Flipping houses can be another great strategy for real estate investing. As discussed in previous blogs and podcasts, flipping generally requires an investor to take a hands-on approach to the investment rather than focusing on appreciation and cash flow as they would in a long-term hold. The investor takes the responsibility of renovating to add value to a distressed property that they then aim to sell to a homeowner at a premium. The key is finding a property at the right price that requires the right amount of renovation to fit into their investment strategy. Ultimately, after doing value-add improvements, the investor profits from the sale. Those who can find the balance and master this craft are able to replicate the process and continue finding repeat success with house flipping.Read More
Housing prices are on the rise in most of the above markets. For example, Concord, NH has seen a 19% increase in housing prices over the last five years. On average, a 3-bedroom single-family home is in the $220,000 range. Rents in this metro have also seen a major increase, about 23% since 2011. The spike in Nevada metros is even more pronounced, with home prices appreciating upward of 60 -100% and rental rates spiking by up to 35% over the last five years. In the Phoenix-Scottsdale metro, home prices have appreciated even more, at a whopping 104%!Read More
When conducting rental market analysis for real estate investing, many investors look at the rental saturation and vacancy rates in a particular market. It’s imperative to understand how saturated the market is and gauge demand level. As detailed in previous blogs, low vacancy often indicates high demand, which can translate to higher rental rates and better returns for investors.Read More
Investing in rental property can be lucrative, but it’s important that investors be wise and deliberate in their strategy. One of the most commonly asked questions from new and seasoned residential property investors alike is, “Where should I invest?” This is a vital consideration when it comes to the ultimate success of a rental investment. Investors need to be able to analyze not only their prospective properties, but also their prospective markets. If an investor doesn’t live in a strong rental market, it may be prudent to consider investing in real estate out of state.Read More
The Forbes “Where to Invest in Housing in 2017” list is out and the Lone Star State is in! Texas is home to three of the Forbes ranked top real estate investment markets. Dallas takes the number one spot followed by Fort Worth at #9 and San Antonio at #20.Read More
Now that you are aware of the option to invest in real estate using your self-directed IRA and can confidently identify a custodian and prospective investments, the last piece to consider is ensuring you clearly understand the limitations on IRA investment transactions established by the IRS and other applicable law. When selecting investments for your IRA, there are certain people and entities that you cannot do business with; since doing so could put the taxable status of your retirement funds in jeopardy.Read More
Welcome back to the self-directed IRA mini-series. In this installment, we will help you identify the right custodian and begin to understand the rules around holding real estate in your IRA. Here is a list of questions you may find useful as you interview prospective custodians for your self-directed IRA...
Did you know you can invest in real estate with your IRA? Since 1974, the IRS has allowed investors to diversify their retirement holdings to include non-traditional investments like real estate. With a self-directed IRA that owns real estate, your account’s profits are tax deferred and the rental returns and/or sale proceeds become part of your retirement savings. However, most investors are unaware that this option is available so we’ve put together this three part series to show you how you can get started.Read More
A real estate investment is only as strong as the investor’s understanding of the numbers. Without a solid foundation for calculating a rental property’s success potential, you could inadvertently expose yourself to potential financial loss. In this post, we will break down the key metrics that every real estate investor needs to know to crunch the numbers of a prospective deal like a seasoned professional.Read More
Are you considering diversifying your investment portfolio or looking to establish one in the upcoming year? Think beyond the traditional stock market and consider real estate investing. While purchasing investment properties is not a new concept, the single-family residential (SFR) sector has more recently emerged as a legitimate asset class—and for good reason with more than 43 million U.S. households currently classified as renters. Nevertheless, many investors don’t have adequate cash on hand to purchase an investment property (let alone multiple properties) outright, which means they’ll need financing to help them achieve their goals.Read More
As discussed in The Real Investor Podcast episode #6—Are we in a Housing Bubble?—the notion that we are currently in the midst of a national housing bubble is false. While the concern over an impending bubble burst is a common source of discussion within the industry, it’s important to fully understand the factors that contributed to the housing crisis back in 2005. In this post, we will contrast past and present market conditions, identifying three primary indicators that suggest the real estate growth we are experiencing now is sustainable.Read More
Congratulations are in order! Assuming you’ve gone through each of the previous steps in this series, you are the new owner of a rental property. Now you have a choice—you can self-manage the property or hire a property manager to do it for you. If the property is not in your state you may have no other choice but to hire a property manager, but even if the property is down the street, you may still opt to enlist a professional resource.Read More
The offer is on the table and all that stands between you and your potential new rental property is the due diligence. In this step, you’ll determine if the deal checks out and you become the proud new owner, or if the deal isn’t such a deal after all and you resume the investment property search. This is the time to investigate the property and ensure you know what you will be agreeing to. The three aspects you’ll want to thoroughly inspect when conducting due diligence are: title, document and the physical property.Read More
Welcome back, you’ve made it to the fourth stage in this six step checklist series for new real estate investors. Leading up to this step, you have: (1) defined your investment strategy, (2) secured financing and (3) evaluated rental markets and searched investment properties—now it’s time to make the offer.Read More
Chicago is arguably one of the greatest cities in the world, renowned for its history, culture and quality of life. Venture into the different neighborhoods of Chicagoland and you will experience first-hand the diversity of the third largest metropolitan area in the United States. Whether you like sports, nightlife or chowing down on the best food around—there’s no better place than Chicago.Read More
Well done! You’ve defined your investment strategy and secured financing. Now it’s time for the fun part—beginning your search for rental properties. Here are ten factors to consider when evaluating a market as well as a specific prospective property.Read More
You’ve defined your investment strategy and now it’s time to start thinking about how to get financing in order for your first rental property. In this step, our goal is to educate you about the various financing options out there and help you determine which solution is the best fit for your investment strategy. With multiple products to choose from, varying requirements and numerous approval phases to navigate, the financing process can often be very intimidating, particularly for newer residential property investors. In order to determine the best path forward, it’s important to understand your options.
Miami is more than sunny skies and luxurious oceanfront properties, it’s also a sizzling market for real estate investors. With a whopping 6 million residents[i] in the Miami metro area, 75,000+[i] of which were added last year alone, and an accompanying 44,000+[ii] newly created jobs, Miami’s rental market has experienced a major surge over the past several years. Residential investment properties are getting leased quickly, averaging a mere 21 days on market.[iii] Investment property prices have also appreciated 33.3% in the past five years,[iii] while median rent rates have increased nearly 10.0% since 2011.[iii]
You’ve decided to take the plunge into real estate investing and you’re probably wondering “what now?” The first thing you need to determine is your end goal. Ask yourself what it is that you ultimately want to get out of your investments? Do you want to generate enough passive income to retire early and travel the world? Have you always dreamed of entrepreneurship and being your own boss? Maybe you just want a cash-flowing investment property to supplement your income and build wealth. Point being, the more compelling your goal motivating your investment is, the stronger likelihood you’ll have of turning it into reality. Write it down to refer back to when things get tough. With a clear purpose defined, you can now begin building a road map outlining how you’ll go about achieving your ambitions.Read More
Investability was designed to help real estate investors like you navigate the somewhat unclear and confusing realm of real estate investing. There’s no doubt investing in real estate comes with countless benefits, but many people are deterred because they don’t feel empowered to make informed decisions and of course, don’t want to waste their hard-earned money. That’s where we come in.