Real Estate and Virtual Staging

Recently, I was doing some research on the real estate market and COVID-19 when I came across an article focused on virtual staging for real estate investors.  With the uncertainty of the pandemic it seems that more and more people are using virtual staging for their real estate property sales.  Virtual staging is when a home’s interior is modified through a graphic editor.  There are companies that will do virtual staging, but there are also apps you can use to do it yourself.  Virtual staging can add furniture and décor to rooms, but it can also remove furniture already in a room.  In many cases, virtual staging is less expensive than home staging.

According to the National Association of Realtors, 40% of real estate agents reported that a staged real estate property was effective in helping sales including a sales price increase of 1% to 5%.  Staging helps potential home buyers visualize themselves in the space since people usually start their house shopping online.

Have you used virtual staging for any of your real estate
investment properties?  If so, did you
find it beneficial?

Donating Items

Some real estate investment properties need little rehabbing, while some require new appliances, floors, windows and much more.  When you replace something in a rehab investment property, what do you do with the original item?  What about items that were just left behind?  Some items may be trash, but others may be in decent condition. 

More and more people are starting to find old pieces of
furniture and restoring them to resell.  If
this is not a good ROI project for you, then I believe the best option would be
to donate these items.  Some examples of
items that can be donated include:

  • Small furniture
  • Appliances
  • Carpets/ Flooring
  • Lighting

There are many different organizations that accept home
appliances and furnishings donations.  The
following are a few great places to donate those items in good condition.  As an added bonus, the following companies offer
to pick them up.

  • Habitat for Humanity helps families in the U.S. and internationally who are looking for affordable housing.
  • Salvation Army helps a wide variety of individuals including those who have experienced domestic violence and human trafficking.
  • AMVETS helps U.S. war veterans.

What organizations would you add to this list?

No Changes for ReCasa Financial Group

ReCasa Financial Group has been getting questions regarding how our rehab investment financing guidelines have changed since COVID-19.  Fortunately, ReCasa’s guidelines have not changed, and interest rates are low!

Some of ReCasa’s real estate rehab loan guidelines include:

  • 100% financing of the purchase, cost of improvements and soft costs; lending up to 70-75% of the completed value of the project.
  • Subject property must be 1-4 family non-owner occupied
  • Minimum credit score of 680 for all applicants
  • 9 month term with no prepayment penalty
  • Monthly interest-only payments, with principal due at maturity

Many financial institutions have had to make changes to their lending departments due to COVID-19. ReCasa Financial Group has been lending to real estate investors for over 20 years.  We have survived a recession and now a pandemic.  We are proud to say that our guidelines have not changed over the past few months, and that we are able to help many new clients as their original financing options are no longer available.  We are also working with more and more brokers to help their clients receive the financing they need to invest in real estate across the country.

Call ReCasa Financial Group to receive the full rehab loan
package – 614.221.6770.

Painting Can Add Value to Real Estate Property

Many people know that updating a home’s kitchen and bathroom adds value, but there are other easier ways of doing so too.  I recently watched a video that mentioned painting your home’s front door black or a shade of charcoal would increase the property’s value by $6,000, so I had to look into this rehab tip.

According to Zillow and their analysis of paint colors, the following are a few ways to paint your real estate property to increase the value.

  • A black or shade of charcoal front door will
    raise the price by 2.9%.
  • A bathroom painted periwinkle blue will raise
    the price by 1.3%.  
  • A black and white kitchen raises the price by
    about $1,500. 

What inexpensive and easy ways have you rehabbed your investment property to add value?

Working Remotely

Working in the real estate investment industry, you may already be working from home. However, with the recent Coronavirus, you are probably working remotely more often than before. Previously, you may have met up with colleagues for coffee to discuss business, but now, you might be conducting these meetings over video conferencing. 

Do you have a specific space in your home, like a home
office, to complete work?

As people have been working from home the past few months, it might show some companies that there are more benefits from working remotely than having an office building. My friend recently was told she would be working from home indefinitely as the company sold their office building. She had to transform one of the bedrooms in her home into a home office. Do you think more companies will follow this path and have employees work from home?

Zillow recently published a post regarding setting up the perfect home office. It is important to set up a space in your home specifically for working remotely.  What tips would you give these people who now have to work full-time from home?

You can read the post here – https://www.zillow.com/resources/stay-informed/2020/05/29/5-ways-to-make-your-home-office-work/