Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: Ways to Find a Partner for Your Real Estate Investments!

Here are several ways to create value that you can offer a new real estate partner. Ways to Find a Partner for Your Real Estate Investments!

How to Win Over a Partner in Real Estate

1) Interest on Money

If your partner is investing money into the deal, you can offer them equity—but also interest on their money. This gives them two revenue streams from this partnership. The interest can be paid out as interest only, a lump sum, or monthly principal and interest payments.

For example, in my first deal, I took on a partner who put up the funds to purchase a duplex with cash. We each received 50% of the cash flow but he also received a monthly principal and interest payment. We set up an amortization schedule for his investment to be repaid over 15 years at 5.5% interest. There was also the option to refinance with a bank and to pay him off at any time.

2) Real Estate Tax Benefits

Depreciation, capital gains tax, pass-through deductions for losses, deferred capital gains, and tax write-offs for real estate investors are benefits that not all potential partners may realize. It is important to point these out—tax savings are a big benefit of real estate investing!

3) Regular Payouts

By offering monthly payments, you could be helping your partner substantially with their investment. Communicate this early on and see if this is something they would be interested in. This could correlate with paying out an interest payment if they put money into the deal. Making it clear that your partner would be receiving a monthly payment for a rental can be enticing. Who doesn’t love mailbox money!

When you put together your partnership, you can structure it to provide opportunities for your partner to earn extra money from the relationship, too. Put together a fee schedule—if a partner completes that task, they are paid out of the partnership. This would be paid out over and above cash flow.

4) Knowledge

If you are reading this, you have probably already emerged yourself in podcasts, books, blog posts, and forums on real estate investing. Knowledge is an amazing asset to a partner. There are a lot of people who want to invest in real estate but don’t have the time (or want to put in the effort) to actually do the research. Because of this, they have yet to get to a place where they feel comfortable doing it on their own.

Heck, even people who have done tons of research can get stuck in analysis

Reading, listening, and absorbing information is great, but you can also get hands on experience, too. Find a part-time job that will pay you to be a leasing agent, fulfill maintenance requests, or assist a real estate agent. There are many side hustle jobs you can do in real estate that will give you access to a network of people, documents, the market, and regulations.

Don’t forget about offering your services as an intern to someone. I like the idea of getting paid while gaining experience, but there are a lot of things you can do right from home to benefit an investor. Partners may come knocking at your door once you’ve acquired a few successful partnerships and can share that knowledge.

5) Time

Time may be something you can offer someone who has a lot on their plate. Many who want to invest in real estate don’t have time to take a deal from start to finish. That is where you could come in! Make it as much of a passive investment for them as you can.

The Bottom Line

These are simply five of the main things you can offer a new real estate partner, but keep in mind that there are many more. Everyone has different skillsets when it comes to real estate investing. Determine the assets you have to offer to reframe the beginning of a new partnership. Ways to Find a Partner for Your Real Estate Investments!


The inspiration for today’s edition came from this original article:

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: MI Cancellation Explained!

Being able to cancel mortgage insurance is a huge selling point for you as a lender. As you’re talking to borrowers that might be considering MI in order to finance a home, talking about the benefits of MI – especially the fact that it’s cancelable – can help them feel more comfortable about having MI on their loan. MI Cancellation Explained!

However, there are many LTV points and guidelines that you must understand to be able to explain how and when your borrower can cancel their mortgage insurance.

MI cancellation and termination can be confusing, so let’s break it down to help you master the topic.

What is the HPA

The Homeowners Protection Act of 1999 is also commonly referred to as the PMI Cancellation Act. It was passed to protect consumers from overpaying for private mortgage insurance.

Within the HPA, there are guidelines for determining a few things:

  1. When borrowers can request to cancel their PMI and stop paying premiums
  2. When lenders must automatically stop charging borrowers for PMI (automatic termination)
  3. Disclosures that lenders must provide when a loan requires PMI
  4. How MI companies must handle unearned premiums that homeowners pay

The guidelines set out by the HPA apply to single-family primary residences that were purchased with a loan requiring borrower-paid mortgage insurance (BPMI).

When can my borrowers request to cancel their MI under the HPA?

There are two key numbers to remember when it comes to cancelling or terminating MI under the HPA: 80% LTV and 78% LTV.

80% LTV: Borrowers can request to cancel their MI when their loan LTV is scheduled to reach or actually reaches 80% LTV of the original value of the property.

78% LTV: Servicers must automatically terminate MI when the loan reaches 78% LTV of the original value of the property

There is one more cancellation point to know about – final termination. When the MI does not get cancelled or terminated due to the previous two provisions, the loan servicer must terminate MI charges after the loan reaches the mid-point of the original amortization schedule.

What’s the difference between original and current value?

You might have noticed that the LTV points we mentioned above were tied to the original value of the property. This is the value of the home at the time of origination. The HPA defines it as the lesser of the sales price of the secured property as reflected in the purchase contract or the appraised value at the time of the loan’s origination.

While the HPA bases the cancellation date LTV calculations on original value, some investor guidelines base the cancellation date LTV calculations on current value. This is the value of the appreciated home based on home improvements or increase in value in the area in which the property is located.

How do my borrowers cancel their MI subject to HPA?

If the borrower is requesting cancellation, they need to contact their servicer in writing around the time the LTV of the loan will reach 80% of the original value to request that the MI be cancelled. Your borrowers can find their servicer on their mortgage statement.

Again, servicers are required to terminate PMI once a current loan, subject to HPA, reaches 78% LTV or the mid-point of the scheduled amortization.

What other requirements must my borrower meet to have their MI cancelled?

There are a few other requirements your borrowers will have to meet to be able to request to cancel their MI:

* Be current on payments

* Have a good payment history – no 30-day lates in last 12 months and no 60-day lates in last 24 months

* Satisfy requirements of loan holder – 1) value of property has not decline below original value and 2) property is not subject to a subordinate lien

While this might not be something you get into with a borrower at the time of origination, it’s possible that your borrowers could come back to you close to the time when they can cancel their MI to ask you what other requirements they must meet.

Are there ways my borrowers can speed up the time to cancel using original or current value?

Here are some helpful tips to help borrowers speed up their time to cancel their MI:

* Pay ahead on their mortgage

* Invest in home improvements to increase the value of their home

* Check their property value to see if it has increased

* Refinance with an LTV under 80%

Is there anything else I might need to know about MI cancellation?

The rest of this information is in-the-weeds and more related to your borrower’s servicer requirements.

  1. Servicers must complete an escrow audit each year to alert borrowers to their amortization schedule status. They must also alert borrowers if they will be eligible to cancel the coming year based on the loan’s scheduled amortization.
  2. Loan servicers must alert the borrower when their PMI is canceled as MI companies such as Genworth send refunds to the servicer, not the borrower.
  3. Servicers are required to refund any unearned MI premiums to the borrower within 45 days of the cancellation notice. Genworth refunds any unearned premiums to the servicer within 30 days of receipt of the cancellation notice so servicers can meet that obligation. MI Cancellation Explained!

The inspiration for today’s edition came from this original article:

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: Investing for Equity vs. Cash Flow: Which Is More Important?

And by “equity,” I primarily mean built-in equity (i.e., buying properties under market value). Of course, if you buy a property under market value in Orange County or New York, it probably still isn’t going to cash flow. You’d either have to flip it or hold it at a loss with the hope that it appreciates. Investing for Equity vs. Cash Flow: Which Is More Important?

As with most things in real estate, your primary focus depends on your situation and goals. But in this instance, for most people, most of the time, focusing on one goal is better.

Is It Better To Have Equity or Cash?

First and foremost (and something you might be wondering), why not both?

You should definitely aim for a property that has both a significant equity margin up front and good cash flow. Additionally, seek out a property in a decent area that will be relatively easy to manage and has a good likelihood of appreciating.

But like the Rolling Stones song says, “You can’t always get what you want.”

Choices have to be made, and you will need to consider one criterion or the other more significant. Generally speaking, the more important thing should be to go for built-in equity. But there is one noteworthy exception. This exception probably only applies to about 0.1% of investors, but it’s still worth a mention.

When Cash Flow Matters More

Most years, I attend an event called the IMN Single Family Forum (I wrote about one such experience here). A bunch of mid-sized investors like myself attend, but the events are dominated by large, institutional firms that buy 100-unit portfolios on a routine basis (or lend to them or provide services for such companies).

And for institutional investors, cash flow is the name of the game. They are constantly talking about gross yield (annual rent divided by the price of the properties) and what their “buy box” is (what range they’ll accept for the gross yield of a portfolio).

These firms need to hit a certain return for their investors. For example, a fund might estimate an 8% return for its investors or an insurance company may estimate it needs a 9% yield to cover their expected losses. For these types of Wall Street firms, built-in equity is nice, but cash flow is the name of the game.

When Equity Matters More

Most of us on BiggerPockets (and in real estate in general) are entrepreneurial investors, though. I certainly am (or would at least like to think of myself as such). We don’t have to hit a specific percent return for our clients since we don’t have any. Thereby, we can focus more on getting a deal with a large chunk of equity up front than on satisfying a client’s yield requirements.

Buying with built-in equity allows us to BRRRR a property, get all (or most) of our money out, and repeat the process more quickly than we would have otherwise. Even if the “otherwise” here involved a house with better cash flow. Furthermore, it’s built-in equity that protects us from the dangers of leverage and allows us to take advantage of its upsides (which are very big).

As I mention frequently, the IDEAL acronym (I: Income, D: Depreciation, E: Equity, A: Appreciation, L: Leverage) is a great explanation for why real estate is such a good investment:

If you buy a property for $100,000, but get an 80% loan, you only put down $20,000. Now if the property goes up in value by 5%, your return is actually 25% ($5,000 / $20,000). Which is a huge return.

Now yes, leverage is a two-edged sword. Real estate can go down, which would lead to a 25% loss… But if you get a good deal, that insulates you from the risk of leverage.

For example, if you buy that hypothetical deal above for $100,000, but the property is worth $120,000, you have a $20,000 cushion right off the bat. If the property goes up in value by $5,000, you made 25% (assuming you got an 80% loan). But if it goes down in value by $5,000, you still have $15,000 of built-in equity and haven’t lost anything.

This doesn’t mean that cash flow doesn’t matter. You still need to buy properties that cash flow. There are a few occasions when the trends in an area are so strong it makes sense to hold a property even if it bleeds each month. But these instances are few and far between and should only be done with a small percentage of your portfolio. Going big on properties with negative cash flow is, more or less, just speculating.

However, entrepreneurial investors can pound the pavement and find the gems that slip between the bristles of the broad brush institutional investors use. This allows us to take advantage of the inefficient real estate market by finding motivated sellers, value-add opportunities, and mislisted properties (most often by institutions). This is the big advantage that entrepreneurial investors have and the biggest reason real estate is, in my judgment, the best way for someone of modest means to become independently wealthy.

And it’s equity that makes you wealthy. Cash flow is just the cherry on top. Investing for Equity vs. Cash Flow: Which Is More Important?

The inspiration for today’s edition came from this original article:

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: 2021 Texas Housing & Economic Outlook!

The COVID-19 pandemic is unlike any disaster the economy has experienced before. Neither the Great Depression nor any recession over the past two centuries caused such a steep economic decline in such a short time. Economic activity rebounded during third quarter 2020 after contracting sharply the previous quarter because of shelter-in-place restrictions. However, the recovery’s strength and pace slowed by the end of the third quarter due to the incomplete reopening of the economy, fiscal stimulus dissipating, and uncertainty regarding the pandemic’s future. Prospects for the economy’s reopening and recovery took an additional hit at the end of 2020 as the number of cases and deaths rose at an alarming rate. 2021 Texas Housing & Economic Outlook!

Health outcomes will obviously be key to economic recovery in 2021. The pandemic is expected to be under control by the end of the year, in large part because of the distribution of the Pfizer and Moderna vaccines across the U.S. during the first of half of the year. This will allow for a gradual reopening of economy, especially in the service sector.

The $900 billion COVID-19 Relief Bill approved during the final days of 2020 included direct stimulus checks, payment protection programs to small businesses, and rental assistance. These measures are intended to provide an income bridge for businesses and consumers and help them until the economy can fully reopen.

In addition, interest rates will continue at low levels because of low inflation expectations and the Federal Reserve’s current monetary policy. The U.S. economy is projected to register slow growth during 1Q2021 and accelerate afterward due to effects of the vaccinations and the stimulus bill.

The economy could look different coming out of the pandemic as some changes become permanent. Because this recession was caused by a health catastrophe, the recovery path could be different than that of previous recessions. Consumer and business safety expectations will play an important role in the economy’s full reopening.

Single-Family Housing

The 2021 housing market will be characterized by strong demand with low inventories accompanied by positive price growth. Inventories of homes priced under $300,000 will be especially low, affecting sales in that price range. Price growth will be positive because of stable demand. Low-skill/low-wage earners were hurt the most economically, and they are typically renters, not homebuyers.

Demographic trends, such as aging millennials and migration from out of state, will help drive Texas housing demand in 2021.

Homebuilders are trying to satisfy demand in the lower price cohorts by building homes in the suburbs or outer city borders where land costs are lower. This trend was prevalent before the pandemic but has accelerated during COVID-19.

Monetary policy implemented by the Federal Reserve, low inflation expectations, and slow economic growth are expected to keep mortgage rates low. Mortgage refinancing, however, will slow as lenders add more requisites and the pool of households able to refinance diminishes.

According to the Mortgage Bankers Association, 2.7 million homeowners (5.5 percent of all home loans) were in forbearance as of Dec. 13, 2020. The share of homeowners who will be able to make their mortgage payments once forbearance ends is unknown, but the Texas Real Estate Research Center expects delinquencies and foreclosures, which have so far been kept low by government policy, to increase during the year.

The Center’s estimated 2021 single-family percent changes for the state and the major Metropolitan Statistical Areas (MSAs) are shown in Table 1.


Apartment Market

The fiscal stimulus bill passed in December alleviates some of the apartment market’s issues in 2021. It included direct payments of up to $600 for every adult and child, and it provided $25 billion in rental assistance to tenants with unpaid or overdue rent. It also extended a federal eviction prohibition through the end of January 2021. The incoming administration is expected to renew that prohibition.

The number of tenants who will be able to pay rent going forward is unknown because many renters are jobless, and the ability to pay rent depends on their earning wages or receiving unemployment benefits. This affects landlords’ ability to cover operating costs and make mortgage payments on properties.

The apartment market outlook is worrisome due to the uncertainty surrounding the ending of the eviction moratorium and the dissipation of the fiscal stimulus.

The Center’s estimated 2021 apartment market percent changes for the state and the major MSAs are shown in Tables 2 and 3.


Commercial Real Estate

Trends already prevalent before the pandemic, like working from home and purchasing goods and services online, accelerated in 2020. Remote working took a toll on office vacancy rates and rents even though not everyone could work from home and the amenities some offices provided could not be duplicated at home. Also, relationship-building and networking are difficult when working from home. These elements contradict the idea that on-site office work will disappear in the foreseeable future.

The pandemic accelerated the process of performing some high-tech jobs from home and of doing business online. It created an incentive for the building of more satellite offices in the suburbs or in other cities with lower density, resulting in fewer employees in central downtowns or other high-density areas.

Employees who permanently work from home or move to lower-cost cities may face cost-of-living pay cuts, eliminating the financial gains from working from home or relocating.

Retail was hit the hardest as some businesses were unable to accommodate consumers’ sudden shift from brick-and-mortar shops to e-commerce. On the other hand, the industrial sector benefited from the shift to e-commerce and the accompanying need for additional distributive and warehousing centers closer to the consumer.

Moving forward, companies will want to spread their risk geographically and minimize the impact of a local problem such as another pandemic outbreak. Warehouse’s strong recent demand could lead to some overbuilding in the future, driven by increasing investor interest in the sector.

During and after 2Q2021, commercial real estate will benefit from the federal government stimulus enacted during the final days of 2020 and the wide distribution of the vaccines.

Based on these expectations, office occupancy will probably not improve significantly until the second half of 2021 when employees could start returning to the office safely. Only then will the effects of remote working be apparent to the office sector. Still, the office market has been exposed to some pervasive underlying changes in the work environment that are not yet fully evident. Given the longer-term nature of office leases, the pandemic’s full impact on the market may not be evident for a couple of years.

Retail will probably continue to consolidate/contract in 2021. Retail that is more convenient, attractive, pleasing, engaging, or even entertaining may flourish.

Industrial will continue to benefit from e-commerce growth during 2021.

The Center’s estimated 2021 percent changes for commercial space in Texas and the major MSAs are shown in Tables 4, 5, 6, and 7.


Oil and Gas

Oil and natural gas demand is expected to recover in 2021 as the global and U.S. economies rebound from the pandemic. Oil prices could be higher than $50 per barrel because of improvements in economic activity. However, prices in the $50-$60 range will not be enough to create significant employment gains or overall economic improvement. In addition, the incoming administration’s clean energy policy will be a major headwind for the industry.

As it did in the commercial sector, COVID-19 accelerated trends already prevalent in the energy sector and will affect future industry growth and employment. These trends include the rise in environmentally and socially responsible investing and consolidation in a low-price environment. 2021 Texas Housing & Economic Outlook!

The inspiration for today’s edition came from this original article:

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: These Are the Best & Worst Investments for 2021!

Out of everyone surveyed, 27.33% of Americans found real estate to be the safest investment in 2021. Following a tumultuous year in the housing market, Americans view property to be the most secure and stable investment. These Are the Best & Worst Investments for 2021!

Interestingly, women were more likely to view real estate as a better investment than men. Based on the survey results, with demographic filters applied, 30.7% of all female respondents indicated that they had the most confidence in real estate. Conversely, only 23.7% of all male participants chose this option. Women 55-64 years old were the strongest cohort in favor of real estate with 33.6%.

Instead, 27.9% of men felt that stocks and bonds were the safest investment and their preferred asset in 2021. Only 22.7% of females agreed. Furthermore, 31.1% of men ages 55+ found stocks to be the safest investment.

“This survey provides vital and compelling analysis into which assets investors have the most confidence in, now that we’re in the throes of the COVID-19 pandemic,” stated John Karr, COO of Sophisticated Investor.

The reasoning for the gender divide isn’t entirely understood, but some surveys in the past have found women to be more patient and risk-averse when choosing investments, making real estate the more sensible option.

Among the other asset options, gold and silver placed third, with 18.24% of survey participants voting in favor of it. Savings accounts came fourth, with 10.74%. The emergence of cryptocurrencies in recent years led to 8.66% choosing this option. Finally, fixed annuities (5.47%) and U.S. Treasury bills (4.37%) rounded out the list as the least favored assets this year.

The Bottom Line

With 2020 being one of the most unpredictable and unprecedented years on record, it’s hard to imagine what will happen in 2021. It will be interesting to see how this year’s economy shapes up with a new presidential administration and vaccine distribution growing by the day.

While you can never be sure whether investments will pay off, historically, real estate has generally proven to be safer than other securities. These Are the Best & Worst Investments for 2021!

The inspiration for today’s edition came from this original article:

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: Will Americans’ Finances Survive the Pandemic?

Of course, we do need to take all of these types of studies, surveys, and statistics with a grain of salt. For example, back in April, The New York Times ran a piece claiming 31% of tenants could not pay their rent next month. Thankfully, that did not come to pass. Will Americans’ Finances Survive the Pandemic?

And while many states have eviction moratoriums in place right now—which when lifted, will almost certainly amount to a significant uptick in evictions and foreclosures—the 2008-like tsunami many were predicting is unlikely to come. Hopefully, the latest stimulus package that was passed will help tide Americans over (despite the pork in it) without contributing too much to the increased inflation that is bound to come.

That being said, although it’s worth pointing out the hyperbole and fearmongering out there, it’s no understatement to say the pandemic and lockdowns have hurt Americans badly. Visual Capitalist sums it up well noting:

* 57% of consumers’ incomes have taken a hit in the past seven months

* 70% have delayed discretionary spending on big purchases

* 75% continue to be very worried about their future financial health

Furthermore, it points out that,

“Unsurprisingly, worrying about personal finances also means that more Americans are deferring their bill payments during the pandemic. However, these vary depending on the type of bill, total amount, and immediate urgency.”

Unfortunately, the analysis offers no baseline from previous years for comparison. Nor does it specify whether these payments were eventually made up (i.e., paid late) or permanently skipped. This has been extremely common among these sorts of reports.

One analysis from the National Multifamily Housing Council does keep running data, which makes it easier to compare. According to their information, in December 2019, 93.2% of tenants paid rent. In December 2020, it was 89.8%. (For November 2019 and 2020, the gap was closer—91.9% and 90.3% respectively.)

Sure, this is a noteworthy difference (3.4%), but it doesn’t qualify the scary headlines we have seen in many publications.

A more likely trend is that people are reducing their expenditures by dropping various services. DoxoINSIGHTS’ study also looked into whether people are likely to skip various payments in the future (or drop those services if they can).

I anticipate a lot of Americans will stop paying for their alarm, drop their health insurance or life insurance, or at least stop subscribing to things likes Hulu, Netflix, or Amazon Prime. Hopefully, these types of sacrifices will only be for the short-term, but we shall see.

I don’t expect 28% of Americans to miss their rent as the report suggests. But I do suspect many are worried about it, as they don’t have much in savings. Per the report, while about half of Americans have at least three months of savings, just

Of course, this doesn’t take into account the ability of people to ask friends or family for assistance or receive charity or government help. Even still, it is highly concerning that a full 35% of respondents believe they have less than one month of savings.

Again, I urge caution with all of these surveys and studies coming out. The economy is unlikely to completely collapse. but we are likely to see inflation, slow growth, and a noteworthy increase in both foreclosures and evictions. Furthermore, the average American has taken a hit, many small businesses have been hurt badly or gone under, and wealth inequality has increased substantially, which will likely continue to increase political instability.

In other words, while things are better than they were in April, things still aren’t good. I would definitely not tell people to simply sit on the sidelines and wait right now. But as I recommended back in April, it’s still wise for real estate investors to proceed with caution. Will Americans’ Finances Survive the Pandemic?


The inspiration for today’s edition came from this original article:

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: The Rise of Remote Real Estate Investing!

Remote real estate investing lets you overcome the limitations of your local marketplace by owning rental property in areas with more opportunities and higher returns. In this article, we’ll explain how remote real estate investing works, why the market is growing, and tips for remote real estate investing success. The Rise of Remote Real Estate Investing!

What Is Remote Real Estate Investing?

Remote real estate investing is similar to today’s growing work-from-home trend. You no longer have to be in the office to work, so why do you have to buy real estate in the same city that you live in?

Thanks to remote real estate investing, the answer is that you don’t have to. Investing in real estate remotely gives you access to more profitable opportunities across the U.S., in housing markets where economic growth is robust and property prices are still affordable.

Here’s a quick overview of how it works:

* Own rental property in another city or state from where you live without geographic limitations.

* Hire a local property management team to handle details such as leasing, maintenance, and rent collection.

* Monitor your local team and property performance via periodic video conferencing, emails, phone calls, and review of monthly financial statements.

Why Remote Real Estate Investing Is Growing

Over the last five years, the number of out-of-state real estate investors has increased by almost 8%—and for good reason. In many real estate markets today, housing prices are reaching all-time highs, property taxes are on the rise, and anti-landlord legislation like rent control laws has been enacted, all of which are helping to drive the growth of remote real estate investing.

Per data from Roofstock, many of the investors buying property elsewhere live in states like California, Washington, New York, Texas, Florida, and Illinois. And we see these customers buying in states like Missouri, Indiana, Mississippi, Texas, Tennessee, Alabama, and Georgia.

There seem to be several reasons remote investing is on the rise:

* Investors can earn higher yields in other markets, especially those living in high-priced markets on the East and West Coasts.

* High real estate prices in many local markets make it nearly impossible to begin investing in real estate without a large amount of capital.

* Remote real estate investing makes it easy to diversify investment portfolios instead of putting all of your eggs in one basket—the same strategy as a stock portfolio.

You’re also seeing a plethora of tech tools simplifying remote investing:

* Online listing platforms designed for the remote real estate investor

* Drone photography, 3D pictures, virtual tours, and augmented reality

* Digital transaction services to review, sign, and notarize documents online

Remote Real Estate Investing Pros and Cons

Although remote real estate investing is growing, buying rental property out of state isn’t necessarily right for every investor. Here are some of the top pros and cons of remote real estate investing to consider before you invest.

Pros of Investing Out of State

* Overcome geographic limitations with a wider array of investment opportunities nationwide

* Earn bigger potential returns by investing in out-of-state markets with affordable prices, higher yields, reduced competition, and lower property taxes

* Diversify your investment portfolio to minimize risks from local economic downturns and natural disasters

* Avoid unnecessary distractions such as emotional attachment to property and personal friendships with tenants

* Passive income is at its best with hands-off investing, allowing you to focus on scaling up your property portfolio

Cons of Investing Out of State

* Time needs to be spent up front analyzing markets in detail to avoid buying rental property in the wrong location

* Risk of overlooking a needed repair or property defect if you’re not physically at the property

* Challenge of finding a qualified property manager and leasing agent who will help your investments grow once your property is purchased

* Passive hands-off investing and turning daily details over to others can be uncomfortable for micro-managers who insist on always being involved

* Failing to realize there will always be a learning curve with new markets, your local real estate team, local economies, and landlord-tenant laws

How to Successfully Invest in Real Estate Remotely

Remote real estate investors can purchase newly-built homes, rehabs and foreclosures, flip houses, and even vacation rental property. However, one of the most tried and true methods to invest in real estate remotely is by purchasing single-family rental property. That’s because the market is so large and the anticipated future demand is so strong:

* Single-family rentals are a $3 trillion market

* 16 million single-family rentals currently in the U.S.

* Over 13 million new rental households forecast over the next 10 years

No matter where or what you invest in, there are several things to keep in mind before you buy real estate remotely to make sure your business starts right and keeps growing strong.

Tips for Remote Real Estate Investing Success

First and foremost, real estate is a people business. Investing in rental property is as much about who you know and what you know. So, make sure to reach out and network with other real estate investors in your chosen market. Once you’ve selected the best markets for remote real estate investing, build a team of trusted local real estate experts including agents, contractors, and lenders.

Next, a little bit about what you should know before you decide to invest. Spend time researching each market until you can spot good deals and avoid the bad ones. Read and understand the rental laws for each state and municipality you’re investing in to ensure you don’t accidentally break any landlord-tenant laws.

Once you select a rental property to remotely invest in, review documents for turnkey rental property, including the lease agreement, tenant rent roll, payment history, and application and credit reports on file. Always conduct thorough due diligence on the property—even if you’re paying all cash—and don’t hesitate to renegotiate the deal in good faith if need be.

Common Mistakes to Avoid When Investing Out of State

With so much competition in the market and prices on the rise, it’s tempting to move fast and make a deal. But buying the wrong property can cost you in more ways than one. Don’t buy in a market where the economy is weak and the population is declining. Look for cities where the cost of living and doing business is low and the quality of life is on the rise.

Another common mistake real estate investors make is hiring a real estate agent who doesn’t specialize in rental property investments. There’s a big difference between agents who work with normal mom-and-pop homebuyers and agents who understand real estate investing.

A great property manager is another key part of your team. However, choosing the wrong management company can lead to high repair costs, increased tenant turnover, declining property value, and negative cash flow.

Last but not least, never become emotionally involved when you’re investing in rental property. Remember that real estate investing is a business and not a hobby.

The Bottom Line

Thanks to online listing platforms, detailed market data, neighborhood ratings, and property technology it’s not necessary for remote real estate investors to visit a property in person. However, always be sure to balance technology with personal interaction. Taking the time to talk to people, building a team, and leveraging the knowledge of local market experts will help ensure your remote real estate investments are profitable for years to come. The Rise of Remote Real Estate Investing!

The inspiration for today’s edition came from this original article:

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:


Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: Loan Limits on Conforming Mortgages Going Up in 2021!


While it doesn’t influence our opinions of products, we do receive compensation from partners whose offers appear here. We’re on your side, always. See our full advertiser disclosure here. Loan Limits on Conforming Mortgages Going Up in 2021!


When you apply for a mortgage to buy a home, your loan is classified by your lender as either a “conforming loan” or a “jumbo loan.” This classification can make a big difference in loan approval requirements, as well as in interest rates.

A “conforming loan” falls within loan limits set by Fannie Mae and Freddie Mac. Fannie and Freddie are government-sponsored entities (GSEs) that buy mortgages in the secondary market. The two GSEs guarantee that they will buy “conforming loans” — but not jumbo loans.


This means banks are more eager to work with loans below Fannie and Freddie’s limits, since they know there’s a buyer for the loan, and they won’t have to keep it on their own books. Lenders generally prefer to sell loans they make so they can in turn lend to more borrowers, since they only have so much money to lend out. Qualifying for conforming loans tends to be easier, too, as lenders who resell the loans aren’t risking handling a default themselves.


Conforming loan limits rise in some years, and they’ll go up in 2021. This will be the fifth year in a row that Fannie Mae and Freddie Mac have raised the limit on how much you can borrow and still qualify for a conforming loan.

Here are the new conforming loan limits for 2021


According to the Federal Housing Financing Agency, the new loan limit for conforming loans in most parts of the country is jumping up to $548,250 in 2021. This is $37,850 higher than the 2020 limit of $510,400, and is for one-unit properties.


In some parts of the country where home prices are much higher, there is a different conforming loan limit. Specifically, a higher limit applies where 115% of the local median home value exceeds the baseline limit mentioned above.

In areas where the higher limit applies, the maximum is set based on a multiple of median home value in the area, but there’s a ceiling. That maximum ceiling in high-cost areas will be $822,375 in 2021, up from $765,600 in 2020. This is also the limit that applies in Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

These limits are going up because the Housing and Economic Recovery Act (HERA) requires that Fannie and Freddie’s loan limits adjust annually to reflect changes in housing prices. Home prices rose an average of 7.42% year over year based on the FHFA House Price Index in the third quarter, which prompted these increases for 2021.


What does this mean for homebuyers?

For most homebuyers, this raising of the loan limits won’t change anything — although Fannie and Freddie’s decision to increase the limits so substantially is reflective of the fact that prices are way up year over year, and that could affect general home affordability.


But for those who are buying homes priced between last year’s limit and this year’s limit, the impact could be significant. These borrowers will now qualify for conforming loans, rather than jumbo loans. This could offer a wider choice of potential mortgage lenders and make it easier to qualify for a mortgage at a low rate.

A historic opportunity to potentially save thousands on your mortgage

Chances are, interest rates won’t stay put at multi-decade lows for much longer. That’s why taking action today is crucial, whether you’re wanting to refinance and cut your mortgage payment or you’re ready to pull the trigger on a new home purchase. Loan Limits on Conforming Mortgages Going Up in 2021!

The inspiration for today’s edition came from this original article:

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:


Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: Where Is the Housing Market Headed in 2021?

However, with a million-plus Americans vaccinated inside of two weeks, economic experts are considering what’s likely to come in 2021 as we slowly return to some sense of normalcy. There’s finally a glimmer of light at the end of the tunnel—but once we’re in the clear, the time it takes to repair COVID’s collateral damage remains to be seen. Where Is the Housing Market Headed in 2021?


The good news for investors? Expect more of the same—or better—with regard to real estate in the coming year. The housing market will continue to hold strong as the rest of the economy rebounds from the coronavirus-driven recession, predicts Daryl Fairweather, chief economist at Redfin. And Fairweather’s 2021 economic forecast, released Dec. 15, only gets more specific from there. Read on to inform your real estate investing strategy next year.

Prediction #1: Mortgage rates will remain historically low at 3%.

Thirty-year-fixed rates may tick up over the next 12 months, but if so, it will happen slowly and insignificantly. It won’t be enough to put off buyers, although it might impact their willingness to pay a premium to land property.

“Mortgage rates will remain low primarily due to a sluggish global economic recovery,” Fairweather explains.


Prediction #2: There will be more home sales than in any year since 2006, but price growth will slow.

New listings declined in 2020 compared to the previous year—particularly in coronavirus hotspots. But “as COVID-19 cases hopefully decline due to vaccination, Redfin expects more new listings to make for a more balanced market and more home sales.”


Prediction #3: There will be more new homes built than in any year since 2006.

Low interest rates have incentivized homebuilders to borrow for construction projects, and commercial builders have largely sat out 2020, making it easier to meet labor, material, and land demands for new homes.


Prediction #4: The number of Americans relocating will be the highest it has been in 16 years, which will help the economies of affordable places like Buffalo, Cleveland, and Pittsburgh.

With social distancing measures, remote work, homeschooling, and more, many settled into a new lifestyle in 2020—away from the hustle and bustle of once-thriving city centers and the high costs of living that came with living nearby.

Related: America’s New Remote Workers Are Moving—Here’s Where

“In 2021, the number of Americans moving across county lines will surpass 14.5 million,” Fairweather predicts. “The last time there was this much cross-county migration was 2004, when 15.3 million Americans moved counties.”


Prediction #5: The homeownership rate will reach 70% for the first time since 2005.

Work-from-home employees are ditching expensive rentals for affordable homes in the suburbs. The trickle-down effect could make it harder for small-time landlords to profit on urban investments.

“This surge in condos for sale, which currently sell for a 17% discount relative to single-family homes, will give many city-dwellers the opportunity to become first-time homebuyers, as well.”


Prediction #6: San Antonio, Tucson, and Tampa will be the hottest housing markets as major southern cities like Austin, Phoenix, and Miami become unaffordable.

Coastal dwellers have long been ditching overpriced areas for other warm climates with more reasonable housing options—so much so, hip cities like Austin, Phoenix, and Miami no longer seem like much of a bargain.

Related: Top 10 Markets Where Spacious Homes Are Most Affordable in 2020


Prediction #7: Expensive cities will invest in their culture and lifestyle to attract residents and tourists.

As residents flee expensive cities for reprieve from inflated real estate prices, places like San Francisco and New York will inevitably take a hit—especially when it comes to tax revenue. However, “these cities won’t die just because office workers leave, but these cities will have to be reborn with a greater emphasis on culture and lifestyle to attract residents and tourists,” Fairweather says.


Prediction #8: Most homebuyers will make an offer on a home sight unseen.

With currently heated markets poised to light up even more, the fact is homebuyers will have no choice but to rely on virtual tours. This is especially true depending on how long the pandemic lingers and how comfortable society becomes with all-virtual everything.

Prediction #9: 2021 will usher in a new era of price competition for real estate agents.

“In 2021, all listings will show the buyers’ agent fee as a consequence of a settlement between the Department of Justice and the National Association of Realtors,” the forecast notes. Fee transparency will offer both buyers and sellers a leg up when it comes to negotiating commissions.


Prediction #10: Everything associated with buying or selling a home will be offered at one-stop-shops.

With Wall Street pumping billions in capital into home buying and selling tech, “the competitive battle in the industry will heat up, as the biggest real estate companies work to become a one-stop shop for customers, integrating home trade-in and cash offers, concierge listing prep, mortgage, title, insurance, home warranty, and moving services.” Where Is the Housing Market Headed in 2021?


The inspiration for today’s edition came from this original article:

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: The downside of the hot 2020 housing market?

Demand for housing was strong in early 2020, before the COVID-19 crisis hit. Mandated shut-down measures and the fear of what COVID would do to our economy temporarily immobilized the housing market, evinced by nine weeks of declines in the weekly purchase applications data on a year-over-year basis. Then it was as if the Housing Demographic God exerted her chronokinetic powers to snap demand back to pre-COVID levels of growth. The frozen market thawed and resumed its steady pace of growth, even making up for lost time.  The downside of the hot 2020 housing market?

Instead of a housing crash, as many others predicted would be the lasting consequence of shut-down policies and massive job losses across the nation, the opposite happened as the 2020 U.S. housing market has been the most out-performing economic sector in the world.

However, we now have another issue to worry about — that home prices will accelerate too quickly, unrestrained by an increase in mortgage rates. As you can see below, we have deviated from the normal price growth that had been the trend in recent years.

The inspiration for today’s edition came from this original article:


If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit: