How Industry Booms and Strong Local Economies Can Boost Investment Strategy | Think real estate
Be ahead of the pack when investment opportunities arise
Any investment decision must be made and executed strategically, and truly, is there anything more iconic about real estate strategy than location, location, location?
It is for this reason that cities seen as hotbeds for certain industries – tech startups, in particular – tend to face rapidly growing real estate markets that cater to young families, professionals, transplants and more. speak of a booming economy. If you are lucky enough to live in or near such a city, it might be a good idea to get into real estate investing to grow your financial portfolio.
But what if you don’t live in a hotspot city with a highly sought after real estate market?
A strong local economy – whether backed by technology or some other industry – will usually be a good indicator of the state of the real estate market. After all, just because a city might not be a tech hub today doesn’t mean that it won’t change in the future (eg Charleston, South Carolina). Looking at things like economic and real estate projections, keeping abreast of industry changes or investing news can all contribute to the decisions you make about your real estate portfolio.
Despite the devastation caused by COVID-19, the rental market has always thrived, opening doors for real estate investors to better understand and use long-term financing options like DSCRs. Long-term financing can relieve investors of the pressure to use rental income on debt service and leverage their capital to invest in future projects. At Temple View Capital, rental loans can span the gamut to cover new purchases, refinances, and withdrawal options and can be applicable to single-family homes, 1-4 unit condos, or townhouses.
Being plugged into market trends, especially in emerging neighborhoods, can be the difference between investing early in housing revitalization and looking to buy properties when a) prices have already skyrocketed or b) most properties have already been purchased. Keeping your finger on the pulse of the city will allow you to keep up with trends and be ahead of the pack when investment opportunities begin to germinate.
This is where rehab loans can play a major role in repairing and turning over properties that will be coming back to the market in no time. While loan rates can drop into the high end, fixed and reversible properties often sell out quickly, making loan repayments painless. These can also be applied to almost any type of property, from single family homes to units 1 through 4, condos to townhouses.
Chasing industry booms to make smart real estate investments can be an effective way to build your portfolio, but don’t overlook neighborhoods and towns in your own backyard that could thrive in different ways. After all, many DC workers reside in Baltimore for housing opportunities unavailable to them within DC boundaries. Therefore? Revitalized neighborhoods and historic townhouses brought back to life.
If you’re ready to explore your financing options for your next project, contact Temple View Capital today.
Doug Perry is director of mail order sales at Temple View Capital, a national private portfolio lender that provides flexible financing to residential real estate investors. Founded by entrepreneurs with over 20 years of residential mortgage and real estate investment experience, Temple View has been at the forefront of innovative product development since its inception. Using a sensible underwriting approach, a deep commitment to customer service and a well-capitalized balance sheet, Temple View enables real estate investors, correspondent lenders and brokers nationwide to optimize the effectiveness of project finance. real estate investment and rental properties.