Mortgage Rates and Applications Rise

To continue off last month’s post, How Will Interest Rates Affect Real Estate Investors in 2017?, mortgage rates are continuing to rise.  According to Bankrate.com, as of Thursday, the average 30-year fixed-mortgage went up 9 points over the last week to 4.08%, and the 15-year fixed-mortgage went up 5 points to 3.21%.  According to CNBC, even with the continuous rise in mortgage rates, people are still interested in buying homes.  The number of mortgage applications has rose 4% from last week.  Are you noticing any trends or changes in your area?  If so, what are you seeing and how is it affecting the way you handle your rehab investment business?

How Will Interest Rates Affect Real Estate Investors in 2017?

Currently mortgage rates are at the highest they have been in two years, according to CNBC.  The federal interest rates are expected to increase in the future. This rise is due to the expectation of economy growth.

Home buyers will be paying a higher rate on a purchase, so they won’t have as much to complete repairs upon purchase.  Does this make a completely renovated property marketed for sale by an investor more attractive to home buyers in the coming year?

With the rise in housing costs, rentals could be fought over.  Property managers could benefit from higher occupancy rates and rent payments.  Some also believe that within the next year, real estate loans with little down payment could become more readily available, which will help millennials.  What do you think will happen for real estate investors in 2017? What is your game plan for 2017?

CNBC published a great article regarding this topic. Read the full post here…       http://www.cnbc.com/2016/12/13/how-rising-rates-may-not-matter-for-housing.html

Do You Take Advantage of Black Friday Sales?

Black Friday Deals for Rehab InvestorsBlack Friday is only a few days away.  Many people use this time to purchase holiday gifts and big purchases.  As a real estate investor, do you take advantage of Black Friday or Cyber Monday?  It is a perfect time to purchase big appliances and tools.  Some stores are even starting early with month long Black Friday sales.  If you take advantage of these sales, what types of items do you purchase?  Do you only purchase for the property you are currently working on, or do you plan for the future?

Rehab ROI Formulas

roiHow do you determine if you are going to have a good return on investment?  How do you tell if a property is worth purchasing to rehab?  Do you use a special formula?

In 2013, we posted two different articles pertaining to these topics.  If you haven’t yet, you should read them.  You can use the formulas to determine if the next property will be worth the investment.  


Click here for What Will Your Investment Give You in Return?…
https://getrealestatefacts.wordpress.com/2013/01/22/what-will-your-investment-give-you-in-return/

Click here for ReCasa Financial Group’s Property Bid Cheat Sheet…
https://getrealestatefacts.wordpress.com/?s=property+bid

How do you determine if you will get a good ROI?

Are Condos a Good Rehab Real Estate Investment?

condoSome real estate investors wonder if condominiums are good rehab real estate investments.  While there are both pros and cons to investing in condos, as a financial institution, ReCasa Financial Group, we do not lend on condos.

Before investing in condo, please remember these points.

  • Each unit in a condo is required to pay monthly association fees. Investors will need to pay each month from purchase till it is sold/rented.
  • As an owner of the condo, the investor still needs to abide by the condo guidelines, which sometimes include rental restrictions.
  • Data reports that the value of condos decline more quickly than single family homes.

Condos may be good for people who want to purchase a property and rent it out to occupants, but on the rehab side, condos may not be the best option.

What are your thoughts on rehabbing condos?