House flipping might be considered a risky investment, but more daring homeowners are taking it on in the hopes of raking in the cash.

A recent WalletHub study looked at 172 cities and ranked them based on market potential, renovation and remodeling costs, and quality of life to determine the best and worst places to flip a home.

But WalletHub also pointed out that house flipping returns aren’t what they used to be.

Flippers profited an average of $60,000 per property in the first quarter of 2019. This is $2,000 less than flippers made the previous quarter, and $8,000 less than they made a year ago.

But it seems some HGTV-inspired reno lovers will not be deterred.

The house-flipping rate reached a nine-year high in Q1, ATTOM Data Solutions revealed, with 7.2% of all home sales representing a flip  up from the previous quarter’s 5.9%.

And, according to ATTOM, the average flip sold for a median price of $215,000 with the average timeline for completion totaling 180 days.

In the WalletHub study, Sioux Falls, South Dakota, was named the best place to flip a house, ranking high for low renovation and remodeling costs.

Bridgeport, Connecticut, ranked the worst place to flip a house, nabbing poor scores for market potential, renovation costs and quality of life.

Other cities also stood out.

Pittsburgh had the highest average gross return on investment, while Austin, Texas, had the lowest.

Montgomery, Alabama, had the lowest median purchase price at $50,000, while San Jose, California, had the highest at $867,000.
Memphis, Tennessee, has the highest share of home flips, while Albuquerque, New Mexico, had the lowest.


Here is WalletHub’s list of the 10 best cities to flip a home:

  1. Sioux Falls, South Dakota
  2. Missoula, Montana
  3. Rapid City, South Dakota
  4. Billings, Montana
  5. Peoria, Arizona
  6. Tampa, Florida
  7. Fort Smith, Arkansas
  8. Greensboro, North Carolina
  9. Las Cruces, New Mexico
  10. Boise, Idaho

Here is WalletHub’s list of the 10 worst places to flip a home:

  1. Los Angeles, California
  2. New York, New York
  3. New Haven, Connecticut
  4. Boston, Massachusetts
  5.  Wilmington, Delaware
  6. San Francisco, California
  7. Oakland, California
  8. Newark, New Jersey
  9. Yonkers, New York
  10. Bridgeport, Connecticut

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Did you know living by a certain grocery store chain can positively affect the value of your home?

Trader Joe’s, ALDI and Whole Foods were found to make home prices go up, according to a study from ATTOM Data Solutions

Investors looking for a return, homebuyers looking for convenience (or cookie butter and Two Buck Chuck), need look no further.

The average home seller return on investment for all ZIP codes over a five-year period with these grocery stores nationwide is 37%.

Homes located near a Trader Joe’s average a home seller ROI of 51%, and have added equity, owning an average 37% in their homes, or $247,445.

Homes flipped near a Trader Joe’s offer an average gross of flipping at 31%. Properties near Trader Joe’s also offer a 5-year home price appreciation of 33%.

Homes located near a Whole Foods realized an average home seller ROI of 41% and have an average of 31% equity, or $187,035. They also had an average gross flipping ROI of 35% and a 5-year home price appreciation of 31%.

Homes located near an ALDI realized an average home seller ROI at 34%, with an average 20% equity, or $53,650. Properties near an ALDI have an average gross flipping ROI of a whopping 62%, with an average 5-year home price appreciation of 42%.

Based on the survey of 1,859 ZIP codes across the country, the average equity for all zip codes with these grocery stores nationwide is 25%.

The average gross flipping ROI for all ZIP codes with these grocery stores nationwide is 52%.

Average appreciation for all ZIP codes with these grocery stores nationwide is 38%.

The average home value for homes near a Trader Joe’s is $608,305; $521,142 near Whole Foods; and $222,809 near an ALDI.

Does your neighborhood stack up?

Click the image below for more info. Image courtesy of Attom.

grocery store impact

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The nation’s healthy economic environment drove an increase in pending home sales, pushing the index forward 2.8% in June, according to the latest report from the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased to 108.3 in June, rising from May’s 105.4.

Contract signings compared to a year earlier grew 1.6%, ending a 17-month streak of annual declines, NAR said.

Additionally, the index revealed that activity in all four major regions improved as the PHSI in the Northeast, South, Midwest and West rose year over year.

These are the PHSI changes for each region:

  • Northeast: Increased 2.7 % to 94.5 and is 0.9% higher than June 2018
  • Midwest: Increased 3.3% to 103.6 and is 1.7% higher than June 2018
  • South: Increased 1.3% to 125.7 and is 1.4% higher than June 2018
  • West: Increased 5.4% to 96.8 and is 2.5% higher than June 2018

NAR’s Chief Economist Lawrence Yun said June’s 2.8% increase can be attributed to the nation’s current favorable conditions and predicted last month’s rise is likely the start of a positive trend for home sales.

Job growth is doing well, the stock market is near an all-time high and home values are consistently increasing,” Yun said. “When you combine that with the incredibly low mortgage rates, it is not surprising to now see two straight months of increases.”

However, Yun noted that although June’s contract signings indicate that while buyers are both enthusiastic about the market and of the potential wealth gain, homebuilders still need to increase inventory production.

“Homes are selling at a breakneck pace, in less than a month, on average, for existing homes and three months for newly constructed homes,” Yun said. “Furthermore, homeowners’ equity in real estate has doubled over the past six years to now nearly $16 trillion. But the number of potential buyers exceeds the number of homes available. We need to see sizable growth in inventory, particularly of entry-level homes, to assure wider access to homeownership.”

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Groundfloor, a real estate lending platform that raises its loan funds via crowdfunding from the public, announced Wednesday it raised $3 million from 1,580 investors, while also doubling its annual revenue in the second quarter of 2019.

The latest capital raise builds the company’s total fundraising to $18.3 million, Groundfloor said.

It also showcases the possibility afforded by its unusual fundraising model.

Groundfloor bills itself as a “real estate crowdfunding platform that is open to non-accredited investors,” meaning that anyone is able to invest in residential real estate using the company’s platform.

It says it is the only company qualified by the Securities and Exchange Commission to offer direct real estate-based debt investments to non-accredited and accredited investors.

The company says its mission is to level the playing field in private capital markets, a goal it says it has recently met by achieving 20% ownership by individual investors, 3,160 of whom now own shares.

The Atlanta-based company then takes its crowdfunded money and lends it to residential real estate investors, specializing in lending for single-family or small multifamily home rehab and renovation loans and also providing access to short-term, high-yield returns.

In Q2, Groundfloor saw its revenue increase 139% and its number of closed loans jump 160% to more than 1,000, the company said. It did $22.4 million in retail investment volume and paid $13.2 million in principal and interest to investors, who saw an average 10.54% return.

“Our customers are showing the world how open private capital markets work in very practical terms,” said Groundfloor Co-founder and CEO Brian Dally. “We’re seeing strong growth in every metric, from loan applications to the growing base of investors who want to take advantage of our high-yield, short-term investments for as little as $10. And unlike the vast majority of growth-stage startups, we’re proud that the capital fueling our growth right now is coming from our customers, not Sand Hill Road.”

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1. Drew Brees – New Orleans Saints

The Saints still can’t run the ball and their defense is not strong meaning that Brees will be forced to pass for big yards in every game.

2. Peyton Manning – Denver Broncos

Denver plays plenty of easy defenses and the Broncos have improved their passing corps by signing Wes Welker in the offseason.

3. Tom Brady – New England Patriots

Everyone is worried because of Welker leaving, Hernandez being arrested, and Gronkowski being hobbled but Brady pencils in scrubs year after year and makes them into stars.

4. Aaron Rodgers – Green Bay Packers

The Packers are going to have offensive line issues this year, but Green Bay can’t run the ball and Rodgers will be forced to pass a lot.

5. Matt Ryan – Atlanta Falcons

Last season was the first year that Atlanta switched to a vertical passing attack and Ryan should be even better in year 2.

6. Colin Kaepernick – San Francisco 49ers

The 49ers are going to rely on Kaepernick’s arm and his legs this year and he is one of the few running QBs in the NFL that can stay healthy.

7. Robert Griffin III – Washington Redskins

Griffin III will put up big numbers as long as he can stay on the field but you have to wonder how he’ll bounce back from knee surgery.

8. Eli Manning – New York Giants

A healthy Hakeem Nicks should be all Eli needs to bounce back into the top 10 fantasy quarterback rankings.

9. Cam Newton – Carolina Panthers

Newton is a much better fantasy quarterback than NFL quarterback and he should again run for yards and touchdowns while costing the Panthers wins with his turnovers.

10. Matthew Stafford – Detroit Lions

The Lions lost Titus Young which hurts them but Stafford still has Calvin Johnson for big plays.

11. Tony Romo – Dallas Cowboys

Dallas should be a better team on both sides of the ball this year and Romo will put up stats if you don’t mind the high interceptions.

12. Sam Bradford – St. Louis Rams

St. Louis is planning on passing a ton this year and they have a number of young speedsters for Bradford to find open.

13. Andrew Luck – Indianapolis Colts

Luck should have another strong year and you have to like the fact that the Colts play numerous poor defenses.

14. Jay Cutler – Chicago Bears

Cutler and the Bears offense struggled last season but the playmakers are still around and they should rebound.

15. Philip Rivers – San Diego Chargers

Rivers is going to need to pass to keep his team in games since the defense doesn’t look very good in San Diego this year.

16. Alex Smith – Kansas City Chiefs

I have Smith higher than most and it’s because of Andy Reid’s offense that has consistently produced big passing results in Philadelphia.

17. Ben Roethlisberger – Pittsburgh Steelers

Pittsburgh will look to establish the run more this year which will make Roethlisberger more of a fantasy backup than a starter.

18. Andy Dalton – Cincinnati Bengals

Dalton makes too many mistakes but the Bengals have excellent pass catchers and this guy is also capable of running.

19. Joe Flacco – Baltimore Ravens

Flacco lost Boldin and now Dennis Pitta at tight end and he’ll struggle more without his most consistent weapons.

20. Carson Palmer – Arizona Cardinals

Getting out of Oakland and having Larry Fitzgerald to pass to should make Palmer a backup fantasy QB worth owning this season.

21. Matt Flynn – Oakland Raiders

Flynn will have plenty of speedy weapons to throw to if the offensive line can keep him off his back long enough to look downfield.

22. Josh Freeman – Tampa Bay Buccaneers

Freeman is in danger of losing his starting job and Doug Martin is the focal point of the offense but this gunslinger could be top 15 if he doesn’t get replaced.

23. Matt Schaub – Houston Texans

The Texans simply don’t pass enough for Schaub to have more value, but he’s a very consistent quarterback.

24. Jake Locker – Tennessee Titans

Locker will make mistakes, but he’s capable of making plays with his legs which helps his fantasy football value.

25. Christian Ponder – Minnesota Vikings

Opposing defenses will be focused on stopping the running game which should open up the field for Ponder.

26. Michael Vick – Philadelphia Eagles

Vick has a chance to be higher but there is really no reason to believe he starts more than 8 games since he isn’t a smart quarterback and gets himself injured regularly.

27. Brandon Weeden – Cleveland Browns

The Browns are an up and coming team and Weeden would be ranked higher if he didn’t have to face the Steelers and Ravens 4 times a year.

28. Mark Sanchez – New York Jets

The Jets won’t pass that well but Sanchez should win the starting job and be a capable fantasy backup in deep leagues.

29. Ryan Tannehill – Miami Dolphins

Miami is going to be terrible and Tannehill won’t have time to throw even with some nice new weapons available to him at wide receiver.

30. Blaine Gabbert – Jacksonville Jaguars

Gabbert has the arm strength but he lacks the football smarts and many are giving up hope he’ll acquire them anytime soon.

Source by Timothy Lakke Brown

Growth is nothing new for real estate tech company Compass. Less than a year ago, the company purchased the fifth-largest brokerage in the U.S., Pacific Union, and more than tripled its valuation in less than two years. And while that growth was recently brought into question in a lawsuit filed by competitor Realogy, the company raised $370 million in its latest funding round, the Wall Street Journal reports.

While announcing its latest funding round on Tuesday, the company shared that it increased its total capital raised to more than $1.5 billion since launching in 2012.

In November 2017, Compass was valued at $1.8 billion, and that was almost doubled from the previous year. That exponential growth has continued, as Compass now reports a valuation of $6.4 billion. This is thanks to investors such as Dragoneer Investment Group, SoftBank Vision Fund, Canada Pension Plan Investment Board and the Qatar Investment Authority, all of whom contributed in the latest funding round.

The $370 million figure is substantial, but it is not the largest sum brought in from one of Compass’ funding rounds. Shortly after purchasing Pacific Union last year, Compass announced it raised $400 million in a single funding round, the majority of the funds coming from faithful investor SoftBank Vision Fund, the investment arm of the Japanese technology company SoftBank. The company invested $450 million in Compass the previous year as well. 

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Homebuilders are stepping up to the plate and becoming landlords in the latest growing housing industry trend.

According to CNBC, more and more single-family homes are being built just to be rented out. 

Nearly a decade ago, there was a foreclosure crisis. Realtors were buying old houses and flipping them. Now, the strategy is to buy new and rent out.

This trend allows investors to buy newly built homes and continuously rent them out instead of selling again. This transformed the typical single-family rental into an ever-growing, large-scale class. Homebuilders are now catching onto the trend and building homes for rent, rather than building to sell. The cost of labor on top of the cost of land, materials and other things, make it hard to profit off the sale of a new build. 

So, they turn to renting. Developers are now building entire communities of detached, single-family homes specifically built to rent.

Toll Brothers, a luxury homebuilder, recently announced its commitment to invest $60 million in a $400 million venture that will build homes specifically for rent in seven major U.S. cities.

Lennar, the nation’s largest homebuilder by revenue, experimented with a build-to-rent community in Sparks, Nevada, and announced in July its plans to move further into the space.

Clayton Homes, the 15th largest site-builder and home manufacturer, also recently revealed its build-for-rent home communities, to be built within its market.

These homebuilders are targeting younger families who seek the more flexible method of renting homes rather than purchasing.

In January, Professional Builder Magazine said that it’s a trend, projected to continue as consumers struggle with higher interest rates, higher home prices, and a limited supply of homes for sale. Or, simply prefer to rent.

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The serious downturn and turmoil in the real estate market has made lead generation tough for real estate agents, and for many agents a closed sale is only a dim hope. Here’s how I got some of my best real estate leads for free.

You should consider the possibility of writing and publishing your own real estate blog or website. Blogs don’t have to cost anything and are enjoyable if done right. Find out where you have a unique ability or expertise as a Realtor. Draw on the expertise. Keep up to date on the subject so you find it easy to write about. Don’t attempt to fake it or you’ll lose your motivation and draw a blank when you get ready to write new posts.

Write using your ow unique skills and focus. Answer all legitimate queries from your reading audience. Become the master in this field. In your blog remember to advertise the best way of contacting you should anyone have questions. Always have a part of the page for your mailing list sign up. Your mailing list will become your most valuable source of leads so that is why it is important. Blogspot and WordPress are hand sites for making a free blog. You may want to consider spending the money on a domain and hosting to have your own domain though.

Another option is to create a website. There are lots of sources of free sites for real estate professionals these days. As with blogging, it is helpful to create the site using your own unique interests and abilities. And again, have a list sign up option for your readers. If you want more people to join in, offer them some kind of reward.

Sign up with the companies such as aWeber for email marketing service. While your list is going to make communication easier it will also be one of your best sources for generating new leads.

Most email providers offer a service where your recipient is given the option to forward your emails. If your contact refers a friend to our business, off them special services. At the end of all your emails and business cards don’t forget to mention contact details like blog, website and email addresses. In this way your blog or website is more prone to generate referrals. As said before, you must keep the content interesting and applicable to the readers.

Source by Shawn Meldrum

Mynd Property Management raised $20 million just over a year ago, saying at the time that it planned to use the money to expand its business. And now, Mynd is doing just that.

The company, which provides full-service property management of small multifamily buildings and single-family homes, announced recently that it has acquired HomeUnion, an online real-estate investment management firm.

Mynd was founded in 2016 by Doug Brien and Colin Wiel, who previously founded Waypoint Homes, a single-family rental operator that eventually grew into the largest player in the industry. 

The deal to acquire Mynd to offer more services to real estate investors. In 2015, HomeUnion announced the launch of HomeUnion Lending, which focused on lending to single-family rental investors. Later, HomeUnion became an investor in single-family rentals itself, launching a crowdfunding platform that will allow individual investors to buy into a fund that will seek to create a return by identifying single-family rental investment opportunities, improving the properties, increasing the rents, and potentially selling the properties to other investors.

Now, Mynd is acquiring HomeUnion, and the addition is one that Brien, CEO and co-founder of Mynd, said will help the company’s investors grow their portfolios. The company aims to eventually become a full-service real estate investment solution in the top 50 most investable markets in the U.S., and manage 1 million units. This acquisition moves Mynd further toward its goal, the company said. 

“Adding HomeUnion’s capabilities to the Mynd platform solidifies our position as a leader in the small residential real estate investment business,” Brien said. “Property management is a fundamental aspect of executing a successful investment.”

“We look forward to leveraging our investment experience and HomeUnion’s data and tools to help our investors grow their portfolios,” he adds.

One of these newly acquired tools is HomeUnions INVESTimate, an online home valuation tool that allows users to determine the investment potential of any home in the U.S. 

“We are pleased to be part of the Mynd team,” said Don Ganguly, president of HomeUnion. “Investors who purchase SFR homes through the new Mynd platform also gain access to the company’s high-caliber property management services and proprietary local operating data, thereby making investing accessible to a greater number of investors.”

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Falling mortgage rates have provided a welcome boost to the multifamily market, according to the latest report from Freddie Mac, which showed that multifamily investment rose in the first quarter of 2019.

Thanks to a decline in mortgage rates and an ongoing increase in net operating income, Freddie Mac’s Multifamily Apartment Investment Market Index, or AIMI, rose 2.4% in Q1.

Freddie Mac’s AIMI puts together rental income, property prices and mortgage rates to show investors how multifamily housing has changed over time.

Annually, the index’s change remained at -2.9%, which Freddie attributed to rising rates throughout 2018 and the upward trajectory of property prices.

On a regional basis, net operating income increased in every market in Q1 except New York, the report showed. But nationwide, NOI growth has been nominal, totally only 0.5%. 

Phoenix saw the largest quarterly NOI growth at 3.2%, which is nearly three times higher than the next largest increase (San Francisco at 1.1%).

Property prices across the nation grew in all markets except Seattle, the report showed. Again, Phoenix performed far better than the rest.

“The story of the multifamily asset class throughout the past decade has been one of stability and strength, and AIMI continues to illustrate this,” said Steve Guggenmos, vice president of Freddie Mac Multifamily Research and Modeling. “The index is down somewhat compared to this time last year, but overall AIMI shows a healthy market.”  

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