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Turnkey Real Estate Investing

3 min read

Stop Waiting for Mortgage Rates to Drop. Now is the Time to Invest.

By Chris Clothier on Tue, May 7, 2024

Mortgage rates are the highest they’ve been since the Great Recession. Current 30-year fixed rates hover in the 6 to 7% range. Historically speaking, that’s nowhere near the highest they’ve been (that title belongs to the average in October of 1981 at a sickening 18.82%. Yikes!), but current rates are coming off all-time lows in 2020 and 2021. 

With home prices higher than ever, it is no surprise that homebuyers are waiting patiently for mortgage rates to come down and ease sticker shock. After all, the higher the asking price, the more the percentage matters.

But is it wise to wait for rates to drop?

We think not. As real estate investors, you risk more in the wait than in taking the chance in the market as it is. Here’s why:

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4 min read

5 Ways to Manage the Unique Risks of Out-of-State Investing

By Chris Clothier on Tue, Apr 30, 2024

Investing out-of-state is one of the best things a passive real estate investor can do for their portfolio. After all, investing beyond your local market comes with some distinct advantages, such as:

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3 min read

6 Hidden Risks That Come with Passive Real Estate Investment

By Chris Clothier on Tue, Apr 23, 2024

When investing in real estate, some risks are obvious. Others? Less so. Effective risk management involves recognizing and mitigating all risks, from the common to the rare. Are the chances slim? Sure. But you’ll be kicking yourself if you don’t do your due diligence in handling these sneaky buy-and-hold real estate investing risks! 

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3 min read

5 Tell-Tale Signs of an Overpriced Real Estate Market

By Chris Clothier on Tue, Apr 16, 2024

Is your real estate market overpriced? Navigating today’s housing market isn’t easy. Though inventory is going up and mortgage rates are going down, property prices are still sky-high. For the real estate investor, it’s pretty easy to assess your local market. Things get tougher as you go further afield.

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4 min read

What the Housing Inventory High Means for Investors

By Chris Clothier on Thu, Apr 11, 2024

U.S. housing inventory is trending in the right direction

We saw a 12.9% year-over-year increase in new property listings in February. Although total inventory remains flat, we’re finally not seeing a decline in overall inventory for the first time in nine months.

As you’re likely aware, tight inventory is mainly responsible for the stubbornness of the housing market. Even when active demand seemingly froze market activity, prices haven’t budged. Inventory kept rising interest rates from easing home prices. It’s also made the supply and demand balance unsustainable.

Ideally, this increase in new home listings points to a turning point on the horizon. But there are a few problems – and reasons investors shouldn’t sit back and “wait out” low inventory.

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3 min read

What Makes Low-Cost Properties a Bad Bargain?

By Chris Clothier on Tue, Apr 9, 2024

We get it – houses are expensive, now more than ever. It’s only natural that investors would turn to low-cost properties. On the surface, there’s clear appeal: less capital upfront for an income-generating rental property. Why wouldn’t you go with the cheapest houses you can find?

If you’re like many people, you like to browse real estate listings. Sometimes, you come across a property with a shockingly low price tag in a great part of town. You might think, “Wow! What a deal!” Then, you start looking at the pictures and realize that the whole thing has been stripped down to the studs, and it would take double the asking price or more to get it habitable. Oof. 

That opportunity might excite some more hands-on, flip-minded investors, but it’s not for us. At that point, it’s pretty evident that the property will cost you far more than the seemingly low asking price. But it’s not always so obvious. Some properties may not look the best – they’re serviceable – or be in the best neighborhood, but they’re affordable, so why not?

Well, we’re here to tell you. Here’s why investors shouldn’t target low-cost properties.

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4 min read

The Real Estate Market Isn't Uniform

By Chris Clothier on Thu, Apr 4, 2024

For real estate investors, it’s relatively easy to look at all the news coming out about the real estate market and lament. You might feel like there’s no place for you anymore, and investing is too hard. Believe us, that’s not the case! Part of the problem is that many of these reports and analyses look at overall medians and averages. 

While these are concise ways to talk about overall trends in the country, investors need to zoom in. The real estate market is not uniform. It varies, and investors must take advantage of it. We found these maps by ResiClub (courtesy of Fast Company) helpful in illustrating this point.

These maps effectively represent median home prices within individual markets across the country. While the $380,000+ median price sounds scary, we must recognize that that number doesn’t reflect every market.

So, what do these maps tell us about the real estate market…and investing?

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4 min read

The Underlooked Criteria for an Ideal Investment Market

By Chris Clothier on Tue, Apr 2, 2024

You’ve undoubtedly poured over the details when looking for a real estate investment market. You’ve analyzed rental rates, median income, sales prices, local economics, and more…but have you asked about the weather?

Location matters, not just because of the economics, housing affordability, or rental demand but because of the climate. 

Both run-of-the-mill weather risks and natural disasters could jeopardize your investment property. If anything, it could be costing you a pretty penny in maintenance and insurance costs! Here’s what you need to consider about the climate as you choose an investment market:

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4 min read

This is What Turnkey Investing REALLY Looks Like

By Chris Clothier on Thu, Mar 28, 2024

The term “turnkey” isn’t regulated in this industry. The original concept is clear enough – turnkey properties mean you can “turn the key” and step right into a new or fully renovated property ready to earn passive income. But not everything advertising “turnkey” is doing the same thing. Because the definitions vary and the word is used purely for marketing, investors need to know what they want from a “turnkey” experience.

What do turnkey investing companies ideally do, and what are the signs that something might not really be turnkey? Keep reading to find out.

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3 min read

3 Ways Real Estate Investors Can Invest in Themselves

By Chris Clothier on Tue, Mar 26, 2024

So you’re investing in real estate…but are you investing in yourself? Here’s the harsh truth – none of us are naturally adept at building an ideal financial future on our own. For some, financial success comes from parents who instill lessons of self-discipline and the value of a dollar. For others, it comes from personal research, lots of reading, or even degrees and certifications.

No one expects a passive real estate investor to be an absolute expert. You didn’t sign up for a passive gig just for it to turn into a full-time job! 

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