Investor purchases of U.S. homes are at an all-time high right now. In fact, more than 11 percent of all purchases were made by private-equity firms, speculators and flippers during 2018 – and that’s as high as it’s ever been, according to CoreLogic, who released the study with this information.
Why Are Investors Buying So Many Properties?
Demand for rental properties keeps increasing – in part because the rental market is thriving. With more people being unable to come up with down payment cash or unwilling to lock themselves into buying a home they’re not sure they can afford, investors are able to snap up homes that most people would consider “starters.” In fact, investors bought one in five homes in the bottom third price range during 2018; those are the houses that first-time buyers (and those who start out renting) would usually buy. That figure rose by 5 percent over the 20-year average.
Should You Jump In?
If you’re thinking about investing – or if you’ve already made a successful business out of it – now may be the right time to dive in. It looks like the rental market nationwide is still growing, although every area can be vastly different.
Do your homework. See what homes are selling for in a neighborhood, which ones need improvements, and what they could be worth if you were to rent them out or sell them. You might be surprised when you crunch the numbers – and you could end up making a significant profit.
Are You Looking for a Hard Money Loan to Flip a House or Buy a Rental Property?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about 7 to 10 days.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.