The David Greene Show: Episode #39 – "Seeing Greene - Real Talk Real Estate"
Release Date: March 13, 2025
Introduction
In Episode #39 of Real Talk Real Estate, host David Greene delves deep into the current state of the real estate market, addressing pressing economic changes, listener questions, and providing actionable insights for investors, homeowners, and industry professionals. This episode covers a wide range of topics, including personal finance strategies, house hacking, Airbnb management, property turnarounds, and the latest industry news.
1. Economic Overview and Real Estate Market Insights
David Greene opens the episode by discussing significant economic shifts impacting the real estate landscape. Highlighting the introduction of new tariffs, increased housing inventory, and the potential for declining property prices, Greene emphasizes the importance of understanding these changes for anyone involved in real estate.
"We've got growth in the supply of available inventory for sale. Probably the first time that I've seen this in like a decade." [00:00]
He explains that a higher velocity of real estate transactions is crucial not just for investors but also for the broader economy, affecting GDP and income for various real estate professionals. Greene warns of a potential cooling market where property prices might decrease, drawing parallels to the post-2010 housing market surge.
"We are now entering into a market where a lot of people are like, look, I don't want to lose, I don't want to buy a house. That's risky." [04:30]
Greene also addresses the emotional and financial struggles faced by real estate professionals during economic downturns, encouraging listeners to reach out and seek support.
2. Listener Questions and Expert Advice
a. Equity Withdrawal Strategies
Listener: Eddie Demas from San Antonio and Austin, Texas [06:15]
Question: Eddie inquires about whether to pursue a cash-out refinance or HELOC to tap into substantial home equity gained within a year.
David Greene's Response:
Greene congratulates Eddie on securing $200,000 in equity and advises caution against rapidly scaling his portfolio without strategic planning. He recommends opening a HELOC but emphasizes not to use the funds immediately, anticipating potential market downturns.
"I am a fan of getting a HELOC on that property, but not of using it." [07:33]
He elaborates on market dynamics, cautioning that an oversupply of inventory could drive prices down, creating opportunities for astute investors prepared for such shifts.
b. House Hacking Financial Viability
Listener: Grace from Fort Collins, Colorado [14:15]
Question: Grace asks whether using house hacking to offset mortgage payments is a sound financial decision, especially when rental income only partially covers the mortgage.
David Greene's Response:
Greene supports the house hacking strategy, highlighting its potential to significantly reduce living expenses. He explains that rental income serves as a form of cash flow, equivalent to traditional investment income.
"If you would have paid $4,000 a month on a mortgage, but now you're only paying $2,000 a month. That is the same as $2,000 a month of cash flow from investment property." [15:34]
He advises ensuring the property is in a favorable location and cautions against overpaying or investing in subpar neighborhoods to maintain long-term financial health.
c. VA Loan Utilization for Multiple Properties
Listener: Malik from Dallas, Texas [18:55]
Question: Malik seeks advice on using his VA loan benefits to purchase an additional property while renting out his current home.
Guest Expert: Christian Bashelder from The One Brokerage
Christian's Response:
Bashelder confirms that Malik can leverage his remaining VA loan entitlement to acquire another property, provided he meets the occupancy requirements.
"Yes is the answer to this question." [19:54]
He underscores the importance of consulting with a loan officer to navigate the specifics of VA loan benefits and entitlements.
d. Portfolio Diversification Amid Dollar Concerns
Listener: Zayad from Houston [25:42]
Question: Zayad expresses concern over a potential US dollar crash impacting his diversified portfolio of rental properties and stocks, contemplating whether to liquidate his stock holdings.
David Greene's Response:
Greene advises against panic selling, emphasizing the importance of diversification and long-term investment strategies. He highlights that selling stocks could incur significant taxes and penalties, potentially outweighing the benefits of reallocating funds into real estate.
"No, I don’t think you should panic sell your portfolio, and I don't think that you should jump in and buy the first commercial property that you see." [27:04]
He recommends patience and strategic investment in multifamily properties, cautioning inexperienced investors about the complexities of a shifting market.
e. Real Estate Licensing for Self-Representation
Listener: Mitchell M. from Columbus, Ohio [33:10]
Question: Mitchell contemplates obtaining a real estate license to represent himself in property deals, aiming to save on buyer's commission fees.
David Greene's Response:
Greene warns against the hidden costs and complexities of becoming a licensed agent solely for commission savings. He outlines the financial and administrative burdens, such as licensing fees, association memberships, and potential liabilities.
"I don't think it's great for investors to say, I want to get my license so that I don't have to pay commissions unless it is worth it to them to learn an entire new vocation." [33:47]
He suggests that unless Mitchell is committed to adopting the full responsibilities of a licensed agent, the strategy may lead to burnout and financial strain.
f. Refinancing Struggling Rental Property
Listener: Stephen Holden from Oklahoma City [41:18]
Question: Stephen discusses a half-duplex Airbnb property that isn't generating sufficient cash flow and considers selling or refinancing using his 401k funds.
David Greene's Response:
Greene advises selling the underperforming property to avoid further financial strain and reallocating resources into better-performing assets. He emphasizes not jeopardizing overall finances for a property that isn't meeting investment goals.
"This house is not a great rental property. It is a great property for someone to live in." [42:17]
He also shares personal insights on teaching financial responsibility to his daughter, advocating for building wealth through strategic investments rather than solely providing financial support.
3. Industry News and Updates
a. Keller Williams' New CEO and Stone Point Capital Investment
Greene discusses the strategic investment by Stone Point Capital in Keller Williams, highlighting the trend of private equity's growing influence in the residential brokerage sector. He predicts that such investments could lead to further consolidation and potential challenges within the industry.
"Half of the top 20 brokerages and all of the top five enterprises... are now publicly traded or have substantial private equity backers."
b. Falling Home Prices and Mortgage Rates
An article from Chesko is analyzed, indicating that falling home prices combined with lower mortgage rates are providing increased purchasing power for buyers. However, Greene notes that pending home sales remain down, suggesting a cautious market.
"Mortgage rates have eased to 6.76%, which is the lowest in 2025, but they remain above September's low."
He relates this to his earlier discussion on market velocity and buyer behavior, emphasizing that significant deals are more likely during market collapses, which come with broader economic challenges.
4. Social Media Highlights and Community Engagement
Greene reads and responds to various comments from YouTube and Instagram, addressing topics like the impact of political figures on the real estate market, the integrity of real estate professionals, and the challenges faced by cash-flow investors amid rising costs.
"The deal of the century usually only happens when the market has collapsed." – Reflecting on market dynamics and investment opportunities.
He underscores the importance of integrity and trustworthiness in real estate dealings, praising professionals who prioritize client relationships over mere financial gains.
5. Closing Thoughts and Motivation
In his concluding remarks, Greene motivates listeners to remain resilient amid economic fluctuations. He emphasizes gratitude and maintaining a positive outlook, encouraging listeners to focus on what they have rather than what they lack.
"Learning to hold the things of this world with a loose hand, take what you're given and be grateful for what you have is one of the lost arts to having a happy life." [Final Segment]
He reiterates his commitment to supporting the real estate community, inviting listeners to connect via social media and his website for further guidance and support.
Conclusion
Episode #39 of Real Talk Real Estate offers a comprehensive exploration of the current real estate market, blending expert advice with community engagement. David Greene effectively addresses listener concerns, provides strategic insights, and fosters a supportive environment for real estate enthusiasts navigating a changing economic landscape.
Key Takeaways:
- Market Caution: Increased housing inventory and potential price declines necessitate strategic investment approaches.
- House Hacking: A viable strategy to reduce mortgage burdens, provided the property is well-selected and managed.
- Diversification: Maintaining a balanced portfolio is crucial, with careful consideration of tax implications and market conditions.
- Professional Integrity: Upholding trust and honesty is essential for long-term success in real estate.
- Community Support: Leveraging resources and seeking guidance can help navigate economic challenges effectively.
Notable Quotes:
- "If houses aren't changing hands, everyone that works in this industry makes less money. And because that makes up a significant portion of our economy, it does affect our GDP." [04:45]
- "You're not alone. The country is in a lot of hurt right now." [05:30]
- "If you would have paid $4,000 a month on a mortgage, but now you're only paying $2,000 a month. That is the same as $2,000 a month of cash flow from investment property." [15:34]
- "I don't think it's great for investors to say, I want to get my license so that I don't have to pay commissions unless it is worth it to them to learn an entire new vocation." [33:47]
- "Learning to hold the things of this world with a loose hand, take what you're given and be grateful for what you have is one of the lost arts to having a happy life." [Final Segment]
Resources Mentioned:
- DavidGreen24.com: For submitting questions and connecting with the show.
- CTC Getaways on Instagram: David's property management company.
- SpartanLeague.com: David's real estate mastermind community.
- The One Brokerage: Featured sponsor providing mortgage and investment services.
- Books: Better Than Cash Flow by David Greene detailing 10 ways to make money in real estate.
Stay Connected:
Follow David Greene on YouTube and other social media platforms to stay updated on future episodes, Mortgage Monday segments, and real estate insights.
Thank you for tuning into Real Talk Real Estate with David Greene!