Preparing for Real Estate Investing in 2019

For many people, December is a hectic month filled with holiday preparations and celebrations. Between the busy times of the month, some real estate investors like to tie up loose ends for the year and start preparing for the upcoming year and their real estate rehab investments.

What do you consider your fiscal year to be? January to December? Or do you start from when you began your business? Whatever your fiscal year is, it is important to start and close the year similar each time.

Read the Forbes article about real estate investing and the end of 2018 here – https://www.forbes.com/sites/forbesrealestatecouncil/2018/11/28/set-up-for-success-in-2019-13-real-estate-investment-moves-to-make-before-2018-ends/#11e1577d6cf6

One of the most important parts of preparing for the next year of real estate investing, is to understand what is predicted for the real estate industry.  According to Forbes, in 2019, “Mortgage rates will continue rising,” “Millennials will keep buying homes — despite those rising rates,” “Overall home sales will drop,” and “National rents will rise, but apartment construction could ease renters’ pains.”

Read full article here – https://www.forbes.com/sites/alyyale/2018/12/06/2019-real-estate-forecast-what-home-buyers-sellers-and-investors-can-expect/#64abe5d70d9a

With these predictions for 2019, will you be making any changes to the way you invest in real estate?

2018 Q2 and Real Estate Investing

ATTOM Data Solutions released a motivating article in September for real estate investors.  Even though these statistics are in regards to the second quarter of 2018, the article reports interesting information regarding the real estate industry.

Some interesting takeaways from the article include:

– “Buyers have plenty of choices and only the top-quality homes are selling.  This means investors need to fine tune their operations and pricing models and deliver model-like homes in order to compete.”

– “‘Financing can be the answer to making more profit overall: an investor that nets $30,000 per flip after paying $5,000 to $10,000 for financing costs can make $90,000 on three flips with the same amount of cash required to make $40,000 on a single flip. For some experienced investors, it’s possible to do 20 to 30 flips per year with financing versus 10 or less using all cash.’”
     – Read our blog post about this topic here – http://recasafinancial.com/what-will-your-investment-give-you-in-return/

– “States with the highest average gross flipping ROI in Q2 2018 were Louisiana (102.5 percent), Pennsylvania (100.3 percent), Ohio (81.4 percent), Maryland (76.1 percent), and Tennessee (74.9 percent).”

The article gives great information and graphics that pertain to the rehab investment industry. Read the full article here – https://www.attomdata.com/news/market-trends/flipping/home-flipping-report-q2-2018/.

How do you think the rest of 2018 will play out for the real estate industry?

ReCasa Financial Group Testimonial

How many times do you seek recommendations for companies before you use them?  Hopefully you have been taking our advice of doing your homework to research companies and professionals before using them.  There are many sites dedicated to reviews of companies and professionals, and you can even resort to social media to find recommendations.

Recently, we received a testimonial from a mortgage broker, Justyn W. of NJ.  He wrote, “ReCasa is absolutely one of our most valued resources for closing our deals. The program they offer is truly unique, but it’s not just about having the best program – it’s about actually getting deals funded, which they do.”

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We would love for you to leave us a review here or on other sites, including our Facebook page.  This will help us to better our services for you in the future.

Goals for Your Real Estate Investment Business

At the beginning of the year or fiscal year, did you make goals for your real estate investing business?  Are you on track to meet your goals?

I read an article about a real estate investor who has set a goal to flip 300 Midwest properties within a year.  He believes he can do it by hiring certain companies who can complete one project in one rehab property then move to the next property.  He is hoping to find properties that he can add value to and sell quick.

Read the article here – http://www.chicagobusiness.com/residential-real-estate/guy-wants-be-king-flippers-midwest 

Instead of number of rehabs completed within a year, you can set a goal by a certain ROI to reach.  Goals for rehab investors that flip properties may be different from those who hold rehab properties.  What other goals are good for real estate investors to set?

Protect Your Rehab Investments

I have recently heard about a number of house fires in my area.  When I was in grade school, our house caught on fire due to build up in our dryer.  Luckily, we only had a little smoke damage, but it did put us out of our home for about 5 months.  Whether it be from old wiring or leaving something on in the house accidentally, your investment property or your personal residence, house fires, big or small, are never easy.  It is important to insure your real estate investment properties.

Here are some types of insurance coverage you might consider:

  • General Liability
  • Dwelling Insurance
  • Builder’s Risk
  • Life Insurance
  • Umbrella Coverage/ Excess Liability

As landlords, do you require your tenants to have any insurance?  What insurance do you carry for your rental properties?