In this episode, Matt Bowles explains how to navigate the latest U.S. real estate trends and make smart real estate investing decisions during the COVID-19 Era. He begins by giving tips on optimizing your rent collection during the eviction moratorium. He then moves on to talk about strategies for stabilizing your cash flow, including the option of getting tenant-default insurance. He proceeds to discuss the differences between the Great Recession of 2008 vs. The Great Shutdown of 2020. He explains the COVID-19 era trends that are negatively impacting commercial real estate, but positively impacting single-family rental properties. Matt explains the “de-densification” trend of both home buyers and renters moving out of densely populated areas, communal living situations, and apartment buildings and migrating into detached single-family homes. He also explains the supply and demand dynamics, and how there is an undersupply of affordable single-family homes amidst increasing demand for them, which could actually drive prices up in some areas. Matt then explains how residential investment property is a multi-dimensional asset class that has 5 simultaneous profit centers. He explains how to buy in the high-demand micro-markets within ‘recession resilient’ regions of the U.S. to position yourself on the supply side of the high demand trends for both buying and renting. He explains the tax benefits that remain constant, and how the tenant pays down your mortgage principle so you are building equity regardless of home price fluctuations. And finally, he breaks down the 3 ways you can profit from inflation when you take out a 30-year fixed-rate mortgage. Full Show Notes Available at www.TheMaverickShow.com SCHEDULE A FREE VIDEO CONSULT WITH MAVERICK INVESTOR GROUP ABOUT BUYING TURNKEY RENTAL PROPERTY AT: www.TheMaverickShow.com/Consult
Episode #86: New Real Estate Investing Strategies for the COVID-19 Era with Matt Bowles
Episode Summary
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About the Guest
Matt Bowles
Matt Bowles co-founded Maverick Investor Group in 2007 to help people buy cash-flowing rental properties in the best U.S. real estate markets, regardless of where they live. He has been featured in major national media and was named one of the “Top 50 Real Estate Opinion Makers and Market Leaders”. Matt and his co-founders at Maverick have helped individual real estate investors buy over $100 million in residential investment property across 15 U.S. States. Since 2013 Matt has been a full-time nomad with no permanent base and has run his company from 65 different countries. He is also the host of The Maverick Show podcast where he interviews today’s most interesting real estate investors, entrepreneurs, and world travelers. Matt is a proponent of “stylish minimalism” and travels the world through multiple climates with carry-on luggage only. He is also a sought-after speaker and has addressed conferences around the world ranging from the Nomad Summit to South-by-Southwest on topics relating to real estate investing location-independent entrepreneurship, and long-term world travel.
What You'll Learn
- How to optimize your rent collection and navigate the eviction moratorium.
- How to buy rental properties in the path of the new COVID-19 era demand trends.
- How to position yourself to profit even in a flat housing market and high inflation.
Links From the Episode
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SCHEDULE YOUR FREE CONSULTATION WITH MAVERICK INVESTOR GROUP to Learn More About Buying Turnkey Rental Properties in Investor-Advantaged U.S. Markets
Learn More About TENANT-DEFAULT INSURANCE and Get a Price Estimate for Any Property Address in the U.S
Book and Movie Mentioned in this Episode
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Time Stamped Show Notes
[3:10] How to Optimize Rent Collection on Properties You Already Own
[8:39] Navigating the Eviction Moratorium and Mortgage Forbearance Program
- Understanding the eviction moratorium
- Potential consequences for taking mortgage forbearance
[12:52] Mitigating Tenant Default Risk When Buying New Rental Properties
- Leapfrogging the eviction moratorium
- Re-verification of employment prior to move-in
- Government backed rents with Section 8 program
- Tenant-Default Insurance available backed by Fortune 100 Insurance Provider
[17:37] Segmenting the U.S. Real Estate Market: Commercial vs. Residential
- Why the U.S. Commercial Real Estate Market Is Crumbling
- Declining demand for office buildings, retail buildings, and apartments
- Why “The Home” has Become the Center of the Universe
- Increasing ‘utility value’ of the home during COVID-19.
[21:45] Three Trends Increasing Demand for Affordable Single Family Homes
- “De-Densification”—moving out of apartments into detached single-family homes
- “Downsizing”— moving from more expensive to more affordable homes
- “Increasing Household Formation”—People having babies or getting divorced
[23:55] The Great Recession of 2008 vs. The Great Shutdown of 2020
- Understanding the Cause of the Great Recession of 2008
- Understanding why the Great Shutdown of 2020 is fundamentally different
[33:08] Understanding the Impact of COVID-19 on Home Price
- The difference between “Home Sales” vs. “Home Prices”
- Understanding supply and demand dynamics in the U.S. Real Estate Market
[37:37] How to Buy Rental Properties in the Path of the New Demand Trends
- Understanding the most investor-advantaged market segments
- Positioning yourself to have the most home price appreciation potential
- The reason why you don’t need to speculate on home prices
- Optimizing your cash flow and owning high-demand rental properties
- The niche of residential property that is in demand by both buyers and renters
[43:32] Understanding the Tax Benefits of Owning Rental Property
- Depreciating your residential investment property
- Using the 1031 Tax Deferred Exchange
- How to calculate depreciation of your property
[47:41] Building Equity by Your Tenant Paying Down Your Mortgage Principal
- Understanding the benefits of financial leverage
- Locking in historically low mortgage rates
- Building equity even if the housing market does not appreciate at all
[50:13] How to Profit from Inflation by Buying and Holding Rental Property
- How Inflation works to decrease your purchasing power
- How inflation silently destroys your savings
- The 3 ways you can profit from inflation by purchasing a rental property with a mortgage
[1:05:12] How to Optimize Your Upside and Mitigate Your Downside
- Summarizing the advantages of rental property as a “multi-dimensional asset class”
[1:06:25] How to Schedule a Free Consultation with Maverick Investor Group
- Schedule a free zoom video call with Matt’s team at Maverick to get your questions answered
