It’s the question on everyone’s minds lately: Is it a good time to invest in real estate? With the potential for a recession looming, those who have a little pocket change or are suddenly feeling overinvested in the stock market are looking toward moving assets. But, does this challenging real estate market really hold opportunity?
If you’ve been looking for the answer to this question, too, I’ll tell you exactly what I told my family and friends. Now is a fantastic time to invest in real estate, but only if you know what you’re doing—and have the right tools and resources at hand.
I’ve been investing in real estate for a couple of decades and even weathered the housing bubble not so long ago. I saw many investors get overconfident and lose their shirts. Still, many–like myself—came out ahead. Let me tell you what you need to have in place to do the same this time around.
Why is it a Good Time to Invest in Real Estate?
When a recession hits or is about to hit, you know it’s a good time to invest in real estate. Some people are surprised to hear this, but it’s true. It’s because recessions create very motivated home sellers.
While the number of mortgage defaults is hard to predict because many homeowners are seeking forbearance on their loans, experts anticipate that delinquencies could surpass what we saw during the Great Recession. The problem for homeowners is appreciable: more than 36 million people have filed for unemployment benefits in just the last two months. Forbearance relief will eventually end and the missed payments will come due.
The result: a lot of distressed homeowners.
This could be your opportunity to help homeowners out of an “ugly” situation and make a difference in your community—if you have the right knowledge and tools.
Don’t Buy Anything Unless You Have These Resources
Just because it’s a good time to invest in real estate doesn’t mean every opportunity is a safe bet. It’s easy to make bad choices, even in the best investment market. To avoid making costly rookie mistakes, I’ve put together a list of all the resources you need to make good decisions. Later on, I’ll also show you exactly which tools I use to get the highest return on my investments.
#1: Reliable Financing
In this market, it’s important to be able to act fast when a deal comes your way. That’s why you need to develop a relationship with a hard money lender now, before you begin sourcing leads. Make sure to select a lender that has a nationwide reputation so you can feel secure that your investment is well-supported.
The best hard money lenders know the business inside and out, so they can even offer some guidance while getting you the cash-in-hand fast. You’ll be positioned to swoop in on the best deals before other investors catch wind of them.
#2: Promising Leads
You’re going to see a glut of homes on the market this year. Lead generation tools can help you cut through the noise and find homes that are actually worth investing in. My favorite tools also contact the homeowner for me so I don’t have to waste my time cold calling.
#3: Accurate Cost Estimates
Before you buy a home in this market, know exactly what you’re getting into. One of the tools I use estimates all of the repair costs I’ll need to make and compares it to the total home price. It helps you avoid nasty surprises down the road.
You could try to gather these resources on your own, but you don’t have to. Below, I’ve put together a list of the tools I use every day—and that will be essential if you plan to invest in real estate this year.
Here’s Everything You Need to Invest in a Home This Year
I’ll let you in on a little secret. When you have the right investment tools, you don’t even have to ask whether it’s a good time to invest in real estate. Anytime is a good time to invest. Sure, some housing markets are tougher than others, but with the right tools and expertise, you’ll be positioned to make decisions with confidence.
This is what I discovered when I became an independently owned and operated HomeVestors® franchisee. I have access to some of the best real estate investing tools in the industry. Some of my favorite tools and apps are:
UGVilleSM. The HomeVestors® online portal that connects me to hard money lenders. In this market, you have to move fast. With this tool, I can easily compare loans and secure funding from top lenders nationwide just by inputting a few data points on my iPad.
“We Buy Ugly Houses®” Marketing. This nationally-recognized advertising campaign encourages distressed sellers to contact me directly. It’s been around since 1996 so over 100,000 homeowners have trusted the brand.
LeadDog™. If I see a distressed home, I can take a photo of it with this app. The app immediately researches who the homeowner is and automatically sets up a direct mail campaign for me. I don’t have to waste any more time chasing leads that go nowhere.
ValueChekTM. A proprietary valuation application that tells me everything I need to know before I buy a property. This includes a detailed list of over 80 estimated repairs costs using local labor and material price points. Simply put, it helps take the guesswork out of the investment.
When you have access to these top real estate investing tools, like I do, you don’t have to hesitate when making investment decisions. It is a good time to invest, recession or not.
If you’re ready to take advantage of the real estate investing opportunities coming our way this year, contact HomeVestors to get access to these tools, too.
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HomeVestors of America® is the nation’s only real estate investing franchise, providing business opportunities to real estate and investment professionals across the nation.