Pandemic Changes in Real Estate

Mortgage rates are expected to rise as the pandemic recovery starts.  Real estate professionals believe that people will be eager to purchase homes soon to take advantage of the low rates before the rise begins.

Many lending companies have had to make some changes due to the pandemic.  Conventional loans used to finance investment properties are predicted to get more expensive and harder to obtain.  Recently, Fannie Mae released news that starting April 1, 2021, their lending criteria will be stricter for investment/ second home financing.  Only 7% of Fannie Mae portfolio will be investments/ second homes.  According to, these changes come due to recent “amendments to our senior preferred stock purchase agreement.”  Each loan application will be run through an underwriting program to determine if the applicate is eligible.

Read the full article here –

ReCasa Financial Group funds all loans in house, so we continue to keep the same lending criteria we have had in place for years.  We will review a file submission in a timely manner and personally communicate with the client through the closing process, draw request process.  We are always on hand to meet the needs of investor clients looking to purchase and improve property.

Online Companies Purchasing Real Estate

Carvana is an online company that uses technology to purchase vehicles then resell them. This route creates less hassle for the seller since an instant offer is given once vehicle specifics are entered online. There are companies doing similar things with real estate properties. Zillow Offers and Opendoor are two examples.

While companies like Zillow Offers create an easy route and quick sale for real estate sellers, it could mean a lower profit. One of the big advantages to this route is that there is no face-to-face interaction, which is helpful with restrictions from the pandemic ongoing. There is also no need for open houses and showings. This can be helpful for those families with pets, little kids, and busy lives. At what point is it beneficial to sell your real estate investment property to a buyer like Zillow Offers? 

Generational Wealth and Real Estate

Recently, I was speaking with my husband about creating generational
wealth. We have two daughters and would love to have something set up for their
financial future.  The thought of using
real estate as a vehicle to achieve that came to the forefront of my mind.

I realized that a family friend was doing just that.  He and his two teenaged sons purchased an investment property. The three worked together to rehab the property, and they continue to work together to take care of the property. Whether rehabilitating to sell or retain as a rental, successful projects can, over time, exponentially improve one’s financial standing and help build wealth that can be passed on to future generations. This also teaches the next generation the importance of planning and gives them an example of ways to improve one’s financial self. It is never too early to teach your children smart financial habits.

Forbes published an article explaining how real estate
builds generational wealth. While the article uses the Vanderbilt family and
the Rockefeller family as examples, you can see how your results can be similar
even on a smaller scale. 

Read the article here –

What better way to start 2021, than starting to create generational wealth through real estate investing!

Preparing for 2021

Even through a national pandemic, the real estate industry continues to remain steady.  With low mortgage rates, many homeowners were able to refinance in 2020.  Some real estate investors who owned rental property, were able to receive support through local and federal programs that lessened the burden of tenants that couldn’t afford to pay.

The COVID-19 impact going forward remains a mystery.  Will restrictions in some locations be in place until the spring?  When will vaccine options be widely available?  While we have no idea what is in store for 2021, it is always important to set goals for yourself, personally and professionally.

According to many real estate professionals, the 2021 outlook for the housing market is upbeat.  Real estate professionals believe the demand for housing in conjunction with low mortgage rates, will keep the real estate industry strong.  Those that put off the family move in 2020 may move forward with their plans next year.  Also, the number of foreclosures on the market will increase in the next few months once moratoriums are lifted, which should provide investors opportunities to find suitable projects.

What are your goals for 2021?  Have you thought about how your real estate investing strategy might change in 2021 and are you prepared for expected inventory to come available? 

Seeing the Good in 2020

2020 has been an interesting year.  When thinking about the past 11 months, many
people think of the hard times, but we want to focus on the good.  So many great things have happened so far in
2020.  Communities have come together to
thank people who worked on the front lines during this pandemic.  Animal shelters have become empty as more and
more people started adopting and fostering pets.  Various companies have shifted productions to
personal protective equipment and hand sanitizer.  There are a few ways that 2020 may have tried
to take us down, but as a nation, there are many ways we stood up to show that
there is still good in the world.  What
are the good things that you can take from 2020?      

2020 marked our 20th year of being in business.  ReCasa Financial Group would like to say thank you to our customers and their teams whom we have worked with to complete deals over the years.  We are grateful that you have chosen to have ReCasa Financial Group as part of your real estate investing team.  We wish you and your family a great rest of 2020 and an even better 2021.