ReCasa Financial Group’s Rehab Investor Earns over $80,000 Profit on Flip

Rehab investing can be very rewarding through hard work.  Most of our rehab investors are able to gain large returns on investments by doing their homework, and utilizing a team of successful real estate professionals.

Read about creating a successful real estate investing team here: https://getrealestatefacts.wordpress.com/2014/07/09/building-your-team-who-the-seasoned-investor-knows/

Recently, one of ReCasa Financial Group’s real estate investors earned a large return on investment with his rehab project.  This real estate investor purchased a 3,500 square foot residential property in a Philadelphia suburb that was significantly under market value.  Not only was he able to flip the house in four months from the purchase date, but he was able to make more than $80,000 in profit.  He cleaned up the exterior of the house, and updated the basement, windows, flooring, bathrooms, and kitchens.  He also made some major updates due to water damage.  He is currently looking to do his next real estate rehab investment.

What was your most successful real estate rehab investment?

 

If you are in need of financing for your next real estate investment, call ReCasa Financial Group to learn about one of your financing possibilities – 614.221.6770.  ReCasa Financial Group offers free prequalification for 100% financing for the purchase, improvements and soft costs on 1-4 family non-owner occupied properties in OH, PA, NY, NJ, NC, SC, TN, KS, MO, IN & IL. 

Real Estate Tips for Selling in the Fall

Real Estate InvestingMost people think of summer as the best time for the housing market, but real estate is bought and rented year round.  Fall can be a great time to sell a real estate property, as long as specifics are taken into consideration.

Audience – Many families move during the spring/ summer to get adjusted before school starts.  Millennials and empty nesters tend to move during the fall.  It is important to consider your audience when looking for your investment property.

Read more about considering an audience for rehab investing here:
https://getrealestatefacts.wordpress.com/2014/12/16/are-you-buying-investment-properties-with-the-right-audience-in-mind/

Curb Appeal – Curb appeal is important as it is the first thing homebuyers and renters see.  Clean up the clutter, walkways, gutters, and the yard including bushes and trees.  Wash windows, decks, porches and windows, and use seasonal flowers to decorate the outside of the house.

Indoors – Keep the house cozy by using warm colored décor and smells of fall.

Don’t back down on real estate investing during the fall as it could be a very successful real estate season for you.

What other items would you add to this list to help your house sell in the fall?

Tips for Financing Your Next Real Estate Investments

real estate financing tipsFinancing an investment property is a big step in securing a large return on investment.  It is important to consider all financing possibilities.

            Read about using other people’s money here:       https://getrealestatefacts.wordpress.com/2013/01/22/what-will-your-investment-give-you-in-return/

Some real estate investors are financially capable of purchasing and rehabbing their investment properties, there are some downsides to the transaction to consider.  Paying cash creates loss of liquidity, lack of leverage, and less money for rehab.

Below are some tips for financing your next real estate investment.

  • Make sure you have a large financial cushion for emergencies so that you do not get stuck in the investment. Paying cash for the property, can tie up your own cash.
  • While debt is one thing most people do not like to show, it is helpful to show real estate debt. If you are able to get a decent interest rate you may be able to make money due to inflation effects.
  • If you decide to use other people’s money, getting pre-approved will help the buying process.

What tips would you add to the list?

 

If you are in need of financing for your next real estate investment, call ReCasa Financial Group, to learn about one of your financing possibilities – 614.221.6770.  ReCasa Financial Group offers free prequalification for 100% financing for the purchase, improvements and soft costs on 1-4 family non-owner occupied properties in OH, PA, NY, NJ, NC, SC, TN, KS, MO, IN & IL. 

Advantages of Investing Where You Reside

As real estate investors, you have the option to invest in properties around the world. After trial and error, you may have learned what type of properties produce the best ROI. Over the years of funding real estate investments, we have learned that some of the most successful real estate investment properties are located near the investor.

Real estate markets can be very different in as little as 10 miles depending on the MSA. Understanding the market in which you invest is important as to create realistic expectations and have an understanding of the potential ROI.

There are many advantages to investing where you reside, including being able to manage the property and the rehab. If you live near the property, you may not need to hire a property management group, which usually costs investors 15% of the property’s monthly rent. Living near the investment property gives you the ability to check in on contractors, track the project, sort out any issues and fix certain things around the investment property including lawn maintenance. Seeing the project and not relying on the contracts word of mouth, creates a better investment and a higher success rate. The contractors have no obligation to the lenders, the borrower does.

Another great advantage of investing near where you reside includes the ability to get involved with various groups in the area, including real estate groups, to network, find resources, and build a professional team.

At ReCasa Financial Group, we require the investor to reside within 60 miles of their investment property. This helps the investor financially as they are able to make sure rehab is on schedule and they will not go over the loan term.

What advantages can you add for living near your investment property?

Credit Scores: Library Fines to Car Rentals

There are many items that can adversely affect your credit score that you are unaware of.  Library fines lower credit scores for individuals.  Here are some other activities that can lower your credit score.

  • Credit ScoreAlthough libraries do not report to credit reporting agencies directly, they do turn to collection agencies for unpaid balances.
  • Storage units will turn unpaid balances over to collection agencies.  Even if items are left in the storage unit and auctioned off, the payment still needs to be paid.
  • Closing certain accounts can lower your credit score.  Yes, we know that closing credit accounts can affect your credit score, but closing any kind of account can as well.  Make sure that after you close any account, you pay any final or recurring bill so that these are not sent to a collection agency.
  • Renting vehicles can be tricky.  Some car rental agencies will run your credit report before lending you a car and/or if you decide to reserve the car with a debit card.  It is a safe bet to use a credit card to reserve the car, even if you want to use the debit card to pay for it, that way they do not run your credit report.

A collection account can lower your credit score by 25-100+ points, and can stay on your credit report for up to 7.5 years from the bill’s due date.  Credit reports and credit scores are tricky so it is important to learn as much as you can.

What items would you add to this list?