It should come as no surprise to you that the real estate market is sizzling hot right now. In the current seller’s market homes receive multiple offers, usually well above asking price, and sell very quickly. That means if you’re looking to invest in or buy a home, you’ll have to be resourceful and maybe even a little creative. Luckily, there are still certain things you can do that will give you a proven, competitive edge. In this post, we’re going to go over some of these items and help give you the advantage you need in today’s market.
Use data to your advantage
One way you can gain an edge is by leveraging the data that’s available for homes in your area. Keep an ear to the ground with regards to pricing, and use that information to identify great deals as soon as they become available. If you’re lucky, you can make the first offer on a home that could turn into a lucrative investment. Another great metric to look at is the average time a home spends on the market in your area. This can help tell you how competitive your market is, and how much time you have to act on certain deals.
Embrace market trends
Another thing that will help your real estate investments is working with current market trends. Changes are inevitable, and since you aren’t able to stop them, you might as well use them to your advantage instead. For example, we’re predicting that new construction will see an uptick throughout the year as home supply tries to rise and meet unprecedented demand. That means there’s potential for an investment with great returns if you’re resourceful enough to find a hot construction market. Essentially, if you’re willing to stay informed on market trends, you’ll be one of the first people able to capitalize on them.
Act swiftly and with purpose
Sometimes, the best way to succeed is being the early bird that gets the worm. When you find a property that’s a great deal, you’ll want to act fast and make your offer before it’s too late. Your offer will have to be competitive too since undervalued homes are likely to receive many offers. Make sure to be flexible with the seller, especially with regards to closing and inspection dates. It could be the thing that sets your offer apart from the rest. You should also consider making a cash offer, and then utilizing a lender like RCN Capital for delayed purchase financing. Cash offers are very attractive to sellers, and as long the loan is originated within 90 days of the initial closing (or 180 days if there is no lien on the property) the loan will be treated as a purchase and you can obtain maximum leverage.
Keep professionals close by
If you really want to stay on top of the game, you’ll want to keep in close touch with real estate professionals. A good realtor will be able show you the newest listings on the market before anyone else does, not to mention how helpful they can be throughout the purchasing process. They might even be able to help you secure financing for the property. In a similar vein, a good loan officer will be able to get you funding quickly and will help you through every step of the financing process. It pays to have quality professionals in your corner, and they could be the key to succeeding in a difficult market.
Choose RCN Capital
RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. If you’re looking for financing for your next home venture, RCN Capital’s trusted team is ready to guide you every step of the way. Connect with us today to discuss your next real estate investment.