As a real estate investor, finding markets with potential and knowing what markets are ripe for growth are a few of the main strategies when creating a growing and valuable portfolio. While values have continued to rise following the subprime mortgage crisis, some markets are slower in coming around than others. The question real estate investors then ask themselves: Are these markets going to return to their former glory and is it time to invest in these undervalued markets? In light of the fact that many markets have surpassed their previous values, chances are good. According to Real Capital Analytics, major metro areas have seen the greatest increase and are over 50 percent higher than they were just 10 years ago.
The areas that are slow in making a comeback include Las Vegas, Sarasota, Sacramento and Orlando. These areas offer favorable pricing and possible greater returns on investments, but at some risk. Investors look at the various areas in the following categories in order to determine the risk versus reward: job and population growth, surrounding communities, demand versus supply and demographics. Buying at the right time is a critical part of success as a real estate investor. In order to maximize your ROI in these types of markets consider looking for the following types of properties: bank-foreclosed and absentee-owners that may consider selling once approached.
While due diligence is required, when a property hits the market that’s priced right and is in an up-and-coming neighborhood, multiple investors will most likely have their eye on it. Quick action in these cases and having a readily available Texas commercial mortgage often determines who the lucky investor is as many people will take the first offer especially if they know there is a time constraint to the acceptance or rejection. On the other hand, owners who have properties that have been on the market for some time are often willing to accept a discounted offer just to get out from under the property and real estate taxes.
Know your market including typical rents and whether they will cover your mortgage and expenses. To find positive cash flow you need to find affordable multiunit properties, motivated sellers that are willing to accept a reduced offer, and affordable areas in terms of pricing and median household incomes. In addition, look for communities that do not rely on just one industry for economic growth. An example of this is the rise and fall of Detroit due to the automobile industry or one of the many towns in Texas that counted on the oil and gas industry before the fall of prices.
We provide investment, fix & flip, bridge, commercial, business, construction and cash-out private hard money loans. Loans are preapproved in as little as 24 hours in amounts from $50,000 to $50,000,000. Call us today for a no-obligation quote on your next Texas commercial mortgage.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.