Covid’s Effects on Real Estate Investing…
Getting Back On Track!
Here we are, over one year since the world changed as a result of the COVID pandemic. But what a difference a year has made! Vaccines are now widely available, fewer restrictions are in place, and commerce and industry are on the upswing.
So what does the emergence from Covid mean for real estate investors looking to grow their portfolios? No doubt, there is a shortage of properties for investors due, in part, to federal and state regulations to protect families from foreclosures and evictions, along with an extension on mortgage payment forbearance. Right now the search for property can be frustrating but for the diligent, patient investor, opportunity awaits!
- Increased Supply for Investors
At some point, mortgage forbearance and foreclosure moratoriums will come to an end. While there are of course many unfortunate implications for that, the reality is it will be good news for investors who are willing to take on distressed properties.
- Low Mortgage Rates
Mortgage rates in the New York area and across the country continue to be low. As a result, more people can now afford to buy homes. We anticipate mortgage rates remaining at historic lows for quite some time, which means fix and flip Investors will continue to have an abundance of buyers.
- High Sales Prices
The shortage of inventory and increased demand naturally result in rising home prices. Besides forcing appreciation through renovations, this increase translates into a solid ROI for house flippers. Rock East’s loan portfolio confirms what multiple industry sources have reported; that while the home-flipping rate dropped last year due to the coronavirus, both profits and profit margins rose and will most likely continue to this year.
Laying the foundation for your prosperous future
The real estate investing industry is resilient, and count on Rock East Funding to help make 2021 a successful year for you! For more information or to arrange for an appointment, call 516-775-8800, visit us at www.Rockeastfunding.com and follow us on social media: Facebook, Instagram, and LinkedIn.