The housing market has definitely made a recovery from the lows of the Great Recession. Here are the markets to avoid and to embrace and the current Texas Commercial Lending trends.
For those individuals looking to delve into the lucrative real estate investment strategy known as single-family homes, now may be a very good time. Median home prices are on a fairly consistent upswing, particularly in metropolitan areas where record appreciation has been experienced. It’s safe to say that the housing market has officially recovered from the subprime mortgage crisis 10 years ago, at least in most markets.
There are a few lingering markets such as Las Vegas which experienced such a rise in development that rotten home loans and the Great Recession has left it on a slow recovery spiral. One in four homes is worth less than the loan on them. On the other side of the market you have San Jose, the nation’s most competitive housing market. Back in March, almost 70 percent of the homes were selling for more than their list price. The median listing price is close to $800,000 and the closing price is $846,000. Other markets are moving even faster. Spring saw Denver and Seattle with the fastest moving markets—an average of only eight days on the market. Homes in these two distinct metropolitan markets saw double-digit increase in home values in 2016.
Somewhere in between the two lies the sweet spot for Texas Commercial Real Estate investment. If you’re a contractor, even sweeter. The subprime mortgage crisis left a bad taste for many builders who were slow to enter the fray yet again. This, along with first-time home buyers and retirees tending to stay put due to rising costs, has led to a housing shortage. So where do beginners jump into a market on the rise? Some of the best markets for rental homes are Rochester, N.Y., Memphis, Tenn., Indianapolis, Ind., and St. Louis, Missouri.
Housing Markets and Texas Commercial Lending for First-Time Texas Commercial Real Estate Investors
With rock-bottom interest rates, a steadily improving economy, and a stock market that experts are suggesting may be ready for a correction, many investors believe that a real estate investment strategy may be the best option for those looking for multiple streams of income and steady growth. The trick is to look for properties that will immediately grant you a positive cash flow, not always an easy target. Because of the housing shortage, home owners are able to sell their home that may not be in perfect condition. Consider mortgage, taxes, utilities and bills such as landscaping and maintenance and the rent that will cover those bills and more. Even if you come out even, your tenant is paying your mortgage and you are building your portfolio and equity. Once you’ve found your property, you’ll need to find a Texas Commercial Lending strategy that works for you.
A private hard money lender can be your entrance into the single-family home market.
Conventional Texas Commercial Loans are not always easily obtainable. They require excellent credit scores, experience, a certain debt-to-income ratio and a lot of patience. Texas Commercial Lending obtained from a private hard money lender requires less documentation and quick capital—often in as little as a few days. At Level 4 Funding, we can let you know what loans we offer that may fit your needs and we will let you know if you are approved in as little as 24 hours.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.