Reasons for Hard Money Lenders to Invest In Single-Family Rentals ASAP
Afraid of the volatile and dynamic financial markets? Want to diversify your investment portfolio? Single-family rental real estate is your best choice. The followings listed are some reasons you can’t move your way from the ideal hard money investor’s “pocket”.
Single-family rental rate never ceases to increase.
During the past 34 years since 1985, single-family rental rates have continued to grow steadily. Even within the economic recession of 2008-2012, rent has never presented a downward trend in the U.S. In 2021, rent increment is expected to continue to soar at 2.8 percent on a national average level. Especially in those top rental markets like Phoenix, Atlanta, Tampa, and Dallas, rental increase rate may reach 12-13 percent.
Single-family rental returns are far more steady than stocks, without shrinking revenues.
Annual returns on single-family rental investments are equal to the stock market and even outperformed the bond market over the past 25 years. Why? Very simple. Financial markets are continuously filled with ups and downs. Investors may lose everything in the market overnight, whereas single-family rental seems to be more steady and stable.
Finding an ideal house in coastal markets, i.e. Seattle, New York and San Francisco can be really hard as good deals are so scarce and limited. However, small real estate markets are booming, turning into the new center of real estate investments. Tampa FL, Tempe, AZ and San Antonio, TX are among the hottest while heating up the job market as well.
The cost of owning a home has outpaced the cost of renting
According to Realtor.com’s July 2018 Rent vs. Buy Report, the monthly costs of possessing a primary residence have increased by 14 percent in July 2018 over the previous year. In comparison, the costs of renting were up only four percent. To be specific in 35 percent of the counties in the U.S, buying a home was just cheaper than renting one. Figures explain all.
There are no right TIMINGs in the real estate world
Even the most experienced hard money investors can’t predict the ideal time to purchase a house at a lowest price. If you wait too long, you have no idea whether the house value will increase or decrease in the following periods of time.
The sooner, the better
Instead of taking a long time wandering outside the door, take your first step to become a future investor in the housing market by reaching out to Sunset Equity. The sooner you step into the game, the sooner you can enjoy the first incoming cash and revenues.
Benjamin Donel, CEO