The housing recovery has brought a younger generation of investors to the market. Boca Real Estate Investment Club founder, David Dweck, says that more young individuals are getting involved in real estate investing and steering away from traditional careers that are not as stable in this still-lackluster economy.
The housing market has been on a steady climb. More young people are getting involved- wanting to make real estate investing a career. The industry is seeing more professionals in their 20s and 30s buying and reselling homes, trying to capitalize on the housing recovery market.
Experts across the board report that now is the time to buy. Housing prices are increasing. A fixer upper can be purchased at a low price, renovated and resold for a profit within a few short months. This is a far cry from the tedious 9 to 5 that many Americans are moving away from. People across the nation have begun to understand that real estate investment is viable.
Today’s investors are much more cautious than in years past and increase property value before reselling. The housing bust of the last five years was fueled by a failure to do this. Dweck’s suggestion to club members is to purchase properties at a low price and to sell low and not to pay over 65 percent of the home’s value after repairs. To do so, investors must have cash, which is a prerequisite that has disqualified a lot of young investors.
According to one expert entrepreneur, Rob Lananna, investors should have no less than $40k cash in hand. The ideal scenario- to purchase the property, fix it up, and carry until it is resold without having to take out a loan.
Investors that flip homes typically have a difficult time obtaining mortgage loans. Therefore, many club members often secure financing through one of Dweck’s companies that provides short-term loans to investors.
One big challenge that investors find in today’s market is the lack of supply in homes as well as high competition from large investment companies. The market has become a seller’s market, and there are only so many ways to purchase homes- through real estate and industry professionals or through foreclosure auctions.