Your real estate investment’s returns could be ruined by a few hidden costs that you don’t know about. For the rookie real estate investor, it seems like every investment has the same type of expenses; mortgage, taxes, insurance, repairs, and property management. And while these surface-level expenses are almost always present in a real estate deal, NUMEROUS extra expenses could sink your ship if you don’t include them in your deal analysis. So, stick around, or you might get burnt on your next real estate deal! To walk us through the different types of deals and the expenses that come with them, we’ve got Henry Washington, James Dainard, and Kathy Fettke on the show. Henry, a buy and hold investor, knows that the “cash flow” new investors are calculating is far from reality. He highlights the exact expenses it takes to run a rental property portfolio and why those counting on self-management could be making a MASSIVE mistake. Next, James talks about the often over-glamorized world of flipping houses and the massive haircut investors take when they don’t account for closing, construction, and tricky lending fees. Finally, for our passive investor, Kathy goes into the world of real estate syndications, defining the numerous fees many “mailbox money” investors overlook. In fact, investors in these passive deals often don’t know when (or how) they’re getting paid. You DO NOT want to make this mistake! Stick around to hear it all, so you don’t make these beginner blunders next time you get a deal done! ~~~~ Join BiggerPockets for FREE 👇 https://www.biggerpockets.com/signup?… ~~~~ Listen to The “On The Market” Podcast Wherever You Listen to Podcasts: Spotify: https://open.spotify.com/show/2NlzZ9N… Apple Podcasts: https://podcasts.apple.com/us/podcast… BiggerPockets: https://www.biggerpockets.com/podcast… ~~~~ Join the Future of Real Estate Investing with Fundrise: https://www.fundrise.com/bpmarket ~~~~ Find an Investor-Friendly Agent in Your Area: https://www.biggerpockets.com/agent/m… ~~~~ Books Mentioned in Today’s Show: The Book on Estimating Rehab Costs: https://store.biggerpockets.com/produ… The Book on Managing Rental Properties: https://store.biggerpockets.com/produ… The Hands-Off Investor: https://store.biggerpockets.com/produ… ~~~~ Ask a Question in the “On the Market” Forums: https://www.biggerpockets.com/forums/… ~~~~ Connect with Dave and Our Panel of Guests: Dave Meyer: https://www.biggerpockets.com/users/d… Henry Washington: https://www.biggerpockets.com/users/h… James Dainard: https://www.biggerpockets.com/users/j… Jamil Damji: https://www.biggerpockets.com/users/j… Kathy Fettke: https://www.biggerpockets.com/users/k… ~~~~ Follow Dave and Our Guests on Instagram: Dave: @thedatadeli or https://www.instagram.com/thedatadeli/ Henry: @thehenrywashington or https://www.instagram.com/thehenrywas… James: @jdainflips or https://www.instagram.com/jdainflips/ Jamil: @jdamji or https://www.instagram.com/jdamji/ Kathy: @kathyfettke or https://www.instagram.com/kathyfettke/ BiggerPockets: @biggerpockets or https://www.instagram.com/biggerpockets/ Episode 79 Show notes at: https://www.biggerpockets.com/blog/on… 00:00 Intro 02:33 Fix and Flip 04:01 Wholesaling Terms and Fees 08:16 Lending and Hard Money Fees 13:11 Construction Bids 14:16 Seller Concessions 16:12 Buy and Hold 17:35 Vacancy Costs 21:17 The “Self-Management” Fallacy 23:44 Not Raising Rent 25:50 Real Estate Syndications 27:11 GP Fees 28:22 Preferred Returns 31:37 More Miscellaneous Fees 34:40 Investor Status 35:56 Know Your Costs 36:32 The “444” Economic Prediction #biggerpockets #onthemarket #onthemarket79