The current market is primed to provide optimal returns for real estate investors looking to diversify and expand their asset portfolios. Inventory levels are significantly depleted around the country, demand from aspiring homebuyers is at an all-time high, property values are ramping up exponentially, and ample funding options are available from dynamic private money lenders like Express Capital Financial who can provide you with efficient, hassle-free access to the capital you need to close deals fast.
The current marketplace is growing more and more competitive by the day, making it challenging to find viable properties with strong investment potential. Newly listed homes are typically snapped up almost instantaneously, but there is a positive spin on the current environment from a market perspective. According to a September 2021 report by ATTOM Data, 59.2% of fix-and-flip properties acquired during the second quarter of 2021 were all-cash transactions, a notable 1.6% annual increase. These statistics are indicative of a long-term trend of real estate investors utilizing cash as opposed to financing to fuel their investment activity. Subsequently, interest rates in the private lending sector have dropped to near-historic lows as lenders look to remain competitive. Because private money lenders aren’t constrained by strict regulations like conventional lenders like banks are, they have more freedom to adjust loan terms and work with investors to make promising deals happen.
The popularity of the fix-and-flip model of investing has risen over the last year. While there is still plenty of potential in this niche of the investment industry, aspiring real estate investors should be realistic when managing their expectations when it comes to profit margins. According to ATTOM Data Solutions, the median profit margin for house flippers has taken a hit due to escalating labor and materials costs. Fix-and-flippers can still expect to yield an average return on investment of 33.5%, however, and with the global economy slowly returning to normal as the pandemic has become more manageable, the labor shortages and supply chain issues that ate into investors’ profitability over the past two years should be significantly reduced.
Private money funding and fix-and-flip transactions are the quintessential match made in heaven. That’s because hard money lenders like Express Capital Financing implement a holistic underwriting approach that focuses on the After-Repair-Value (ARV) of the property—or what the property will be worth after all planned renovations are completed—when evaluating a deal. Banks and credit unions typically will not providing funding for these distressed properties and impose demanding credit and financial prerequisites in order for investors to obtain loans, and even then the process can take weeks if not months to secure the needed finances. That’s certainly not the case when you partner with Express Capital Financing. Our streamlined application and underwriting protocol can get you access to the money you need to close on your next investment property in a matter of days, giving you an invaluable competitive edge in today’s high-paced marketplace.
The fix-and-flip sector is not the only segment of the real estate investment industry that has felt the effects recent market shifts. The multi-family space is seeing a notable uptick in transactional activity as many would-be homebuyers are being priced out of the current market thanks to drastic increases in home prices. This has created a demand from investors for flexible bridge loan options in order to fund more multifamily transactions. The good news is that Express Capital Financing specializes in crafting innovative funding solutions for even the most complex investment goals. Our decades of experience in the multi-family investment marketplace allows us to leverage key insights to deliver the most effective, affordable loan options to savvy investors seeking to capitalize on the favorable market conditions.
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Ready to kick-off your next investment project? Express Capital Financing is quicker than banks, more flexible than other capital lenders and has decades of industry experience assisting successful investors accomplish their goals. Contact us today to learn more about our comprehensive range of effective funding options.