The David Greene Show – Episode 22: Seeing Greene

Release Date: December 3, 2024

Overview

In Episode 22 of The David Greene Show, titled "Seeing Greene," host David Greene delves into critical real estate topics, offering expert insights and practical advice to both budding and seasoned investors. This episode is structured around listener questions, real estate news, and interactive segments that enrich the listener's understanding of the dynamic real estate market.

Key Topics Discussed

1. DIY vs. Subcontracting Rehab Work
   Timestamp: [02:54]
   Listener Question by Jason, North Carolina:
   Jason shares his successful first "bird dog" (referral-based) deal and seeks advice on balancing sweat equity with subcontracting to expedite rehabs and generate rental income faster.

   David Greene's Response:
   David commends Jason's achievement, highlighting the impressive increase from a $30,000 investment to an appraised value of $150,000. He advises a balanced approach:

   • Subcontract Major Tasks: Delegate labor-intensive and specialized work such as foundation framing, roofing, electrical, plumbing, and tiling to professionals.
   • Handle Simpler Tasks Personally: Focus on tasks that are less time-consuming and within personal expertise, like drywall, painting, or appliance installation.
   • Streamline Timelines: Coordinate different parts of the project to prevent bottlenecks, allowing for simultaneous progress in multiple areas of the property.

   Notable Quote:
   David emphasizes, “Schedule the professionals to do the big parts of the job, and you should fill in some of the work in between them.” ([02:54])

2. Sell or Hold? Evaluating Property Decisions
   Timestamp: [06:19]
   Listener Question by Robert Schwenkler, Round Rock, Texas:
   Robert and his wife are contemplating whether to sell their mid-term rented property, which has seen appreciation but still might sell at a loss, or hold it longer in hopes of future market gains.

   David Greene's Response:
   David encourages a strategic mindset akin to poker: it's acceptable to take calculated losses to stay in the game for future gains.

   • Sell at a Loss if Necessary: If selling now limits further losses and allows reinvestment in a more promising market, it's a viable option.
   • Reinvest Wisely: Focus on markets with growth potential, such as certain Midwestern regions, and consider strategies like buying below market value and forcing equity through improvements.
   • Manage Expectations: Recognize that market dynamics vary by region and over time, making flexibility essential.

   Notable Quote:
   “The goal is not to never lose a hand. The goal is to never lose your whole chip set.” ([06:19])

3. Navigating Partnership Challenges in Real Estate Investment
   Timestamp: [09:21]
   Listener Question by Ariel, Phoenix:
   Ariel discusses complications in co-investing with his brother, whose commitment waned after his brother's involvement with a girlfriend. He seeks advice on whether to rent out the current properties or pivot their investment strategy.

   David Greene's Response:
   David addresses the interpersonal dynamics impacting investment strategies.

   • Evaluate Personal Goals: Determine if long-term partnerships align with personal and financial objectives.
   • Consider Alternative Arrangements: Options include renting out one property while living in another, or exploring additional properties with separate living arrangements.
   • Communication is Key: Ensure all parties understand and commit to shared financial goals to prevent personal relationships from derailing investment plans.

   Notable Quote:
   “These women are interfering with your financial future.” ([09:21])

4. House Hacking Strategies: To Wait or Dive In?
   Timestamp: [19:05]
   Listener Question by Robert, Southern California:
   Robert and his wife are deciding whether to purchase their first primary residence with a smaller down payment to start house hacking immediately or wait until they can afford a 20% down payment to minimize costs and avoid PMI (Private Mortgage Insurance).

   David Greene's Response:
   David advocates for leveraging low down payments to enter the real estate market sooner.

   • Immediate Investment: Starting with a 5% down payment allows for earlier entry and capitalizing on house hacking benefits.
   • Accelerate Mortgage Payments: Make extra payments to eliminate PMI and build equity faster.
   • Avoid Delaying Strategy: The time saved by investing earlier often outweighs the benefits of waiting to save a larger down payment, especially in a slow-appreciating market.

   Notable Quote:
   “Putting more money down is going to lower your risk. I like that. But if you're not independently wealthy and you have to save, you're taking so long to try to save 20 to 25% versus 5% that it rarely makes sense.” ([19:05])

Real News Segment

David Greene provides a concise analysis of current real estate and economic news impacting investors:

1. Rising Unemployment Among White Americans

   • Source: CNBC
   • Insight: The unemployment rate for white workers increased to 3.8% in October from 3.6% in September, diverging from overall stable unemployment rates.

2. Post-Hurricane Real Estate Dynamics in Florida

   • Trend: Homeowners are selling flood-damaged properties "as is" for cash due to ongoing storm damage and rising insurance costs.
   • Investor Opportunity: Increased investor ownership in high-risk areas may reshape Florida's real estate landscape, presenting both challenges and opportunities for long-term investment strategies.

3. Implications of Trump's Return to the White House on the Housing Market

   • Source: Realtor.com

   • Policies Discussed:

     • Mass Deportations: Aimed at reducing population growth to ease housing demand, though evidence linking immigration directly to housing costs is mixed.
     • Deregulation: Plans to slash building regulations to lower construction costs, though actual impact is debated.
     • Mortgage Rate Influence: Trump's claims to lower mortgage rates are scrutinized, noting that the president lacks direct control over Federal Reserve policies.

   • David's Take:

     • Emphasizes the importance of increasing housing supply over attempting to reduce demand via population controls.
     • Points out that deregulation could streamline construction processes but remains skeptical about the president's ability to influence mortgage rates effectively.

   Notable Quote:
   “We need to get out there and start doing something and learning something and taking action.” (In response to housing market challenges) ([Real News Segment])

Quick Hitters

David engages with listener comments, showcasing his personality and building community rapport:

• Accents and Personal Tidbits:
  David shares his ability to perform various accents, adding a lighthearted touch to the episode. He mentions his Scottish and Southern accents, connecting with listeners on a personal level.

• Listener Interactions:
  Comments range from praise for the show's content to requests for deeper dives into David's personal real estate portfolio. David addresses these inquiries with humor and openness, while also cautioning against sharing sensitive investment details publicly.

  Notable Quote:
  “Cannot share my personal portfolio details due to ongoing challenges with fraud.” ([Quick Hitters])

David's Deal or Dilemma

David introduces his segment where he discusses personal challenges and solutions within property management:

• Current Dilemma:
  David recounts his recent experience with a mismanaging property manager who was stealing from his properties. To mitigate this, he hired new personnel to manage his properties effectively.

• Solution Offered:
  He now extends his property management services to other investors facing similar challenges, especially in the Smoky Mountains. David emphasizes reliable management to ensure properties are well-maintained and profitable.

  Call to Action:
  “If you're tired of bad accounting, bad marketing, and poor service, let us manage your property for you.” ([David's Deal or Dilemma])

Conclusion

In this episode, David Greene provides multifaceted insights into real estate investment strategies, addressing listener concerns with practical solutions and expert advice. From balancing DIY efforts with subcontracting to strategic house hacking and navigating partnership dynamics, the episode offers valuable takeaways for investors aiming to build and sustain wealth in the real estate market. Additionally, the real news segment keeps listeners informed about broader economic factors that could influence their investment decisions.

David wraps up by encouraging listener engagement through his upcoming platforms and services, fostering a supportive and informative community for real estate enthusiasts.

Additional Resources

• Books Mentioned:

  • Long Distance Real Estate Investing – Co-authored with Andrew Cushman, available on Bigger Pockets.
  • Better than Cash Flow: The 10 Ways You Make Money in Real Estate – Available for preorder on Amazon.

• Contact Information:

  • Submit Questions: davidgreen24.com/ask
  • Email for Property Management: stravidgreen24.com
  • Follow on Social Media: Search for David Green 24 on Instagram and other platforms.

• Upcoming Content:

  • Mortgage Mondays: Weekly insights on mortgage trends and advice.
  • Scene Green Tuesdays: Visual content related to real estate.
  • Guest Interviews: Featuring real estate agents and other industry experts.
  • Live Sessions: Economic news and interactive discussions.

Listener Call to Action

David encourages listeners to leave five-star reviews on platforms like Apple and Spotify, share the podcast with friends, and engage with upcoming content to continue their real estate education and investment journey.

Thank you for tuning into The David Greene Show – your ultimate guide to real estate wealth building.