10 Tips for Successful Real Estate Investing in 2017

Profits can always be made with the right balance of discipline during a real estate market slowdown, stagnation or depression. This article shows you the top ten tips that real estate investors apply to ensure success from their investments.

1.  Slow and Steady

Take the necessary time to learn about potential investment properties. Peruse the MLS, speak with realtors that are keen in the area you are interested in, research the comparable properties and prioritize making friends with a realtor that specializes in income properties. Spending time on research can keep you informed and ready for lucrative investment opportunities.

2.  Everything is Negotiable

Remember the age-old adage: “Everything’s negotiable?”  Well, there’s truth in that. Successful negotiating means being assertive enough to go after the deal you want, but insistent enough to always be willing to walk away from the negotiations that aren’t giving you those “warm fuzzies.” Make that sweetheart of a offer that the seller(s) look for in order to secure your deal. If it’s attractive to you, make it just as attractive to the seller and you will seal the deal!

3.  Never Stop Learning

Investment strategies, especially in real estate are ever-changing. Market trends go up and down like a seesaw on steroids. The best way to stay ahead of the game, or at least in the game, is by staying up to date on the newest and latest tactics.

4.  Discipline!

Carve out your budget. And stick to it. No matter what, a strict budget is top of the list in investing. Carefully set your parameters, do the math, research the market and set your budget in stone. Stick to properties that meet your budget and don’t compromise your budget to meet your needs.

5.  Consistent Progressive Cash Flow is the Goal

Despite anyone’s best efforts, an upbeat market can take a downturn just as it did in 2007-2008, leaving an investor drowning in depreciated real estate. In this case, while a loss is inevitable, you can minimize your loss and avoid financial ruins by focusing on investing in properties that maintain a confident cash flow monthly. Optimistic or positive cash flow does not rely on rent income or market values to increase. From the start of a potential deal, if the numbers don’t add up, start subtracting by removing your interest and funds from the table. Invest elsewhere.

6.  Make it Count

Starting off, be discriminative. Until your real estate investment portfolio grows, it may not be practical to purchase the distressed property in the historic area of town. You need time to gain a steady and positive cash flow on your investments. Less is not always more when starting out in real estate investing. That first property might cost a little more than what you imagined.

7.  In the Beginning, One is More than Enough

In the beginning, choose a category of investing and test it for a year.  For example, do you want to flip real estate and sell it? Or would you rather prefer renovating and renting? Once you have mastered that area with expertise, then start looking to take on another.

8.  Don’t Try to Boil the Ocean

Start small. It’s literally an ocean out there and one wrong decision could cause you to drown before you even start to swim. You may even want to start with your primary residence and rent a portion of it in order to get some capital flowing.

9.  Follow the Money

Follow the money trail. If there is a property in an area that can generate cash flow, you should jump on it like bears to honey! Whether your investment volume is big or small, get into sound investing and build your real estate dynasty one property at a time.

10.  Don’t be Shy when it Comes to Taking on New Challenges

If you are already in the real estate investment game, expand your horizon and broaden your territory by taking on new and different investment opportunities. Minimize the risks, but without making any hasty investment decisions. And by all means, go for something new.

The executive team at  RealtyeVest leads a group of expert analysts who acquire, manage, negotiate and purchase real estate acquisitions.

Built on a foundation of complete transparency, honesty and accountability, RealtyeVest delivers results to maintain a steady leading edge in real estate investing that yields profitable results.

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6 Ways to Finance Your Real Estate Projects

So you found the perfect house flipping deal that you have been reading so much about. It’s exactly the kind of real estate deal you see on HGTV. You’ve called your realtor, toured the property, your neighbor who’s a contractor worked up a renovation estimate, you’ve looked at comparable properties and convinced yourself you have found the needle in the haystack. The perfect deal. Let’s look at some important factors before deciding how to finance your real estate investment.

Create A Strict Budget

The first thing you need to do is work up a strict budget. This is not something to draw out on the back of a napkin. Your potential real estate investors want to see that the investment follows a strict budget. A couple factors to consider when creating a strict budget for your new investment property are as follows.

• Closing & carry costs – insurance, utilities, interest, title insurance, survey, etc.

• Sales costs – commissions, home warranty, transfer stamps, etc. (usually they total about 8 percent).

Once you know your budget and you have made an offer and the seller accepted subject to financing, where will the capital come from?

Where Will the Capital Come From?

Will you use your own resources or will you be leveraging all or part of the project? If you’ve done your numbers, the more you finance the greater the return on every dollar you invest out-of-pocket. This example demonstrates the difference between using your own capital and financing:

Using Your Own Cash
Purchase Price: $100,000
Renovation Costs: $50,000
Cash Out Of Pocket: $150,000
Sales Price: $200,000
Profit Amount: $50,000
Return On Investment (ROI): 33%

Using 70% Financing
Purchase Price: $100,000
Renovation Costs: $50,000
Costs of Financing: $10,000
Cash Out Of Pocket: $55,000
Sales Price: $200,000
Profit Amount: $40,000
Return On Investment (ROI): 73%

In this example, while financing your project lowers your total profits, it increase your profit margin tremendously and, with only a fraction of cash invested, you are able to avoid locking your assets into individual projects and spread them across more investments.

Leveraging Your Assets

Even though you may have the ability to pay cash for your project that doesn’t mean you should. As shown in the example above, leveraging your assets increases your return on investment (ROI) and gives you the ability to spread your money and fund multiple projects, while lowering your risks.

Get Financing for Your Real Estate Investments

Traditional Lenders

Banks and credit unions are on the top of the traditional lender list. Traditional lenders typically carry the best rates available but be prepared for a proctology exam. Most traditional lenders require a credit score of 680 or more, full documentation of income and debts, full appraisal and inspection reports, background check, significant “skin-in-the-game” (down-payment) and upfront fees for underwriting the deal. The process can be painful, slow, and repetitive. But, if you have your ducks in a row and are willing to put in the effort, this could be a cost-effective strategy for you.

Seller Financing

This is an ideal scenario since very little documentation is required and it is a quick part of the negotiations. But be wary, because some sellers will offer financing only on the condition of a quick sale. This quick sale may hamper your “due diligence” by forcing a close before you can adequately perform recommended inspections. Sellers are less likely to accept this alternative unless they are either looking for an income stream, subject to taxation on the sale or simply hoping you default.

Hard Money

hard money lender

Get the most from your real estate investments

Hard money is a loan that is issued by private lenders. These loans are normally asset-backed loans that are short term and lent against the After Rehab Value (ARV). These are loan instruments that real estate investors can use to finance a quick fix and flip deal. But beware, quick and easy is not necessarily the best solution.

Hard money loans are not only expensive, but short term. You should expect fees going in and coming out as well as rates to be near usury.  Hard money loan terms are short, so don’t miss a payment or you risk losing the property. There are a lot of solid Hard Money lenders available, but you need to spend considerable time underwriting the issuers.

Family And Friends 

Approaching friends and family is also easy, and they need less convincing than other moneylenders. Have your plan together or, better yet, some portfolio to show and you should have little resistance building to your capital stack.

Keep in mind that family members tend to come with their own sets of complications, whereas with friends or associates, these kinds of emotional issues tend not to occur. Just know that whenever family is involved in business, things can get complicated.

Partners

Partnerships can be a great way to get started investing in real estate. Typically, a person might go to a private investor to get funding in exchange for doing the labor and management in preparation for the resale. You will end up splitting the profits in half, sometimes even more but it is a quick way to build momentum when investing in real estate.

On the upside, this type of partnership isn’t necessary to draw up any formal agreement as you can work on a deal-by-deal basis. But, on the downside you are likely to lose some of the decision making and control over renovation and deal making.

Crowdfunding

Crowdfunding is a relatively new alternative to creative financing real estate acquisitions. The SEC passed a law in 2012, which opened the floodgates for open solicitation of investment opportunities as long as the investors qualify as an accredited investor. With crowdfunding, you can expect competitive rates, underwriting and unbelievable fast turn-around time.

Real estate crowdfunding companies sprung up overnight to raise capital through online portals for investors. Because of this rapid influx of real estate crowdfunding businesses, it is necessary to exercise caution as a majority of these companies are run by technology entrepreneurs and not industry experts. Real estate professionals have the experience and knowledge to properly advise when an investment deal will be viable and worthy to investors.

Finding a company with years of real estate experience that understands the intricacies of finance, development, asset management and acquisitions is very important to successfully financing your real estate endeavors. RealtyeVest has a team of real estate professionals that will assist you in raising capital and leverage your assets to increase ROI for each property you find.

So, if you are a real estate developer interested in leveraging your assets or raising capital for your real estate investment properties, register with RealtyeVest to learn more about becoming a sponsor today.

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5 Best Real Estate Markets in Florida

If you are searching for the best real estate markets to invest in, you may want to consider Florida. In a recent report on Forbes.com, the online real estate site Trulia ranked the top markets for real estate investing based on the following criteria:

  • High Affordability
  • Strong Job Growth
  • Low Vacancy Rates
  • Number of Home Searches on Trulia
  • A Large Population of People Satisfied with the 2016 Presidential Election Outcome

Five out of the ten real estate markets mentioned in the report are located in the Sunshine State.

1. Jacksonville

Coming in at No.1, this northeast Florida city of 1.3 million residents along the St. Johns River showed an impressive job growth rate of 3.8 percent in 2016, leading to a high ratio of inbound home searches on Trulia versus outbound searches by people wanting to leave. In addition to strong economic stability, the area also benefits from great schools, beautiful weather and close proximity to the Atlantic Ocean.

2. Cape Coral/Fort Myers

It wasn’t only the 80 degree weather that made this city along Florida’s southwest coast rank No. 2 on the list. The area has also had the fourth highest job growth in the nation. Another contributing factor was the sharp drop in vacancy rates over the past year.

3. Daytona Beach/Deltona/Ormond Beach

Due to a low unemployment rate of 6.2 percent and predicted job growth of 36.96 percent over the next ten years, this area of northeast Florida ranked No. 3 on Trulia’s list. The area benefits from some of the best weather in the country.

5. Tampa/St. Petersburg, Florida

Strong job growth with a large number of education related jobs propelled the Tampa market to No. 5 on the list. Of course, much like the other locations, the beautiful beaches and weather didn’t hurt.

10. Bradenton/North Port/Sarasota, Florida

Rounding out the list at No. 10 were these beautiful beach communities along Florida’s southwest coast. Unlike other Florida communities, this area is not a vacation-driven community. “Not only does it deliver on the natural beauty of its beaches and weather, but it also has the critical infrastructure — the arts, great schools, small to medium-size companies, small universities — that is critical to making a great community,” the study said.

Investing in Florida Real Estate

Crowdfunding is a simple way for investors to grow their personal wealth and diversify their portfolios.

RealtyeVest is a real estate crowdfunding company based in Jacksonville. Being in the heart of one of the fastest growing real estate markets in the nation, the company has the advantage of being close to its sponsors and investment opportunities.

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IHT Realty Is Cornering the Market with Its New Profit Sharing Platform

IHT Realty Crowdfunding has rebranded itself as RealtyeVest.

IHT Realty Crowdfunding, a real-time investment company that helps sponsors raise capital for real estate projects, is cornering the market with its new profit sharing platform.

The offer will be exclusive to clients who invest in the single-family home renovation at 3613 Trask Street. Built in 1928, the 1,860-square-feet home is located in Jacksonville’s expanding Murray Hill neighborhood. The property features three bedrooms, two baths, a detached guest suite, central air, off street parking and a fenced-in yard with manageable landscaping.

Unlike similar companies, IHT Realty’s new platform will offer returns on the sale of exclusive debt offerings on this project. Therefore, investors are more likely to gain a larger ROI than compared to other crowdfunding debt offerings.

The property was bought for $109,000. The total remodeling costs are estimated around $70,000, with an expected listing price of $250,000 upon completion.

IHT Realty Crowdfunding is offering an investment of 10 percent annualized return as well as a 10 percent yield for six months on the project.

It is not restricted by the Riverside and Avondale Presentation group (RAP).

“Home values in Murray Hill are predicted to rise by more than 6 percent next year, making this an outstanding investment opportunity,” said IHT Realty CEO and sponsor Dan Summer.

IHT has multiple upgrades planned for the property including the conversion of a detached garage into a one bedroom studio apartment (440 square feet) with a kitchen, bathroom and full HVAC system.

RealtyeVest is a real estate crowdfunding company that offers investors the opportunity to capitalize on residential, multifamily and on-trend properties across the United States.

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Why Florida’s First Coast Is Ranked the No.1 Real Estate Market

Jacksonville, Florida is topping the list of several recent surveys predicting the hottest real estate markets for 2017.

In an article published by Forbes online magazine titled the “10 Hottest Real Estate Markets To Watch in 2017,” Trulia ranked Jacksonville no.1 on their list.

According to a survey on Realtor.com called “The New Hot Spots Where Americans Are Moving Right Now,” Jacksonville came in second for cities gaining the most residents as well as the no.2 destination for millennials.

Employment

Jacksonville continues to show a strong job market with growth of 3.8 percent in 2016.  This has led to a low unemployment rate of 4.4 percent and a larger amount of inbound searches on Trulia.com, versus outbound searches of locals leaving the area.  Jacksonville also offers a year-round economy and is the only Florida city with four different company headquarters on the Fortune 500 list.  The city has seen a 20 percent population growth over the past decade and its workforce is expanding at twice the national average.  In 2013, Forbes ranked Jacksonville as having the second fastest growing technology services base in the nation in a survey titled “The Cities Winning the Battle for America’s Biggest Growth Sector.”  Other notable industry sectors include finance and healthcare.

Healthcare

A strong healthcare industry leads to a better quality of life and makes Jacksonville a magnet for senior citizens.  Five of the city’s top ten private companies provide, or are affiliated with, healthcare services, such as Baptist Health — Jacksonville’s largest private employer.  It is also the home of one of three Mayo Clinics in the United States.

Education

Seven of Jacksonville’s high schools have appeared in Newsweek magazine’s top schools in the nation including Stanton College Preparatory School and the Paxon School for Advanced Studies.  The area is also home to several universities/colleges including the University of North Florida, Florida State College of Jacksonville, Jacksonville University, Florida Coastal School of Law, the Art Institute of Jacksonville and Edward Waters College. Nearby, Saint Johns County has been ranked the no. 1 school district in Florida for the past 10 years.

Affordability

Jacksonville’s cost of living ranks below the national average, making it more affordable than many other American cities.  Housing, healthcare and groceries all cost less than the national average.  The local housing market is still recovering from the recent real estate market collapse, making it a great place to find homes for personal purchase and investment.

Weather

The city has an average of 221 days of sun and a close proximity to beaches and the Atlantic Ocean — two reasons Sperling’s Best Places gave Jacksonville a score of 77 out of 100 on its comfortable year-round climate index.  The U.S. average for the comfort index is 54.

Trends indicate that Jacksonville will continue to benefit from strong population and economic growth, and a growing demand for real estate.  This makes it a great location for investors who will likely see larger returns on their investments.  Crowdfunding has made it easier than ever to invest in profitable real estate properties.

RealtyeVest is a real estate crowdfunding company headquartered in Jacksonville, Fla. The company offers investors the opportunity to capitalize on residential, multifamily and on-trend properties in Florida and across the United States.

Visit the company’s website to see how they can help you invest in real estate today.

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