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Becoming a Real Estate Investor in Michigan: Why & How?

Posted on 03.04.202303.04.2023 by Hometown Development

Does a career or side hustle in real estate investment sound exciting to you? To help you determine if this could be your next career move, let’s discuss the steps you can take to learn how to become a real estate investor in Michigan.

What is a Real Estate Investor?

As the name suggests, a real estate investor is someone who invests money into real estate properties in order to make a profit.

Here are just a few of the many ways real estate investors generate cash flow:

Renovating fixer-upper houses and selling them for a profit.
Buying an apartment complex, hiring a management company to handle its day-to-day operations, and receiving cash flow from it every month.
Flipping vacant land by purchasing it at a lower price and selling it at a higher price.
Investing in a real estate investment trust (REIT) for passive income.
Buying fixer-upper properties, renovating them, and renting them out for monthly cash flow.
Purchasing vacant land, building a house on it, and selling it for a profit.

As real estate investors make money with each deal, the money they have available to them in order to buy more properties increases, and the cycle of buying, renovating, selling, and earning more money continues. As their cash flow increases, they’re able to invest in more expensive, risky, and potentially profitable projects.

Benefits of Investing in Fixer-Upper Properties

Now that we understand a few of the ways real estate investors make money, let’s discuss a few of the advantages of investing in fixer-upper properties:

Lower cost: Due to the amount of work fixer-uppers require they are available at a lower cost. This can be enticing for real estate investors because the cost of acquiring the property and fixing it up is usually lower than buying a turnkey property.

Potentially less competition: Homes that require a significant amount of work can often drive away the competition because they don’t want to invest the time and money to fix up the property.

Opportunities for customization: Properties that require significant renovations often provide the opportunity for a clean slate, meaning investors are able to tailor the property to suit their desired outcome and maximize their profits.

5 Steps to Take to Become a Real Estate Investor

Let’s discuss a few of the steps you can take when determining how to become a real estate investor in Michigan.

1. Consider Important Qualities of a Real Estate Investor

Before diving right into a potential real estate investment career, take a moment to reflect on the qualities you bring to the table in order to determine if this is the right career path for you.

To help you come to a conclusive decision, here are a few important qualities real estate investors possess:

Analytical skills: A large portion of your time as a real estate investor, especially when starting out on your own, will be spent analyzing data. This includes compiling useful data like available listings, past sale prices, renovation costs, and more to help you make your investment decisions.

Money management skills: Managing a real estate portfolio requires strong money management skills. Real estate investors will need to have the self-control to be able to reinvest profits back into the growth of the business instead of spending them on more immediate rewards.

Living in a desired location: If you plan on making investments in the city where you live, you’ll want to first evaluate the quality of the real estate market in your area. How long are properties staying on the market? Do you live in a popular residential neighborhood, or in a noisy area near the airport? While it is possible to make real estate investments outside of your area, this might be more difficult for you when you’re just starting out.

Negotiation skills: Being a real estate investor involves near-constant negotiations. You will be negotiating the purchase of properties at a price that works for your business, and you’ll also be negotiating the sale of these properties that ensures you maximize your profits.

Patience: Being a real estate investor requires a lot of patience! Acquiring properties, renovating them, and selling them do not happen overnight. Sometimes finding a deal that meets your criteria can take several months on its own. There can also be construction delays, market slow-downs, and other unforeseen obstacles that can slow down the process. Having patience during difficult times will help you become a successful real estate investor.

If you feel like you do not already possess these skills, take time to self-reflect and determine if you could realistically develop them.

2. Learn About Real Estate

Building up your real estate knowledge will help set up your investment business for success. The more you understand market trends, transaction processes, and property values, the better equipped you will be to run your business.

Growing your knowledge can involve taking online courses, attending an in-person real estate course, or conducting your own research. How far you take your research before you begin establishing your real estate investment business is up to you.

3. Network With Other Investors

A helpful way to learn how to become a real estate investor is to talk with other real estate investors. This can include picking their brain to help determine if this is the right career path for you, asking for advice on how to begin, or requesting constructive criticism of your investment strategy. The connections you make with other real estate investors could also be particularly useful down the line when you’re looking for someone to partner with.

4. Determine Your Investment Strategy

Before establishing your investment strategy, ask yourself how much time and money you have to spend on this business. Will you be making high-risk or low-risk investment decisions? Will you be taking an active or passive role in the business? These factors will play a huge role in how you’re able to craft the direction of your real estate investment business.

An important part of determining your investment strategy involves deciding whether you want to make long-term or short-term investments. Short-term projects would include purchasing a fixer-upper, renovating it, and selling it for a profit in a span of less than 6 months. Long-term projects could include buying an apartment complex, making any necessary renovations, renting it out, and collecting monthly income for several years.

Another important part of your investment strategy is determining how much of the business you are going to handle yourself and how much outside help you want to take on. This includes conducting research, facilitating real estate transactions, taking on outside investments, and more. Handling all of the work yourself will take up more of your time, while outsourcing the work will use up more of your funds for the business.

5. Learn How to Find Opportunities

After you’ve educated yourself on the real estate industry and determined your real estate investment strategy, it’s time to find properties to invest in. This is an exciting part of becoming a real estate investor in Michigan because it actually involves taking action and purchasing properties.

Learning how to find real estate investment opportunities involves:

Narrowing down your search based on what you’re looking for, whether it’s vacant land, multi-family properties, or a single-family fixer-upper
Running the numbers on how much your investment into the property would cost, including renovations, and what profit you would potentially earn
Negotiating the purchase of the deal like a pro!

Buying properties will also be a complex process full of successes, mistakes, and learning opportunities.

Partner with Hometown Development for Real Estate Investment Opportunities in West Michigan

We hope this article taught you more about how to become a real estate investor in Michigan, and we wish you the best of luck as you take on this new endeavor! If you’re interested in investing in the West Michigan area, connect with our team for partnership opportunities.

Why Sell Your House for Cash? Here Are the Primary Benefits

Posted on 23.03.202314.03.2023 by Hometown Development

There are many benefits to selling your house for cash vs. the traditional process of listing your home for sale on the real estate market. The simple cash sale is faster, easier, and more valuable to homeowners who are in difficult financial situations, don’t want to make repairs to their home, or deal with the stress of a traditional sale.

Top 5 Benefits of Selling Your House for Cash

By selling a house for cash, you can avoid all of these issues and walk away with your money in as few as five days. Let’s explore the benefits of selling your house for cash and if it’s right for you.

1. Selling Your House for Cash Can Help You Out of a Tough Spot

If you find yourself in a difficult financial situation or need to get rid of your home quickly, selling your house for cash can give you the financial freedom you need to help you move out and move on.

When you’re facing foreclosure or behind on mortgage payments, it can feel like everything is working against you. Swimming against the current to keep your head above water is exhausting, but the alternative of letting the river take you isn’t ideal either. Fortunately, there is still a way to get out of the situation completely. Selling your house for cash can get you out from under your debt and put you in a better position to move on.

If you sell your home for a cash offer, you can also avoid foreclosure, get out of your troublesome mortgage, and salvage your credit, which allows you to move on to a home you can comfortably afford. By selling on your own terms, you can regain control over your finances and your future.

2. You Can Skip the Realtor When You Sell Your Home For Cash

Working with a realtor can be complicated. They often have their own ideas about what you need to do to prepare your home for sale. They may also build a series of hoops for you to jump through before you can list your home on the market. You’ll have to host an open house and keep your home in pristine condition so it’s ready to show to a potential buyer at a moment’s notice.

Selling your house for cash is much simpler. You won’t need to hire a realtor, follow their steps, or pay their commission once you’ve sold to a buyer. While a realtor is motivated to help you earn top dollar from your home sale, you have to pay a commission once the sale is final — the industry standard is about 6% of the sale price.

The most difficult part about working with a realtor is that you have to sell on their timeline. Selling your home with a realtor can take months of preparation and even longer to find a buyer and complete the closing process. If you need to sell your home quickly, this may not be the best option. Selling a house for cash means you can sell when you want and walk away with your offer in hand in as few as five days. With no preparations, open houses, or realtor’s fees, you can sell your home and get on with the rest of your life much faster.

3. Selling Your House for Cash Means No Need to Make Repairs

The easiest way to sell your home is to sell it as is for cash. This means you can sell your home in the condition it’s already in with no need to make repairs, changes, or updates to the house or property. The money you save is yours to keep.

By selling your house for cash to a real estate investor, you get to move on quickly and skip the time-consuming repairs so you can focus on your next steps.

If you can’t afford the repairs your home needs, like a new roof, foundation repair, or mold removal, or you just don’t want to deal with sprucing up the landscaping, picking out new paint colors, or updating your kitchen — it’s okay. Selling a house for cash in an as-is sale lets the buyer worry about those concerns. A real estate investor has the time and capital to make repairs and updates to your home, saving you money and the hassle of dealing with them by yourself.

4. You Can Sell Your House for Cash When You Want, On Your Timeline

If you need to sell your home to relocate for work, because you’ve inherited an extra home, or due to a divorce, why wait around for a traditional sale which could drag on for several months? One of the many benefits of selling your home for cash is you get to choose the timeline.

If you want to move quickly and receive your payment sooner, an as-is sale can be completed in as few as 5 days. You can sell your home for cash fast and be ready to start that new job on Monday or move on to start making new memories in a new house right away.

5. Selling a House for Cash Means Less Hassle

Let’s face it, selling a home can be stressful. Not only is it work to box up your belongings, but moving can dredge up a lot of emotional baggage as well. Why make it more difficult?

If you’re ready for a clean break with minimal stress, a cash sale is perfect for you. You can sell your home fast for cash without having to work with a Realtor, make costly and time-consuming repairs, or deal with the ups and downs of the real estate market.

Selling your house for cash is a hassle-free way to find your financial freedom and move on to the next chapter in your life. With all the time, energy, and money a cash sale can save you — what will you do next?

Interested in Selling for Cash? Contact Hometown Development

If you’re hoping to sell your home for cash, Hometown Development can help. We purchase properties in any condition, for cash, and we can close in as few as 5 days. Give us a call today at 616-379-3090 or contact us online for more information.

4 Things to Know about Investing in a Real Estate Company

Posted on 12.03.202124.05.2021 by Hometown Development

Investing in a real estate company can be an excellent way to expand and diversify your portfolio, draw in steady profits, and experiment with long and short term investments — all without having to buy property yourself. If you’re considering branching into the investment world of real estate, there are a few things you should know.

#1 Investing in a Real Estate Company is Passive Income

Investing in real estate is already very hands-off — you can expect steady returns from appreciation and tax deductions — but investing in a real estate company is even easier. Owning and managing property requires time and money to maintain, but when you invest in a real estate company, they do all the work for you.

You spend your time and money researching real estate companies that will make great investments, then sit back and enjoy the fruits of your minimal effort.

#2 There are Diverse Ways of Investing in a Real Estate Company

When it comes to investing in a real estate company, there are many ways to get involved. You can invest in a development, construction company, real estate investment firm, real estate crowdfunding opportunity, or a real estate investment trust.

When investing in a real estate company, you can identify the company that will provide the best returns over time by comparing their projects and performance. For example, a real estate investment firm with a strong presence in their local community, that is dedicated to quality work and building trust with their clients and investors will be a safe long-term investment you can expect to deliver excellent results year after year.

#3 Investing in a Real Estate Company Can Deliver Above Average Returns

Investing in a real estate company is not only easier than buying and managing your own property, it can also be more profitable — depending on how you invest and who you invest with, of course. Real estate investments are a great way to increase cash flow, and when you invest in a real estate company that works with a large number of properties, you enjoy these benefits on a grander scale.

Depending on the real estate company you invest with, you can expect short term returns from buying and selling property or long term returns as developments or projects appreciate in value. Either way, investing in a real estate company can deliver better returns than traditional real estate investments like buying property yourself.

#4 Investing in a Real Estate Company Can Be Relatively Low Risk

Compared to investing in the stock market, investing in a real estate company is relatively stable. Real estate companies are comfortable operating in the fluctuating trend of the real estate market, and know when to buy and when to sell properties to capitalize on their investments.

Real estate companies are experienced in choosing the properties that have the most potential. They can identify profitable investment opportunities and bring the results of that expertise back to their investors. By investing in a real estate company, you are making a safe bet that they know the real estate market and will make the best decision for you and their company’s bottom line.

Ready to invest in a real estate company that can provide above-average returns? Talk to the team at Hometown Development.

5 of the Best Grand Rapids Neighborhoods for Families

Posted on 03.09.202024.05.2021 by Hometown Development

As one of the fastest-growing regions of Michigan, the Greater Grand Rapids area has become a popular spot for young people and families. This area offers the opportunity to raise children in a welcoming and safe environment close to great schools with plenty of parks and things to do just around the corner. Here’s a look at some of the top up-and-coming Grand Rapids neighborhoods.

#1 Alger Heights

South of downtown is a great up-and-coming Grand Rapids neighborhood for families known as Alger Heights. With good schools, plenty of parks, and even a branch of the library located in its limits, Alger Heights is a great place to settle and raise children. This close-knit, diverse neighborhood cares about bringing people together and regularly hosts community events like movie nights, live music, and park activities. Alger Heights is close to shopping on 28th Street while being an easy commute to downtown and the beltline.

#2 Eastown

Eastown is known for being a progressive neighborhood with a rich history — with plenty of craft breweries, specialty cafes, and unique shops. Many young people have moved to Eastown to buy and refinish classic older homes, which has made the neighborhood popular for professionals relocating for work. Eastown is a short commute to state-of-the-art hospitals that employ many residents. This neighborhood enjoys a lot of greenspace and has access to many quiet parks and great public schools.

#3 Fulton Heights

Conveniently located minutes east from downtown and west from the beltline, the Fulton Heights neighborhood is a must-see spot that’s increasingly popular for young professionals and families. This quiet residential area has access to everything, including two large parks, a huge community garden, and the Fulton Street farmers market which is a popular draw for locals across Grand Rapids.

Homes in Fulton Heights tend to sell quickly, so interested buyers will need to keep an eye on the market if they want to raise their family in this beautiful spot.

#4 Heritage Hill

Located just southeast of downtown, Heritage Hill is known to be the most historic of the Grand Rapids neighborhoods. Its huge, perfectly preserved homes dating back to 1844 are spaced along brick streets lined with old-growth trees. With homes of every architectural style, Heritage Hill is a popular place for walking tours. With quiet streets and plenty of nearby parks, the area is also a draw for families.

The Heritage Hill neighborhood is close to downtown and easy walking distance to many great restaurants, bars, and coffee shops. Very few franchises have set up shop, meaning most neighborhood establishments are unique and have had roots in the area for a long time.

#5 Creston-Cheshire

With a population of over 27,000 residents, Creston is the largest of Grand Rapids neighborhoods, located to the north of the downtown area. The neighborhood is full of quiet suburban homes, tree-lined streets, and has access to many parks — including the beautiful Riverside park which is full of fun outdoor activities for families from disc golf to kayaking.

This area is growing quickly, with new restaurants, bars, and retail spaces opening up all the time. This community already has a growing culture, and in a few years could become its own unique hub.

Hoping to move into one of these top desirable Grand Rapids neighborhoods? Hometown Development can help! We regularly renovate and restore homes in these areas, offering buyers like you a rare opportunity to move into these highly sought-after neighborhoods. Let us know what you’re looking for, we may just have the home for you!

Selling a House Long Distance? 5 Key Things to Know

Posted on 20.08.202024.05.2021 by Hometown Development

Whether you’ve just relocated for a new job, inherited a house in another town, or have found yourself needing to get rid of a house you’ve moved away from, you may need to sell a house long distance. If you’re in this unique situation, there are five things you should know about the process.

#1 Selling a House Long Distance Might Require Travel

Before you can list the house for sale, you’ll likely need to visit the property to assess its condition and determine what repairs or changes need to be made before it can be ready to sell. You may need to get formal inspections done to locate any major issues, such as leaks, pest damage, or repairs, so you can address them before selling. You’ll also need to evaluate the area where the house is located and settle on a realistic listing price. If you have the time and cash to fix up the property, you may be able to list it at a higher price. However, if the house needs more work than you can afford, or you want to sell quickly, you might consider a more competitive price point.

#2 You’ll Have to Prepare Your Home For Sale Long Distance

Once you know what the home needs in order to be sale-ready, you can start making the repairs or changes. If you’re selling a house long-distance, you may not be able to do this work yourself. You’ll either have to make time to travel back and forth and work on the home a bit at a time, or hire a crew to do the work for you. Depending on how much work the home needs, these preparations could get expensive. Be sure to budget out the work in your original assessment to justify the time and cost it will take to make the changes. There might be some problems not worth fixing if you won’t be able to earn that money back in the sale of the home. Particularly if you’re selling a house long distance, the less effort and stress required to get rid of the extra property, the better.

#3 You Can Hire a Professional to Sell a House Long Distance

One way to limit the number of trips needed to visit the property is to hire a professional. A representative like a Realtor or legal advisor can act as a go-between to facilitate the process of preparing the home for sale, showing it to potential buyers, and even negotiating any offers on your behalf. Whether you hire one person or use a team, representatives with your best interests in mind can help make selling a house long distance easier. You’ll likely need to have a few trips to consult with your Realtor, or schedule regular meetings, and you may need to pay a retainer fee for legal consultations.

#4 You’ll Need to Maintain the House Long Distance

Another factor to consider when selling a house long distance is property maintenance. Regular upkeep will include paying any utilities, landscaping and lawn care, occasional cleaning, collecting mail, making any repairs as-needed, checking faucets, or other maintenance tasks. You’ll need to have these needs covered during the time you’re preparing the house for sale, while it’s listed, and up until the sale is closed. Your representative may be able to look after the property for you, or you may need to hire separate services for cleaning and mowing. Traveling back and forth to take care of these tasks isn’t practical if you’re selling a house long distance.

#5 Selling a House Long Distance to a Real Estate Investor is Quick and Easy

For a fast and hassle-free sale, you can sell your home to a real estate investor. Selling a house long distance this way is simple and can be completed in a single visit. A real estate investor will walk through the home with you and make you a fair offer based on its market value. You won’t have to travel back and forth to make repairs, hire a Realtor, or wait around for a traditional buyer. If you sell to a real estate investor, you receive a fair offer and can have your home sold in as few as five days. If you’re selling a home that you’re a long way away from, a traditional sale might not be the best option for you. If you’re hoping to get a fair offer and move on, talk to the team at Hometown Development. Reach out to us today for your free cash offer.

I’m Stuck with a House I Can’t Sell. What to Do?

Posted on 29.07.202004.02.2022 by Hometown Development

If your local Michigan housing market isn’t working in your favor, you might find yourself sitting on a house with a for-sale sign in the front yard you can’t move. If you’re stuck with a house you can’t sell, here are a few ideas you might consider to help you change your luck and sell your home.

Wait for Selling Market to Improve

The phase of the economy can greatly affect the housing market’s fluctuating demand.

If we’re in a recession, home sale prices tend to decrease. This happens because more homes are going up for sale, so the market is flooded with more options for prospective buyers. House buyers have the chance to be more selective with their choices and funds. To sell your home when the market is cold, you’ll likely need to price your home to compete with the others on the market, or else wait for the situation to change.

Lower Your Asking Price

If your house or property has been for sale for a while, but no serious offers are being made, you might consider lowering your asking price. Particularly if the Michigan housing market is cooling off, buyers may be overlooking your home in favor of those with a lesser price tag. Pricing your home competitively can show buyers you’re motivated to sell and puts you at a more level playing field with other homes for sale near you. If a buyer was on the fence about making an offer on your house, a price drop could encourage them to give your house another chance.

Lease Your Home

Alternatively, you could consider leasing your house for additional income. Either rent out a room or vacate your home and lease it to a family. While this can provide a solid monthly income, managing a rental property requires some work. You will be required to upkeep the property for your renters and be available to attend to any of their needs regarding the home. Despite the extra work, if your home is in good condition and located in a desirable neighborhood, leasing could be a viable option, especially if you’re stuck with a house you can’t sell.

Make Improvements to Your House

If you’ve found yourself stuck with a house you can’t selling Michigan, you might be brainstorming ways to make it more appealing to buyers. Apart from making necessary repairs to your home, you could consider making small changes and updates to your property that buyers will appreciate. This could include something as simple as painting the interior a neutral color or choosing new light fixtures, or could be something bigger like replacing the roof that was starting to show its age or updating the kitchen with modern appliances. If you’re willing to invest more money and energy into your house, it could help you draw in a new offer.

Stage and Market Your House for Sale

A great way to show off your home to a wide audience is to stage and market it online. You could hire a professional home staging service and photographer, or do the work yourself. To stage your home, use minimal and simple furnishings to add dimension to each room. Be careful not to over-decorate, and remove any personal items like family photos, mementos, or toys. The goal of staging is to help potential buyers see themselves in your home and imagine their lives there. Leaving items that say too much about your personal life can make them feel like they’re invading your privacy and be off-putting for a sale.

With your home staged, you can list it on the popular home sale sites like Zillow, Trulia, Realtor.com and even Craigslist. Good quality photos and staging will be easy for people to share with others, and bring in more interested people to see your home.

Sell Your Michigan Home As-Is for Cash

If you feel like you’ve tried everything and are stuck with a house you can’t sell, there’s a better way to sell your home, and to sell it quickly. Selling your home as-is is a great way to earn a fair price for your home without having to be at the mercy of a fluctuating housing market, make costly repairs and updates, or wait around for a buyer to find you. When you sell as-is, a real estate investor will go through your home with you and then make you a fair cash offer for the value of your home. No repairs, no realtors, and no waiting required. In as few as five days, you can sell your house and be onto the next chapter in your life.

Stuck with a house you can’t sell? Hometown Development can help. We make cash offers for houses at a fair market rate and can close in as few as five days. If you’re ready to move on, we’re ready to help. Give us a call at 616-379-3090 or reach out to us online.

5 Reasons to Invest in Real Estate Remodels

Posted on 05.06.202024.05.2021 by Hometown Development

Real estate investing can provide a lucrative and steady income over time. Investing in remodeled homes is a unique sector of the real estate market, which has distinct advantages. Let’s take a look at five reasons why real estate investing in remodeled homes is a good idea and can help you expand your portfolio, grow your returns over time, and even save money on your taxes.

Secure Reliable Income with Real Estate Investing

Real estate is a valuable investment because it is a reliable source of income. Housing will always be a desirable asset because people will always need it.

Any investments or improvements you make to your property can increase its value in a tangible way. Remodeled homes have already received significant improvement so all you have to do is enjoy the benefits.

Start Generating Revenue from Real Estate Remodels

When you invest in a remodeled house, all the work to prepare the property has been done, so you can start using it to generate revenue right away. With the ability to turn a profit from your investment almost immediately, it’s easy to see why remodeled homes make great real estate investing opportunities.

Since any major problems and repairs were taken care of, the property will require very little maintenance for the first several years. By investing in a remodeled home, you get to skip the steps of hiring contractors, finding designers, buying materials, managing remodeling projects, and paying the carrying costs during the renovation process. The convenience of a remodeled home is hard to beat.

Find Simple Financing Options for Real Estate Investing

It’s easy to secure financing for remodeled homes when you’re ready to get started. Because of their completed & turnkey state, remodeled homes are seen as a low-risk investment, which is very appealing to lenders. Also, since you can start generating income right away, mortgage payments can be managed easily, with profits left over for you to enjoy or reinvest into the property.

Enjoy Tax Benefits of Real Estate Investing

In addition to the predictable and steady income, real estate investing has several benefits come tax-time. You can deduct many of the costs related to your property, including upkeep and maintenance, mortgage loan interest, and likely most of the improvements you make to the property over the tax year.

Even though real estate is known to appreciate in value, you can still claim depreciation deductions for your real estate assets on your taxes. You’ll be generating income from your property and enjoying your real estate’s growing value, but can claim a lower income by factoring depreciation. The savings will start to add up and can help to offset your income taxes.

Discover Remodeled Real Estate Investing Advantages

When you’re making your initial investment, remodeled homes can be purchased for a better value than new construction homes. Remodeled homes also have more character than new homes, while still enjoying updated amenities. Generally located in established, desirable neighborhoods, it will be easy to find good tenants who appreciate a shorter commute, proximity to good school districts and parks with large, old-growth and shady trees. New developments won’t be able to offer the same benefits, as they’re often built further from town on clear-cut land.

Real estate investing has never been easier than with remodeled homes. Whether you’re just dipping your toes in the investing pool, or you’re a seasoned swimmer, real estate investing is accessible to everyone. With the right investment opportunity, you can start generating income right away and expand your investment portfolio with beautiful renovated homes that are full of character and West Michigan charm.

If you’re considering investing in West Michigan properties, or if you’re already an active real estate investor in the area, the Hometown Development team would love to work with you. Give us a call at 616-379-3090 or contact us online for more information about our projects and our investment partnership opportunities.

What to Know About Buying in West Michigan’s Competitive Housing Market

Posted on 22.05.202024.05.2021 by Hometown Development

If you’re buying in a competitive market, you’re familiar with the experience of seeing a sign or listing go up on an available home, and almost as quickly, the house is already pending or sold. In a competitive market, there is a high volume of buyers looking for a low volume of homes available for sale. A highly competitive market is advantageous to the seller because they can often sell a home for much more than it’s worth because they know there will be buyers lined up around the block to place bids. Unfortunately, this means the average buyer with an average budget will have a hard time finding an affordable home in their desired area.

You have to act fast when you see a home come on the market you’re interested in, knowing that many others are doing the same. Particularly in West Michigan, people are flocking to the area, drawn to top performing school districts, exciting job opportunities, growing cities with small town charm and, of course, the gorgeous great lakes. To get the jump on upcoming homes for sale in the West Michigan housing market, you’ll want to work with people who know what houses are going to be available before they’re listed, like a real estate agent or investment firm that flips and resells local houses.

Tips and Tricks for Buying in a Competitive Market

Buying in a competitive market requires careful financial planning, thorough neighborhood research, and the development of good instincts that will allow you to make swift and sound purchasing decisions. Here are a few tips and tricks to help you navigate a highly competitive market.

Make a List

Do your research ahead of time about the areas you want to live in. Make a list of your top neighborhoods as well as characteristics you’re looking for in a home. Think carefully about the value of each of those items and rank them in priority. Planning ahead for what you’re looking for in a home means when one is available that checks all the boxes you’ll be ready to jump.

Make a Plan

Have a clear idea of your finances before trying your luck buying in a competitive market. If possible, get pre-qualified for a loan so you’ll have a better idea of your price range. Work with a lender you trust who can help you through the lending process and move things along quickly when you’ve found the right home.

Keep Your Cool

When it can seem like all of your top choices are getting swept away, it is best to keep an open mind. Try to be flexible with your criteria and expectations and, above all, be patient. It can be tempting to make offers left and right like a game of whack-a-mole to try and land a house when the market is hot, but trust that your ideal home has yet to come on the market and it’s waiting for the time to be just right.

Getting Ahead of the Game in the West Michigan Housing Market

In the West Michigan housing market, it can be tough to find the house you want at the right price. If you’re struggling to get ahead of the game, consider adding professionals to your house search team, or expand your search parameters.

Assemble Your Team

Working with a local real estate agent can have serious advantages when buying in a competitive market. A real estate professional can help you scout out homes you’re interested in and may know through their realtor network what homes are going to be available before they’re formally listed. Especially if you have no idea what you want in a home, an agent can work with you to refine your vision and make a list of features that are most important to you.

Out with the New, In with the Old

If you’ve been exclusively looking at newer homes, consider widening your search to include older homes that might need work done. You can often find these homes available at lower prices. If you’ve got DIY skills or are willing to put in the time and capital for home remodeling projects, these can be great price opportunities that don’t sell as quickly as other homes in a competitive market.

Find Hidden Gems

Another class of homes to look for are ones that were recently remodeled. You can still have the price savings and durability of a new home without putting in the remodeling work yourself. To get the jump on recently remodeled houses coming on the market in your desired area, work with a company that specializes in flipping houses.

Real estate investment firms are great to work with in the West Michigan housing market because they have a catalog of hidden-gem properties that have recently been remodeled or are currently being renovated for you to view. They purchase homes at a lower price in order to fix them up, and can pass those savings onto you as the buyer. These homes are typically in up-and-coming neighborhoods and offer you a great quality home for a discounted price.

If you’re hoping to purchase a home in West Michigan, Hometown Development can help! As a professional real estate investment firm, we remodel a number of homes in attractive neighborhoods here in West Michigan. Take a look at our gallery to see some of our previous projects, and give us a call at 616-379-3090 for information about our available properties.

My Home Has a Cracked Foundation. Can I Still Sell It?

Posted on 13.05.202024.05.2021 by Hometown Development

If your home has a cracked foundation or needs other major repairs, it can be difficult to attract a buyer willing to take on extensive home repair projects. However, it is still possible to sell your home. Let’s talk about some options available to you to sell your home according to your budget and timeline.

Major repairs are red flags to buyers — even if they’re looking for a project or a fixer-upper. A house with foundation problems, a leaky roof, plumbing issues, pest infestations, or mold are all issues that require a good amount of work — and cash — to fix. Often, these problems are too expensive or complicated to repair yourself. If you need to sell your home, you still have options. Here’s how you can sell a home with foundation problems or any other major repairs.

How to Sell a Home that Needs Repairs

If you want to sell your home with major repairs, selling it traditionally will be difficult. Even home-flippers will steer clear of homes that need major updates or fixes. If you’re determined to sell your home, you might consider making the repairs to fix the foundation, leaky roof, pest problem, or other issues. This will take time and money, but it could be worth it if you can get the value out of the home sale.

If you can’t complete all of the repairs, focus on fixing the most important issues first — like the cracked foundation. A solid foundation will be less alarming to buyers and you’ll have a better chance of selling your home on the traditional real estate market. If the foundation only has small cracks or minimal damage, you might be able to have the cracks patched. However, if the damage is severe it may need to be replaced, which can be an expensive job. If you don’t have the funds or time to repair a severely damaged foundation, you might consider selling your home as-is.

What is an as-is sale?

In an as-is sale, you let it be known to buyers that you are selling your home in the condition that it is already in, without making repairs or updates. This will weed out buyers who are looking for a home in perfect condition and attract those who want a project or fixer-upper. Keep in mind you might need to adjust the asking price to reflect the needed repairs.

Benefits of an As-Is Sale

There are many advantages to selling as-is. A few of the most important ones for homeowners are:

You can sell your home quickly
You don’t need to make any repairs
You don’t have to hire a real-estate agent
You receive a fair price for your home
You can avoid the stress of a traditional sale

Sounds great, right? How do you sell your home as-is?

How to Sell Your Home As-Is

If you want to sell your home as-is without making any changes or repairs, there are a couple of ways you can do this. First, you could try to find the perfect buyer. This would be someone who is looking for a house in an up-and-coming area they can flip. This person would be willing to purchase a home that needs repairs — but only if they can get it for the right price. They’re going to be extremely careful with their purchase decisions because they’ll want to make sure an investment in a home with foundation problems, for example, will pay off.

There is a chance you could find this perfect buyer and convince them your home is worth it. You may even be able to agree on a price low enough to tempt them. Still, finding such a buyer will take time. If you want to sell your home quickly, and for a fair price, you might consider working with a real estate investor.

Sell to a Real Estate Investor

A real estate investment company has the funds to make repairs like fixing a cracked foundation or replacing a roof. They can see opportunity in as-is homes like yours and have the time and capital to fix it — which you or a traditional buyer may not. Real estate investors look for homes they can buy in almost any condition and offer fair prices to the sellers. Their purpose is not only to give new life to a home, but to help homeowners get their lives back as well. Best of all, investors can close on an as-is sale much quicker than the traditional sale process — sometimes in less than a week. If you want to sell your house with foundation problems or other major issues, selling to a real estate investor will be your best bet.

Major home repairs like a cracked or problematic foundation are scary. It’s hard to imagine selling a home in that condition, and harder still to imagine the cost to repair the problem yourself. If your home has major damages that you just don’t want to repair yourself, look to Hometown Development. We purchase properties in any condition, and we’d be happy to take a look at yours. Give us a call at 616-379-3090 or contact us online for more information about our cash offer process.

Selling to a Home Investor? Here’s What to Look For

Posted on 15.04.202007.07.2022 by Hometown Development

If you are considering selling to a home investor, you need an investor you trust who will not only live up to their word when it’s time to buy your home, but will also give you peace of mind that your home will be in good hands and that the investor will respect your neighbors and improve the community. When searching for a reputable investor, here are some details to look for.

What to Look For When Selling to a Home Investor

It’s important to do research on any investors you’re considering approaching to protect yourself and your property. While home buying scams are uncommon, there are a few that give home investors a bad name. Most investors provide a service to you and the community, while still supporting a healthy business model.

The Home Investor Has a Good Reputation

A reputable home investor will already have good standing in your community. They will be known for revitalizing aged homes and improving the value of the neighborhood.

To research an investor’s impact, go online to find reviews and client testimonials. If they are working in your area, there should be plenty of evidence to back it up. An investor without any online presence doesn’t inspire much confidence. If there is a startling lack of reviews or only an overwhelming amount of positive feedback, it’s healthy to be a little skeptical.

The Home Investor Has a Portfolio of Completed Projects

Most home investors love to talk about their past success stories. Call the number they provide and talk to a real person about the company and its values. Ask to see a list of recent purchases or a link to review a portfolio of their work. They’ll appreciate the personal interest and you will have a chance to see the kind of projects they take on to know if your home is a good fit.

The Home Investor Provides Clear and Understandable Agreements

Trustworthy home investors will be upfront about any costs and terms of the sale agreement. There won’t be any hidden clauses or fees to worry about or overly complicated “legalese” meant to distract or confuse you.

Regardless, you should always read all paperwork thoroughly before signing. If you are in danger of falling for a scam, they will likely try to get you to sign paperwork before you’re aware of what it contains. It’s better to be extra sure that everything is clear before you get too far in a situation you can’t get out of.

The Home Investor Will Manage Your Expectations

Experienced home investors won’t make lofty promises that seem too good to be true, but you can trust they will work to give you a fair price for your home. They often have larger goals of helping individuals out of tricky situations and serving the community. They genuinely care about helping homeowners like you.

Scammers only care about lining their pockets. Home-selling scams will promise you large sums of money with no strings attached. They prey on the worries of people in financial crises but don’t offer real solutions.

For example, if an investor buys your home and says you can keep living there – it’s likely a scam. Good investors buy homes to resell them. If you’re still living there they can’t flip the property, which means they likely have other intentions. If an investor is willing to offer a small window for you to find another place to live, it will be clearly stated in the agreement. Shady investors might buy your home and then charge you an exorbitant rent you can’t afford. Don’t trust this type of deal.

As a best practice, don’t exchange any money with an investor until the closing date. If you’re still unsure, have an attorney or listing agent represent you. You’ll be glad you took extra care if things go badly. If you do suspect a scam, you can call in a tip to a fraud-watching organization.

How to Sell to a Home Investor You Can Trust

If you’re looking for a reputable real estate investment firm to sell your home to, Hometown Development would be happy to help. A trusted local investment team, we purchase West Michigan properties in any condition and we can close in as little as five days. Give us a call at 616-379-3090 or contact us online to learn more about our process.