NWA Real Estate | S1E6 | Building Wealth in Real Estate

Stop Renting! Start Owning!

-April 13th, 2022-

It's time you started building wealth in real estate. No, we don't expect you to double your money in 6mo! Real estate is NOT a get rich quick scheme. If that's what you're looking for then follow some click bait somewhere else. We are here to discuss the steady wealth generation tool that is real estate and how you can get in, grow wealth, and take care of your family.

Are you moving to Bentonville, Arkansas? What about Rogers, Fayetteville, Springdale? Northwest Arkansas is quickly becoming one of the TOP AREAS to move to in the country receiving national recognition in publications like Forbes, Fortune, and US News. With local attractions like The Crystal Bridges Museum of American Art and Collegiate Athletic Events with the Arkansas Razorbacks our small corner of Northwest Arkansas has everything city life has to offer minus the traffic jams. In 2010 Bentonville began its Downtown Revitalization Program which set off a surge in area development, attracting new businesses and developers ready to invest in our future. NWA is no longer the sleepy small town it once was. Our region is emerging as the premier mountain biking destination in the country and becoming a hub for the performing arts.

Housing Supply

Current Interest Rates | ⬆️ 5.25%

Book Links from the Podcast

{{These are affiliate links, promoter could be compensated if links are used to purchase. Ryan is not a paid promotor or brand ambassador. He is a voluntary affiliate and his opinions are his own}}

-Why Can't We Talk About This: https://amzn.to/3vfJ910

-Tax Strategies for the Savvy Real Estate Investor: https://amzn.to/3jCQ3HY

-Rental Property Investing: https://amzn.to/3ObvsJ2

-Buy It, Rent It, Profit!: https://amzn.to/3jA8b5n

-Interest Rates Article: https://www.mortgagenewsdaily.com/mar...

-Article on Fed Rates: https://www.forbes.com/advisor/invest...

Agenda

We welcome Ryann Thornton with Flat Branch Mortgage to discuss lending products on primary residences and investment properties and join our roundtable discussion about building wealth in real estate.

CHAPTERS:

0:00-3:03 - Intro

3:04-10:55 - Rent vs Own

10:56-17:05 - Building Equity

17:06-19:30 - Ryan's Book

19:31-26:28 - Starting Young

26:29-33:33 - Interest Rates

33:34-37:14 - Recommended Reading

7:15-42:52 - Primary Residence

42:53-48:59 - Other Tips

Talking Points

You can do as little as 3.5% down on up to a 4-Door Unit
First-time investors should avoid house flipping unless they have very large cash reserves and very secure cash flow at home
Always pad your remodeling budget with an additional 20-30% of budget costs
Rents increase over time. Fixed Rate Mortgages lock in your monthly payments. In Centerton, AR near Bentonville a 3bd/2ba home rented for $800-900/mo 4 years ago, last year (2021) they were $1,200/mo and now (mid 2022) they go for $1,400-$1,600
Do NOT ignore your bad credit score. You HAVE to come up with a PLAN and address it. Don't worry about the impact a single inquiry will have on an already bad credit score
You don't buy rental property for appreciation (while it is common) you want to buy for cash flow

Rough Numbers

You can pay $1,600/mo in rent or have a $1,700/mo house payment where approximately $561 of it is still yours in the form of equity when you sell down the road
If you spend $1,600/mo on rent for 2 years you will have given away $38,400 making someone else wealthy
If you had a $1,600/mo mortgage for 2 years with an avg of about $561/mo in principal you will have saved (via equity) $13,464
When investing in rental property you can conservatively expect to net about 75% of your gross rent