Real Estate Investment Trends 2019

Market Analysis & Current Investment RE overview

House-Flipping Market Softens
ATTOM Data Solutions published a report that shows the flipping rate has increased and is now at a 9-year high while return on investment for flippers is at an 8-year low. That’s not really anything to be alarmed about. In Q1, 7.2 percent of all home sales were flips compared to 5.9 percent in Q4 2018. That’s a big leap.
By the same token, average ROI was down almost 10 percentage points year over year in Q1 and registered at 38.7 percent. That’s the cost of acquisition versus the cost of sale. Even though the margin has narrowed, market indicators still reflect a decent overall ROI. 
The report also showcases 11 markets where real estate investors doubled their flipping ROI. Those include Pittsburgh, Flint, Shreveport, Scranton, and Knoxville.

Utilizing their True Asset Based funding platform, Belaire Private Capital offers 'high leverage short term bridge loans' to empower flippers with their short term projects. Financing is available nationwide USA and Canada, and foreign nationals are welcomed.  As a direct private lender, BPC offers streamlined processing and flexibility that is second to none. Spec homes, non warrantable condos, no tax returns or financials, no seasoning of funds, no reserves requirement, no complicated qualifying ratios. Funding decision is largely based on asset value, client credit and common sense. 
Increased Need for Private Capital
According to the American Association of Private Lenders, the number of non institutional private lenders operating today is around 8,300. That’s an increase of 40 percent since 2016. A respectable demand curve is apparent. Loan volume for home flippers was $20 billion last year. That’s 37 percent more than in 2016.
Taking a lead position in the private capital sector, Belaire Private Capital comes in to fill the gap between institutional lending and hard money. Their niche is 100% Private Capital, utilizing a True Asset Based funding platform, their rates are only slightly higher than banks and substantially lower than hard money.  As direct lenders, they offer 'construction to perm' loans as an additional option for flippers. This option not only relieves the stress of the balloon payment at the end of construction, it also provides flippers an advantageous choice, depending on market conditions, to either hold properties and capitalize on rental income, or sell off for short term gains. 
High Net Worth Investors to Increase Real Estate Portfolios
The third trend developing is that high net worth individuals (HNWI) are expecting to increase their real estate investments this year. Based on a survey, 53 percent of HNWI plan to make two to four direct real estate investments this year. Last year, only 33 percent made that many real estate investments.
Along with that trend, 47 percent of HNWI would like to allocate more than 20 percent of their investment portfolio in commercial real estate. This includes multifamily, industrial, office, hospitality, retail, and real estate funds.
Belaire Private Capital offers 30 years fixed rate funding for residential income producing properties with either long term or short term leases (Airb&b properties okay), including but not limited to single family rentals, duplex, triplex, fourplex, condos (non warrantable okay), multifamily complexes and apartment buildings. Utilizing their True Asset Based private funding platform, rates are only slightly higher than banks and substantially lower than hard money. Funding available for qualified properties nationwide USA and Canada. Foreign nationals are welcomed.
If you are serious about creating wealth through real estate investments, then call us NOW and let us hear from you today.  Let us empower you as we did for all our clients since 1998.

Call now .. Fortune Awaits,

Belinda Fong
Managing Member
Division of Belaire Private Capital.
Office: 786-440-8189