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The U.S. rental market is as competitive as it’s been in decades, and renters are facing a variety of challenges. High demand is keeping vacancy rates near all-time lows and pushing rents up almost as quickly as home prices. Recent reports show rent prices shot up nearly 17% in the past year, with the typical…

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5/13/2022 2:02:15 PM

The average U.S. asking rent rose $15 in April to an all-time record $1,659, with year-over-year growth moderating by 50 basis points but remaining high at 14.3%, according to the latest Yardi® Matrix Multifamily Report released this week. “Although there are a few weak spots, multifamily demand and rent growth remain incredibly strong throughout the…

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5/13/2022 2:01:18 PM

Commercial and multifamily mortgage loan originations increased 72% in the first quarter of 2022 compared to the same period last year, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. In line with seasonality trends, originations during the first three months of 2022 year were 39% lower than the fourth…

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5/13/2022 2:00:09 PM

Housing affordability posted a modest gain for average conditions in the first quarter of 2022, as a strong jump in national median income helped to offset a gradual rise in interest rates. However, home builders warn of current deteriorating conditions as a sharp jump in mortgage rates in March and April coupled with ongoing building…

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5/12/2022 2:00:25 PM

Mortgage credit availability decreased in April according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology. Key stats: The MCAI fell by 3.2% to 121.1 in April. A decline in the MCAI indicates that lending standards are tightening, while increases in the…

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5/11/2022 4:02:40 AM

For the month of February, 3.2% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 2.5 percentage-point decrease compared to February 2021, when it was 5.7%, according to CoreLogic’s latest Loan Performance Insights Report. To gain a complete view of…

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5/10/2022 2:02:54 PM

April data suggests that the U.S. housing supply is readying to rebound, as active listings posted the smallest year-over-year decline (-12.2%) since December 2019, according to the Realtor.com® ‘s latest Monthly Housing Trends Report released this week. Inventory improvements were led by increases in the share of mid-sized homes, which could mean more listings available…

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5/10/2022 2:01:24 PM

RISMedia’s Broker Confidence Index reveals cautious optimism with the spring market underway.

The post Broker Confidence Continues to Decline Month-Over-Month appeared first on RISMedia.

5/4/2022 2:04:55 PM

Are you looking for a place to store your belongings while you’re on vacation or just need some extra space for the week? Maybe you are selling your home and have some interim storage needs before you move to your next home? It’s not uncommon to need storage space when buying and selling a home.…

The post Three Things to Know About Self-Storage Units Before Renting appeared first on RISMedia.

5/3/2022 4:01:25 AM

While the middle class, generally characterized as households that earn approximately two-thirds to two times the median national income, historically has been the largest economic group in the U.S. and currently remains so, its numbers have steadily declined year-over-year, a new report is discussing. Still, some parts of the U.S. are better suited to this…

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4/29/2022 4:02:21 AM

10 Biggest Home-Buying Mistakes


David Weekley, CEO of Houston-based David Weekley Homes, is one of the country's largest home builders and also the author of a new book, How to Buy a Home Without Getting Hammered.

 

Based on 25 years of home-building experience for 30,000 people, Weekley offers these 10 biggest mistakes in home buying:

Not doing your homework. Knowledge is power. Tremendous information is available on the Internet. There is no excuse for entering the market unprepared.

Trying to make a shrewd investment. People need to buy based on what fits their family. Don't try to guess what will happen to the market.

Choosing a poor location. Even within a neighborhood, location matters. Is it on the busiest street? Is there a shopping center out the back window?

Overlooking an inferior floor plan for an attractive exterior. It may have gorgeous curb appeal, but you don't live on the lawn. No matter how attractive the exterior, you need a livable home.

Overlooking how the house will function for your family. How do you really live? Do you really need a formal dining room and living room? Would you be happier with an eat-in kitchen and a great room and a den to use as a home office? The house only needs to fit one family -- yours.

Not having the home properly inspected in a resale.This is not the time for surprises. Get an inspection from a qualified, respected professional.

 

 

Not checking out the builder's reputation on a new home.Talk to three or four people who live in the builder's homes and see what they have to say. If one builder did all the houses in a neighborhood, talk to the residents and get their input. It's also a great way to see what your neighbors would be like.

Not getting what you want because you're impatient. This is a big decision. You need time. Impatient decisions can lead to mistakes.

Waiting for a better market and interest rates. Warren Buffett says the rear view mirror is always clearer than the windshield.

Not buying at all. If you can afford a home and you don't make that purchase, you'll lose the benefit of tax deductions, building home equity and the appreciation in value.


Top 7 Tips for New Real Estate Investors


By Eric Bramlett

As a real estate broker, I meet plenty of people at dinner parties who, when the subject comes up, mention that they are real estate investors. The conversation will go on for a bit, and I typically classify the person in question as either a true investor, or a real estate "investor."

True investors typically have a number of transactions under their belt, realize that they're still learning, and are open to any insight I can provide - and I am always open to their insight. The real estate "investor" typically has never actually taken the leap and bought a property purely for investment, doesn't realize the difficulties of real estate investment, and proceeds to overwhelm me with their "expert knowledge." What they should do, is listen.

1. It's not as easy as it looks on TV

"Flip This House" is a fantastic television program - that's about as realistic for the average investor as "Sponge Bob Square Pants." The problem with TV real estate investment programs is that they downplay the work involved, and accentuate the money made by the investors. "Flip This House" will show you a tidy $150,000 profit wrapped up in a 30 minute episode. What they're not showing you is the work done to find the property under market value, build the industry relationships necessary to tackle a sizeable project, the skills necessary to manage that project, and the market knowledge to accurately predict that properties final sales price. Bottom line is: investing is hard. It can be, however, very lucrative.

2. Walk before you run.

So many "investors" decide one day that it's time for them to make millions in the market, and begin looking for that perfect flip, or perfect rental property - with a hefty price tag. Would you walk out of your door today to run a marathon without training? Absolutely not! Investing is very similar. There are MANY mistakes you can make, and one big mistake can turn an investment sour. The best way to minimize your risk is to start out small, and reduce your variable costs. If you're buying an income producing property, purchase one that's already rented out - preferably to long term tenants. That way, you can do research on a tenant's credit worthiness BEFORE you've taken the leap and bought the property. You'll also know exactly how much cash flow your new property will generate. If you're buying a rehabilitation project, it's often the carrying costs that can overwhelm a new investor. If, at all possible, buy your rehab project as your home - that way you can take your time without paying the consequences. If that's not possible, then build in PLENTY of carrying costs - around 6 months worth. Once you have a few investments under your built, you'll be able to accurately predict your variable costs, keep them lower, and make more profit.

3. For Long Term Wealth - It's a Marathon, Not a Sprint.

Many new "investors" come to me with the business model of "buying old houses and fixing them up." This seems to be the easiest way to make money, but it's not. Flipping houses takes skill, foresight, market knowledge, and market resources. Furthermore, flipping houses is hard work, and results in quick profits. Unless you take advantage of 1031 exchange, flipping houses results in short term capital gains. The true path to long-term wealth lies in income producing properties. Purchase an income property in a market you think will appreciate, hire a property management company, and forget about it. Let the check come in the mail once a month - this "mailbox money" will turn into your best friend. After you've let the property rent for 3, 5, even 7 years, check its value and you should be pleasantly surprised! The key here is that you didn't have to put in very much work - you merely found a great property in an appreciating market, and let a passive investment earn big returns.

4. Use a Realtor You Trust - And Don't Go After Their Commission.

Author Robert Kyosaki says, "Corporations have boards of directors. You should have one, too." Good Realtors earn a sizeable income - and they're worth every penny. The keyword here is "Good" because the real estate industry is like any other - there are plenty of bad agents. Don't hire any agent that crosses your path; Make sure and interview plenty of Realtors and find one that works with investors, and personally invests. When you find your "Realtor Advisor" don't go after their commission. Any good Realtor will have plenty of clients and you want to make sure that you're not playing second fiddle to them.

5. Put Together a Business Plan, And Stick To It

The only time you can't POSSIBLY lose money is before you invest it. That's why putting together a solid business plan is the smartest action step you can take. Decide the type of property you plan to buy, what it will cost to purchase it, what it will cost you to hold the property, and how much income the process will produce for you. Most investors have a "formula" for buying properties - develop, borrow, or steal one. Write EVERYTHING down on paper and analyze every possible expense. Plan for the worst and anticipate how you will avoid the worst. Once you've put together your business plan and investing "formula" - Stick to it!!! Execution is key to successful investing.

6. When You See Something That Looks Good - Take Action!

I've worked with many investors that have excellent business plans, and great formulae, but who refuse to pull the trigger on something that looks good. There are MANY ways to back out of a contract, and if you hesitate when you see a good deal - another investor will already have tied the property up in their contract. In Texas , you typically pay $100 for a 10 day option period. You have 10 days to terminate the contract for ANY reason. In my opinion, not losing a good deal is well worth tying up MANY questionable deals at $100 a pop.

7. Try And Talk Yourself Out of the Deal

After you've put together your business plan and contracted a property, you need to look at every negative aspect of the property. Plan for the worst and hope for the best! Oftentimes, planning for the worst involves walking away from the transaction. After you've invested the time finding the property and the money to contract and inspect the property, you might feel emotionally invested. However, don't let these feelings get in the way of making a smart financial decision. If you look at every possible negative that can happen in the transaction and you will still make a profit, then go for it. You can always minimize the negative variables. However, if the worst does happen, you will still have all the clothes on your back. No matter how hard it is, if it looks like you COULD lose money, walk away.

There's big money in real estate investment, and there's the potential for big losses, as well. Someone giving themselves the title of "investor" far from makes them an actual investor. Before you take the plunge, talk to plenty of educated investors with experience, and follow these simple steps.