Mon – Fri 9-6 EST
Sat-Sun Closed
9465 Counselors Way Suite #200, Indianapolis, IN 46240
Real Estate Investors

Real Estate Investors (72)

News & helpful information for Real Estate Investors.

Tuesday, 28 August 2018 05:00

Top Rental Market Cites in America

The 4 Top Single-Family Housing Real Estate Markets in America

single family housing marketsLocation. Location. Location.

Everyone knows that’s the most important consideration when buying a home.

The problem is that there are countless locations from which to choose.

Where do you even begin when it comes to such an important decision?

Well, if you’re looking to add a home to your rental portfolio, you have a huge advantage: in terms of location, all you care about is ROI.

What markets will offer you the best returns?

Fortunately, the top single-family housing real estate markets in the country will give you some very attractive options.

LLC for Single Family Rental Properties

LLC for Single Family Rental Properties


Single family rental properties offer a number of advantages to the owner.

Generally, the time between when you acquire one and when you can begin renting is minimal – meaning cashflow begins ASAP.

Nonetheless, many provide great returns with low overhead and the promise of tremendous resale values.

However, the means by which you own one of these properties will have just as big an impact on your portfolio as the actual home itself.

That’s why most investors choose to use an LLC for single family rental properties.

opportunity zones

 

  • Would you love to add another rental property to your portfolio?
  • Are you having trouble with financing because you’re already stretched a bit thin?
  • Have traditional lenders decided you’ve reached your lending limit?

If this sounds familiar, it’s vital that you learn about Opportunity Zones right away. The aptly named legislation could be the best opportunity you have to add new, promising properties to your portfolio and enjoy an incredible tax break.

What Are Opportunity Zones?

All over the country, there are communities suffering from severe economic limitations. To make matters worse, these areas have very little hope of ever making much of a comeback – at least not on their own.

This is why many of them have been designated as Opportunity Zones. Anyone who invests in their economic revitalization may be qualified for preferential tax treatment.

Opportunity Zones were created by the Tax Cuts and Jobs Act on December 22, 2017. They were largely seen as an attempt to provide relief to those populations that depend on community development programs and affordable housing – people who may not have otherwise benefited greatly from the tax cuts.

One reason to be especially hopeful that this new legislation will reach its desired goal is because it lacks an authorized cap on how much capital may be made available through these investments.

This means an estimated $2.2 trillion worth of unrealized capital gains derived from stocks and mutual funds could be funneled into community revitalization.

Instead of individuals and corporations bearing the full brunt of their federal tax liability, they can defer or reduce it based on the sale of appreciative assets. All they need to do is reinvest those gains into an Opportunity Fund, which leverages its pooled capital for the sake of real estate and small businesses in distressed communities.

Better still, each Opportunity Zone retains their designation for 10 years. So, investors have until December 31st, 2026.

Furthermore, any investors who hold onto their investments in Opportunity Zones for a minimum of 10 years will be eligible for an increase in the Opportunity Fund’s basis equal to the investment’s fair market value based on the date it has been sold.

Therefore, in short, the government will ease an investor’s tax burden on any stocks or mutual funds they sell if they put the money into Opportunity Zones.

Where Are Opportunity Zones Located?

Opportunity Zones exist in 18 different states, though some of these offer more locations than others.

These states are:

 

  • American Samoa
  • Arizona
  • California
  • Colorado
  • Georgia
  • Idaho
  • Kentucky
  • Michigan
  • Mississippi
  • Nebraska
  • New Jersey
  • Oklahoma
  • Puerto Rico
  • South Carolina
  • South Dakota
  • Vermont
  • Virgin Islands
  • Wisconsin



    If you want to locate where the specific locations are in a state, check out this very handy map of opportunity zones.

 

Rental Property Tax Breaks Using Opportunity Zones

Opportunity Zones live up to their name for any investor who has stocks or mutual funds they’d like to offload without suffering the normal taxes for doing so.

In fact, many will most likely part with investments they had no intention of leaving simply so they can take advantage of a first-of-its kind opportunity.

One of the best examples of just how promising Opportunity Zones could prove for investors is rental properties. The legislation doesn’t put any limitations on using capital gains to fund investments in affordable rental housing.

As long as the residential real estate is located within an Opportunity Zone, it is fair game for investors. The only stipulations are that the property is:

  • New or Acquired after December 31st, 2017
  • Improved substantially
  • Meets the statute’s active conduct standard

Each of these is basically a given for any rental property inside of an Opportunity Zone, meaning savvy investors are facing a multitude of options at the moment.

Will You Take Advantage of Opportunity Zones While These Opportunities Still Exist?

Opportunity Zones are truly a unique opening for investors who want to own rental properties. There hasn’t been an opportunity remotely similar to this one since the New Market Tax Credit (NMTC) was crated back in 2000.

So, if you let this one pass you by, it could be another 20 years before you get another chance. Keep in mind, too, that the NMTC is limited by an annual allocation amount, which has been $3.5 billion per round of allocations in recent years.

Again, Opportunity Zones don’t have these kinds of limits. That’s why now is the time to take full advantage of this legislation.

If you’d like to transfer your gains directly into new rental properties, act now. Contact us today and we’ll walk you through the entire process.

 

 

 

 

 

Yield maintenance can be a new and unfamiliar term to newer real estate investors. What is it? How does it work?

Essentially, yield maintenance helps ensure the lender and their investors achieve a minimum yield on the loans they make. They need to ensure they stay profitable, and deliver on their guarantees to others.

Yield maintenance typically shows up as a prepayment premium or penalty in mortgage loan documents.This is a standard feature in many commercial real estate loans. How much it is can depend on a combination of interest rate, points, pre-payment penalties, and interest rate trends.

How Yield Maintenance Works

There are no absolute rules when it comes to applying this factor. Each lender can apply their own calculations, and desired minimum yield.

south carolina real estate topSouth Carolina's warm climate, beautiful beaches and multitude of golf courses, has become the a retirement mecca of the mid-south. Rental home investors, retirees and second-home owners are in love with North Carolina's real estate affordability. 

South Carolina's population is over 4.7 million and rapidly growing, with the tenth-fastest population growth rate in the nation at nearly 4.375%.  Speaking of rates, our rates for South Carolina investment property are highly competitive, conact us today to learn more.

South Carolina has three profitable secrets for real estate. Consider a blanket loan from us when checking out South Carolina Investment properties, we also can help you get started with stated income loans. We are looking intensly at South Carolina as an investment property promised land. We think you will too.

Keep reading to discover what we think are the TOP 3 reasons to buy in South Carolina.

Real Estate Investment Portfolio ProfitsFast Qualifying Rental Home Loans Are Profitble

Real estate investing has three primary vectors to increased profits, there are a few other niche avenues but for the most part, it boils down to these three points.

The three primary real estate profit venues:

1. Property value

2. Rental income

3. Property services income

You could employ blanket mortgages to lower costs, (check our blanket mortgage section), you could also try things like tax lien certificates or other unique banking alternatives but the three items above applies across the board for a vast majority of the investor's rental income. Learn to take advantage of the big three for your own portfolio.

Property Value of Rental Investments

Property values do not always increase on their own. Not everyone has the foresight to purchase rentals in the most optimal locations, and even then, no location is bullet proof to inflation and changes in socioeconomic factors. The challenge is to improve property value in a profit formula rather than just sinking money into general improvements.

New income loan opportunities for rental propertyWe know the previous limits in lending and are here to provide options not previously available to the investment loan markets. We want you to be able to take advantage of today’s rental investment opportunities so we looked at the challenges and are providing new solutions for your success. 

Rental Home Financing unleashes a totally new lending platform and is now offering a loan program specifically tailored toward rental, income producing properties such as single family (1-4 units), condos, townhomes & multifamily apartments Nationwide.

We are providing rental property Loan Solutions for:

  • Difficulty with new property financing based on your LLC
  • Constraints when you want more rental property but already have 10 or more Fannie or Freddie loans.
  • Challenges trying to buy more real estate using your retirement account as leverage.
  • Foreign investors find it difficult to qualify for U.S. financing.

Hoosier Rental Home Investment Markets

hoosierHoosier is the official demonym for a resident of the U.S. state of Indiana. The origin of the term was in general use by the 1840s, having been popularized by Richmond resident John Finley's 1833 poem "The Hoosier's Nest". Anyone born in Indiana or a resident at the time is considered to be a Hoosier. Indiana adopted the nickname "The Hoosier State" more than 150 years ago. "Hoosier" is used in the names of numerous Indiana-based businesses and organizations. "Hoosiers" is also the name of the Indiana University athletic teams. -Wikipedia

Overall, the 2016 investment rental housing market is looking great for Indiana and the country. Job growth is improving and other economic fundamentals are positive. Thus, consumer confidence should be high. 2016 should see the single-family housing market remain strong for both Indiana and the nation.

Indiana is very affordable in terms of real estate which makes it a solid addition to the portfolios of long term hold, income seeking investors.

 

Fastest Growing Population Centers
Indiana boasts some of the fastest growing population centers! Popular areas include Hendricks, Johnson Dearborn and Hamilton County. Fishers, IN has seen a 100% population boom since 2000.

 flip houseThe past year saw a dramatic rise in home flipping trend. Although over heated, analysts feel that 2016 is going to set new records in home flipping industry with more households joining the bandwagon. As per a research by Trulia, 5% of all home sales in 2015 came from house flipping.

Geographically, flipping varies a lot as per the property market. For example, Las Vegas witnessed high growth in house flipping whereas Detroit was placed at the bottom of the pile. Also, Florida areas are making entry into the flipping arena with zealous interest. Such markets also display a high number of investment property loans.

Historically, real estate agents consider house flipping to be a peak of a housing market. This can sometimes also signal over heating in the property realm. However, past year’s rise is nowhere close to the historic highs and instead show a steady increase that can be at most considered a healthy uptrend. Nationally speaking, it is well under control barring a few regions.

Know Thy Neighborhood for Renting Success?

feeling mighty successful'What is a good cap rate' is usually the first metric people look for when determining whether the potential real estate investment is appealing to them. If you are wondering what is a good cap rate, it's up to you to decide. For instance, if you're getting a good 6% percent for a shaky neighborhood with plenty of risks, 6% might not be worthwhile. Finding good tenants in a good neighborhood is what matters. Getting to know the neighborhood is surprisingly one of the simplest ways to improve the value of your rental property.

The more involvement you show, the easier it becomes to identify areas of the community that you can enhance. It is beneficial to understand and support the neighborhood you are serving because it will also encourage others show pride in the communities they live in.

Top 10 Tips to be Successful in Rental Industry

top 10How to become a real estate investor with rental home loans is a common query among people looking to diversify their income sources. Real estate is a promising arena since many centuries. The old saying is still true, scarcity is value and they are not making any more land.

 

But most don't know where to start. With the right plan, budget and approach, anybody can make a mark in the real estate investing realm.

Novice investors can burn themselves quickly.

 

So, here are top 10 tips on how to become a real estate investor:

Friday, 16 October 2015 05:00

Newbie's Guide to Real Estate Investing

Newbie's Guide to Real Estate Investing

newbieOver the years that we've been in the real estate investment industry, one of the most frequently asked questions that we get is, “How to become a real estate investor?"

While some believe that this question has one simple answer that works for all, unfortunately, that isn't the case.

We've designed this guide to help you figure out the best way to get started. Although this guide will not be able to cover every aspect of real estate investing, it gives a good overview on one of the best ways to get on the road to generating wealth through real estate investing.

How to become a real estate investorSo, you want to learn how to become a real estate investor.

How to become a real estate investor is a common search on the internet among people looking to diversify their income sources. Real estate is a promising arena for many centuries.

But most don't know where to start. With the right plan, budget and approach, anybody can make a mark in the real estate investing realm.

Novice investors can burn themselves quickly.

Top 10 Tips to be Successful in Rental Industry

So, here are the top 10 tips on How to become a real estate investor.

1. Always have a Budget

When you set a budget upfront, your plan works flawlessly. How much will be the final investment and how much return are you expecting. Buying and flipping properties require lots of liquid cash. On the other hand, rentals can generate slow and steady income. An investment should always be within your budget parameters especially if you're taking rental home loans.

Don't Risk Costly Vacancies - Hire Property Managers to Successfully Raise Rents

 

vacantRental property owners or people investing in rental property are often surrounded by the thoughts whether they will be able to make considerable money through their rentals. Investing in rental property is different from other forms of investment, since it has a distinct ''human'' element involved.

Unfortunately, some investment property investors don't pay much heed to this element and fail to maintain rental property and make income from it. There is one person who can help landlords get out of the property maintenance fuss and guide about which tenant can easily absorb a rent increase that is - the property manager.

 

buy hold sell propertiesA rental property investor worth his salt knows which one is a flip property and which is long term investment. Ideally, such a house must maintain its long term wealth and also improve upon it to deliver handsome returns.

Of course, all this should come in addition to the rental value increments. Not to forget, the maintenance and repairs should also be minimum. When you are taking business loans for rental property, you expect to close the perfect deal.

Out-of-State Rental Property - The Inside Scoop

turnkey rental investingAre rental home loans in your area getting more expensive due to rising real estate prices? Property and mortgage has risen significantly in the past few years and rental portfolios are no different. Great rental properties are now harder to find. So should you look outside your operations area, probably another state? Let's find out.

What are turn-key rental homes?

Turn-key properties have various definitions. Generally, a property well-repaired and ready-to-move can be termed turn-key. If a rental home, it should be well managed by a rental property management firm and possibly on a long-term lease. Such rentals are becoming popular since you can buy them without having to deal with a local Realtor in that area. However, there is always an air of caution in turn-key properties since exact performance of out-of-state properties is hard to measure.

Private Money for Flipping Houses

flipping housesSome of the best rental home portfolios have been made with private lenders. Rental home loans are not the same with private lenders especially when it comes to flipping. A lot of private money flows into the successful flipper's portfolios. Going private not only gives you the flexibility but also involves lesser money compared to traditional ways.

Basics of Private Money Lending

Private money basically comes from rich individuals (friends, family, investors or business houses) with lots of cash to sponsor someone's rental portfolio. Consider them as private rental home loans from private individuals for downpayments. However, trusted private lenders are hard to come by and getting investments from them is further tough. Interest rates can vary between low single digits to as high as 12 percent. The terms are also dictated by the lender.

Thursday, 17 September 2015 05:00

Protecting Rental Property Investments

How to Winterize Rental Property Like a Pro

 

winterize rental investment homesProtect financed investments of rental property over the winter, it's eaiser than you think.  Ideally, your rental property wouldn’t remain vacant over the winter — and of course you should continue advertising your vacant properties despite the weather conditions.

But before that, it is important that you weatherize your unoccupied building before the weather dips below freezing — so now let’s talk about how to do it.

Listed below are some preventive measures you should take before the old man winter knocks on the door.

Importance of Hiring a Property Manager For Your Single-Family Rentals

rental single family homes need property managersHiring a property manager for your single-family rentals is important for protecting your investment and maximizing income. The single-family investment climate is a well-known financial strategy in the U.S.

Say you have purchased or inherited a home, or perhaps you were transferred but don’t want to sell your home yet. From a management point of view, you have two options, either manage the property yourself or hire a property manager to look after it.If you hire a property manager they deal with many issues involved with property management on your behalf.

Trends in population growth are key indicators.

 

population growth trends for investingWhen it comes to population and job growth – we have seen suburban growth surpassing the large cities. This trend that continued for more than half a century is now changing. The suburban growth is stalling to say the least.

We are hearing for many years now that the 'Millennial Generation' favors city centers and other areas close to their place of employment as ideal places to live in. Now it usual scenario that jobs are again shifting back into city centers from the suburban environments.

More Renters Plan to Remain Long-Term Tenants

market indicators rental investmentsMany renters are planning to continue renting for a long-term as they aren't ready for the ownership responsibilities. According to a recent survey from Freddie Mac more than 60 percent of the current renters in the US plan to live on rent for a longer period. This wasn't the case a few decades back. Nowadays, renters see both positive and negative aspects of their living arrangements. And this trend is here to stay.

Freddie Mac commissioned Harris Poll to survey more than 2,000 adults to understand what tenants think about renting. The data provides significant insights into the thoughts, plans and financial situation of the tenants. This can help single-family rental investors in planning out their future strategies as well wit respect to the rent vs owning debate.

blog chartMillennials are on the move, says RealtyTrac – a real estate data analytics firm.

Millennials account for 69 million people, and are the country’s second largest generation after baby boomers. Their choice in whether to rent or buy will have a greater impact on housing. The aftermaths of this impact will clearly be visible on rental property availability, real estate sales, lease rates and house prices.

According to Daren Blomquist, vice president of RealtyTrac, millennials are the key to a consistent real estate recovery.

RealtyTrac also analyzed Census Bureau population data between the year 2007 and 2013 to look for the markets with the highest millennial shifts.

Here are 10 Questions that Your Home Inspector Should Answer

home inspectionA home inspector plays an important role in your buy-to-rent property purchase. Below are 10 important questions that you must ask a home inspector before hiring them:

 

1. What does your inspection cover?

The inspector should ensure that their inspection and inspection report will meet all your requirements and will comply with the code of ethics. You should be able to ask any questions and check if all the areas are inspected or not.

How To Be Better Real Estate Investor to Conquer Rental Property Arena

investorBetter investing doesn't just happen accidentally. Good investors work it out full-time. They research, learn and understand the latest market trends in the rental industry of USA. Regardless of how much landlord experience you have, remember that the competition in the rental property market is fierce.

From big investors to newbies, the number of investors seeking rental property at good locations is soaring day by day. Here you will find some tips that will help you enhance your skills to be a better rental property investor and always stay ahead of your competition.

Network with wholesalers

Finding investment properties in your area with strong rental income fundamentals is the key to success. This is where wholesalers (people who sell properties at a cheaper rate than market price) can help you secure the best deal. If you are new to the investment market, you must become well acquainted with the wholesalers in your area. You can research the real estate investment groups that operate in your area. Try to attend their events to know the latest property trends. If you are a long-term investor, it is advised to renew your contacts with wholesalers so that they contact you first if there's a good property deal available.

7 Relatively Unknown Benefits of Investing in a Single-Family Home

single family homeReal estate investment is considered as one of the best business practices one can make with their money. This year, general contractors have seen a jump in investing for single-family homes as compared to other types of real estate.  The price of a single-family rental home looks more attractive for beginer investors and adds a great start to a portfolio or quick portfolio add-on.

It's no surprise why there are so many investment opportunities in this market, as home prices experienced a major drop in certain areas in Canada. Read on for benefits of investing in a single-family home:

Asset-Based Lending and Real Estate Investments

investorAre you looking for working capital to support your real estate investment so that you can acquire more rental properties and make more profits? One of the best ways to acquire the financing you need is – asset based lending. This is a loan that is backed by assets such as properties you’ve purchased or accounts receivable from rentals.

Asset-based lending has recently become accessible all over U.S to owners of single-family rentals, condos, two- to four- unit properties and town homes; allowing interested investors to reach even the most expensive markets.

The Basics of Asset-Based Lending

This type of lending is based on assets used as a collateral for a loan. These assets are real estate assets, and not personal assets. To secure the loan, and eliminate any downsides, make sure that the financial information about your properties is both precise and accurate. Having a professional prepare financial statements and photos will help the lenders determine your property's value.

7 Relatively Unknown Benefits of Investing in a Single-Family Home

Single property loansReal estate investment is considered as one of the best business practices one can make with their money. This year has seen a hype in investing for single-family homes as compared to other types of real estate.

It's no surprise why there are so many investment opportunities in this market, as home prices experienced a major drop in certain areas in Canada. Read on for benefits of investing in a single-family home:

1. Low Turnover Rates

Lower turnover rate is one of the key benefits in single-family housing. Vacancy equals loss of income as well as expenses making the property ready for the next tenant.

Each that a tenant leaves, there will be additional costs of new paint, carpeting, hardware and more. Considering the fact that single-family homes have a much lower turnover rate—there will be significantly less monetary rise due to vacant space.

Asset-Based Lending - The Next Step for Real Estate Investors

Are you looking for working capital to support your real estate investment so that you can acquire more rental properties and make more profits? One of the best ways to acquire the financing you need is – asset based lending. This is a loan that is backed by assets such as properties you’ve purchased or accounts receivable from rentals.

Asset-based lending has recently become accessible all over U.S to owners of single-family rentals, condos, two- to four- unit properties and town homes; allowing interested investors to reach even the most expensive markets.

The Basics of Asset-Based Lending

Funding Real Estate Investments: Crowdfunding vs. Rental Property Loans

crowdfundingWhich is the best option for financing real estate investments today; crowdfunding or rental property loans? Or can the two better be used together for superior returns?

Crowdfunding continues to be a hot buzzing topic. The adoption of crowdfunding by major brands, and emergence of new real estate specific crowdfunding platforms, along with masses of press coverage has made this form of fundraising even more popular.

Crowdfunding can be a great way to finance all types of things from honeymoons to new business startups to acquiring portfolios of single family rental properties. It doesn’t require putting personal credit on the line, can help spread risk, and promises to be a fun adventure.

However, crowdfunding can be far more intensive and expensive than most realize. Media stories of new startups landing millions via crowdfunding make it sound like a guaranteed path to overnight success and easy money.

FINANCING FOR RENTAL PROPERTIESRental Property Investors, Multifamily Mortgage Loans, Report

 

Smart investment property mortgages are one of the main tools fueling enhanced returns for intelligent income property investors seeking capital growth and more attractive yields.

Understanding of the performance enhancing benefits of new smart investment property loans explains the new values being placed on both single family rental homes and multifamily investment properties, and how the most sophisticated investors are creating spreads that were never possible before.

How Smart Leverage is Creating Recovery

Real estate investors have returned to the US market at all levels. The contribution to the economy has been dramatic. Each new home and renovated apartment complex has added both jobs and tax revenues to build up both the public and private sector across the nation.

Page 2 of 2