Bobby Montagne is a real estate entrepreneur with three decades of experience in commercial and residential property development, finance and sales. Having successfully overseen $15 billion in career transactions, he is among an elite class of real estate innovator that has consistently delivered high quality returns to partners and investors.
As with most things to do with real estate, there’s a variety of terms and intricacies you need to know and understand. When you’re purchasing property with a loan it can all get a bit more complicated. This is especially true when you’re entering into the investing world as a prospective fix and flipper. For many first-timers, they assume that what they’ll need for their project is a construction loan - which on the face of it makes total sense. After all, they’ll be purchasing a property and then doing construction - why wouldn’t a construction loan be the appropriate method of funding and what is its purpose if not to fund construction?
I recently had the honor of joining the Forbes Real Estate Council, an invitation-only organization for executives in the real estate industry. As part of this council, I have the opportunity to utilize another avenue, CommunityVoice on Forbes.com, to share my insights.
One of the most frequently asked questions that we get is whether or not house flipping in Southern Virginia is profitable. This is an answer that can vary depending on a number of factors including the time of year or the political climate, but for the most part the answer is a very consistent yes. In order to evaluate the profitability of house flipping in Southern Virginia, we’ve taken a look at three benchmarks to make our decision.
2018 is already shaping up to be a hugely exciting year for Walnut Street Finance, not least of all because we’re expanding our portfolio into new regions! If we’ve said it once, we’ve said it a thousand times, we take our due diligence incredibly seriously when it comes to the types of deals we’re willing to finance and projects that we’ll consider backing. We pride ourselves on knowing our markets backwards and forwards and as a result we’ve financed the majority of our deals in the same geographic areas - however in 2018 we’re spreading our wings and branching out, adding new regions to our portfolio! This means that you - our current and prospective borrowers - can now get all of the benefits of working with Walnut Street Finance outside of the Metro D.C. area.
So, where are we headed this year, and what’s prompted the decision?
Finding the right financing option when purchasing a real estate property can often come with some hurdles. While traditional mortgages and private lending are similar in essence, they have different lending rules. Most people are familiar with a traditional mortgage, which means they’re also no stranger to the stringent rules attached to it. With private lending as an effective alternative for an investment project, it’s no surprise that it’s gaining traction.
This post will help you understand the 4 big differences in traditional mortgages and private lending.
If you're looking to build or rehab real estate property and intend to refinance it to generate rental income or sell it for a profit, a construction loan might be the best option. Since most people can't afford to pay for the cost of a new commercial or residential project up front, the process of securing a construction loan typically begins with a lender: local credit unions or regional banks. Unlike a conventional loan, however, it’s more complicated to get the green light on your construction loan application because you’re essentially requesting to borrow money for a new build that doesn’t exist yet.
This post outlines some of the requirements you need in order to qualify for a construction loan.
Making the decision to become a fix-and-flipper is only half the battle - in fact, it’s the easiest part of the battle. The most difficult half is deciding where you’ll focus your property search and what the specific property will be. Of course, you could just run out, find a house that needs fixing up just about anywhere, and get to work - but to ensure you get the highest return possible you’ll want to do your research into various neighborhoods and make sure of these 4 things:
People get into real estate investing for a variety of reasons: maybe they love hunting down the perfect property, or they get a thrill out of racing the clock on renovation projects. Perhaps redesigning interiors gets their heart pumping - but at the end of the day there’s one really big, fairly consistent reason… they’re looking to make money. After all, if you don’t turn a profit at the end of a fix and flip project it could be much more difficult to get your next one off the ground, especially if you’re just starting out. With that in mind, we’re going to take a look at 10 fix and flip trends that will make you money in 2018, and help set you on the path toward financial success.
There are a variety of loans available for investors looking to purchase and rehabilitate properties, but the most popular among them are fix and flip loans and construction loans. However, there are definitely differences between the two - even though they may sound similar - and each are ideally suited to specific situations. In fact, one of the biggest differences is that hard money construction loans are typically issued for properties that have yet to be built, whereas fix and flip loans are issued for properties that are already in existence and need a bit of TLC.
When it comes to financing options for flipping homes, a fix and flip loan is most likely going to be your best bet. There are, of course, a variety of financing options for borrowers and developers, but there are a number of reasons why fix and flip loans specifically are exactly what you’re looking for.
Late last year I had the opportunity to chat with fellow real estate investor and renowned host of the world's longest running daily real estate podcast, Joe Fairless. He interviewed me for an episode of his podcast, Best Ever Show and it went live last week.
As with any goal, deciding that you want to invest in real estate is half the battle. But once you’ve made the decision to jump into the real estate investment game, you should make sure that you’re doing everything you can to be as successful as possible. After all, there’s no point in investing your hard earned money only to have insignificant returns or - even worse - lose money.
At the beginning of 2017, we highlighted 5 DC real estate hotspots to watch. The year has come and gone and here we are, at the beginning of 2018 with an update on what neighborhoods are still hot and which are up and coming…
Kicking off a new year is always exciting. It’s the perfect time to wipe the slate clean and start fresh, or to take a collective look at the year gone by and make adjustments to improve where possible and/or necessary. To celebrate all of the possibilities of 2018, we’re taking a look at 4 real estate investment trends that should help investors see steady returns throughout the year and beyond.