Despite the volatility of the stock markets and the Texas weather, no matter if it is raining, blowing, or baking, even if I have to walk uphill both coming and going, in a “snownado,” I am here to help you find ways to put your money and your time to good use making more money in big or small, short-term or long term, real estate investment adventures.
I have several loan programs to offer.
Patrick@reicapital.cash
512-213-2271
There are several reasons why a fix-n-flip investor might want to secure a fast loan to cover a gap. A gap loan, as the name implies, is a loan that bridges a span of time. It helps you gain control of a property quickly even if you are still scrambling to get all your paperwork done for a full rehabilitation loan.
A Buyer in a Hurry
At some time or other, you might face a seller in a hurry. One situation that puts a seller in a hurry is foreclosure. Many property owners in this situation are in denial so they wait until the last week or so, or even days, before the foreclosure sale to act on saving their credit. To save their credit, they must pay the bank all they owe on the mortgage right now. The house might actually be worth much more than what they owe if they have been paying on the loan a long time or put a large payment down on it. But, a foreclosure on their record will ruin their credit. So, for them, it is better to sell at a discount and survive to buy another house another day.
In this scenario, an owner in foreclosure has agreed to sell the property to you at a steep discount, but they need to close the deal quickly. You, the investor, want to buy this property and you make an offer. However, the competition is extremely stiff, and another investor is sitting in the wings waiting to obtain the property. Your offer locks up control of the property temporarily. You need to move quickly to secure a loan. Normally the loan process takes a minimum of 7 working days and typically takes 10-15 working days.
A Nonrefundable Deposit
Another reason you might need funding in a hurry is that you have stumbled upon a wholesale purchase with a tight deadline to close, perhaps 2 to 5 days. The property is ideal for your purposes and you want to make an offer. However, if you don’t get the deal closed by the deadline, you will lose the nonrefundable deposit you are required to put down and control of the property you are seeking.
Getting Control of the Property
Here is where obtaining a gap loan is useful. A gap loan allows you to purchase the property as is while you are in the process of obtaining a rehab loan. The gap loan can be secured in 2 to 3 days typically. Your strategy is to obtain control of the property through this gap loan, begin paperwork to refinance the loan immediately and eventually complete the rehab and offer the property for sale.
REI Capital Resources has funds available for fix-n-flip loans with terms up to 6 to 9 months with a minimum of 3 months.
E-mail or call for more information on minimum and maximum loan amounts, interest rates, terms, and fees for specific project. I can help you with first liens only and these loans are limited to the Austin, DFW, Houston, and San Antonio Metro areas.
Pat St.Cin
Patrick@reicapital.cash
512-213-2271
Austin, Texas
By 2024, the US Bureau of Labor Statistics employment projections program projects that there will be over 15,000,000 outdoor jobs in leisure and hospitality and almost 7,000 jobs in construction by the same year.
This statistic does not include the self-employed real estate investor, but it does tell us that there will continue to be a market for leisure and hospitality in the coming years. By that I mean vacation rentals and resort investments. If you crave fresh air, sunshine, and open spaces? Then the best thing to do is to craft your own job outdoors using your skills in investing, real estate, marketing, and hospitality.
Logically, the first outdoor work that comes to mind is the construction work required when you buy a property to fix-n-flip or fix-n-rent. You think of the remodeling, painting, deck building, landscaping, and the lifting, digging, and tugging that is required.
However, as a real estate investor, you can be a passive investor or an active investor, as active as you want to be. You can buy and operate a resort as an investment and as an occupation, one where you have rooms or cabins to rent out after they are remodeled, providing yourself with social opportunities and occasions to play out of doors.
Resort Ownership on the Water
Resort ownership on the ocean or a lake would give you opportunities rent property out for days or weeks and to spend time outdoors with your guests:
take your guest out on the water in a boat as a fishing guide
take your guests on a picture-taking tour around the lake shore
visit with guests around the community fire pit telling stories in the evening
rent out canoes, bikes, and games
teach guests to swim, kayak, water ski, or snorkel
be a life guard at your own pool
keep the grounds clean and mowed
provide your own landscape service.
Resort Ownership in the Woods
Resort ownership in the woods comes with the opportunity to rent cabins or rooms by the day or the week with time to spend outdoors with your guests:
guide trips for your guests fishing on nearby lakes or streams
lead float trips
lead hikes
teach conservation or outdoor cooking or snow skiing
prune trees
maintain trails
repair cabins
Dude Ranch or Hunting Resort Ownership
Dude ranch or hunting resort ownership would provide a different set of opportunities for the combination of vacation rental ownership and outdoor work:
take care of the animals on the ranch, horses and cows
breeding animals for sale or to increase your own herd
teach horseback riding,
guiding hunts or fishing trips
guiding horseback trips
building blinds and fences
build ponds
restore habitat in streams or forests
socialize with guests
being the grill master for guests’ meals.
An outdoor career has its pros and cons, among the pros are lots of fresh air and exercise that will keep you in shape. Among the cons are weather, schedules, and dangers. Many outdoor and leisure and hospitality workers are on the job early and work weekends and holidays. They may work all summer and be off most of the winter or work all winter and be off in the summer. You will most likely have to perform your tasks in heat, cold, rain, and wind. And, many outdoor jobs are physically demanding, requiring lifting, digging, and bending.
I am still focused on funding your success and I have more tools to work with. ILS built its reputation on finding private funding for investors for quick turn purchases and difficult situations. This is still true for REI Capital Resources.
Contact me at
Patrick@REICapital.cash
512-213-2271
Although the malls built in the 1970s are no longer thriving, they still have locations that can be reformed for commercial use. According to a Wall Street Journal video on May 6, 2019, Amazon is buying up malls because they are located in good commercial locations with access to massive spaces for building and parking, population centers for labor, and highways for shipping. In addition, the infrastructure is already in place. Amazon has bought Randall Park Mall in Cleveland, OH and Euclid Mall in Euclid, OH for fulfillment centers.
Although online purchasing is taking a toll on brick and mortar establishments and causing mall closures, many creative uses for the buildings and parking have been devised: data centers, microlofts (in providence Rhode Island), office space, film studios, charter schools, resorts, medical centers, and self-storage units.
With online purchasing comes the need for warehouses. Take a lesson from Amazon and when you are looking at commercial real estate to purchase, fix and flip or fix and rent, look for these 4 features of the location:
Let me know if you have found any deals this month that you know you can turn around and resell with enthusiasm. I hope that I can be of help to you this month.
I can be reached at
Patrick@REICapital.cash
512-213-2271
Austin, Texas
References
WSJ.com, commercial real estate, video.
Mall image: Alina Zienowicz Ala z [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0/)%5D
Earlier this year, the National Association of Home Builders (NAHB) surveyed nearly 4,000 home buyers, those who have either recently purchased a home or plan to purchase a home within the next 3 years. Realtor.com also reviewed home transactions between January 2018 and September 2018 and compared them to the 2017 home sales to come up with some statistics about who will drive home sales in 2019.
These statistics become meaningful when you apply them to your own real estate investment plan as much as possible. As you approach your real estate fix-n-flip project, it is important to apply the money in your budget toward the areas that will give you the most buyer draw for the dollar. This is not easy, and the target is constantly moving as new products come onto the market, new buyer demographics emerge, incomes fluctuate, and young buyers learn from their parents, study what their parents have done and listen to what they would have done differently.
When you first start looking for the right property to remodel, you may want to consider looking in areas where the largest group of people are looking. The realtor.com survey of emerging home buyers in 2019 points out that affordable homes, jobs, and the availability of entry level homes are “magnets for young buyer.” A large segment of the millennial generation will be turning 30 years old in 2020, so they are starting families, and, as rents rise, moving out of apartments and buying houses. According to the NAHB survey, 64% of buyers preferred to buy a home in the suburbs. 24% of buyers were looking for a house in a rural area. 11% of buyers were looking for a house in or near the center of a city.
The information in the NAHB buyer survey gives you some general guidelines on what home buyers are looking for in their homes. After location, buyers prefer
A few rising trends were noted in the NAHB buyer survey that may pique your interest and inspire some research, including: houses are getting smaller, engineered quartz countertops, vinyl and resilient flooring, wireless controls, open interior and exterior spaces in kitchens, and higher-end fixtures in bathrooms, such as wall-mounted sinks, faucets, and toilets, are becoming more popular.
REI Capital Resources built its reputation on finding private funding for investors for quick turn purchases and difficult situations. This is still true today.
Give me a call or send an e-mail and share with me your plans and needs, and I’ll see what lending solution I can generate for you.
Patrick St.Cin
512-213-2271
Patrick@REICapital.cash
Info@REICapital.cash Menti
I can’t help noticing that according to the S&P Dow Jones chart from Investopedia, when you are looking at investing and foreign tariffs, real estate has much less foreign exposure than other types of investment, such as information technology and materials. So perhaps it will be a stable investment into the future.
REI Capital Resources is a loan originator for select investor single-family residential, multi-family residential, vacation rental and commercial projects. Our goal is to provide fast closing loans to fund your investment projects, so you don’t lose a great deal. This includes bridge loans for the acquisition of property.
Give me a call or send an e-mail for assistance funding your project.
Patrick St.Cin
512-213-2271
Patrick@REICapital.cash
What is the outlook for jobs in careers protecting the planet?
According to the US Bureau of Labor statistics, eco-friendly occupations, those that monitor and preserve the natural resources of our Earth show rapid growth over the next 6 to 7 years. Wages for these green jobs are well above the median annual wage for all occupation in 2018. The highest annual wage was $94,110 per year for the atmospheric and space scientists.
Environmental protection jobs and the average number of opening in each category per year include:
However, the jobs listed here make up less than 1% of all jobs in the economy. Notice that environmental scientists and specialists have the most employment with 9,500 openings per year, while hydrologist have the least, with only 700 openings per year.
We are Focused on Funding your Success!
REI Capital Resources is a funding source for SFR Fix-n-Flip, Fix-to-Rent, and Refinance projects as well as larger commercial projects such as office buildings, 5-40 door multi-family buildings, and many others. These programs vary wide and far throughout the gamut of lending. Call or e-mail for more information.
Patrick St.Cin
W – 512-213-2271
Patrick@REICapital.cash
Info@REICapital.cash
References
Elka Torpey, “Earning green by working green: Wages and outlook in careers protecting the planet,” Career Outlook, U.S. Bureau of Labor Statistics, April 2019.
https://www.bls.gov/careeroutlook/2019/article/careers-protecting-the-planet.htm
While studying what is being done with abandoned malls around the country, I ran into the April 2, article in Dallas News by Steve Brown about plans for the struggling, not dead, Collin Creek Mall in Plano, along Highway 75. The mall is being redeveloped into a mixed-use village centered around a crystal lagoon. The plans support dense property usage in the area with office space, multi-family apartments, single-family homes, senior-living units, a hotel, restaurants, retail space, a park and hiking trails with all the parking underground sharing the location where the mall is now. The developer, Centurion American, will begin construction in July 2019. Entertainment will be a big component of the project.
Wondering what a crystal lagoon is, I visited their website, crystal-lagoons.com, and found that the crystal lagoon is a water amenity that will increase the value of the surrounding real estate and allow higher rents to be charged for office space, hotels, and apartments because it actually brings the beach or water-front to the neighborhood, no matter where the neighborhood is in the world. Although it was developed first for private use, the public access lagoon model allows communities to be developed around the water feature. According to crystal-lagoons.com, the technology claims to make an unviable project viable. Remaking the land where old malls are located, in the middle of suburbs, into new communities for a long time has been a potentially unviable project. It is good to see that this concept can reform and reuse these massive abandoned spaces in our cities.
Sustainability
The crystal lagoons advertise that they are sustainable, using less chemicals, less energy than conventional pool filtration systems, and less water than parks and golf course, yet providing water as crystalline as swimming pools and tropical lagoons. They use any type of water, salt, fresh, or brackish and control evaporation with a film cover system and by capturing rainwater that falls.
Safe, Smooth, and Clean Water
Even along the coast of an ocean, the crystal lagoon concept offers a safe and controlled environment for water sports and beach activities.
Here in Texas, there are a couple of communities that include a crystal lagoon as part of their planned amenities. Like the Collins Creek Mall replacement project, these are master-planned communities where entertainment, shopping, and employment can be found within minutes of home.
One of these communities is Windsong Ranch in Prosper, Texas. Another community, Lago Mar, is a 2,033-acre master planned community located along Interstate 45 in Texas City. The 12-acre Lago Mar crystal lagoon is opening in 2020. The entertainment district features multiple beaches, a floating obstacle course, a swim bar, a 10,000-square-foot beach club, and restaurants on the boardwalk.
Balmoral in Houston is a 750-acre new home community in the West Lake area of Houston that offers Texas’ first crystal clear lagoon surrounded by glistening white sand beaches. The lagoon encompassed 2 acres of sparkling blue water that is 8 feet at its deepest and 3 feet in the swimming areas.
As you are considering investing in real estate, think about amenities like these. Are there any crystal lagoons, walking trails, fishing lakes, or theatres, near the property you are considering. These entertainment amenities affect the value of property and the amount of rent you can charge.
Focused on Funding Your Success
I can be reached at
Patrick@REICapital.cash
512-213-2271
Austin, Texas
Image credit: Azwar Thaufeeq [CC BY 3.0 (https://creativecommons.org/licenses/by/3.0)%5D
As the stock market dips and dives and quivers and stock market investors peer into the fog of the future trying to see where tariffs will take the economy, real estate stands firm, on a block, in a neighborhood, around the corner from this school or that office park, providing shelter to human beings.
An investment is not safe though if you do not do your research and match the facts of the property and area situation with your needs, expectations, and goals. You might end up holding on to a property you would like to fix and sell quickly or find yourself with a rental that is more outgo than income. When considering investing in multi-family properties, be sure to pay close attention to these things:
Multi – Family Property Class A
Properties are above average in terms of design, construction and finish; command the highest rental rates; have a superior location, in terms of desirability and / or accessibility; generally are professionally managed by national or large regional management companies.
You will pay more up front and have less to fix, but have income potential right away.
Multi – Family Property Class B
Properties that do not possess design and finish reflective of current standards and preferences; construction is adequate; commands average rental rates; generally are well maintained by national or regional management companies; unit sizes are usually larger than current standards.
Be prepared to make some repairs, do some remodeling and updating as tenants move out to keep the apartments occupied.
Multi – Family Property Class C
Properties that provide functional housing; exhibit some level of deferred maintenance; commands below average rental rates; usually located in less desirable areas; generally managed by smaller, local property management companies; tenants provide a less stable income stream to property owners than Class A and B tenants.
You will have to do more hands-on work with this class of property to handle the repairs and tenant turnover; but if you like hands-on involvement, there will be plenty of opportunities to employ your carpentry, plumbing, electrical, social, and bookkeeping skills. You might find some great deals.
Let me know if you have found any deals this month that you know you can turn around and resell or rent. I hope that I can be of help to you this month.
I can be reached at
Patrick@REICapital.cash
512-213-2271
Austin, Texas
As an investor in fix-n-flip real estate, you already know that a fresh coat of paint is the cheapest and easiest way to refresh a home. I suppose it is possible, when you are an old hand, that the drama of picking a wall color wears off, and you go for cream or white every time without even hesitating over the luxurious deep greens or the vibrant bright blues on the paint chips.
I don’t think I have ever gotten over the struggle with color. There are so many to choose from. Each color brings its own feeling to a room. Yellow reminds us of the sun and mint greens lower blood pressure and light greens inspire and renew. I still remember the issue of Martha Stewart Living that featured wall colors that matched the colors of farm fresh eggs. I even bought chickens and took pictures of the eggs in a collander myself.
When you are selling a house, everyone advises you to paint with neutral colors because you don’t know who will buy the house and what their color choices are.
In 2019 there are a lot of beautiful neutral colors to choose from. A couple of my favorites are hazelnut and lilac grey. The hazelnut is a combination of cream and beige and the lilac grey is a warmer gray. I found some of these colors in an old wall paper, but sometimes really old is…NEW!
There is also a newer color that I really like called “greige.” Greige is a grey and beige mixed together, the color of stone. 
Your buyers may prefer houses that have open, multifunctional spaces. A beautiful neutral can go a long way in a home, through the living room, kitchen, home office, hallways, and bedrooms. In fact, many millennials and generation Xers work at home and have home offices. According the home office warrior, good colors for a home office include both deep gray and dove grey, and greige. The deep gray represents security, reliability, intelligence, and organization, good concepts for home and office. The dove grey brings to mind logic, modesty, and efficiency.
A neutral throughout a home will go with anything and allow the new owner to add a wall of color or a splash of color here and there to suit their own tastes without having to repaint the entire home.
If you have a real estate investment project in mind and know how much you need to fund the remodel, give me a call or send an e-mail and I’ll see if I can fund it for you.
Patrick St.Cin
W – 512-213-2271
Patrick@REICapital.cash
REI Capital Resources 