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.”

rec

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?

Always Be Prepared To Buy

Some Ohio homes are currently selling within 24-48 hours.  Most desirable, nationwide homes are gone within a week.  This means that if you see a house you like, you need to act fast.  Does this hold true for properties that need renovated?  If this trend continues, this will be helpful for when you are renting or selling your investment property.

As we have mentioned in previous blog posts, it is important to have good connections with realtors.  They can always give you a call when they find a property that they feel would be a good investment, even before the house goes on the market.  In these situations, it is important to know how much home you can afford so you can jump on those properties.  Being pre-approved for a loan will speed up the buying process, which means that you will have the possibility of a faster turn over rate.

Read our prequal blog post here – http://recasafinancial.com/benefits-of-a-pre-approval/

ReCasa Financial Group would be happy to prequalify you before you have your investment property picked out.  Give Steve Radomile or Erik Williams a call at 614-221-6770 to find out more.  We would be happy to supply you with a prequalification letter once approved, which can strengthen your offer when submitted to a seller or its agent.