Your Daily Dose Of Knowledge! April 9, 2025 - #344

Today’s New Post - Real Estate - Stock Market - Business Briefs - Boost Your Knowledge - More

Welcome Back,

Good morning y’all 🤙🍵, I hope you week is going well so far! Today on this fine Wednesday we will be diving into another real estate market that you might consider investing in… this time in Kansas. We will also go over a everything you need to know about the tariff war currently going on. Enjoy!

Ryan Rincon

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Daily News Updates:

President Trump and Fed Chairman Powell Clash Over Interest Rates

Tensions have escalated between President Donald Trump and Federal Reserve Chairman Jerome Powell concerning interest rate policies. President Trump is urging for rate cuts to mitigate economic fallout from the tariffs, while Chairman Powell remains cautious, emphasizing the need for clear policy conditions before making adjustments. This standoff has contributed to market volatility and raised concerns about the Federal Reserve's independence. ​

China Vows to 'Fight to the End' Against U.S. Tariffs

In response to the U.S. imposing tariffs exceeding 100% on Chinese goods, China has declared its intent to "fight to the end" against what it terms U.S. "blackmail." While China adopts a firm stance, other nations, including the European Union, are exploring diplomatic solutions, with the EU proposing a "zero-for-zero" tariff deal to ease tensions. ​

U.S. Bond Market Experiences Sharp Selloff

A sudden selloff in the U.S. bond market led to a spike in Treasury yields, with the benchmark 10-year yield rising from 3.87% to 4.216%. This volatility reflects investor concerns over the economic impact of the tariffs and diminishing expectations for imminent interest rate cuts by the Federal Reserve. ​

Euronext CEO Compares U.S. Market Volatility to Emerging Markets

Stephane Boujnah, CEO of Euronext, likened the recent volatility in U.S. financial markets to that typically observed in emerging markets. He attributed this shift to the unpredictable policy decisions of the Trump administration, particularly the sweeping tariffs aimed at revitalizing domestic industries. ​

Small Business Confidence Declines Amid Economic Uncertainty

The National Federation of Independent Business (NFIB) reported a significant drop in its Small Business Optimism Index, falling 3.3 points to 97.4 in March. This decline reflects growing concerns among small business owners regarding the administration's trade policies and their potential impact on the economy. ​

Major U.S. Banks Brace for Tariff Impact on Earnings

As major U.S. banks prepare to report earnings, there is heightened focus on the economic outlook amid rising recession concerns triggered by the new tariffs. Analysts anticipate that banks will increase loan-loss reserves to account for higher recession risks, potentially impacting profitability. ​

Oil Prices Rebound Slightly After Tariff-Induced Decline

Oil prices experienced a modest rebound of over 1%, with Brent crude rising to $65.02 per barrel and West Texas Intermediate reaching $61.61. This recovery follows a sharp decline driven by fears that the new U.S. tariffs could dampen global demand and potentially lead to a recession.

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Real Estate Investing

Market Snapshot:

Wichita, Kansas

The Wichita real estate market is experiencing notable growth. As of February 2025, the median home value reached $194,372, marking a 5.9% increase over the past year. Homes are going pending in approximately 22 days, indicating a brisk market. However, the median listing price in February was $270,000, showing a 5.1% decrease year-over-year. This suggests a potential shift towards a buyer's market. ​

  • Median Home Value: $194,372​

  • YoY Value Growth: 5.9%​

  • Median Listing Price: $270,000​

  • YoY Listing Price Change: -5.1%​

  • Median Days to Pending: 22 days

Deal Of The Day:

Multifamily Property in Wichita, KS

  • Price: $480,000​

  • Units: 3 single-family homes and 1 duplex​

  • Total Monthly Rental Income: $3,900​

  • Cap Rate: 9.2%​

This portfolio includes multiple rental units generating a combined monthly income of $3,900, resulting in a cap rate of 9.2%. With Wichita's rental market showing strength, this investment offers a solid return.

Deal Rating: 7.1/10

Investment Strategy:

Seller Financing

Seller financing involves the seller acting as the lender, allowing the buyer to make payments directly to them. This can be advantageous when traditional financing is challenging to obtain. For example, purchasing a property for $200,000 with a 10% down payment and negotiating a 5% interest rate over 15 years can result in favorable terms for both parties.

Current Interest Rates:

Wichita, Kansas

  • 30-Year Fixed Residential: 6.575%​

  • 15-Year Fixed Residential: 6.250%​

  • 7-Year Adjustable Rate: 5.875%​

These rates, effective as of April 7, 2025, are subject to change.

Real Estate Tip:

Wichita's real estate market presents opportunities for both seasoned and novice investors. With median home values rising by 5.9% over the past year, the market shows signs of appreciation. However, the 5.1% decrease in median listing prices suggests potential shifts in supply and demand dynamics.​

Investors should consider multifamily properties, as they offer diversification and multiple income streams. For example, a portfolio priced at $480,000 with a cap rate of 9.2% can provide a steady cash flow. Additionally, understanding financing options, such as seller financing, can open doors to deals that might not be accessible through traditional lending channels.

Staying informed about local economic conditions, including employment rates and industry developments, is crucial. With Wichita's unemployment rate at 4.1%, the job market appears stable, but investors should remain vigilant to any economic shifts that could impact the housing market.

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Economic Conditions

As of December 2024, Wichita's unemployment rate stood at 4.1%, reflecting a stable job market. However, economic forecasts indicate a potential slowdown in growth for 2025, emphasizing the need for investors to monitor economic indicators closely.

Market Rating: 7.6/10

Key Takeaways:

  • Wichita Market Update: Median home value is $194,372, up 5.9% YoY.​

  • Deal of the Day: $480,000 multifamily portfolio with a 9.2% cap rate.​

  • Tip: Analyze local market trends to inform investment decisions.​

  • Investment Strategy: Consider seller financing for flexible purchasing options.​

  • Interest Rates: 30-year fixed at 6.575%; 15-year fixed at 6.250%.​

  • Economic Impact: Unemployment rate at 4.1%; monitor for potential economic shifts.​

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That’s All For Today

I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.

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Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.

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