The Effect of Interest Rate Hike on the Housing Market

Well, it finally happened. On December 13, 2016, the U.S. Federal Reserve announced a 25-basis-point hike in its benchmark federal funds rate and indicated that it expects three further increases in the coming year. It was a decision long-expected. After all, it had been a full year since the Fed’s previous rise of a quarter point. But, like any interest rate hike, the decision was made after much consideration. Whenever the Fed hikes interest rates, there’s always the fear that it will throw the economy, and especially the fragile housing market, into a tailspin. The Interest Rate Hike Should Have
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Potential Impact of New Government on Real Estate

With the presidential election behind us, commercial and residential real estate developers everywhere are wondering how a Trump administration, led by a fellow real estate developer, will affect their industry. So far, Mr. Trump’s policy platform has been largely vague on issues related to real estate. Understanding how the new administration policies will affect the real estate market is critically important to everyone. We all occupy a space in this major sector of the economy, whether it’s as a buyer, seller, renter, landlord, or homeowner. Let’s take a look at how a Trump administration could affect the real estate industry
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Ten Tips for Getting Started in Real Estate Investing

You’re interested in getting started in real estate investing, but you’re not sure how to start. You’ve watched your share of the real estate shows on HGTV, and you find it appealing, but how do you transition from watching on the couch to actually owning an investment property? Is it as easy as they make it look on TV? (Spoiler alert: No.) Here are some helpful tips that will get you started as a real estate investor. 1. You don’t need to be an expert to get started. It’s easy to get bogged down in research; there are hundreds (possibly
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Richmond Real Estate Investing Predictions for 2017

The city of Richmond, Virginia has experienced a boom housing market in 2016, according to real estate conglomerate Zillow, and one of the big reasons for this impressive housing growth is a powerful and diverse economy, which the city has enjoyed throughout the year. Income in the city has grown at a rate of 1.2%, with a low 4.4% unemployment rate, all of which has contributed to steady performance in the sectors of education, finance, government and manufacturing. In fact, Richmond has emerged in 2016 as the fourth hottest housing market in the country, trailing only the high-tech centers of
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Where to Find Good Real Estate Investment Properties in the Richmond VA Area

In order to be successful as a real estate investor in Richmond, you must learn how to find good real estate investment properties.  The first step of that process is knowing where to start your search. As you may remember, in my last blog post I taught you about the four stages in the evolution of a real estate investor. Where you fall in those four stages will determine where you need to start looking for investment properties. If you fall in the first two stages—in other words, if you are a bird dog or a wholesaler—then you need to
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Three Advantages of Buying Property From a Wholesaler

When real estate investors go about acquiring an investment property, there are several approaches they can take.  One is for them to go out and find a good investment property themselves, and another is buying property from a wholesaler. While there are some advantages for investors who find a property themselves (such as being able to purchase the property at a lower cost), there are also a lot of downsides.  In fact, if you’re an investor buying property from a wholesaler might make a lot more sense.  Here’s three reasons why: No marketing required Finding and acquiring good investment properties
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How Much Do Home Repairs Cost?

As a real estate investor, one very important skill you must develop is being able to judge fairly accurately how much home repairs will cost.  Based on my personal experience, I’ve developed rules of thumb that I use to estimate repair costs, which I will share with you now. Keep in mind that these are conservative numbers, and in many cases the costs may end up being lower.  I like to err on the side of caution so that when unexpected problems occur, they don’t eat in to my profits, since I budgeted for dealing with those problems. Also, you
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Four Great TV Shows for Real Estate Investors

If you have even a passing interest in real estate investing or rehabbing homes, you have no doubt seen some of the many TV shows for real estate investors on HGTV on the subject. While it’s never a wise idea to educate yourself on any subject just by watching TV, there are still plenty of things a novice real estate investor can learn from these shows even if they are intended as entertainment. If nothing else, they provide a great introduction to some of the ins and outs of real estate investment and flipping homes. There is no shortage of
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Evolution of a Real Estate Investor

Like any other field, in real estate investing there is a path that most people follow to first “learn the ropes” and then climb the ladder to the top.  If you are a new investor or are thinking about getting into real estate investing, your career progression will probably follow this path. Here’s a quick snapshot of what the evolution of a real estate investor typically looks like. Step 1: Bird Dog A real estate bird dog or property locator is someone who helps a real estate investor find properties to purchase.  Typically, if the investor purchase a property that
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