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Hello everyone, I hope your week is coming to a great end! Finish the week off strong. Today we will be diving into a real estate market in the great state of Texas. Enjoy!

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Corporate Earnings Under Scrutiny: Marvell Technology's shares plummeted in premarket trading after issuing a lackluster outlook, despite beating earnings and revenue expectations for the fourth quarter. Costco Wholesale was set to release its second-quarter earnings report, with analysts forecasting increased revenue and profits. Broadcom was also slated to announce its earnings amid a tech selloff prompted by tariff concerns, with projections indicating significant year-over-year growth.

ECB Cuts Interest Rates Amid Economic Stagnation: The European Central Bank (ECB) cut its key interest rate to 2.5% from 2.75%, marking its sixth cut in seven meetings, in an effort to stimulate growth amid economic stagnation due to tariff threats from the US and increased military spending needs. Germany's planned expenditure of €1 trillion on defense and infrastructure has significantly impacted the economic outlook, leading to rising bond yields and a stronger euro.

Germany's Fiscal Policy Shift Triggers Global Bond Sell-Off: Germany announced plans to significantly increase its government and defense spending, leading to a sell-off in the global bond market. The proposed €500 billion investment in infrastructure and higher defense budgets caused German bond yields to rise sharply, marking the worst day for 10-year German bonds since 1990.

Entrepreneurship Conferences Foster Innovation: Vanderbilt University is hosting its inaugural Convoy Conference from March 4-6, aiming to accelerate momentum in entrepreneurship and venture capital by gathering alumni entrepreneurs, venture capitalists, and business leaders to strengthen the university's innovation ecosystem. Similarly, Harvard Business School is set to host the Entrepreneurship Summit 2025, bringing together over 25 founders from leading companies to share insights, engage in discussions, and connect with venture capitalists, fellow entrepreneurs, and business leaders.

Goldman Sachs Raises Euro Area Growth Forecast: Goldman Sachs raised its economic growth forecast for Germany to 0.2% for 2025, up by 0.2 percentage points, citing the prospect of increased military and infrastructure spending. The brokerage also projected the euro area's growth to increase by 0.1 percentage point to 0.8% in 2025.

IMF Projects Global Economic Growth: The International Monetary Fund (IMF) forecasts a 3.3% global economic growth in 2025/26, reflecting a slight downward revision due to factors like OPEC+ production cuts affecting certain regions. Despite challenges, emerging markets and developing economies are expected to contribute significantly to this growth.

U.S. Economic Uncertainty Amid Policy Shifts: The economic climate under the current U.S. administration is marked by uncertainty, attributed to rapid and ambiguous policy changes. Factors such as tariffs, spending cuts, a potential government shutdown, and immigration policies are exerting downward pressure on the economy, with indicators pointing toward a sharp economic contraction.

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Market Snapshot:

Lubbock, Texas

The Lubbock real estate market is steadily growing, fueled by its affordability and strong rental demand from Texas Tech University students. The median home price currently stands at $230,000, reflecting a 6.2% YoY increase. Active listings have risen slightly due to new developments, with approximately 1,800 properties on the market. Lubbock remains attractive to investors due to low property taxes and a booming job market in healthcare, agriculture, and technology. However, rising interest rates may slow purchasing trends, pushing more residents into rentals.

• Median Home Price: $230,000

• YoY Price Growth: 6.2%

• Active Listings: 1,800

Deal Of The Day:

Duplex Near Texas Tech

• Price: $440,000

• Units: 2 (3-Bed, 3-Bath Each)

• Monthly Rental Income: $4,400

• Cap Rate: 8.2%

Located just minutes from Texas Tech University, this duplex is an excellent student rental investment. With each unit renting at $2,200 per month, the property generates $52,800 in annual income. The demand for off-campus housing remains strong, ensuring consistent cash flow. This turnkey investment requires minimal upgrades, making it ideal for first-time investors or those looking to expand their rental portfolio.

Investment Strategy:

The BRRRR Method

The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) is an excellent way to grow a rental portfolio with limited capital.

1. Buy – Purchase undervalued properties needing repairs.

2. Rehab – Improve the property to increase its market value.

3. Rent – Secure long-term tenants for steady cash flow.

4. Refinance – Pull out equity through a cash-out refinance to recover initial investment.

5. Repeat – Use the equity to fund the next property.

Example: An investor buys a fixer-upper in Lubbock for $160,000, spends $30,000 on renovations, and increases its value to $240,000. After refinancing at 75% LTV, they recover $180,000, leaving capital to repeat the process.

Current Interest Rates:

Lubbock, Texas

• 30-Year Fixed Residential: 6.7%

• 15-Year Fixed Residential: 6.3%

• Commercial Rates: Starting at 6.5%

Interest rates remain elevated, impacting affordability for first-time buyers. However, investors with strong cash flow properties continue to find profitable deals.

Real Estate Tip:

How to Invest in Real Estate with a Partner

Pooling resources with an investment partner can open doors to larger deals and better financing terms. Many investors team up to:

• Increase buying power for multifamily properties.

• Share financial responsibility and split profits.

• Leverage different skills (one partner handles property management, the other handles financing).

For instance, two investors could jointly purchase a $600,000 fourplex, each contributing $50,000 for the down payment. This approach reduces risk while maximizing cash flow potential.

Economic Conditions

Lubbock’s economy is thriving, with unemployment at 3.4% and growth in the medical, agriculture, and logistics sectors. Texas Tech University continues to attract students and professionals, boosting the rental market. Additionally, home construction is rising, though labor shortages and material costs are leading to slight delays in new developments.

Key Takeaways:

• Lubbock’s housing market is growing, with median home prices at $230,000 and 6.2% YoY appreciation.

• Duplex near Texas Tech offers 8.2% cap rate and strong rental demand.

• House hacking allows investors to live for free while building equity.

• BRRRR strategy enables portfolio growth with limited capital.

• Real estate partnerships help investors scale without massive upfront costs.

• Secondary markets like Lubbock can be more profitable than big cities.

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.