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May 23, 2024 | read

167. The Current State & Future of the Real Estate Market with Marco Santarelli

Thomas Castelli

In this episode, Brandon and Thomas are joined by Marco Santarelli, a real estate investor and entrepreneur, as they discuss the current situation of the real estate market as well as its possibilities.

This episode is sponsored by Landlord Studio.

Full Transcript:
This podcast has been transcribed using AI, please excuse spelling, grammatical, and other errors.

Thomas Castelli 0:00
You’re now listening to the tax smart Rei podcast.

Brandon Hall 0:03
Your source for all things real estate, accounting and tax. Here we reveal our secrets that can save you 1000s in taxes, streamline your accounting process and help grow your business. Stay tuned to hear insightful interviews with industry experts, successful real estate investors and current clients on what strategies they use to grow their business, and how they steer clear of Uncle Sam.

Thomas Castelli 0:30
Hey, everyone, thanks for tuning into this episode of the tax smart Rei podcast. In case you missed last week’s episode, we are rebranding the real estate CPA podcast. As we feel the text more investors brand that we’ve been building over the last year better aligns with the content of the podcast and the audience we’re trying to serve. It’s the same podcast just a different name. So going forward when you see tax smart real estate investors podcast on your feed. Just know that’s us. If you’re looking to learn more about tax smart real estate investors, you can find our free Facebook community by going to facebook.com/groups/tech smart investors or by visiting tech smart investors calm. That said we’re joined here today by Marco Santorelli who is an investor author and founder of nerado Real Estate Investments a national real estate investment firm offering turnkey investment properties in growth markets nationwide. And in today’s episode, we’re going to discuss the state of the current real estate market and where it’s headed over the next few years and a lot more. We’ll dive right into that in one moment after a quick word from our sponsors. If you’re doing yourself landlord managing rental properties the landlord studio is made for you. The software helps landlords simplify income and expense tracking. With their easy to use app, you can digitize receipts record income and expenses in real time and generate reports and even manage leases and tenants plus landlord Studio makes late rental payments and bank visits a problem of the past with secure online rent collection get the rent paid directly to your bank account. And you can even automate rent reminder emails and late payment fees. Landlords studio is also the best way to stay tax compliant. They offer a range of financial reports including Schedule II and supplier expense reports designed for tax time, you can learn more about landlord studio and start your 14 day free trial at landlord studio.com/cpa. And use the coupon code real estate CPA at checkout to get 25% off your plan. Again, that’s landlord studio.com/cpa and use the code real estate CPA to get 25% off your plan today. Hey, Marco, thanks so much for coming on the show today. Would you be able to give our listeners a brief overview your background and how you got involved in real estate?

Unknown Speaker 2:31
Yeah, absolutely guys, it’s an honor to be on your show again. So for those of your listeners that are not familiar with me, I’m you know a full time real estate investor. But I’m also a serial entrepreneur. So I invest in a lot of different things I’m you know very much an entrepreneur and a business person. But 18 years ago, I started one of the largest nationwide providers of turnkey rental properties turnkey cash flow investment property called Narada real estate investments, and we operate in 25 different markets. Me personally I started when I was 18 years old, I just knew that was the direction I had to go was real estate investing. So I bought my first property at the age of 18 fixed it up leased it out, there was no Internet back then it was literally a yard sign in the front with some fliers. But you know, it went well. And I made a lot of money on that first rental and started to build a portfolio and then really pushed it hard to 2003 2004 acquiring dozens and dozens of units over the course of nine months. Last but not least, I have a pretty popular real estate podcast one of the most highly rated, actually real estate podcasts called passive real estate investing. I love doing it. It’s a weekly show. And we just help people invest in, in real estate as passively as they can. And then turn them over to guys like you to help them manage their, their accounting and finances.

Brandon Hall 3:48
There’s the plug. Thank you for helping us out. Well, so you, you were last on our podcast, I believe in 2017 Right. It was episode 10 Were you on it? Is this your second or third time going on? I think is the second but time ago 2017 I thought it was two years ago, but I just looked it up on our registry. Yes. 2017. That was a long time ago. So tell us how your business has changed since 2017. And and talk about how the market has changed especially recently. Yeah,

Unknown Speaker 4:17
that’s a brilliant question. There’s been a lot of shifts from 2017. You know, 2017 we saw most markets around the country being fairly balanced, meaning that there was a bit of an equilibrium between supply and demand. It wasn’t hard to find inventory, especially what we call resale inventory which is product that comes off the market. Whether distressed sellers, distressed foreclosures, distressed inventory from Oreos, like coming off the bank books, and you know, refurbishing them into like new condition and then providing them to real estate investors. There wasn’t a lot of new construction but new construction was starting to come onto the scene as what they call build to rent BTR that was the landscape back in 2017. And markets like Dallas and Santa Antonio, even to a large degree, Austin where, you know, relatively affordable still considered, quote, unquote cheap, you know, compared to many other states and markets. But demand has always been strong but continue to increase. And so what we’ve seen is that demand increase lowering supply, and creating a dynamic where we seeing property values go up and inventory drop. And so fast forward for 2017 to the last few years, we’ve seen a huge reduction in resale inventory, the distressed inventory that, you know, we’ve been selling for 18 years, to the point where it’s very, very low, it makes up less than 20%, maybe even 10% of the inventory we sell today. And this is pretty much true across the country. It’s not just what we’re seeing. But there’s been a huge explosion in new construction. And so today, we have this interesting dynamic where we have strong demand, which is increasing low supply, which is not keeping up. And property values going up, as you’ve seen, especially over the last 18 months, it’s been pretty much explosive, rental rates are increasing occupancy rates are at almost all time highs nearing 97 98% occupancy across the board. It sounds like a problem. But it’s a good problem. If you’re sitting on the right side of that equation. If you’re a real estate investor, and you’ve got a portfolio, you know, you’re doing really well you’re seeing equity, growth, appreciation, rental rates increase. If you’re someone who’s trying to get into the real estate and investing market, or you started, but you’re trying to grow and expand a portfolio, you know, it’s been pretty tough. You’re chasing after deals and property values are going up what seems like month after month. So that’s what’s happening.

Thomas Castelli 6:45
How long do you foresee this going on? Is there going to be like an end in sight, where eventually the things are going to balance out? And there’s going to be more supply and less demand or just equilibrium? Or is it just going to continue to run this fundamental difference in balance, if you will?

Unknown Speaker 7:01
Yeah, that’s a very smart question. So let me begin by saying that John Gray, the president of Blackstone, you know, massive company, managing trillions of dollars of assets, you know, he he has come out. And I mean, he he’s very, very successful person, he’s probably worth about $7 billion. You know, he was quoted back in January, saying that never in his 30 year career, has he seen real estate fundamentals as strong as they are now. So if that gives you kind of a little bit of a clue as to where we sit and where we’re going, the reality is this, given the pace that new construction, home builders are acquiring land, and permitting that land to build new construction, we will probably not see us getting out of this imbalance of needed supply to meet that demand, until probably closer to 2030. Now, we will see a bit of a break in 2024 2025, we will see a lot of markets come into equilibrium, because that inventory that they are working on, and building and putting out is going to come out into a lot of these markets, like Houston, for example, is one of the markets where they’re going heavy into new construction, like acquiring lots of land permitting and putting up products. Houston is just one of those markets, I believe Austin is another one. Phoenix is another one. My fears, just as a side note on that is that there will be a point, possibly where there’s going to be an oversupply in these markets, because they are just going to overshoot the amount of inventory that’s needed, because they’re just going all in. So that’s a bit of a danger for investors looking at markets like Phoenix and Houston, maybe Austin, where there’ll be too much supply. And that’s going to soften the market a little bit, because there’s going to be a lot of choice for new homes to be purchased and rental inventory to lease out to tenants. But the short answer to your question is 2524 2025 is when we’re gonna see a lot of what I’ll call a breather much of a breather in the markets. But you know, truly equilibrium we probably won’t see until later on this decade. There are factors that are going to shift that of course, like interest rates, depending on what the feds do and and where mortgage rates go, will have an impact on that as well. But we’re not going to see a solution this year. And not likely next year. There’s just too much pent up demand, which is a whole conversation in itself.

Brandon Hall 9:25
So something that I was thinking about relatively recently was I know that this market, the prices today are largely fueled by this supply and demand gap. But one thing that I was thinking about was at what point do our prices just simply, maybe unattainable is the right word. Or I guess the price growth is unsustainable, because at some point, your wages have to increase like wages are not increasing as fast as asset prices are increasing. So have you had any discussions or have any insight on that, like, at what point? Are we in trouble because our wages or labor force, what they’re being paid is not increasing nearly as fast as home prices are increasing.

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Unknown Speaker 10:13
So you know, the whole concept all real estate is local, every single market stands on its own. So they have their own supply and demand dynamics. And therefore, they have their own level of affordability or lack thereof, however you want to look at it. And so the answer to that question lies more at a local level than anything else. But in general terms, wages have been going up probably more so that people realize, I mean, you look at places like Burger King off during a $1,500 signing bonus, Amazon literally doubling like 100% increase in their minimum starting wage for for new employees, goes to show you that there’s a lot of a lot of push to increase starting wages and signing bonuses. And you know, what employers are doing to attract new employees. So wages are going up. In fact, there was a report that came out just a month or two ago, I think, was January, where they looked at several 1000 new lease applications that were coming in. And what they tracked was the applicants wage compared to 12 months prior. And what they saw is that on average, they had a 13% wage increase in terms of what they were showing for income versus the previous year, which made their qualification for that rental application much, much easier. And that’s kind of in lockstep with what we’ve seen with a lot of rental rate increases across the country, which is about 12%. So those two things are showing that rents are going up rapidly, but wages are continuing to go up to keep up with that pace. As far as affordability goes, there will be a point where you know, certain markets will become unaffordable to the masses. And there’s always a tipping point. And when you reach that tipping point, that’s when property values plateau, and the market goes flat. And if it becomes bad enough for the economy suffers. That’s when you start to see property values drop. The tailwind that we have is strong demand. There’s very little headwinds today, but that headwinds can be lack of affordability caused by whatever you know, that might be fill in the blank, you know, wages not increasing fast enough appreciation rates going up too fast, interest rates going up, you know, lowering the demand, and causing people to not be able to afford housing or rentals. So nobody really knows the answer to your question. To be honest, it is market specific. But you look at San Francisco, Sacramento, San Jose, Washington, DC, even places like Denver, Colorado, where you know, they’ve seen huge, huge, RAPID RUN and depreciation affordability has been dropping, but there’s still a lot of people who can’t afford it, you know, because wages are there, people have the income to qualify, and wages are going up. So it’s kind of an interesting dynamic, it’s kind of a tug of war that we’re seeing between all these factors. So we’re gonna see an impact if rates continue to go up and mortgage mortgage rates, you know, follow?

Brandon Hall 13:05
Got it. Yeah, that’s a great explanation. So kind of switching gears a little bit, along the same lines, but now let’s talk about rents. So as a landlord, myself, I’ve been enjoying the rent increases, right across the board, the market increases. And, you know, if you think that landlords should not be increasing rents, the reality is, is that I’m in business, right? Every landlord is in business, if I can put my rental unit up, and somebody is willing to pay a higher value for it, and I’m going to go with that higher value 99 times out of 100. So rental prices have been going across the board. I’ve been enjoying it because I’ve been increasing my rents. And my debt payments are fixed, right? That’s the beautiful thing about debt and inflationary environments, debt payments are fixed, they don’t increase as prices increase. So this is just additional profit that I can use for capex repairs, whatever I need to use it for. So one thing that I was wondering about, though, is I understand the supply demand gap with housing, you know, buying housing, I guess, I don’t quite understand it. With the rental market. And I know that you’re heavily involved in the rental market, what is fueling the rent increases, like why are we seeing 10% annualized rent increases across the board?

Unknown Speaker 14:25
Yeah, very simple answer. It goes back to economics 101, it’s supply and demand. There’s just not enough supply out there in terms of rental units, or the demand that people that want to be in the rental space. So, uh, kind of give you an idea of, you know, what’s going on. I mean, we talked about supply and demand. A lot of it has to do with demographics. You know, we have a lot of people who are already in that space that need to rent units and are not finding much out there. Secondly, we have Gen Y, you know, we’ve got 72 million people in Gen Y that were born between 1981 and 1996 that are going out and moving into the rental market. And also now at this point in time, you know, looking for starter homes, because they’re between the ages of 26 and 41. So that’s, you know, that’s kind of a pagan, a Python 72 million people coming into that market, you know, looking for their own place to get out of, you know, they’re bunking up with their friends, or even maybe living at home. Behind them, we have Gen Z, you know, people born between 1997 and 2012. And so these people are now you know, ages 10 to 25. But that leading edge of people who are 25, they’re wanting to get out and rent whether on their own or with a girlfriend, or, you know, friends, or maybe they’re newlyweds, you know, at a very young age, but they want to get out and start renting as well. So again, another big pig in a pythons are 68 million of those people. So this is all putting upward pressure on the housing market and the rental market and what inventory may be out there. So demand is very, very strong. Now, if that wasn’t bad enough, you know, there’s something that you know, will refer to a shadow demand. Now, if you look at the last 100 years, there was only one time in the past 100 years where young adults, people who are the between the ages of 18 and 29, that are living at home, typically with their parents, you know, but those that are twin 1829, the highest point in the last 100 years, was after World War Two in the 1940s, where it reached a peak of 48%. That’s a lot of young adults living at home that ultimately work their way into the housing market, then you can see what happened after that there was massive housing boom, well, history kind of tends to repeat itself. So we now as of, you know, the last year or two, this decade, we’ve reached an all time high of 52%. So this is post financial crisis, of course. But we now have 52% of young adults 18 to 29, living at home or in a situation where they are pent up and looking to come out into the housing market. So we call that shadow demand. These are people who need to come out eventually. And they’re going to put more pressure on the housing market in terms of sales and rentals. So these are the things we need to look at demographics, and just people who need or want to rent need or want to buy. They’re coming out faster than we can provide supply. And the supply side of the equation is this, you know, we need approximately 1.5 million housing units per year to keep up with organic growth, like the demand that we have right now. It’s more like 1.57. And that number is actually jumped up, it was about 1.3 7 million about five, six years ago. So demand is not going away supply is trying to keep up. And this is why we have this interesting dynamic of strong price growth, rental growth and the challenges of finding rental property or rental units, housing units to rent. So that’s a long answer to your question. But that’s what’s happening.

Thomas Castelli 18:00
And basically what I heard here is that is that real estate’s probably for the foreseeable future, a solid investment. And if you already own real estate, you’re in a good position, because it’s probably gonna appreciate just based on the strong fundamentals of the current economic environment, which is, which is amazing. Oh,

Unknown Speaker 18:15
yeah. I mean, if I, if I knew what I what I know, today, or even over the last 1224 months, I probably would have doubled down on real estate, you know, back in 2016 2017. Really, if I knew what was going to happen over the last 10 years, in 2012, when we reached the bottom of the last housing cycle, you know, housing market cycle, that would have been the most opportune time to buys is 2012. Because that was essentially the bottom of the housing market cycle in most housing markets, you know, I would have doubled down back then I would have quadrupled that I would have gone all in actually. So

Thomas Castelli 18:52
I wish I did. I guess quick question. It would be like say, say you are looking to just get started today? Or maybe you do have a handful of rentals. Would you say that? Now, this is not financial advice or anything like that. But would you say it’s someone should feel comfortable in general buying a piece of real estate today with with the prospects of it going up in value over the next few years?

Unknown Speaker 19:11
Well, yes, based on what I just said, I don’t see any reason why you would look at anything else. And I’m not I’m excluding cryptocurrency in this conversation, just because, you know, there’s a conversation there about the pros and cons of that, and compared to any other asset class. But if you look at anything that you would consider traditional or alternative investments, real estate, in my opinion, is by far the best. Why? Because it’s a hard asset. It’s not going anywhere. It’s one of the most tax, if not the most tax favored asset classes out there. It generates income, it’s leverageable, you could put as little as 20% Down it generates equity therefore increases your net worth in one of two ways. You know, you have equity growth through the of amortization loan, you have equity growth through the appreciation of that asset, which is really just trying to keep up with inflation. It’s not that it’s, you know, a magical investment class, it’s just well suited to be an inflation hedge because what is it made out of? You know, you got a hunk of dirt? And what are you putting on top of it, you know, bricks, concrete, copper, and whatever else. They’re commodities, you know, and commodities are going to keep up with inflation. And we are in a very strong inflationary environment. So real estate is certainly an ideal investment investment class. So yeah, I’m very bullish on real estate. Because of that. Mortgage rates are still at historically low levels, even though they’ve gone up a little bit, and they probably will go up a little bit more like, I would think in quarter point increments. But still zoom out, you know, when in doubt, zoom out, look at this from a big picture perspective, there was a long, long time when we were above 7% mortgage rates, and people kept refinancing as we kept inching down, you know, from nine to seven to six to five. And you know, we’re still in the upper three lower 4% mortgage rate range right now. So credit is cheap credit is available, and it just makes the investment very strong. The only caveat to all that is this is just be a prudent, smart investor, Don’t speculate, don’t try to, you know, swing for the fences and try to hit a home run. And in terms of price appreciation, you’ll get that appreciation, it’s going to happen, we’re in an inflationary environment, but just focus on properties that are in good markets that show stability and growth and generate positive cash flow. Because that cash flow is going to pay for that property and maintain it and generate some income for you. And over time, you’re going to have a valuable asset that’s going to generate income and be worth you know, how much it’s going to be worth. So yeah, I am bullish on real estate, it’s just you got to buy in the right locations. And I’ve always said, it’s not a question of, if you should buy, or when you should buy, it’s a question of where you should buy. There are always opportunities across the country. I mean, we find them all the time we’re in 25 markets, we’ve got hundreds of units that we’re selling a month to investors. So you really have to consider you know, where is the best place to be putting your investment capital to generate a rate of return and also protect that capital?

Thomas Castelli 22:05
100% is location, location, location. And honestly, after this conversation, like I’m hyped up, I’m ready to go. I’m ready to go.

Brandon Hall 22:12
I feel like you see that after every podcast, New York human bought anything. So what’s the deal?

Thomas Castelli 22:16
I know, I know, I just put money into syndicates, because I’m lazy like that. But coming soon, guys, it’s coming soon. I promise. I promise.

Brandon Hall 22:25
We have a real life case study here. Marco, what do you do when somebody is like calling you up? And they’re like, I’m trying to buy my first property and they’re in this super inflationary environment they’re seeing, you know, the prices are just just skyrocketing. It seems like on a daily basis, they increase by another 2%. What do you tell people like Tom? Because Tom’s the guy calling you up now asking what do I buy? Should I buy today? I’m so scared of the prices in the market collapsing? What do you tell? How do you tell an investor? Like what do you do to kind of calm their fears? And you can just go ahead and calm Tom’s fears. Tom’s going through this right now?

Unknown Speaker 23:06
Well, that’s pretty broad question. You need to understand what your goals are. First of all, you know, you just can’t, you know, put a blindfold on and start throwing darts at the wall and see, if you hit something, you have to have a strategy. Obviously, if you made a decision to to invest in real estate as the asset class, you probably made a very good decision. So now the question is, okay, what is my investment strategy, and for most people that would be buy and hold great property. And for me, you know, my formula, and what we use, you know, as kind of our definition of turnkey rental in our property, is it turnkey, or prudent investments should be in good markets and good neighborhoods in good condition, which means new or like new with professional full service property management, obviously, least, because it’s an in desirable neighborhoods. So now you’ve got professional management with, you know, positive cash flow property. So if you pick the right market and the right neighborhood, you mitigate 70 to 80% of your quote unquote, risk. So having a strategy and then defining your investment criteria, which would be where am I going to invest? What am I looking for? Is it a single family home? Is it attached? Is it a duplex is a triplex four Plex, you know, knowing what you’re looking for, or maybe that’s a numbers based goal or criteria, you know, it has to have a certain cap rate, certain cash on cash, return a certain amount of cash flow in dollar terms per month, or per year, you know, that becomes your lighthouse, your guiding criteria to help you pick and choose the properties you’re going to be investing in. Now, you can’t be too stringent with that and have a huge list because in today’s environment, if you have a very long criteria, you’re gonna have a hard time finding property. And when you do find that property that meets all the checkboxes in your criteria list, they’ll probably be gone within 24 hours and we see this happening. So, you know, fortunately, we, you know, have a big pipeline. We don’t have much of an issue with that. You know, investors may wait one or two weeks before they get What they’re looking for, but we’re able to put, you know, two or three properties in front of them every single time that we’re, you know, reaching back out to an investor to say here, this is what you’re looking for here are two or three more that are coming down the pike. But you have a strategy have a criteria. And part of that is narrowing it down to, you know, two or three markets that you’re focused on, because that meets your investment goals. If you have a level head, your objectives, you know, not irrational, not emotional, but objective and rational, you’ll do well, because this is math, you know, investing, especially in real estate is just knowing what you’re investing in. And knowing that, you know, you’ve got a hard asset that provides value to people who are renting your properties that will generate income, because they’re happy to pay the rent you’re giving them, you know, you’re giving them what they want, which I call safe, clean, functional housing. So as long as you follow those simple rules and principles, you’ll do well. Don’t rush in, Don’t speculate. It’s one of my 10 rules of successful real estate investing, don’t be a speculator, we know a lot of people made money speculating. But we also know a lot of people who’ve lost their shorts, you know, back in the day speculating because they thought that property values are going to go up forever. But the biggest problem and the biggest mistake they made and this is a huge takeaway, I think if you know, what a tweetable moment, it’s always buy property that generates a true net positive cash flow, because the cash flow is the glue that holds your deal together, you got positive cash flow, you can cover all your expenses, your debt service, you have something left over the property carries itself, it pays for itself. And it just becomes a better and better investment year over year.

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Brandon Hall 26:34
But what are the numbers look like today? Do you mind kind of walking us through a standard deal that you see come across your desk today in terms of the purchase price, and what you can eventually rent it for any sort of CapEx that’s needed before you can rent it?

Unknown Speaker 26:47
Yeah, it’s it’s hard to compare what you’re looking at today versus let’s say, three years ago versus six years ago, because the landscape has certainly changed. You can adjust for that in two ways. Obviously, the market and the neighborhood. And I don’t suggest investors take on undue risk by lowering the gray of the neighborhood they want to be in in order to get those higher cap rates for cash on cash returns, you can do that. They certainly look better on paper, but I think it’s it’s taking on a little higher risk being in less desirable neighborhoods. But yeah, the cap rates and cash on cash returns today, in general, again, you know, everything is very market specific, but they’re not what they used to be three, four years ago. But there are still a lot of opportunities out there to get positive cash flow. So you know, to be a little more specific to your question, Brandon, you have to put a little context in my answer here, properties across all the markets and areas that we are involved in will range from 80 to 100,000, on the low end, for three bedroom home, all the way up to about 350,000, or maybe a little more in single family, like three and four bedrooms, homes that are single family new construction, in certain areas, they will all generate positive cash flow. The new construction, though, as a kind of a side note, generally don’t look as sexy on paper initially, because you know, that just the numbers just don’t pan out as well. So what some investors do, what a lot investors do is they compare that same higher priced property, which is typically new construction, one of two ways with vacancy, vacancy allowance and a maintenance repair budget in, which typically gives you like almost no cash flow, sometimes a small negative cash flow. And then the same property with a scenario of not budgeting for vacancy and not budgeting for maintenance and repairs, because it is new construction. And typically, you’re not going to see any kind of maintenance or repair expenses for a reasonable amount of time. Even though you should still budget long term for capex, but it will generate positive cash flow under those scenarios. So if you’re in the 100 to $200,000 range, you’re going to get decent cap rate and cash on cash return, you will have positive cash flow you will do reasonably well. When you start to get above 200,000, like 200 to 225, those numbers start to break down pretty rapidly over $250,000 for a new construction home. The numbers aren’t sexy, but what I will tell you is from an overall total rate of return, which means I’m factoring in the equity growth, which is the appreciation amortization. When you’re dealing with new construction, it’s typically in a growth area growth market and to work in the path of progress. And so they tend to appreciate very well like very strongly. So when you take your overall returns not just your cash flow, which is your cash on cash return, but you also factor in your appreciation and equity growth. Your rates of return are actually very, very attractive like like very like in a 20% 30% plus range. And you just have to run the numbers it’s very simple calculation actually all the properties on our website which represent a very small percentage of properties we have in the pipeline. All have a calculator, you can click an analyze button called analyze this and pulls up a very detailed cash flow analysis tool. And you can change all the numbers to suit your own scenarios. But we break down the returns on there from a cash on cash perspective, as well as the total return, which includes your equity growth. And people will see that, well, this property I just bought this first year is not giving me a whole heck of a lot of cash flow is not very exciting, it’s only generating 150 bucks a month. Net, you know, which on a cash on cash return basis is not super high. But when they look at the what’s happening in terms of equity growth in appreciation, it’s like holy man, that is a solid investment. Now, granted unrealized gains, but they’re still gains that you can down the road tap into, you could use that equity to, you know, further leverage and accelerate the speed that you grow your portfolio because you could buy more property tapping into that equity. So kind of a non answer to your question. But it’s kind of it’s hard to get exact numbers, this is really so dependent on market neighborhood, the type of property, is it new construction? Is it newly refurbished? Those are all factors that play in. But you know, we put about five to 10, maybe 10% of the properties in our pipeline on our website, and you can just play around with that and just see what is out there.

Thomas Castelli 31:17
Yeah, that brings up a good question. I know you’ve alluded to it. So your company Narada health real estate investors buy turnkey properties and said, is that accurate?

Unknown Speaker 31:25
Yeah, yeah, that’s exactly what we do for 18 years, we provide a complete turnkey solution. So it’s not just the properties, we provide the financing, the property management, the title company, the, you know, the CPAs and accountants that you need, which you know, you’re on a referral list, the, you know, asset protection attorneys, title companies like everything, we’re like, the hub of a wheel and anything and everything an investor would need is on one of those spokes. So that comes through our referral network and or through us,

Thomas Castelli 31:52
you know, I’m actually gonna have to check this out myself, I think so. And so thank you for that. If our listeners did want to, I guess learn more about you, your company, and how you might be able to help them you know, get into a property, what would be the best way for them to do so?

Unknown Speaker 32:07
Yeah, the best way is just go to one of our two websites, the main is no rata, real estate.com And O R, Ada, Narada, and orada. However you want to pronounce it. There’s tons of information on there a lot of content a lot, we do about at least two market spotlights every week. So it’s a very, very detailed article on whether it’s Salt Lake City, or Cape Coral, Florida, or, you know, Houston, Texas. So there’s tons of great content, but on there, you can request a free strategy session with our team of investment counselors. And that’s really the great starting point. So there’s tons of free content information, downloadable guides, but you know, for those people who have questions or want to take the next step, they could just have a conversation with my team. So that’s the best place to start.

Thomas Castelli 32:48
All right, awesome. Well, we’re gonna go ahead and drop that into the show notes below for anybody who is listening and wants to check that out. Marco want to thank you again for coming on the podcast and sharing your insights on the market. I know everybody, always always interested to see what how the market is faring and what’s coming up. So thanks again.

Unknown Speaker 33:03
Thanks, Tom. Thanks, Brandon. You guys are awesome. Keep up the good work.

Brandon Hall 33:06
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