WE SECURE VACANT PROPERTY
D.A.W.G.S. (Door And Window Guard Systems) manufactures and rents attractive steel panels (Door and Window Guards) used to cover door and window openings on vacant buildings. Our vacant property security solutions eliminate break-ins and many of the other problems associated with vacant property.
Property investors, property managers, housing authorities rehabbers and real estate professionals trust D.A.W.G.S. to keep their vacant properties secure.
That’s the prediction from an increasing number of experts. The chance of recession was raised from 19% to 23% by the CNBCFed Survey as of 12/18/2018. (https://www.cnbc.com/2018/12/18/cnbc-fed-survey-chance-of-recession-rises-to-23percent.html)
One of the metrics used to determine overall expectations of the economy’s future health and growth is the yield curves of treasury bonds. The expectation in a growing economy is that a longer-term bond, like a 5-year bond, would pay more than a shorter-term bond, like a 3-year bond. This is one of the principles of economic progress: we expect the economy to be better in a year than it is currently.
However, the yield curve between 3 and 5-year treasuries inverted at the beginning of December. The 7 and 10-year treasuries have been approaching inversion all year. This means investors expect the economy to be in a worse position in the long term (5-years) relative to the short term (3-years).
Yield curve inversions have preceded all seven of the previous recessions. The good news is that not all of these inversions immediately preceded recessions. The inversion for the most recent recession from 2007-2009 happened in 2005, about two full years before the point when experts commonly agree that the Great Recession started.
The bad news: this likely means a recession is coming in the next few years. The good news: we still have time to prepare for it.
In the world of real estate investments, a recession is not as bad as it is to the general economy. Some things we should expect from a recession:
- Decreasing home values
- Increased foreclosure
- Increase in the % of renters
- Decrease in the number of home buyers entering the market
- Interest rate decreases as the Fed tries to stabilize the economy, and drive borrowing and spending
All of these can be helpful to a real estate investor looking to expand their portfolio. House prices will be lower, there will be increased supply, and a decrease in competition from owner occupied buyers.
Hopefully, this means open season for investors who are struggling with finding a deal that works for them.
However, keep in mind that financing options might change in the coming years during and following the recession. During the recession, from 2007-2009 and in the years since, banks tightened their requirements for lending, especially on investor properties. This is part of what lead to the rise of private lenders since about 2008-2010. I expect this to happen again during the coming recession.
This recession will not be the death of private lenders, but there is a shift coming. Plenty of investors currently work with small, local private lenders. This is a great strategy currently, because returns are high for both the investor and the private lender, while the risk is comparatively low. However, expect many of these private lenders to leave the industry or leave the market, as their risk will rise during the next recession. Some of their existing loans may go unpaid, and many of them may lose the liquidity of constantly making loans. If they have a $3M portfolio they can lend out, and three $200k loans go bad, they’ve likely lost their profit for the year. It becomes much riskier for them to continue business. Many of these lenders operate in the market in order to leverage funds for retirement.
Overall the coming recession means more deal options, but fewer financing options in the coming years. The good news, is that private lending will not die. The bad news is that it will go through a metamorphosis.
Lenders like RCN Capital will still be able to make loans during that time frame, and we won’t have the same restrictions that banks will.
Currently, RCN lends on 1-4 family non-owner-occupied properties, 5+ unit apartment buildings, condos, townhomes, and mixed-use properties. For a full view of the programs RCN can offer, you can view them all at this link: https://www.rcncapital.com/loan-programs/
RCN’s interest rates, closing costs, and leverage will adapt to a new market, but business will stay the same in concept.
In the spirit of preparation, reach out to private lenders now. Form the relationship with a private lender that will allow you to keep your business operating during a downturn. If RCN is a good fit for your business, you can reach out to me to get started, but if we’re not, still make sure to reach out to another lender who works better for your business.
*Article sponsored and written by RCN – https://www.rcncapital.com/
Rising mortgage rates will set the scene for the housing market in 2019. They will affect everyone, driving up costs for home buyers and creating more demand for rentals. Even current homeowners could start to feel locked into their mortgage rates.
Here’s a snapshot of 2019 Housing Market Predictions:
- Mortgage affordability takes a hit
- Rents reverse course
- Commutes get worse
- Natural disasters claim a record number of homes
- Home value growth slows
Read Full Article [Source: www.zillow.com]
It is a favorite hobby of many to watch house-flipping shows on television. You get to see everyday folks turning the worst-looking properties into beautiful homes that many people would pay top dollar for. Something about the glamour and drama of renovation just makes good television. But that’s all it really is — good television. In reality, property flipping is not as picture perfect as it seems.
Members of Forbes Real Estate Council were asked about the most common misconceptions of property flipping. If you’re in the market for a flip, consider these factors first.
Read Full Article: [Source: www.Forbes.com]
What’s the Real Estate Market Outlook for 2019?
It’s complicated. In the course of compiling its annual Emerging Trends report, the Urban Land Institute found that the onlycertainty in its outlook for 2019 was uncertainty. Expert analysis points to a more complex, multi-layered series of overlapping trends, with unpredictable results, as opposed to a few strong narratives.
Will technology offer more opportunity and enhance competition and efficiency, or help consolidate the industry and drive out smaller players? How will shifts in demographics and shopping patterns challenge current investment practices? Will the U.S. ever get a grip on its housing affordability issues?
The report, a joint project of ULI and PricewaterhouseCoopers researchers unveiled during its fall meeting in Boston this afternoon, considered the responses of more than 750 real estate professionals in creating an high-level overview of the trends it believes will impact the real estate world. While the report expects an overall economic slowdown next year, emerging trends and markets in flux that could provide new opportunities.
Discover the broad trends and innovations expected to shape the real estate industry in 2019.
Read Full Article [Source: www.curbed.com]
Buying Vacant Property
When it comes to a vacant property, beauty is often in the eye of the beholder. For neighbors, vacant properties may represent an eyesore. For savvy investors, on the other hand, a vacant property can represent a unique opportunity to land a deal. Even the most experienced investors often do not have experience working with vacant properties; however, if you know what to look for, this strategy might just land you some impressive deals.
What Is A Vacant Property And Why Should I Invest In One?
A vacant property is exactly that: vacant. The property is abandoned, and no one lives in it anymore. They can often be spotted by overgrown yards, notices on the windows, or damage to the outside of the house. In most situations involving a vacant property, the owner is separated from the home and no longer performs regular maintenance, hence the name vacant property.
The reason most investors do not go after vacant houses is not that they don’t offer unique opportunities (they do), but because more often than not investors are unaware of the scope of benefits associated with the strategy. Knowing how to invest in a vacant property can often give a leg up to investors, especially those operating within competitive markets.
Tips for Investing in Abandoned and Vacant Property
When it comes to buying vacant property, the first thing to note is that a vacant property has the potential to encounter a few more problems than usual. Since the property is sitting vacant, there may be damage from bugs, mice, or even vandalism. While these issues could create a small speed bump for your investment deal, they should instead be thought of as factors that would increase the likelihood of a sale from the owner’s point of view.
Similarly, vacant properties, like any, demand upkeep. They may fall victim to a number of issues simply by sitting untouched over a given period of time. Depending on the amount of time a property has been vacant, sellers may not even realize how much upkeep should be going into the home. For those wondering how to buy a vacant property, consider the seller’s motivation: they may be ready to part ways with the home because of their current holding costs.
Find out what you need to know to successfully invest in and profit from turning vacant properties.
Investing in vacant properties can offer a variety of benefits for savvy real estate investors. Searching for vacant properties is a great way to expand your efforts with unconventional forms of real estate investing, while still employing tactics you would use in your everyday business. You may have to spend a little more time searching for the properties and their owners, but if a vacant property deal goes as planned, you may find success using this investing strategy.
Read Full Article [Source: www.fortunebuilders.com]
Buying a foreclosed home is not like the typical home purchase. In many cases:
- Only one real estate agent is involved.
- The seller wants a preapproval letter from a lender before accepting an offer.
- There is little, if any, room for negotiation.
- The home is sold as-is, and it’s up to the buyer to pay for repairs.
On the upside, most bank-owned homes are vacant, which can speed up the process of moving in.
“Buying a foreclosure is definitely a bit of a grind. It’s not easy,” says Robert Jensen, broker and president of the Rob Jensen Co. in Las Vegas. “You’re getting fantastic pricing, but sometimes it takes going through a lot of houses and writing a lot of offers to get the home you want.”
Read Full Article [Source: www.bankrate.com]
The outlook for the single-family rentals (SFR) sector remains positive, even though deal volume is expected to remain slow according to a recent SFR Comprehensive Surveillance Report by Kroll Bond Rating Agency (KBRA).
The agency recently completed a comprehensive surveillance review of its rated universe of 22 outstanding single-borrower SFR securitization and upgraded the ratings for five of the securities issued in connection with Colony Starwood Homes that merged with Invitation Homes in 2017.
The report, which gives a detailed overview of the sector as well as the SFR securitization rated by KBRA, indicated that while the SFR rental rates have steadily increased since its issuance of the first single borrower SFR securitization in 2013, vacancy rates of the 22 outstanding securitization under KBRA have averaged 4.4 percent, a decrease from 5.1 percent last year.
“The future demand for single-family rental housing will continue to be driven by the affordability of rents relative to homeownership costs as well as the availability of mortgage financing,” KBRA said in its report. Additionally, the low unemployment rate in the current economic cycle has had a favorable impact on the SFR market.
Read Full Article [Source: www.dsnews.com]
Why Realtors Choose DAWGS to Secure Vacant Properties
When real estate owners and agents know their properties are safe and secure, they can show and sell them faster and easier than ever before. Information collected from a recent survey revealed the top 5 reasons real estate professionals choose to secure vacant properties with DAWGS steel security solutions:
- No safety concerns – When a property is secured with DAWGS, realtors feel safe showing the property. DAWGS stops break-ins, so real estate professionals can rest assured that there are no squatters or criminal activity at the property.
- No lockboxes or key management – With DAWGS coded steel doors, there is no need to coordinate keys and lock boxes. Managed access to the property means properties can be turned quicker and vacant property management is made easier.
- Maintains property value. No break-ins, no theft. Improved curb appeal and vacant property monitoring ensure the property will maintain its value and won’t compromise the value of other properties in the neighborhood.
- Streamlined approval process. Several institutional and large banking customers ask for DAWGS by name to secure vacant properties, especially in distressed neighborhoods. Securing with DAWGS speeds up the approval process.
- Faster rehab projects. If a property needs to be rehabbed prior to sale, DAWGS steel security solutions ensure materials and tools can be left in the property without the threat of theft. On-time, on-budget projects lead to higher profits.
DAWGS flexible, fast-response installation teams can put up and take down DAWGS window and door guards whenever you need them.
Securing a Property
D.A.W.G.S. (Door And Window Guard Systems) manufactures and rents attractive and cost-effective steel panels (Door and Window Guards) used to cover door and window openings on vacant buildings. Our vacant property security solutions eliminate break-ins and many of the other problems associated with vacant property.
Property investors, property managers, housing authorities rehabbers and real estate professionals trust D.A.W.G.S. to secure vacant properties.
A California-based mortgage lender recently experienced break-ins, squatters and other security issues with their Chicago property portfolio. Rather than send a representative to Chicago to coordinate the eviction and security of the properties, they turned to Chicago-based, vacant property security experts DAWGS (Door and Window Guard Systems) to completely manage the process.
DAWGS Took Care of Everything
Once the lender reached out to DAWGS, the DAWGS team of vacant property specialists managed the entire project seamlessly. The customer was able to remain out of state while a DAWGS project manager coordinated with multiple vendors on the lender’s behalf to facilitate the eviction of default tenants and empty the property.
Once the property was empty, DAWGS installed their patented steel door and window guards. DAWGS patented door and window guards prevent break-ins, while the coded-doors allow for managed access to the property. Throughout the process, DAWGS kept the customer apprised of the progress at each property through constant communication, including photographic status updates.
Because several of the lender’s Chicago buildings were multi-family properties, DAWGS secured each individual unit as default tenants were evicted. The properties were then converted to fully-secured buildings ready to be safely and securely rehabbed.
Lender Increases Profits With DAWGS
DAWGS not only provided convenience and peace of mind by remotely managing and securing vacant property for the lender’s Chicago property portfolio – DAWGS was able to decrease expenses and increase profit dramatically:
Remote management of the property enabled the lender to save time and money that would have been spent sending a representative to the property locations to manage the eviction and security process.
DAWGS security doors and window guards are made of impenetrable steel to stop break-ins. This eliminates the cost that can arise from stolen materials and contractor tools, as well as the cost that accompanies property repairs resulting from break-ins.
DAWGS coded door guards provide safe, reliable and managed access to the property. This means contractors can leave their tools and come and go as needed. Real estate agents and buyers are guaranteed access to the property – there is no need for cumbersome and unreliable lock boxes.
The result – the lender was able to rehab and sell/rent their Chicago properties in a fraction of the time by working with DAWGS.
If you have a need to secure a property, locally or remotely, DAWGS has you covered with their turnkey vacant property security solutions. DAWGS patented steel door and window guards eliminate break-ins and are Freddie Mac and Fannie Mae approved. For more information or to get started, call (877) 883-2947 or Get a Quote today.
Well, when it comes to neighborhoods, it’s something that could actually signify how much homes within itare worth. And we found the data to prove it!
Perhaps not surprisingly, the highest average home values in America were found in neighborhoods with beachy-sounding monikers, according to a recent report from Porch. The online home improvement marketplace included only names mentioned at least 25 times in neighborhoods as defined by the U.S. Census.