindset what if I make a

mistake what if the market turns on me

Etc versus confident investors who are

willing to take a swing on a property

because they know that the worst-case

scenario really isn't all that bad right

residential real estate holds value and

has utility so it's not like investing a

bunch of money in a startup or in you

know speculative crypto or penny stocks

or whatever where you may lose all your

money if things turn out very poorly

that's not investment advice by the

way again talk to your talk to your

investment adviser but real

estate is different right in the

worst case scenario you have something

that has actual value for someone it

might not be as good of an investment as

you hoped it was but

it's not the same as investing at in

these other things that are speculative

and or that you have little or no

control

over now with regard to experienced

versus inexperienced investors arguably

in my opinion the biggest difference

between unexperienced and inexperienced

one is the confidence element

inexperienced investors want to know

every little detail about a property

when was the flooring installed how old

are the kitchen cabinets when was the

last termite treatment an experienced

investor on the other hand walks into a

promising property and immediately

smells money they see opportunity before

they see problems right now he or she

might have some of the same questions as

the an experienced investor

absolutely an experienced investor

doesn't have fewer questions typically

they have more questions but they won't

get hung up on the questions because

they see that the opportunity is larger

than the potential concerns and that's

where scared money don't make money the

people the investors that are willing to

take risks and that are willing to not

be scared they are the ones over and

over again that come out on top the ones

that want to eliminate risk and that are

are playing the game scared it's it's

really hard it's really hard to play

this game scared because you're going up

against a lot of people that aren't

scared and you know guess what some

you know look at if you've ever watched

Sports if you're a sports person you

know that there are these irrational

confidence guys right the guys like

Darius Tony for instance on the Chiefs

remember that guy he was nearly the MVP

of the Super Bowl just a couple of years

ago and he's he's terrible he's trash

I'm just gonna say that not a good, not a

good football player he didn't even play

in the Super Bowl this past year

because he's so bad but he was an

irrational confidence guy, he was blowing

up the Super Bowl against the Eagles

just a couple of years ago and the in

the NBA the ba is full of these types of

of irrational confidence people where am

I going with all this sometimes you

need to have a little bit of irrational

confidence and just believe in

yourself even if you've never done this

before believe that you have what it

takes in order to take the plunge

because if you don't then you're just

never going to take the

plunge all

right con concluding Point number

three the best day to buy your first

first investment

property was yesterday okay I've said

this before the best day to buy a house

was yesterday well the best day to buy

your first investment property was also

yesterday and I use this phrase over and

over again because it's so true and I'm

not just saying it because I'm a realtor

right I'm sure some of you are rolling

your eyes I get it I'm a realtor I I

want so many people to buy houses

right and I want them all to use me

but aside from that talk to anyone who

had the opportunity to buy a few years

ago and didn't and all you hear is

Regret over and over again I'm telling

you I I work in this space I hear regret

all the

time very very rarely do I hear a regret

from someone that bought a property it

almost always I would say 90 to 95% of

the time the regret is from the people

that didn't buy and

and I'm just being honest like I can't

even think of a person at the moment

that bought an investment property that

regretted I can't think of a single

person that fits that boat now

the caveat is I will say this that I'm

around smart investors and when I get

clients that are looking to invest but

are inexperienced maybe aren't yet a

smart investor I try to coach them up

the best I can to make them a smart

investor now so I'm sure that there

are people that I don't know right

people that aren't in my circles that

aren't my clients that are not smart

investors that have made mistakes that

they regret and perhaps you know some of

them they are the outliers I'm telling

you they are not in the norm most people

that are investing in real estate

have invested the past few years are

very very happy with their Investments

they might not be happy as happy now as

they were a year or two ago but they're

still very happy with the investment

that they have because they know they

have tons of equity they have you

know an asset that is continuing to go

up in value they are in great shape the

people that aren't are the people that

had analysis paralysis that got that got

scared out of the market decided not to

buy those are the ones that are filled

with regret right now so if you're in

the market but are stuck on the fence

what would it take for you to get

unstuck okay if it's lower rates and and

I'm not suggesting you should get

unstuck I'm I'm just thinking out loud

here if it's lower rates and that's what

you're waiting for right you're waiting

for lower mortgage rates I would argue

that you may be better off buying now

while the market is slower and then

refinancing later at lower rates right

we talk frequently about buy the house

date the rate or marry the house date

the

rate same thing with rental portfolios

um it's not always as easy to rely a

rental portfolio as just a single-family

house so certainly keep that into

consideration but generally

speaking I would people that are are in

the market for a rental

portfolio it waiting for rates to go

down isn't going to benefit you because

we've had this conversation same thing

in single-family rates go down demand

goes up and then prices start to

Skyrocket so keep that in mind if there

are opportunities out there but the

numbers don't really work at like 7% but

they would work at 6% you might want to

go ahead you might want to consider at

least buying at 7% and then having the

opportunity to refinance down the road

at 6% or

lower and again this is some of of what

we're talking about is understanding

that your first year that you own a

property you need to have tempered

expectations and so part of that can

be you know what this first-year

maybe the first couple of years rates

might be higher than I want them to be

but hopefully, I'll be able to refinance

lower and if not guess what the way the

market is appreciating you've got an

appreciating asset if you're not happy

with it you should be able to sell it

after a couple of

years if it's prices that are keeping

you stuck on the fence well it would

take a lot more inventory coming on the

market for prices to see meaningful

declines in the rental portfolio space

or in any real estate space and if

you're holding out for that I'm telling

you right now you are never going to

come off the fence if prices are what

you're waiting for you're waiting for

prices to go

down yeah yeah you're not coming off

that vence and if you don't like the

current options you can hold out as long

as you want but be realistic look at

sales the past couple of years look at

look at the rentals and the portfolios

that have sold the last couple of years

I do this as an exercise with my

client sometimes it's like okay let's

actually see if the past year or two H

if what if there's property that

has sold that you would actually have

bought and what does that look like and

if you do that if you do that exercise

and determine that you would not have

bought any of those properties except

maybe one or two so you look back the

past couple years and you I was like

okay yeah there's a property I would

have bought and here's another one that

that maybe I would have considered I

would have considered this port rental

portfolio if in a couple of years you

you only see one or two that you would

have bought then guess what you're never

going to find what you're looking for

that's not enough enjoy the fence that

you're on right you're going to be on

the fence for a long time dress that

fence up paint it nice fresh coat of

paint decorate it put like Garland on it

or something because you're going to

want to look good while you hang onto

that fence for the foreseeable future

you need to have a lot more than just a

couple of properties that would have

been potential for you some of you

if you did that exercise you would look

back and not find any properties that

you would have been interested in and

then you know okay you're again real

estate investing isn't for everyone so

do that exercise and then you can

determine if you would potentially

find something now what I like to see is

if you go back a year or two and you see

six to eight properties that you think

would have fit your buying criteria

that's a good sign okay now we're

talking so let's look back at these

properties and assess How likely it is

that we will see properties similar to

them coming online in the next year

that's the way to handle that I want to

see if I'm unsure if someone

will be able to find what they're

looking for I want to see that there are

6 to8 properties that would have fit

their criteria the past couple of years

that's usually a good indication that we

will find something in the

future long story short there's a lot

happening a lot going on with rental

portfolios but I don't think that we're

at the spot yet where we need to be

thinking about okay this is something

nefarious or's something going on

renting you know having rental

portfolios in Greenville or in South

Carolina no longer makes sense I'm not

getting that sense from the people that

are selling or looking to sell right now

there's a whole lot of other things

going on and hopefully this podcast

helped to clear some of that up but

right now the important thing is if

you're looking for a rental portfolio

you have more options than you've had

the past three years so take advantage

of those options while they exist and

I'd be happy to help you with that if

you need a realtor who specializes in

this kind of thing I am one of those so

please reach out to me my contact

information is in the show notes if you

need to have a realtor for this type of

real estate or if you just need someone

to help you find a home in general in

this area I'm your guy so look in the

show notes for my contact info and

please as well if you like the show

subscribe rate review all of those good

things and we will talk again next time