New York City Fix And Flips More Accessible Than Ever
The city has taken a hit to its real estate market due to the global pandemic, with many residents changing to suburban lifestyles instead of a cramped, urban environment. With the rollout of vaccines and restrictions being loosened, New York City is starting to attract home buyers once again. As of January 2021, the average price for homes in the city was $725,000, which is almost the same average price as January 2020. Homes are selling for approximately 2% under asking price and on average are receiving a 16% down payment, meaning the market is currently favoring buyers and more accessible for investors than before.
Patient investors can use this downtime to scout out potential properties or neighborhoods they wish to put their money in to, planning their fix and flip strategy now instead of later. Homes are remaining on the market for an average of 154 days, so an investor could start their renovation and begin looking for bids early to secure a buyer by the time the project is complete. If you’re looking for hard money loans for NYC fix and flips, contact us today.
New Construction Needed In New York City
With home buyer and investor attention slowly returning to New York City, new construction can help meet the upcoming market demand. Since many residents left the city due to cramped living conditions, being able to design and build a home around these new lifestyle changes can ensure your project sells and sells fast. While the market took a bit of a dip during 2020, the activity remains quite high, with nearly 2,700 homes being sold during January 2021.
Understanding the demands of the market and designing your build around them is a major advantage of new construction investments. Right now, three of the biggest home feature demands in NYC are large walk-in closets, floor-to-ceiling windows, and contemporary design. Homes with these three features are receiving more attention online than listings without these features and are typically selling for more money too. If you’re an experienced contractor or builder looking for hard money loans for NYC new construction, contact us today.
New York City Rental Market Rebounding
The bread-and-butter of NYC real estate took a heavy hit during 2020, but the vaccine rollout and lessened restrictions have renters thinking about returning home. New businesses are also starting to consider taking advantage of the commercial space set to open over the summer, which will surely bring new renters into the city. Savvy investors can use this opportunity to start looking at properties or neighborhoods that they wish to invest in, planning their rental portfolio now when the competition is reduced.
Our term rental loans work best for BRRRR investors in NYC. The BRRRR method of investing is meant for investors seeking long-term ROI instead of the short-term that fix and flip investors prefer. BRRRR stands for buy, rehab, rent, refinance, repeat. An investor would use our hard money loan to purchase the rental property and renovate it to increase its market value. After finding a renter and beginning to generate passive monthly income, the investor refinances the rental property and uses the newly acquired capital to purchase their next rental property to repeat the process. By following the BRRRR strategy, an investor can quickly build a large rental portfolio that supplies them with steady passive income. If you’re an investor looking to use our term rental loans for your BRRRR investments, contact us today.