Your Daily Dose Of Knowledge! March 31, 2025 - #335

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Welcome Back,

Hello everyone, happy Monday! I hope you had a fun and exciting weekend and are ready for an amazing week. Today we will e jumping into another real estate market. Enjoy!

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Daily News Updates:

President Trump Announces 'Liberation Day' Tariffs

President Donald Trump has declared April 2 as "Liberation Day," introducing a series of tariffs aimed at reducing the United States' reliance on foreign goods. These tariffs include "reciprocal" import taxes targeting the European Union, South Korea, Brazil, India, and others. While the administration asserts these measures will protect American jobs and wealth, economists warn they could lead to higher consumer prices and slower economic growth.

Stock Markets React to New Tariff Announcements

The stock market experienced a significant downturn following the announcement of new 25% auto tariffs, with additional tariffs on copper, lumber, and pharmaceuticals expected in the coming weeks. Major indexes, including the Dow Jones, S&P 500, and Nasdaq, all saw notable declines. Investors are advised to remain cautious and maintain liquidity until the market shows signs of stabilization. ​

Airbus CEO Warns of Escalating Trade War Impacts

Guillaume Faury, CEO of Airbus, has expressed concerns that the escalating trade war, driven by the new U.S. tariffs, may worsen before improving. He emphasized that incoming tariffs could severely impact both sides, potentially leading to significant economic challenges before a resolution is reached. ​

Consumer Prices Expected to Rise Amid Tariff Implementation

Economists predict that the new tariffs will contribute to rising inflation, with core goods prices already showing an upward trend. Federal Reserve Chair Jerome Powell highlighted tariffs as a contributing factor to recent price increases, suggesting that the era of cheap goods may be coming to an end. ​

Public Opinion Divided on Tariff Focus

A recent CBS/YouGov poll reveals that while President Trump maintains a 50% approval rating, 55% of Americans believe he is too focused on tariffs. Additionally, 64% feel he isn't doing enough to address rising everyday prices, indicating growing public concern over the administration's economic strategies. ​

Global Trade Dynamics Shift as U.S. Imposes New Tariffs

Despite the U.S. implementing new tariffs, global trade is expected to remain resilient. Other major economies, including Europe and China, continue to advocate for free trade, suggesting that while U.S. actions may cause disruptions, the overall trajectory of global trade will persist. ​

Americans Express Increased Job Market Anxiety

Many Americans are experiencing heightened anxiety about the job market, drawing parallels to sentiments last seen during the Great Recession. Reports of layoffs and economic instability, coupled with policy uncertainties under the current administration, are contributing to a cautious and hesitant workforce. ​

South Korea, China, and Japan Collaborate to Promote Regional Trade

In response to looming U.S. tariffs, South Korea, China, and Japan have agreed to promote regional trade cooperation. This collaboration aims to mitigate the impact of U.S. trade policies and strengthen economic ties within the region. ​

Potential Impact of Auto Tariffs on Working-Class Consumers

The proposed 25% tariff on imported vehicles is expected to disproportionately affect working-class car buyers, as many low-cost new cars sold in the U.S. are manufactured abroad. This could lead to increased prices for affordable vehicles and a surge in demand for used cars, further straining the market. ​

World Trade Organization Faces Challenges Amid Rising Protectionism

As global trade faces mounting threats from rising protectionism, the World Trade Organization (WTO) stands at a pivotal moment in safeguarding economic stability.

Real Estate Investing

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Market Snapshot:

The Carbondale real estate market has experienced notable growth over the past year. As of February 2025, the median home sale price reached $113,750, marking a 30.7% increase compared to the previous year.

Homes are spending an average of 85 days on the market, up from 55 days last year, indicating a slight slowdown in turnover. Despite this, the number of homes sold in February rose to 14, up from 9 the previous year, suggesting sustained buyer interest. ​

  • Median Sale Price: $113,750​

  • Year-over-Year Price Growth: 30.7%​

  • Average Days on Market: 85

Deal Of The Day:

Duplex in Carbondale, IL

  • Price: $75,000​

  • Units: 2 (Each 2-Bed, 2-Bath)​

  • Monthly Rental Income: $1,600​

  • Cap Rate: 8%

This duplex offers a compelling investment opportunity with a strong 8% cap rate. Each unit rents for approximately $800 per month, totaling an annual rental income of $19,200.

Located near Southern Illinois University, the property benefits from a steady demand for housing, particularly from students and faculty. With the local market's upward trend, this investment promises both immediate cash flow and potential appreciation.

Deal Rating: 7.8/10

Investment Strategy:

Seller Financing

In scenarios where traditional financing is challenging, seller financing can be a viable alternative. This arrangement involves the seller acting as the lender, allowing the buyer to make payments directly to them over an agreed period.

For example, if purchasing a property for $120,000, you might negotiate a 10% down payment ($12,000) and finance the remaining $108,000 through the seller at a mutually agreed interest rate.

This strategy can benefit both parties: buyers gain access to financing without stringent bank requirements, and sellers can expedite the sale while earning interest income.

Current Interest Rates:

Carbondale, Illinois

  • 30-Year Fixed Residential: 6.76%​

  • 15-Year Fixed Residential: 6.4%​

  • FHA 30-Year Fixed: 6.27%​

  • Jumbo 30-Year Fixed: 6.70%​

As of March 30, 2025, mortgage rates in Carbondale have seen slight decreases over the past month. The 30-year fixed-rate stands at 6.76%, down 0.09% from the previous month. These favorable rates present opportunities for both new buyers and those considering refinancing.

Real Estate Tip:

With homes spending an average of 85 days on the market, Carbondale is currently favoring buyers.

In such a market, investors have the leverage to negotiate better deals. Strategies include offering below the asking price, requesting seller concessions, or negotiating favorable financing terms.

Additionally, conducting thorough property inspections can uncover areas for further negotiation, ensuring you secure the best possible deal in this buyer-friendly environment.

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Economic Conditions

Carbondale's economy is closely tied to Southern Illinois University, which serves as a major employer and economic driver in the area. The city's unemployment rate remains relatively low, contributing to a stable housing market.

However, potential investors should monitor state funding allocations to the university, as budgetary changes can impact employment levels and, consequently, the local real estate market.​

Market Rating: 6.2/10

Key Takeaways:

  • Carbondale Market Update: Median home sale price at $113,750, up 30.7% year-over-year.​

  • Deal of the Day: $150,000 duplex near Southern Illinois University, yielding $2,000/month rental income.​

  • Tip: Understanding local market dynamics, such as the influence of Southern Illinois University, is crucial for investment success.​

  • Investment Strategy: Utilizing seller financing can provide alternatives to traditional bank loans.​

  • Interest Rates: 30-year fixed mortgage rates in Carbondale are at 6.76%, presenting favorable conditions for buyers.​

  • Economic Impact: Carbondale's economy is stable, with low unemployment, but investors should monitor state funding to Southern Illinois University.

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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.

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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