Your Daily Dose Of Knowledge! March 19, 2025 - #323

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Welcome Back,

Hi there, and welcome back to another real estate market analysis. Today we will be diving into another exciting east coast market, that of Roanoke, Virginia. Enjoy!

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Daily News Updates:

OECD Warns of Global Economic Slowdown:

  • Trade Barriers Impact: The Organisation for Economic Co-operation and Development (OECD) reports that rising U.S. tariffs are expected to slow global economic growth and increase inflation. The OECD has revised its global GDP growth forecast to 3.1% for 2025 and 3.0% for 2026, down from previous estimates of 3.3%. The U.S. economy is now projected to grow by 2.2% in 2025 and 1.6% in 2026. ​

Federal Reserve Maintains Interest Rates Amid Inflation Concerns:

  • Steady Rates: The Federal Reserve has decided to keep interest rates unchanged, citing concerns over rising inflation and economic uncertainty. Chair Jerome Powell emphasized the need to assess the cumulative effects of current trade policies before making further monetary adjustments. ​

U.S. Stock Markets Experience Volatility:

  • Market Fluctuations: U.S. stock markets have experienced significant declines due to unpredictable economic and trade policies. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average have all fallen, while markets in Europe and Asia have shown gains.

Global Prosperity Forum Highlights Economic Shifts:

  • Forum Insights: The Global Prosperity Forum, held on March 19, 2025, in Washington, DC, brought together global policymakers and experts to discuss shifts redefining the global economic landscape. The forum explored how nations and businesses can adapt, grow, and expand their influence in a connected world.

Brazil's Central Bank Raises Interest Rates:

  • Rate Hike: Brazil's central bank has increased its benchmark interest rate to a near decade-high of 14.25%, aiming to combat rising inflation and stabilize the economy. ​

Trade Tensions Escalate Between U.S., Canada, and Mexico:

  • Tariff Increases: The U.S. has imposed 25% tariffs on imports from Canada and Mexico, leading to retaliatory measures. These actions have contributed to market volatility and raised concerns about a potential economic slowdown. ​

Stagflation Fears Among U.S. Small Businesses:

  • Economic Warnings: Small businesses in the U.S., considered the backbone of the economy, are signaling warnings of stagflation—a combination of stagnant economic growth and high inflation. Uncertainty over tariffs and layoffs are contributing to these concerns. ​

Consumer Prices and Inflation Trends:

  • Inflation Data: Despite low gas prices averaging near $3 per gallon, overall inflation remains a concern. While some prices, such as those for eggs, are cooling, the broader inflationary trend continues to impact consumer spending. ​

OCC Approves Fintech Business Model for National Bank:

  • Regulatory Approval: The Office of the Comptroller of the Currency (OCC) has granted conditional approval for fintech company SmartBiz Loans to change the business model of CenTrust Bank, N.A., signaling a significant development in the integration of fintech and traditional banking.

Upcoming Economic Indicators:

  • Economic Calendar: Key economic indicators to watch include the FOMC interest-rate decision on March 19 and the Fed Chair Powell press conference. Additionally, initial jobless claims data will be released on March 20, providing insights into the labor market.

Real Estate Investing

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Market Snapshot:

Roanoke, Virginia

The Roanoke real estate market has experienced notable growth. In February 2025, the median listing home price reached $289,900, marking a 7.4% increase year-over-year. The median home sold price was $279,535, reflecting an 8.5% rise from the previous year. Homes are typically selling after 22 days on the market, indicating a brisk market pace. ​

  • Median Listing Price: $289,900

  • Median Sold Price: $279,535

  • Year-over-Year Price Growth: 7.4% (listing), 8.5% (sold)​

  • Average Days on Market: 22

Deal Of The Day:

Duplex in Old Southwest, Roanoke

  • Price: $420,000​

  • Units: 2 (3-Bed, 2-Bath each)​

  • Monthly Rental Income: $4,400​

  • Cap Rate: 8.5%

This duplex in the historic Old Southwest neighborhood offers a compelling investment opportunity. Each unit rents for $2,200 per month, totaling $3,600 in monthly income. With a cap rate of 8.5%, this property promises robust returns. Its proximity to downtown Roanoke ensures steady tenant demand.

Deal Rating: 7/10

Investment Strategy:

Seller Financing

In seller financing, the property seller acts as the lender, allowing the buyer to make payments over time directly to them. This approach can benefit both parties: buyers might secure favorable terms without traditional bank involvement, and sellers can expedite the sale while earning interest. For example, purchasing a $300,000 property with 10% down and the remaining $270,000 financed by the seller at a 5% interest rate over 15 years can result in mutually advantageous terms.

Current Interest Rates:

Roanoke, Virginia

  • 30-Year Fixed Residential: 6.3%​

  • 15-Year Fixed Residential: 5.9%​

  • Commercial Rates: Starting at 6.0%​

Interest rates in Roanoke remain relatively stable. Residential rates are slightly below the national average, making it an opportune time for both homebuyers and investors to secure favorable financing.

Real Estate Tip:

Navigating Property Management in Roanoke

Investing in rental properties in Roanoke can be lucrative, but effective property management is crucial. Engaging a local property management company can alleviate the challenges of tenant screening, maintenance, and legal compliance. For instance, a property manager charging 10% of monthly rental income would cost $360 for a property generating $3,600 per month. This expense can be offset by reduced vacancies and professional oversight, ensuring a smooth investment experience.

Economic Conditions

Roanoke's economy is on an upward trajectory. The Roanoke Regional Partnership projects an increase in economic output by $9.7 billion by 2025. Key sectors driving this growth include healthcare, manufacturing, and technology. The city's strategic location and infrastructure investments are attracting businesses, further bolstering the real estate market.

Market Rating: 8/10

Key Takeaways:

  • Roanoke Market Update: Median home prices have risen, with properties selling faster, indicating a robust market.​

  • Deal of the Day: A duplex in Old Southwest offers an 8.5% cap rate, presenting a strong investment opportunity.​

  • Tip: Understanding local zoning laws is crucial to ensure your investment aligns with legal requirements and market demands.​

  • Investment Strategy: Seller financing can provide flexible purchasing options, benefiting both buyers and sellers.​

  • Interest Rates: Stable rates in Roanoke make it an opportune time for financing real estate investments.​

  • Economic Impact: Projected economic growth in Roanoke signals a promising environment for real estate investors.

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.

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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