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Why Now's the Time to Invest in Real Estate Bookmark and Share

Why Now's the Time to Invest in Real Estate

If you're looking to find a reliable source of ongoing income, you may be wondering whether real estate is a good investment. The market, as currently constituted, practically speaks for itself. Just like food, sleep and water, people will always need shelter, and with demand at extraordinary highs, more and more Americans are longing for the perfect place to call their own.

Wouldn't it be great to take advantage of the booming market by investing in it? With us, you can.

We're pleased to introduce SmartVest, a lending product designed for real estate investors. Part of our Smart Series of mortgages, SmartVest enables you to purchase multiple properties for investment purposes. You can use these funds to buy residences that serve as rental units, apartments or to pay for the refurbishing projects associated with flipping.

Investors endeared to real estate

From stocks and mutual funds to bonds and precious metals, investors have a variety of vehicles to generate positive cash flow. One that they keep coming back to again and again is real estate. Polling from Gallup reveals that Americans consider real estate their best long-term investment, with nearly a third of respondents finding it to be the most reliable, well above the 25 percent who describe stocks as their preference.

The proof is in the proverbial pudding, as home values continue to rise given the massive amount of demand. According to the National Association of Realtors, asking prices have risen each month uninterrupted for more than six years. Even high-valued properties, which may be beyond first-time buyers' price point, are climbing higher, with the median price per square foot among $1 million properties jumping 5.4 percent in the second quarter of 2018, figures from ATTOM Data Solutions show.

The industry's signature success in recent years is but a snapshot of its prosperity historically, as real estate has produced more wealth than any other on record, according to Entrepreneur.

The proliferation of home flipping - when buyers refurbish homes for resale purposes - also speaks to investors' enthusiasm for real estate and its potential for substantial return. In 2017, nearly 207,100 houses were flipped in the U.S. alone, based on estimates from ATTOM Data Solutions. That's an 11-year high and marked the second consecutive year in which homes flipped surpassed 200,000 units. Investors earned themselves an ample return on the money spent sprucing up properties, with an average gross profit of $68,143 - nearly 50 percent more than the price they paid originally.

Anyone can invest in real estate

Aside from the wealth advantages real estate investors stand to earn, you don't have to surrender a substantial amount of collateral to participate. Real estate investment financing options exist, providing borrowers with financing solutions that they may not be able arrange on their own.

Our Smart Series of mortgages sets the standard in loan customization, and with SmartVest, positive cash flow creation. The product's streamlined qualification process and generous cash-out advantages make SmartVest a loan type that lives up to its name - a smart investment. Contact us today to learn more about SmartVest as well as our other Smart Series and traditional loan offerings.

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