Equity Gap Funding in the Fix-and-Flip Market
Flipping houses is becoming a greater challenge as rising home prices and stiffer competition hamper profits. Home flippers can continue to succeed in this market if they practice their craft with discipline, and private real estate lenders have a great opportunity to tap this market as well – and when private lenders have opportunities, there’s plenty of opportunity for real estate investments.
The Fix and Flip Path to Financial Freedom
There are many ways to profit from investing in real estate, and long-term strategies such as leveraging cash flow from multi-family residences have their success stories. However, for the small investor willing to put sweat equity into their personal fortune, a fix and flip approach in real estate investing can be the shortest path to financial freedom.
When Should Real Estate Investors Seek Hard Money Lenders?
It is an axiom of business that every venture or transaction will either sink or swim. The absolute truth expressed in this saying is that success or failure are the only two outcomes, and eventually it all ends in one place or the other. Naturally, real estate investors aim for success, and doggedly overcome obstacles in order to achieve it.
Why Every Real Estate Investor Needs a Real Estate Agent
A real estate investment sometimes succeeds or fails because of the margins. Sometimes the rate of interest charged on the loan to purchase a real estate property can make all the difference. It can be the difference between a profitable transaction and a losing deal.
Learning The Underwriting Criteria of a Real Estate Lender
Financing real estate investments is a key step toward achieving the maximum return on investment (ROI) on any project. Borrowing allows the investor to control a larger asset with a smaller amount of capital. Increases in the value of the total asset are larger when expressed as a percentage of the capital actually invested.
Finding The Right Lender For Your Real Estate Loans
Real estate investing is about leverage. Getting the highest return on investment often means putting the least amount of capital into the project. This means that the real estate investor must be comfortable with borrowing money in order to finance a project.
Securing Your Investment Property During Renovations
Fixing and flipping residential real estate as an investment strategy can be a fraught proposition even for someone who has done their homework. Among the most unpleasant surprises is to learn that an investment property being renovated has been burglarized.
The Value of a Real Estate Appraisal For Your Investment
There are different appraisal methodologies for different types of real estate. Investment real estate is often valued under the Income Approach. This is a formulaic appraisal method that divides the anticipated income from the property by the capitalization rate.
Why Crowdfunding Will be The Norm in Real Estate Investing
According to MarketWatch, real estate is the fastest growing segment in crowdfunding. In fact, it is expected that real estate crowdfunding (RECF) will create $500 billion or more in funding and generate $3.2 trillion in value each year by 2020.
Real Estate Crowdfunding Changes Due Diligence for Investors
Due diligence is a fact of life. Everyone must learn how to analyze and judge an opportunity, whether it be a real estate investor looking at funding a particular project, a borrower deciding which lender to raise capital from, or a marketplace lending platform presenting investment opportunities to accredited private investors.