Real Estate Trends Shaping The Market For Investors In 2021
Check out these developing real estate trends that could continue to change how investors participate in the real estate market, and the best strategies for balancing risk and reward.
Developers Kicking Out Pre-Construction Buyers
Just as we saw in the run up to 2008, big real estate developers are again finding ways to pull contracts from buyers as prices have risen during the building period. With prices up some 20% or more, builders see a great opportunity to back out of contracts with pre-construction investors, and then try to resell units at new market highs. This is a huge burn to those investors who took a chance on them. Investors who will be looking elsewhere for deals with their capital.
Construction Material Costs Rising
The dramatic inflation over the past year hasn’t just been limited to groceries. A surge in home repairs, remodeling, building and emergency maintenance has driven up the price of construction materials as well. Walk around your local Lowes or Home Depot and you may find some line items are priced at 2-3x what they cost last year. This can be quite a shock to rehabbers when they go to pick up materials for a new deal they just bought and find the numbers no longer work. Expect this to encourage more investors to stick to wholesaling real estate and wholesaling direct to end retail buyers.
Extended Eviction Ban
The new white house administration recently extended the national eviction ban at least through to July 2021. While many landlords may still be surviving on multiple layers of government stimulus, these unprecedented measures have certainly changed everything they thought they knew about the security of passive income assets. Many will liquidate their rental portfolios. Others may switch to shorter term investing strategies that don’t rely on tenants.
Housing Inventory Shortages
While there are many commercial buildings which are now ripe for being converted into housing, many markets are finding they are currently suffering major inventory shortages. Florida in particular saw listing inventory drop around 50% in 2020. Many markets only have 4-7 weeks of inventory. This in turn is driving up prices fast, with intense bidding wars common. While this demand remains strong, expect prices to keep surging until they become unsustainable.
Ongoing Lockdowns & Restrictions
Ongoing restrictions in some states, along with rising taxes and increased demand for single family homes instead of apartments and condos is likely to continue to drive moving and buying activity. This will fuel great leaps in prices in target cities, while alleviating inventory shortages where people are leaving.
All put together these trends suggest that real estate wholesaling will offer even better risk-reward balance through 2021. It offers high short term returns, and far less exposure to the risks plaguing other strategies. All with plenty of leverage available.
Top Funding News
|
|
|
|
|
| Linked In | You Tube | Google+ |
"I want thank you for the excellent service I received from Best Transaction Funding.The quick response I received from your company from the beginning of the transaction and to the end was unbelievable. I also want to give a special compliment to you as well. You went to great lengths to keep me informed and gave my title company all the information they needed to complete a successful closing. I cannot express how thankful I am. Such service builds great working relationships. I will definitely recommend Best Transaction Funding to all my fellow investors. Thank You."
- Frank Olaitan, Real Estate Investor, MD
"I can't thank you and your company enough for providing funding for our latest project, and right at the last minute. You came through with funding in less than 24 hours and coordinated with the closing agent and attorneys like you had been involved with our project the entire way. I'll know exactly where to call for the funding we'll need for our next project."
- Dave Pricken, Real Estate Investor, NJ
"Thank you so much! I just had a talk with our Realtor on both properties and told him amazing things about your company!... Normally I rehab the houses and re resells them. I just don't have the patience for that work anymore. This [transactional funding] is such a better way for me and less stress."
- Steven Kupecz, Real Estate Investor, TN
"We want to thank you for the exceptional customer service you provided. No one comes close. We had contacted a competitor the same time we contacted your company. Your company responded with in a few minutes while the competitor has yet to respond weeks later even after multiple phone calls and emails. Thanks again for the unmatched customer service."
"We had looked into several transaction lenders for a couple properties we were trying to flip. Your company was the most responsive and had the best pricing. Even though we had logistics issues with the B/C lender, your company acted very professionally and handled our requests beyond our expectations."
"Thank you for your commitment to an excellent customer experience."
- Phoenix Properties, LLC, Ronald Destefani, Investor, PA
"I was studying on how transactional funding works and you guys had the best and most thorough explanations posted so I could fully understand the details in back to back closing. I'd already started setting everything up but your video confirmed that I'm on the right track."
- La'Donna Turnipseed-Scott, Investor, LA
"....a few months back, I happened upon a video, on your site, regarding the use of transactional funding with Hud properties; and I found myself replaying the video over and over because of the value that I saw in the message...it actually explained the process, step-by-step on how to submit a Hud deal by using transactional funding. Once I completed the video, my initial response was to take immediate action by duplicating what I had learned from the video into real time. So I did some research on properties in a market where I knew I had buyers; and put together a hud deal. I then located a realtor able and willing to submit my bid online and within a couple of days, to my surprise, received a call telling me that I had won – my very 1st Hud bid."
"To you I say, ”KUDOS to Best Transactional Funding and Thank you for providing the education and services to Real Estate Entrepreneurs like me. Please keep up the good work!'"
- T. A. Davis, Investor, NJ
"You each deserve high marks for your wonderfully quick response time to each of our questions and requests! You hit home runs with us! Your application system was easy to use. Our deal met your qualifications and every time Rob Kozak or any member of Mystic Properties, LLC phoned, we received a "real" person dialing back to speak with us.
Your patience and persistence were exceptional in dealing with our business interests. Thank you for such great customer service! We look forward to working with your staff, again, in the future. We like referring people to you, as us, our team would have missed-out on an excellent earning opportunity.
Your help negotiating with our title company made our back-to-back deal, finally happen. People noticed on settlement day how effectively and efficiently your part of the transaction was organized and executed. Again, thank you for truthfully being the "BEST" at what you do!"
- Diane McAdams, Mystic Properties, LLC, Real Estate Investor, Pennsylvania
"Boy, you guys are impressive! I can’t thank you enough for scrambling and getting my deal done at the last minute like that. You and your team were awesome!"
- Donna Bauer, The NoteBuyer Inc., Real Estate Investor, OH
"Thank you so much for working so diligently with me. Your services really are the "BEST". I look forward to working with you in the near future!"
- Ericka B., Real Estate Investor, CA
