Supply and demand...
The central PA residential housing market, in particular multi-family and single family investment properties, is experiencing increasingly strong demand which is creating upward price pressure and driving housing inventories lower. US Census data projects the total number of renter occupied housing units in central PA will continue on its upward trajectory over the next four years. Increasingly difficult mortgage qualification guidelines coupled with slow income growth and a lack of savings make accumulating down payment money difficult, and rents have continued to rise in many cities. In fact, 9 of the 11 largest metro areas have more renters than homeowners. These dynamics are extremely advantageous for real estate investors looking to capitalize on buy and hold investment properties.
Let it Rain Hard Money!!!
One strategy we like to employ is identifying hard money lenders that specialize in long term lending. Hard money lenders are primarily asset based lenders, and while they may not give you the 75-90% LTV that a traditional bank would, a 60-70% LTV will still provide the capital you need. You will also find the underwriting process is much less painful and more streamlined.
The outcome of utilizing hard money and private lenders equals less time spent on administrative tasks and paperwork and more time to find your next deal!