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Weekly Insights: Flipping Dips, Profit Strategies, and 1031 Exchange

Oct 12, 2021 2:00:00 PM

Daily Data 📈

"Home flippers see lowest profit margin in a decade" according to a recent study shared in The Business Journals.

In other words, the heat of the real estate market plus the high demand of renovation materials means low profit margins. That might be bad news for flippers, but good news for buy-and-hold investors! Take a look at just how "hot" it's been in these ranked metropolitan areas:

Graph of 6 of the top 25 hottest real estate markets

Color key for current median home value compared to 6 months previous and 1 year previousRank is based on national pricing and value appreciation over a five year period, ending in July 2021.

Visit the full deck to see how your market compares.



Guest Article: Investor's Guide to Maximizing Profits in Real Estate Investments


Today's featured article was contributed by Grant McDonald. With more than three decades of experience in the real estate industry and more than a decade in the real estate finance space, he is currently Vice President of Corporate Development at 14th Street Capital—America’s premier hard money lenders for real estate investors.

Gif of Bugs Bunny counting money in pilesIf you're engaging in real estate investing, you likely have one goal in mind: to maximize profits. And if your investment isn't yielding a 6-8 percent return, you should reconsider your investment strategy!

Here are the points to consider to maximize the profits in real estate investments. 

Read the full article here



The Take

It's easy to say that there are financial benefits and tax incentives to real estate investing—everyone does. It's harder to navigate all the ins and outs yourself so that you can actually take advantage of them! Today's take is all about helping you get one step closer to savviness. 

Preview of "The Investor's No-Nonsense Guide to the 1031 Exchange"

Click the picture above to download the Take of the week! 



The Word

Check out our recommended reading for the week: 

  • DropOffer wants real estate agents to go off-market (Housing Wire)
    • We've talked about the heat of the real estate market upping sales for unbuilt and unfinished homes. Now, it's seeping into off-market purchasing, so much so that there's a new app for just this process.
    • Why should you care? Being hip to the latest trends is just as important as knowing old-school tricks.
  • How to Unlock the Equity in Your Home (New York Times)
    • In today's guest article, Grant McDonald highlights the high percentage of Americans who own their own home, because what better place to get started as a real estate investor?
    • Why should you care? Everyone's talking about equity, but it's not just about the dollar signs. Think long term about what your property is worth to you. 
  • The Business of Airbnb, by the Numbers (Visual Capitalist)
    • If you're getting into the vacation rental side of investing, there are serious pros and cons. See for yourself with this illustrative guide to the Airbnb market. 
    • Why should you care? Using Airbnb may be a seductive opportunity, but know the numbers for yourself as you consider the short term or long term renting game—or, heck, do both! 

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