This week’s edition of RFG’s free weekly newsletter has some exciting news about how we have streamlined our lending process even more, in addition to the usual interesting links leading you to key current happenings in the real estate investment arena. So read on to quickly gain some perspective on market trends and then see the end of this publication to learn why our lending arrangements for your fix-to-flip, fix-to-rent, and new-build initiatives are now more attractive and competitive than ever.
Townhouses Enjoy a Spike in Demand
When it comes to housing investments, there are so many great options, but the goal as an investor is to be working where you are likely to attract residents.
Interestingly, according to the National Association of Home Builders, “Year-over-year gains for townhouse construction continued during the second quarter 2024 as demand for medium-density housing continues to be solid despite slowing for other sectors of the building industry…. The long-run prospects for townhouse construction are positive given growing numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities. Where it can be zoned, it can be built.” If you are not already considering adding this type of housing to your investment portfolio, signs say that perhaps you should. Read the entire article, do some additional research, and then decide.
Available Foreclosure Inventory Should Be Abundant
Townhouse or not, if you are looking to work with a foreclosed property, the conditions are favorable now, as inventory is plentiful; this article says, “ATTOM, a leading curator of land, property, and real estate data, … released its July 2024 U.S.
Foreclosure Market Report, which shows there were a total of 31,929 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 15 percent from a month ago and up slightly by .2 percent from a year ago.” Start checking the areas in which you are interested in working on a fix-to-flip or fix-to-rent property, and then secure a contract. More information about the market conditions, including state-specific data, is included in the link below.
Features to Include in Your Rehab/New-Build Property
Regardless of your property type and its source, now you have to decide exactly where to spend your improvement dollars.
Zonda’s BUILDER magazine has published an online list of seven features that buyers (likely renters, too) are seeking today. According to the article, “The must-have features that make houses dream homes are constantly evolving. In order to identify this year’s top requests, Fixr surveyed 56 industry experts on various features they believe are the most wanted by home buyers in 2024.” All else being equal, use your funds in the areas listed when you go to the article at the link below.
Exciting Updates at RFG: Great News Below for You!
There are some inviting and exciting changes to our loan process, making us an even more excellent partner during your real estate investment journey. Our Ground Up Construction Loan(with no LTC cap) and 100% Fix & Flip Premier Loan (with no down payment required) have always featured competitive rates, but now include even lower rates for repeat borrowers; our commonsense underwriting process no longer includes income verification and has a lower [MKS1] FICO threshold; and our short closing window is now only 5–10 days! Just get us your bank statements from the past three months, your purchase agreement, and your statement of work, and we will get the ball in motion! When you talk to our lending professionals, they will also articulate other ways we can help you keep more money in your pocket during your rehab — funds you can put toward your project. Remember to sign up to take advantage of our exclusive partnership with HD Supply that allows you to purchase the materials and supplies you need at lower prices, and consider getting construction-related procedural advice from experts in our office. We want you to achieve the highest ROI possible, because as your lending partner, we are a team!
RFG in Action
Ayesha aimed to buy a multi-unit apartment building where rental income would cover the mortgage and generate passive income. After an extensive search, she secured a 12-unit building in a prime Atlanta location at a reasonable price from a motivated seller. The building required only cosmetic upgrades, which allowed Ayesha to double the rent to $1,500 per unit. Her advice for fix-to-rent investors:
investors: “Never underestimate tenants or the eviction process. If you’re not experienced in property management, don’t take it lightly.”
Tip of the week We are excited to share a new logistics-related tip every week! This area can be relied on for helpful information on how you can be more efficient, productive, and/or profitable throughout your rehab journey, making your outcome more successful.
25 Upgrades That Increase Home Values
Your fixer-upper or new build is virtually a clean slate, so after you are set to proceed with the upgrades and finishing touches, what are the most important things to focus on? American Home Shield has stepped up to help sellers prioritize, saying, “When it comes to attracting buyers and maximizing your return on investment (ROI), some home improvements are smarter than others…. “Below [in the article], you’ll find top-rated home improvement projects that should go at the top of your to-do list, according to Zonda. As of 2023, each of these projects tended to return more than they cost to implement.” Review the list by going to the link below, and then apply your new knowledge appropriately throughout your property.
Is your short-term loan about to end or mature in the next 90 days? Convert it into a long-term investment loan with ease. Click hereto learn how to secure a 30-year financing option that fits your needs perfectly. Let’s turn your property into a lasting investment!
Browse the listings for your next investment, then contact the experts at RFG. They’ll guide you through our financing options, including the 100% Fix-and-Flip Premier Loan and a Ground Up Construction Loan with no LTC cap. RFG can also help you find ways to save more money throughout the process.
