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I’ve worked with Hometown Development a few times now, as a seller and as a buyer. This is not your typical company that quickly renovates and resells homes. It seems that they do a complete job with the interests of future owners in mind in addition to their own. My transactions have been pleasant, and the purchase I was able to complete offered a good mix of quality and value for my client. Additionally, Realtor Adam Minor is a pleasure to work with.
Month: October 2020
Cathy S
I highly recommend Hometown Development. Adam was very easy to work with, answered all my questions, and very prompt in responding to my calls. While I no longer own the home, I look forward to seeing all the improvements they make. AAA+
5 Ways to Invest in Real Estate without Buying Property
Investing in real estate is a great way to diversify your portfolio and expand your income sources. However, not everyone is interested in buying and flipping houses to rent out, or maintaining property and tenants. If you’re looking for how to invest in real estate without the commitment or hassle of buying property, here are 5 other ways to invest in real estate that offer just as reliable returns.
#1 Invest in a Development
When you invest in a development, you help to finance a developer’s vision of a community of homes and properties. You can choose a development company that matches your tastes and investment level, but the rest of the process is relatively hands-off. You don’t have to be involved in the minute decisions of building or maintaining the development but get to enjoy the income from your equity or debt investments. These real estate companies play an important role in local economies by creating jobs, and also provide solutions to the national housing crisis.
Risk Level
Many real estate investments present a moderate level of risk. Investing in a development has great potential for good returns. As long as costs of the development stay on track and the property values and housing market remain stable, your investment will remain low-risk. You could anticipate great returns if the values of the properties increase once development is complete. To risk losing money, the market would have to decrease significantly. Therefore, the choice to invest in real estate companies that develop property is fairly safe.
#2 Invest in Real Estate Investment Companies
Real estate investment companies do the work of finding properties in need of updates, make the necessary repairs, and flip them for rental or real estate opportunities. They also work with homeowners in need to find creative solutions to missed mortgage payments, foreclosure, and other debt problems, offering them a way out that saves their credit. The homes are then given the attention they deserve and brought to showcase the best of their character and charm. Real estate investors can improve communities and help struggling homeowners into homes they can comfortably afford.
Risk Level
The risk level of investing in these real estate companies is comparable to other real estate investments in that it is also tied to fluctuating housing markets. The success of the company depends on the customer’s ability to buy a home or find a mortgage with an affordable interest rate to purchase a home. However, because the homes these companies purchase are already in established neighborhoods with nearby amenities and are priced lower than new construction homes, they tend to sell readily and provide above average returns, especially when compared to investment in another real estate company.
#3 Invest in REIT Companies
Real estate investment trusts, or REITs, are another great way to invest in real estate without finding, financing, or maintaining property. REITs own or finance income-producing real estate. Their properties can be either residential or commercial, and generate regular profits which are shared with investors through dividends. When you invest in these real estate companies, you diversify your real estate investment portfolio with passive involvement. You can either invest through stock, mutual funds or exchange-traded funds (ETFs).
Types of REITs
- Equity REIT: publicly traded on national stock exchanges
- mREIT or mortgage REITs: provide initial financing for income-generating real estate
- Public non-listed REITs: registered with the SEC (Securities and Exchange Commission) but don’t trade on national stock exchanges
- Private REITs: not registered with the SEC and do not trade shares
Risk Level
Publicly traded REITs are less risky because investors can easily research the companies to see their financial history and stability. They also have better liquidity, making it easier to sell shares.
#4 Invest in Home Construction Companies
Investing in home construction companies is popular as the housing market climbs, and interest and mortgage rates are low. As the economy tightens and interest rates rise, however, the rate people buy and build homes slows — and so will your investment returns. This investment type is also dependent on the availability of building supplies, contractors and other resources, which, if scarce, can delay the building process and prevent you from seeing consistent returns. Investment in home construction companies is a great way to diversify your portfolio without being responsible for a home or property. You can purchase shares of home building company ETFs or invest in a specific home building company directly. However, you should be aware this type of investment is best for investors with a tolerance for some risk.
Risk Level
Investment in home construction companies presents higher risks for those seeking short term investments and quick returns, but provides more moderate risks and better returns for long-term investment. Ideally, investors should hold onto shares for at least 10 years to allow for recovery from temporary losses that can occur as home values fluctuate. Price volatility due to the constant movement of the real estate market means this type of investment is sensitive to changes in the economic conditions of the country.
#5 Join a Real Estate Crowdfunding Opportunity
Investment platforms are a relatively new way to invest in real estate without buying property directly. On these platforms, you can invest in bigger residential or commercial property deals with others, as a crowdfunding effort. This is a way to invest in real estate companies that requires some capital, but much less than buying a property yourself. You can invest in singular projects or a portfolio of projects with all types of real estate from income-producing to development properties. Be aware that, because investment and crowdfunding platforms are new, they have fewer protections than traditional investment methods. And although the online services are easy to use, apps and websites for crowdfunding may have associated fees.
Risk Level
Investing through an online crowdfunding platform means many of the opportunities to invest in real estate companies are relatively new. Therefore, there’s not a lot of financial history available to review, and investors have to sign on with a higher risk for their investment. Also, since the assets are not liquid, they are more complicated to sell. If you’re looking for a way to invest in real estate long-term, crowdfunding may work well for you. It’s best for investors who won’t need to see returns soon, and can hang onto their investments for a greater return down the road. Crowdfunding opportunities used to invest in real estate can be useful to diversify a portfolio, especially if you have many equity investments. If you’re looking for a real estate investment that can provide passive income at above-average returns, Hometown Development might just be the option for you. Talk to one of our investment experts to see how a partnership with our real estate investment company could benefit you.
Selling the Family Home: How to Let Go of Your Family Home
The house where we grew up is important in our formative years and is the backdrop of many of our youthful memories. However, there comes a time when we have to say goodbye and part ways with these spaces. Selling the family home can be difficult, not only because of the emotional attachment to a home that’s been in your family for years, but also because preparing a home to sell on the traditional real estate market can be time-consuming, expensive, and frustrating — especially when you have other grown-up responsibilities and your own home to take care of. Fortunately, when it comes to selling the family home quickly and painlessly you have options. Let’s talk about how to make the process of selling the family home as easy as possible.
Pack Up the Family Home
When you first take ownership of the family home, whether you’ve inherited the property or taken it over from other family members, that first walk-through can be difficult. From getting distracted by memories to feeling overwhelmed by the work ahead, you likely need to prepare for an initial wave of emotion. This is an important time to reflect on what the home meant to you, and take an inventory of everything in the home. Work your way through the home and decide what can be sold or donated, or what you absolutely can’t part with. Go through the belongings with your siblings to make sure everyone is involved in these important decisions. Consider that even some extended family may have an interest in keeping some items, especially priceless ones like family photo albums or other keepsakes. Unclaimed furniture, clothing, kitchen supplies, or decór can be sold in an estate sale or donated to a local charity.
Selling the Family Home
Once you have gone through the home and divided up the important belongings, it’s time to start thinking about selling the family home. In these situations, it’s often better to sell the home quickly rather than hang onto it, because even the best childhood memories can be soured when you have to take care of property you no longer want. When it comes to selling the family home, you have a few options: You can either sell it on the traditional real estate market by working with a Realtor, or sell it in a quick cash sale to a real estate investor.
Sell on the Traditional Market
Before you can sell on the traditional real estate market you’ll need to assess the home’s condition, make any necessary repairs, consider upgrading parts of the home to make it more appealing, hire a realtor, and show the home to potential buyers. Traditional sales take time — especially for older homes that might need a bit of work, maintenance, or updating. If you want to sell the family home quickly, pricing it correctly is important. Understand that you can’t put a price on your memories. It’s special to you because of the people you shared the memories with, not the home itself. Even if you think the home deserves a high price, potential buyers won’t factor the good times you spent in the home into their decision. Pricing the home too high will make it more difficult to sell, and if you have to keep readjusting the price later, buyers may become more wary and your home will lose appeal. If you don’t want to deal with making repairs or maintaining the property during the selling process you may consider selling the home to a real estate investor.
Sell to a Real Estate Investor
When you sell to a real estate investor, you don’t have to wait through the long sales process. Real estate investors prefer to close on home sales with a cash offer in as few as five days. Investors will also purchase your inherited home in as-is condition, meaning you don’t need to worry about making repairs or updates to the home. They will walk through the home with you and make you a fair offer for its market value, no Realtors necessary. The advantage of selling the family home to a real estate investor is that they have the time and capital to give the home the care and repairs it needs. They can wait for the right family to move in to make new memories. Meanwhile, you can sell quickly for cash and move on.
Say Goodbye When Selling the Family Home
When selling the family home, it’s important to acknowledge the importance of the space to you and its place in your memories. On your final walkthrough, reminisce where you and your siblings opened presents during the holidays, the place in the kitchen where the family dog used to lie, where you would sit at the dinner table and tell stories over vegetables you didn’t want to eat, where you once backed into the garage door before you got your license — and remember that the characters of those stories are the key to the memories, not the setting. Rather than let an additional home become a stressful responsibility, sell the home and hang onto the memories you made there, instead. Realize that, although it may hold a special place in your heart, it’s not your house anymore — at least not in the same way. If you sell the home, another family can move in and enjoy the space. Parting with the property will be tough, but in the long run, it will save you time, money, and stress. If you’ve recently inherited a family home, and just aren’t sure what to do with it, the Hometown Development team can help. We’ll clearly explain all of your options so you can make the best choice for you, and your family. Give us a call or reach out online to learn more.