Action Steps to Take Now to Prepare for a Profitable 2024 in Real Estate Investment
As a real estate investor, it is always important to stay ahead of the game. That’s why it’s critical to know current market conditions and what is on the horizon.
In 2024, economic forecasters say to expect a slow, steady decrease in mortgage rates.
But what does that mean for you as a real estate investor, and what can you do about it right now?
Keep reading to find out what actions you can take today to grow your real estate investment business in 2024.
Start Looking for More Inventory
While a good deal is a good deal any day of the week, there should be more properties on the market in 2024.
The Federal Reserve is currently holding steady on rates. However, the fact that they did not raise them in January is a sign that they are moving towards decreasing them as the year progresses. Therefore, more properties are expected to enter the market this year.
So if you’ve been keeping an eye open for your next property and just haven’t seen the right one come available yet, it could be getting ready to hit the market.
Now is the time to start networking with real estate investors, agents and home repair specialists in the area. They will know about properties that are coming on the market before everyone else and their quality. Also, let your own circle of family and friends know that you’re on the lookout for properties. They can be valuable in connecting you with potential sellers before a property hits the market.
Explore New Markets
If you have considered investing in a new market - perhaps a neighboring town or even one out-of-state - start doing your research.
Where are the best school systems? Where are popular shops and restaurants being built? Who do you need to know in the area?
These are all things you can start finding out now to help you make better buying decisions when more properties come on the market. As you know, once a market heats up, you have to be prepared to act quickly. Knowing what you are looking for and where you can find value is half the battle.
Get Your Fix-and-Flip Properties Ready
If you’re currently working on a fix-and-flip or considering investing in one this year, you can expect a more competitive market than you’ve seen in the past 18 months. With more options available, buyers will become more discerning. To ensure your property stands out, make sure it has features that will sway today’s buyer.
For starters, be sure you have a work-from-home space available. Believe it or not, the work-from-home concept seems to be here to stay. In fact, at the end of 2023, the number of U.S. companies offering flexible work locations actually increased from 51% at the beginning of 2023 to 62% by the end of 2023.
Also, it’s important to consider how much your home appeals to women. Chances are, your buyer will be a woman. You likely already know that women are the primary influence in household purchase decisions. But did you know that single women are out-purchasing homes over single men 2-to-1? It’s true! That means it’s time to consider things like security systems, a bathtub fit for a queen, entertainment-worthy kitchens and instagrammable views.
Lastly, buyers will be examining items like windows, doors and roofs more closely. While interest rates are expected to ease, cash for updates and repairs post-sale will not be as easy to obtain as it was before interest rates ticked up. Get these items taken care of now, and it will help support your asking price later - and potentially help you earn multiple bids.
Consider New Construction
With the rising costs of repairs and maintenance, many homebuyers are interested in newer homes. In fact, new home construction surged in November 2023, with a whopping 14.8% increase in new home starts.
Investing in ground-up construction can be very different from more traditional fix-and-flip investments. If you are interested in learning more about the process, you can get a free e-book here: “Building from the Ground Up: What You Might Not Know About Ground-Up Construction.” From site selection to what features you must include, it’s important to familiarize yourself with the process before getting started.
Connect with a Reliable Private Lender
Once the market heats up, you may lose out on an otherwise profitable opportunity if you don’t have the right finance lender lined up. There is an easy fix, though.
Connect with Temple View Capital today. We’ll help you figure out what you can do right now to be prepared for an exciting 2024 in real estate investing. No matter what type of property loan you need - DSCR loans, bridge loans, new construction loans - our experienced team can help you figure out your next steps.
We’re a real estate financing company built for real estate investors, by investors. So when we say we’re here to help you, we mean it.
Contact us today, and you’ll be one step closer to making 2024 a big success!