As an experienced real estate investor, you understand the value of understanding your buyers. Without a firm grasp on their preferences, you're basically operating in the dark, which can lead to a lack of sales and stagnation in your investment portfolio. When considering California real estate, there are a wide variety of factors to consider, some not so obvious. One example of this involves attics and basements. More specifically, how important is having a finished attic or basement to California buyers? This may seem trivial or not applicable to the California real estate market, but it could be the deciding factor in a buyer choosing your property over someone else's, so it's important we examine this detail.
The California real estate market is full of properties of all sizes, from tiny up to massive mansions. To some real estate investors, smaller properties hold the most interest. This is likely due to the relatively low investment required to purchase and remodel the home so it's market ready. However, there are three things to look for when reviewing a small property vs a larger property.
You might think that California offers a myriad of different types of properties that you can fix and flip. While there are homes of every size, shape, style and price range imaginable, they all have certain commonalities. Likewise, it doesn't matter whether the home is a single family home or a rental unit, they are very similar in terms of structure and investment potential. For most real estate investors, there are only two common types of fix and flip houses you will see a lot of in California; foreclosure auctions and short sales.
If you want to see what's hot on the market, it pays to look at what's happening on college campuses. Only last week, the results of the U.S. Department of Energy Solar Decathlon were published. The contest centered on sustainable home building, and one of the competitors was based right here in Southern California. Team Orange County focused their project on the specific challenges in the Southern California real estate market, and their design points out several home features that California investors love.
Real estate investors are asking themselves, "What does the 2016 California housing market look like?" The informed and educated investor knows there are opportunities no matter the market conditions. Armed with the correct knowledge, one can develop a successful strategy.
Investors in single-family properties, at some point, wonder about multi-family properties. From a management point of view, after all, you have one to four homes instead of just one on a single piece of ground. First-time investors might have the same questions for the same reasons. The issue becomes, then, real estate investment property: How to evaluate a multi-family home vs. a single family home?
Foreclosures are common events in American society. During the middle of the 2007 financial crisis, the number of foreclosures skyrocketed since many people were no longer able to make their monthly payments. This eventually resulted in lower housing rates because property owners were trying to boost demand for their assets. From an investor’s perspective, foreclosures are viewed as good real estate deals. Indeed, most investors imagine themselves buying houses in excellent condition at a discount from distressed sellers, and then reselling them at a profit. Yet, things rarely go according to plan. This blog is about foreclosures - how they work and what that means for you as an investor.
It can easily be surmised that there are definitely more than 3 myths about REI. Very likely, you've heard multiple wild tales, odd conjectures, and serious head scratchers. Once people know you are considering REI, the advice will just roll in. Depending on whether it's from the guy next door whose third cousin tried it, other investors, or even the get rich quick guys on late night TV, there are probably plenty of confusing cross signals to go around. For the sake of keeping it brief, I will confine my input to just 3 random bits of dubious wisdom making the rounds.
Real Estate Investments are tricky things, and while a property might seem like the perfect investment, given the rate of market growth in an area, the equation isn't as simple as, "Will the value be greater in a year?" So…..When Should You Walk Away from an REI Deal?
Real estate investment wins or loses by the numbers, specifically by key ratios. Metrics like monthly rent as a percentage of purchase price, cash flow per rental unit, and debt coverage ratio give investors a road map to REI success and, sometimes, a red flag signalling potentially disastrous deals.