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 – https://www.forbes.com/sites/forbesrealestatecouncil/2021/01/07/why-real-estate-is-one-asset-that-builds-generational-wealth/?sh=3a929c4f1f68

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.

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?