best places to invest in real estate

These Are the Best Places to Invest in Real Estate in 2019

Americans prefer real estate to stocks for long term investing. And that’s especially true of younger Americans. While 61% of people 35 and over invest in the stock market, only 37% of Americans under 35 do.

Whether you’re just starting to invest or you’re a seasoned investor, real estate is the perfect way to diversify your portfolio. It’s a relatively low-risk way to build wealth over time.

But how do you decide where to buy? Do you stick with the local market or do you take a chance on a new town?

Wonder no more. These are the best places to invest in real estate in 2019.

Orlando, Florida

The City Beautiful has been in the top five for years. Invest in a house near the House of Mouse.

Orlando’s employment and population growth is steady. And home values have increased by 10%. 

Disney World’s ever-expanding compound is like job security. The parks will always be a draw for vacation renters and for people moving to the area for employment, making it one of the best cities to invest in real estate.

Atlanta, Georgia

Billed in some circles as the “next Silicon Valley,” Atlanta is on the rise. The southern city is home to promising tech startups, as well as standbys like Mail Chimp. There’s also a Microsoft presence drawing business from around the world.

Job growth is up. Home values are up. And rental prices are competitive.

St. Petersburg, Florida

Tampa’s coastal cousin, St. Petersburg makes the list for its vibrant downtown and cultural offerings. Like Atlanta, St. Pete has a burgeoning tech scene. Its rich railroad history is matched by a flourishing future.

Cost of living is low in the Sunshine State’s Sunshine City. A recent trend of price reductions makes it a great time to buy.

Plus, it’s a great place to go back to. There’s something for everyone in St. Petersburg. It’s a celebration of the Arts, sports, and, of course, the beach.

Cleveland, Ohio

Long-suffering Cleveland is having the last laugh. Once an easy punchline, the Ohio city is enjoying a renaissance as young professionals settle in, among them the tall Kardashian.

Jobs are growing at a higher rate than the national average. And there are a variety of job sectors, including manufacturing. When one industry stagnates, the others can pick up the slack.

Low home prices mean you can get more house for your money which makes it one of the best places to buy rental property. You can buy one large home and divide it into several rental units. 

There’s a bustling theater district and plenty of architecture to admire. Cleveland is also home to two winning sports teams, overshadowing the other not-so-winning sports team.

Charlotte, North Carolina

North Carolina’s largest city Charlotte has a lot to offer. Equal parts southern charm and busy metropolis, it’s been one of the country’s recent fastest growing cities.

Charlotte is an east coast financial hub and home to several NASCAR races, the perfect example of its two complementary sides. It’s also a family vacation destination, which makes it prime real estate for vacation rentals.

Silver Spring, Maryland

Located near our country’s overpopulated Capital, Silver Spring, Maryland, is rife with some of this year’s best property investments. The northern suburb can keep its distance while taking advantage of DC’s growing job market. It’s just a metro ride away. 

Silver Spring’s updated downtown area is home to restaurants, live music, and outdoor activities. Public transportation is first rate.

Arlington, Texas

With its central location and strong local pride, Texas often has a spot on any list of best places to make real estate investments. Arlington’s family-friendly atmosphere and proximity to Fort Worth and Dallas make it this year’s Texas representative.

The average house is less than $200,000, but high rents are common, giving you more return on your investment. Home of the Dallas Cowboys and Six Flags, Arlington has a strong tourist draw.

Colorado Springs, Colorado

The best places to buy property have a lot going on, and Colorado Springs fits the bill. Nature and culture come together to make the mountainous city a peak investment opportunity.

There are national landmarks and lots of convenient hiking, thanks to nearby canyons and state parks. The historic district is a chance to relive the Wild West. Museums in the city run the gamut from the military-focused to an exploration of the gold rush.

Employment growth in Colorado Springs is among the highest of the bunch. The cost of living hovers around average, but it’s rising quickly. 

Honorable Mention: The Midwest

Rising home prices nationwide mean fewer people are buying and more people are renting. This is particularly true in the Midwest where people are looking for a place to raise a family. Renting a home with a big yard for kids is the next best thing to owning one.

Places like Cincinnati, Indianapolis, and the Twin Cities are holding steady with job growth and make for a good endgame investment strategy. It might not be flashy, but it’s a good bet.

As ambitious young earners move home after a stint on the coast, they turn their eye toward the familiar. In an effort to make home a more attractive place to live, they resuscitate and develop their hometowns.

As recently as the mid-2000s, the Over the Rhine neighborhood in Cincinnati was a notoriously dangerous hotbed of criminal activity. Now it’s home to some of the city’s best restaurants and luxury condos.

The same thing is happening in Indianapolis’s Monon 16 area where the city has invested millions of dollars for revitalization. Kansas City has similar plans for their east side.

The Best Places to Invest in Real Estate Are Slow and Steady

The best places to invest in real estate in 2019 are the safe bets. While the market bubbles of yesteryear would have netted you handfuls of cash, the economy is still nursing its wounds. 

Florida remains an investment stalwart. And the Midwest rises as an unexpected dark horse.

Are you looking to invest in real estate this year? Brush up on your investing technique by browsing our investment articles.

short sales process/short sale approval

7 Things You Never Knew About the Short Sales Process

The year-over-year growth of real estate prices has started to take a downturn for the first time in a number of years. Where we saw growth of 10% last year, this year’s growth was only 7% and that number is likely to continue to trend downward as federal interest rates rise.

With the market beginning its transition from a seller’s market to a buyer’s market, the subject of short sales has started to crop up in many real estate circles.

What are short sales? Is it okay if I need to short sell my home? What sort of investment opportunities does the short sales process offer to investors?

For the uninitiated, short selling a home is when a homeowner sells their property for less than what they owe their lender.

In this article, our aim is to give you insight on the short sale process in 7 quick facts.

1. Short Sales Are Different Than Foreclosures

Foreclosures are the result of sellers falling behind on their mortgage payments and the bank forcing the sale of the house. Short sales are a lot less dire.

Short sales come as the result of homeowners needing to get away from their property during a down market, homeowners trying to work out deals with their bank to avoid foreclosure, and a few similar situations.

Furthermore, short selling your home does not damage your credit in the same way a foreclosure does.

With a foreclosure, you could be sitting with a black mark on your credit for up to a decade. With a short sale, you could get another home loan within a couple of years.

2. You’ll Need to Get Approval for a Short Sale

One of the stickiest parts of working through a short sale is getting approval from your lender. As we mentioned in this article’s intro, a short sale in real estate is when a homeowner sells their home for less than what they owe the bank.

That means that at the end of the sales process, the previous owner will still owe their lender a sum of money. Lender’s concern over the amount they’re going to lose is why banks get involved in the short sales process.

In order to get approved for a short sale, typically, you’ll need to prove a few things. These things could include proof of financial hardship and/or a major life change.

3. Bankruptcy Can Cause Issues with Short Sale Approval

If you’re considering going through the short sale process, chances are you have broad financial issues. These issues typically encompass a number of outstanding debts that come in addition to what you owe on your home.

Since bankruptcy prevents debtors from collecting money from you and short selling your home is technically a form of debt collection, it can sully the process.

Talk to your bank or a third party financial advisor prior to declaring bankruptcy whilst pursuing a short sale.

4. Bringing on a Real Estate Agent Can Be Helpful

Selling your home via a short sale is a lot more involved than selling your home via a standard for-profit sale. There is a lot of additional paperwork involved that can be harrowing to deal with if you’re not a real estate expert.

That’s why it’s important to consider bringing on a real estate agent to assist you with your short sale. While agents are an additional expense that can put you at an even deeper deficit with your bank, the expediency and possible higher sale price that they can bring to your home are often worth their fee.

5. The Short Sales Process Is Long

A lot of people read the term short sale and assume that the period of time it takes to sell a home though it is short.

Makes sense, right? Not only is “short” included in the title but it stands to reason that selling your house at a cut-rate in a down market would entice buyers to make offers quickly.

Unfortunately, the speed of short sales doesn’t live up to its name. As a matter of fact, it’s not uncommon for short sales to take as long as 9 months to be completed.

This is largely due to the level of involvement your lender will have in approving buyers and making demands which can seriously hamper down your sales process.

6. Buyers Beware when Buying Short Sales

Given lender’s heavy-handed approach to short sales, only a quarter of short sales actually close.

That means that 75% of buyers making offers on short sale homes leave disappointed. Most offers fall through because of how long they take to get approval.

If you’re a buyer looking to score on a short sale, don’t be in a rush to get into your new property.

7. Investors Flush with Cash Love Short Sales

Short sales are homes sold out of desperation. A desperate seller often means a very happy buyer.

If you’re ready to make a cash offer on a short sale home, you’ll get a lot of attention from sellers and their banks which could expedite the amount of time it takes for you to get your purchase approved.

Once you have a new piece of property in your portfolio, you can sit on it until the market turns back up (or even sooner if you’re lucky) and turn a considerable profit!

Wrapping Up Things You Never Knew About the Short Sales Process

The short sales process is typically arduous and filled with pitfalls. That being said, it’s preferable to foreclosures and presents an outstanding opportunity for the patient buyer or cash-rich investor.

We hope that our 7 facts above have helped you better understand short sales.

If you’d like more information on short sales, real estate, and more, check our additional content on Short Sale Blog today!