As rates seem to be on the rise and demand in some markets are cooling, long-time real estate operators are expecting a flurry of new better priced or bargain deals. Some people have rightfully expressed concerns that funding may be more difficult to procure because of uncertainty and waning confidence in the economic outlook near term.
It is important to understand that not every market is experiencing the same changes at the same time. In some markets, the different price ranges may also be experiencing different trends. It is out understanding that in Los Angeles for example, while middle and lower priced home ranges have started to add more days to time on market or reduce prices for quicker sales, that the upper crust priced homes are still moving at staggering prices and speed. Also, it has been noted by a few industry experts that commercial and multi-family in many areas around the country are seeing improvements in demand. Again, if it were us, we would look at the specific market we found interest and see what is happening there, but demand for real estate continues.
For when you do find that real estate bargain, there also remains good options for which to finance the desired acquisition. While creative financing will continue to increase in the next few years as interest rates appear to be headed toward pre-pandemic levels, more alternative loans are increasing in popularity. For those real estate operators with good credit and a 20% down payment, you can buy most any residential property with a stated income loan. There are lenders with an appetite for these kinds of deals and that is good news for real estate operators. Credit scores as we understand it, typically need to be above 650 and down payments that can be sourced may not require two months of seasoning in the bank account.
Still more financing options are a growing number of private individuals and private banks that have developed funds or set aside funds to loan to real estate operators with a good opportunity. The type of lenders may advertise or not. We are excited about the five seasoned real estate operators that will serve as Dealmakers on the upcoming show Funding Faceoff, to be aired right here on the Bargain House Network. They are actively looking for real estate deals worthy of funding. There is always an option if the deal makes sense. Poke around. Ask questions. Don’t get discouraged. Take it a step at a time. Do you know of any good resources you would like to share with our other viewers and readers?
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