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Millions of Americans are still trapped in debt-logged homes 10 years after the housing...

“It was going for the American Dream,” Payne, now 61, said recently as he sat in his living room. It is an improvement from 2012, when average prices hit bottom and properties with severe negative equity topped out at 29 per cent, or 12.8 million homes. Developments in outlying communities typically suffer in downturns. But a comeback has been harder this time around, analysts say, because the home-price run-ups were so extreme, and the economies of many of these Midwestern and Eastern metro areas have lagged those of more vibrant areas of the country. He said land restrictions and sales to international buyers have helped buoy demand in those areas. These and other casualties of the real estate meltdown are easy to overlook as homes in much of the country are again fetching record prices. The Paynes’ gated community of Penn Estates, in East Stroudsburg, Pennsylvania, is among scores that sprang up in Monroe County during the housing boom. Nearly 40 per cent of the 9,800 homes with mortgages in this county about 80 miles northwest of Chicago are underwater, according to the ATTOM data. Some houses that went for US$225,000 during the boom are now worth about US$85,000, property records show. But those fees may be a big deterrent for many would-be buyers at Candlewick Lake, said association board member Randy Budreau.

25 Best Markets For Rental Property Investment

But rentals aren't a slam-dunk either. Or you could find yourself over-paying in a boom market. First, and most important, the good increase in home prices in the last year means that demand for all housing is strong in these markets, both single-family and rentals. We calculate an "income" price for each market and compare this with the current average home price to see if prices are high or low compared to local income. It's not a precise measure - real estate isn't science - a 10 percent swing one way or the other doesn't mean much, but it shows that from our list only Orlando and Sacramento are close to over-priced territory, near 20 percent, while most of the markets are well below it. The importance of being within the normal range of the "income" price is that you don't have to worry about buying into a boom that can eventually bust. The chance that the average home price in a normal market will ever fall below today's price is almost zero. I've thrown in some stats about recent population growth and the current average home price because some markets have grown faster than others, and some are more expensive to invest in. In these markets you have a better chance investing in apartments, or by splitting single-family houses into several rental units. It's a good time to invest in rentals.

How to invest in real estate without buying a home

"But you'll only want to have 5% of your portfolio in real estate," he says. Investing in real estate equity through ETFs, mutual funds or real estate investment funds provides exposure to the upside of real estate appreciation. Another option is investing in real estate risk, which comes with more fixed returns. Real estate equity Real estate investment trusts, or REITs, are a common way to diversify into real estate equity. A real estate ETF, like Vanguard's VNQ, offers investors publicly traded equity REITS and other real estate investments. The T. Rowe Price Real Estate Fund (TRREX), with $5.3 billion in assets, is a giant among actively managed real estate mutual funds. Newer online platforms, like Fundrise, Rich Uncles or Realty Mogul allow investors to get into diversified real estate portfolios for a lot less than the large funds. Realty Mogul offers access to private investment deals or you can invest in its REITs, which have a minimum investment of $1,000. "I enjoy investing in the online platforms because I can see the properties that I am investing in," says Rose. Other platforms for investing in real estate debt, like AlphaFlow, offer a portfolio of real estate loans rather than investments in individual loans.

Got Lousy Credit? 10 Places Where It Won’t Stop You From Buying a Home

No credit? Charleston, WV Median home list price: $147,300 Share of borrowers with a 649 FICO score or lower: 39.1% Although the state capital of West Virginia is a college town, the city's overall population is aging. This has opened the door for first-time buyers seeking move-in ready, three-bedroom homes near downtown, says local real estate agent Margo Teeter of Old Colony Realtors. "Someone with poor credit ... has to go where the [home] prices are lower, " says Monique Youngblood, mortgage broker with US Mortgage Lenders. Buyers can find new homes in South Lakeland for around $180,000, says local Realtor® John Martinez of Coldwell Banker Residential Real Estate. Those programs require a minimum credit score of 620 and can include 100% financing for those who qualify. Median home list price: $936,050 Share of borrowers with a 649 FICO score or lower: 4.3% The market in Santa Cruz may not be quite as crazy as it is just over the hill in San Jose (where homes are a median list price of $998,000). Ann Arbor, MI Median home list price: $350,000 Share of borrowers with a 649 FICO score or lower: 6% Ann Arbor, home of the University of Michigan, is the quintessential college town, dotted with circa 1900 brick and wood-frame homes. Durham, NC Median home list price: $356,300 Share of borrowers with a 649 FICO score or lower: 7.2% Every Tuesday, when James, the Urban Durham Realty owner, asks her 25 agents to raise a hand if they’ve put in or received offers on homes for their clients in the past week, almost all hands are in the air. Most buyers need to be able to meet the strict requirements and high credit scores for a jumbo loan.

3 reasons to worry about the housing market

Home prices in the United States have never been higher. The culprits are a crazy tight job market, rising wages and the fact that the homeownership rate is rising again after bottoming in 2016. Here are three growing headwinds the housing market faces: Affordability Thanks to the resolve of Federal Reserve chairman Jerome Powell, who is resisting President Trump's calls for a slowdown of the rate hike pace, monetary policy continues to tighten. That's pushing up long-term interest rates, with the 30-year Treasury yield pushing back over the 3 percent threshold recently, up from less than 2.7 percent in December and a low of 2.1 percent in the summer of 2016. As a result of rising mortgage rates and higher home prices, Gluskin Sheff economists estimate that housing affordability has crashed to lows not seen since 2008, well off the highs seen in 2011 and 2012 when a combination of lower prices and lower rates helped put an end to the housing collapse. Sales activity A slowdown in new home construction during the housing crisis resulted in a backlog of demand for brand-new homes. But now sales activity is rolling over, threatening to break the recent trend of rising activity. According to the Urban Institute, the homeownership rate of millennials between the ages of 25 and 34 is about 8 percent below Gen X and baby boomers at the same age. If millennial homeownership matched previous generations, there would be 3.4 million more homeowners today, they estimate. Indeed, a study by Fannie Mae's Economic and Strategic Research group warns of a "mass exodus" on the horizon as the "homeownership demand from younger generations is insufficient to fill the void left by multitudes of departing older owners."

Salt Lake City Real Estate Overview

Salt Lake City Real Estate – Market Trend And Forecast 2018 The state of Utah’s population grew 9 percent over the last five years, much of it concentrated in Salt Lake City, where the median sales price for a home at the end of 2017 was $273,000 (still significantly lower than the average in Austin and Denver). The median list price per square foot in Salt Lake City is $318, which is higher than the Salt Lake City Metro average of $203. Salt Lake City Real Estate And Foreclosure Trends 2018 As per Trulia.com, real estate market trends in Salt Lake City show a 0% week-over-week rise in average listing price and a 3% rise in median rent per month. The median sales price of a non-distressed home was $252,263. As per Redfin.com’s statistics, the asking price of homes for sale in Downtown Salt Lake City has increased 13.9% since August last year, while the number of homes for sale has decreased 1.7%. The average price of a 2 bedroom house in Downtown Salt Lake City is around $375,000. Investors in the Salt Lake City real estate market can buy land to develop or invest in housing projects being built in expectation of workers who will soon move to the area. While many would like to own a home, affordability is an issue for the young would-be home owner; the average Millennial earns $68,000 a year while the median home price is $400,000. In 2010, downtown Salt Lake City had just 5,200 rental units. Salt Lake City Downtown Is Booming With Development So what makes Salt Lake City Downtown so appealing to home buyers and investors?

Income Inequality Is Skyrocketing, Especially In These 5 States

The principal factors evaluated were the mean household income and median household income in 2011; their growth over the five years from 2011 to 2016; and the consequent growth in the gap between mean income and median income, which is an indicator of worsening wealth inequality. Three of the top five worst states for income inequality rank among the most populous states in the country: California, No. Massachusetts 2011 mean income-median income gap: $22,596 2016 mean income-median income gap: $26,341 Five-year increase in income gap: $3,745 | 17% Income inequality in Massachusetts is among the worst in the country. Although the 2000s dotcom bubble saw the biggest discrepancy develop between what the top 1% and what the bottom 99% earned, the income gap has only steadily gotten worse since, according to data from GOBankingRates. California 2011 mean income-median income gap: $23,516 2016 mean income-median income gap: $27,366 Five-year increase in income gap: $3,850 | 16% Income inequality in California has worsened significantly since the turn of the millennium. Washington 2011 mean income-median income gap: $17,614 2016 mean income-median income gap: $21,174 Five-year increase in income gap: $3,560 | 20% Washington is home to Seattle, the scene of a booming tech industry whose growth has fueled a population and housing surge to an unprecedented level for the state. Both the Seattle metro area and Washington state overall have a top 1% that earns more than 24-times that of the bottom 99% of households, according to recent data. The mean income, however, rose from $58,849 to $65,401 — an increase of $6,552 in average household incomes over five years versus just a $3,000 increase for median incomes. North Dakota 2011 mean income-median income gap: $14,691 2016 mean income-median income gap: $19,714 Five-year increase in income gap: $5,023 | 34% The good news for North Dakota is that its rates of growth for both mean and median household incomes rank among the highest nationally. The bad news is North Dakota has experienced the biggest growth in mean-to-median income discrepancy from 2011 to 2016: An increase of 34%, which has created a current gap of almost $20,000 between mean and median household incomes.

Real Estate Investment: 10 things to check before buying a home

However, as it is one of the largest investments one can make, it is imperative for home buyers to carefully evaluate every single detail, from costs, government policies, taxes to the loan plans. Days are gone when the home buying decision was largely influenced by real estate agents. In present times, the investing decision of the buyers is majorly driven by the latest amenities which the projects offer. Also online, one can easily gather information about property prices, processes of acquiring a property, documents required during the transactions. Hence, before making a final investment, we need to consider several factors such as the residential location, amenities, views, infrastructure status, surroundings, proximity to commercial and recreational centres, transportation facilities, potential capital appreciation, developer, and most importantly, the budget. Investment Purpose Buying a property is an attractive investment proposition. Additional Costs After a buyer completely understands the crux of the property acquiring cost, he also needs to consider the post occupation cost. There needs to be a provision for the later costs which accrue from various expenses like fit out costs, interior costs, maintenance costs, property insurance if any, mortgage payments in case of loan availed. This enables the customer to get a good insight into the project before making a purchase decision. Customer Protection Implementation of RERA has made the industry extremely transparent and ensures customer protection.

Top Cities to See a Rise in Rents

The slow rate of home building has impacted the rental space, according to a report from RentCafe. According to RentCafe’s Apartment Market Report for August 2018, the national average rent reached an all-time high of $1,412 in August 2018, a 3.1 percent increase year over year, 0.1 percent month over month. Queens (NYC), Las Vegas, and Phoenix saw the highest increase in rent rates while Baltimore, San Antonio, and Washington, DC experienced the least changed rents. With apartment construction slowing down, the national average rent went up by $42 year over year in August and $2 month over month. RentCafe states that a higher than normal number of renters this summer, notably college students, as well as more rent renewals are possible causes of the higher rents. According to RentCafe, Orlando saw the highest increase in rent over the past year, jumping 7.7 percent since 2017, hitting an average rent of $1,393 in August,a $99 per month increase. San Antonio saw the least rent growth, growing by only 1.5 percent to $996. Los Angeles renters are feeling the biggest changes year over year, with rents increasing $102 per month on average, or $2,395 a month, a 4.4 percent increase. Manhattan, New York City holds the highest average rent prices, at $4,119 in August, up 1.9 percent from $4,042 year over year. While most cities saw rent increases, cities such as Brownsville, Texas felt their average rent drop.

8 Ways to Make Money With Mobile Homes Inside Mobile Home Parks

Pro Tip: Check with local park managers to find out which parks allow renting, many will not. Pro Tip: As an active mobile home investor, you will want to pay much lower than the retail price for any investment home you purchase. Wholesaling Similar to single-family homes, wholesaling a mobile home inside a mobile home park will allow you to create value between a buyer and seller without actually purchasing the mobile home. As an active mobile home investor, you will obtain a purchase contract on the mobile home and quickly aim to sell this contract to another investor or end-user buyer for a profit. The act of bird dogging mobile homes inside parks is the process of finding and reporting all FSBO properties that fit an investor’s criteria to the active mobile home investors you already know. Some mobile home communities will offer “incentive programs” for park-approved home owners that are willing/able to move in a park-approved mobile home. Pro Tip: When speaking to any new community manager, aim to understand any/all move-in incentive programs for future mobile homes and the age/condition/size of mobile homes the park would consider allowing you to move into the community. Selling Directly to the Park When dealing with a more expensive mobile home or double-wide mobile home (one that must be moved after purchasing), it may be attractive to simply re-sell the mobile home to a local mobile home park that you know is looking for more units. When selling directly to a mobile home park, you'll want to understand what each park is looking for in a used mobile home and how much these parks are willing to pay. Moving Unwanted Mobile Homes from One Park to Another If a park owner wants a mobile home removed from the community, perhaps you can help.

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Why I Fired Property Management—And Began to Manage My Own Investments

Download Your FREE copy of ‘How to Rent Your House! Renting your house is a great way to enter the world of real estate investing, but most first-timers (understandably) have a lot of questions. Services That Property Management Offers We planned to hire a property manager who could take care of these rental properties, allowing us not to be the “evil landlords.” We hoped to focus on our existing management and sit back and collect checks from our new found teammates in these managers. First, let me give you some bullet points about the services that these property management companies offer: They take care of finding and placing tenants in your investment property. They carry out regular inspections of the property to ensure that the tenants are taking good care of them. They take action against the tenants if they aren’t paying rent or adhering to the terms and conditions of the contract. Based on the time it would take us and the learning curve we thought there was at the time, we felt it was a no brainer. No One Cares About Your Properties Like You Do Eventually, we figured out that we won’t be able to find any management company that cares about our properties the way we do and has the insight or maybe even the expertise that we quickly picked up on. I still often meet property managers who don’t even own property or ever have. I can’t take credit for this quote I heard on BiggerPockets, but it sticks in my mind: “An average investment with a great property manager is far better than a great investment with a bad property manager.