Welcome to the Pocket List, investors 👋

Let’s make some money today, shall we?

First, let’s check in on mortgage rates…

The 411 on rates… Rates crept up slightly from their 6-month lows, but have remained in a pretty tight range with limited economic data to move the market. That all changes tomorrow when the Fed’s preferred inflation data drops.

THE LEAD

A huge win for the average investor

We are so f*cking back, you guys.

Those Wall Street fat cats with all cash offers (above asking) are slowing their roll.

And I’ve got receipts…

According to Realtor.com, the share of all cash offers fell to 64% in the first quarter of 2024. That’s the lowest it’s been since 2008. And well below an all-time high of nearly 70% at the end of 2021.

So what the hell is going on?

Well, smaller investors (think: me and you) are becoming a bigger piece of the overall investor pool. In fact, the share of small (I like to think of us as “capital constrained”) investors rose to an all-time high. The percentage of purchases by medium and large investors both fell in Q1 of this year.

And, as you might have guessed (or know from personal experience), mom-and-pop shops tend to grow doors via debt financing.

Zoom out…

Of course, other investors aren’t the only buyers we’re competing against. You see, more non-investors are purchasing all cash. So, while you might not need to worry as much about a Wall Street giant swooping in to steal your deal with an all-cash offer... you might have to worry about a trust fund baby looking for a starter home.

And, of course, it’s all about location in real estate. Realtor.com points out, some markets are more “small investor friendly” than others…

💭 Mr. Pocket Listing says… Call me old-fashioned, but even though interest rates are higher than an intern at the Stratton Oakmont holiday party, I prefer to finance properties. It gives me the flexibility I need to add more properties.

Also, am I the only one concerned that the “smart money” is turning its back on all-cash offers in a high-interest-rate environment?

WHAT ELSE?

More industry headlines I’m keeping an eye on…

• RealPage Forecast Points to Improved Rent Growth in 2025 (Read)

• Biden wants national rent control. Has it worked in the cities that have it? (Read)

• Home sales slump in June, signaling buyer’s market as prices hit another record high (Read)

• Multifamily Property Values Fall as Insurance Premiums Climb (Read)

• Mortgage rates fall to 5-month low. Buyers hold out for more drops, but homeowners are refinancing. (Read)

• Home Construction Is Undergoing a Revolution. Here's How Investors Will Benefit. (Read)

• America’s Smallest Apartments Are Getting Even Smaller (Read)

• 3 Ways Biden Dropping Out Could Affect Housing Costs (Read)

• Blackstone’s Gray Expects ‘New Cycle’ for Real Estate Market (Read)

• The Department of Justice's Next Target: Buyer Agents (Read)

DIY

Let’s get tactical…

• Real Estate Investors Are Making These 6 Costly Mistakes. Don't Be One of Them. (Read)

• What do you think is more important for growing wealth: cashflow or appreciation? (Read)

• These Are the Passive Investments I'm Most Excited About Right Now (Read)

• You survived 2008, you can conquer 2024: Navigating a changing real estate landscape (Read)

• When home mortgage rates go down, these housing stocks, funds and ETFs go up (Read)

• Some renters may be ‘mortgage-ready’ and not know it. Here’s how to tell (Read)

• Here’s Why Foreign Buyers Are Really Pulling Back From the U.S. Housing Market (Read)

• 5 Strategies Boomers Use To Build Generational Wealth Through Real Estate (Read)

• 4 Home Upgrades That Will Increase the Value of Your House By 2025 (Read)

• What are the worst parts about real estate investing? (Read)

Mr. Pocket Listing’s favorite property of the week (a guy can dream, can’t he?)…

PROPERTY TOUR

It’s time to get a pulse on markets around the country…

(1) Rents Are Falling Nearly Everywhere—but Rising in These Surprising Cities (Read)

(2) America’s Top 10 Rental Markets: Sweet Spots With Plenty of Jobs, Affordable Homes, and Fun Things To Do (Read)

(3) 10 Cities Where You Can Make the Most Money on a Fix-and-Flip Property (Read)

SURVEYING

Here’s today’s question…

Did you take the Q3 survey (and earn a chance to win a $50 gift card)?

No?! Take the survey here.

If you’re enjoying the Pocket List, make sure to share it with your friends and fellow investors. You can send them here to sign up.

One last thing…