Is Now the Time to Invest in Real Estate in Connecticut?

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Why Investing in Real Estate is a Good Investment

When you want to invest in real estate, it can be profitable for those looking for passive income and for a venture that appreciates over the long term. Many investors are switching from trading stocks to buying property, and it’s easy to see why. Owning an investment property provides benefits not seen in other assets such as net cash flow, tax benefits, easy diversification, leveraging, and much more. 

If you’re ready to start profiting off of real estate in Connecticut, Turning Point Realty is here to help. Our experienced group of realtors is known for our work with first-time buyers, and we will make sure that you find a profitable investment while lowering your risk and liability. 


investor property in torrington connecticut
If you’re ready to start profiting off of real estate in Connecticut, Turning Point Realty is here to help. Our experienced group of realtors is known for our work with first-time buyers, and we will make sure that you find a profitable investment while lowering your risk and liability.


Real Estate Investing for Beginners

Do you want to invest in real estate? It is something that everyone can do. An investment property is easy to purchase and finance. Additionally, there aren’t many overwhelming financial roadblocks to begin investing. When you are ready to buy your first investment property in Connecticut, Turning Point Realty LLC will be glad to help you with the process.

Once you understand the basics, real estate investing for beginners can be as simple as playing a game of Monopoly. To win or increase your profits, you must buy properties, steer clear of bankruptcy, and procure rent to buy more properties. However, just like the game, there are risks in real life. These risks can lead to minor inconveniences or significant disasters if you’re not careful.

Common risks new investors face:

It’s a good idea for beginners buying property to hold their investments through a legal entity such as a limited liability company. These legal entities help protect your assets in case of a lawsuit, which means the worst-case scenario is you would lose your initial investment. 

Sellers and Buyers are Both Optimistic in Today’s Market

Seller and buyer optimism is being boosted by the recent stimulus package and the COVID-19 Vaccine becoming more widely available. The Fannie Mae Home Purchase Sentiment Index (HPSI) is used to show consumers’ current outlook and expectations of the housing market. From February to March, it jumped from 76.5 to 81.7. This meaning there’s an increase in home buying and selling conditions, consumer income, and home prices. 

Fifty-three percent of consumers have said that it’s currently a good time to buy a home. Furthermore, the spring homebuying season is upon us, meaning that more people are buying property. Since it was cut short due to the pandemic, the season is expected to have even more intensity this year. As we are nearing the end of lockdown restrictions, the economy is returning to its previous levels, and as a result, buyers have more money to invest in real estate.

Conversely, many consumers also believe that it’s an excellent time to sell. This is because of the high price and low supply levels taking place in the market. According to the HPSI, 61 percent have expressed that now is a good time to sell homes. This is a significant increase from 55 percent in February.


Rehab Loan


What Questions Should You Ask Your Agent When You Want to Invest in Real Estate?

An experienced investment agent can put you on the right track to mitigate risk and maximize your profits. A lot of money is put at stake when going through the process of buying a property. Since investing in real estate is a complicated process with high costs, initial investors need to work with an experienced real estate agent.

A real estate mentor is the key to success in the competitive and ever-changing market. Your mentor is a gold mine of knowledge. However, their value is left untapped if you don’t know what questions to ask. When working with a mentor, you should ask questions about their experience, what to look for in a property, and what strategies work best.

Here are some essential questions to ask your realtor when buying an investment property:

  1. Do you see any red flags with this house?
  2. What offer should I start the negotiation with?
  3. What concessions should I ask for from the seller?
  4. Should I put down a deposit for this property?
  5. What if the appraisal comes in low?
  6. How much are the closing costs?

What is a Rehab Loan? 

Rehab loans give investors the ability to buy a home and fund any upgrades, renovations, or repairs needed. Buying a home that needs to be repaired or renovated can be a costly process. Many folks don’t have the funds to make these repairs. However, an FHA 203k rehab loan is designed to cover the acquisition and renovation of a home, allowing buyers to invest in properties that they can’t pay for out of pocket. Additionally, a 203k rehab loan can have a single, long-term, adjustable, or fixed rate meaning that it’s beneficial for both the borrower and lender. If you are looking to rehab houses, an FHA 203k rehab loan will save you time and money. 

Rather than purchasing a turnkey property, investors should consider taking out an FHA rehabilitation loan to buy a home that needs renovations. Rehabbing houses is an excellent way to make long-term profits. For example, if you find a rundown rental property for sale, flipping it will accumulate earnings for years to come. Fixing-up rental properties will give you a steady passive income compared to a turnkey property with a lump-sum profit. 

Final Thoughts

As pandemic regulations are being lifted the real estate market is growing. Consumers have an optimistic outlook on the market, with over half saying that now is a good time to buy a home. Furthermore, since inventory is low, you can get great profits from buying a home to rehab and re-sell using an FHA rehabilitation loan. If you’re ready to profit off of today’s hot market Turning Point Realty is the best firm to go to. Our team will show you what to look for in an investment property. They will also show you the steps you need to take to earn money from it. 

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