DESIGN
Hood Ideas That Turn Up the Heat
INVESTMENT STRATEGY
Invest Like a Pro With Lessons From the Field
The AI Real Estate Surge Is Here
MARKET & TRENDS
Find Predictability in an Evolving Rental Landscape
INVESTOR REVIEW
ARTIFICIAL INTELLIGENCE IS A PRESENT-DAY FORCE TRANSFORMING HOW YOUR COMPETITORS ANALYZE, BUY, AND SELL THEIR INVESTMENT PROPERTY.
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PUBLISHER & CEO Eddie Wilson MANAGING EDITOR Carmen Fields FULFILLMENT COORDINATOR Blair Pierce
DESIGNER Kat Hungerford CONTRIBUTORS Chris Barns Cornerstone Licensing Services Dominion Financial Michelle Esparza Charles Goodwin Alex Kaddah Hannah Kesler Kiavi Gaylene Rogers Lonergan Michael Lucarelli Taylor Miller Joel Moyes Susan Naftulin Real Property Management Susan Reilly Jeff Roth Jim Tannehill Michele Van Der Veen Skyler Wilson
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Letter From The Editor
The Future is Here T he world of real estate investing is undergoing a profound transformation— one that is reshaping not only how properties are bought and sold but also how wealth is built, managed, and diversified. Two words are redefining the space: Artificial Intelligence (AI). Today’s investors are leveraging technology to uncover opportunities that were once out of reach. For decades, real estate investment followed a familiar formula: location, capital, and patience. Today, we stand at the brink of one of the most transformative periods the space has ever experienced, propelled not just by market forces and conventional factors, but by a surge of innovation. Artificial intelligence is rapidly transforming industries worldwide, with effects that are nothing short of remarkable. For real estate specifically, AI is transforming the due diligence process, helping investors assess risk and identify high-return opportunities faster and more efficiently than ever. What used to take weeks of research can now be accomplished in minutes. Today’s savvy investors are using AI to quickly find undervalued properties, estimate rental income, and predict appreciation by tracking trends in demographics and development, all with a few clicks. It is fascinating to see how technology has reshaped the short-term rental space. Short-term rental tools help hosts maximize income on platforms like Airbnb, VRBO, and others. Meanwhile, build-to-rent communities, built for long-term tenants, are attracting institutional capital for their stable returns. These models offer both innovation and stability, a mix providing security in uncertain times. Not only has technology and innovation influenced how to source properties and help determine the best strategy for investing, it has also simplified property management. AI is automating processes like rent collection, maintenance workflows, and even tenant communications, with little human oversight. For investors, this means less hands-on work and more time to focus on strategy. For industry, it means scalability like never before. Although AI is driving innovation that’s reshaping real estate investment, it doesn’t replace the importance of core fundamentals. It urges us to build upon and adapt those core concepts. Today’s most successful investors aren’t just buying properties. They’re using digital platforms, interpreting data insights, and navigating ongoing technological changes. Whether you’re a seasoned investor or just getting started, the tools and trends reshaping this industry are opening doors like never before. The future of real estate investing isn’t coming; it’s already here. And it’s here to stay.
CARMEN FIELDS MANAGING EDITOR
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Inside This Issue
FEATURE PAGE 34 The AI Real Estate Surge Is Here ARTIFICIAL INTELLIGENCE IS A PRESENT-DAY FORCE TRANSFORMING HOW YOUR COMPETITORS ANALYZE, BUY, AND SELL THEIR INVESTMENT PROPERTY.
TAYLOR MILLER
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C O N T E N T S
DESIGN Hood Ideas That Turn Up the Heat No longer content to blend in, today’s range hoods take center stage and give kitchens a bold new identity. Michele Van Der Veen PAGE 8 INVESTMENT STRATEGY Want to Invest Like a Pro? Take Lessons From the Field Get the real numbers, real roadblocks, and real strategies that helped these four investors thrive. Susan Naftulin PAGE 14 MARKET & TRENDS Find Predictability in an Evolving Rental Landscape Track these trends and variables to help make informed desicions on how to promote, price, and manage your properties. Michael Lucarelli PAGE18 The Market Has Shifted. Have You? With Tighter margins and higher rates, here’s how investors are pivoting. Jeff Roth PAGE 22 FUNDING Kiavi Breaks Records, Again Kiavi’s tech-driven approach just made it the first to fund 100,000 investor loans. Kiavi PAGE 24 Avoid the Top 3 REI Missteps These mistakes trip up even experienced investors. Dominion Financial PAGE 26
Look for Leading-Edge Lenders A new wave of tech-forward financing is helping investors close faster, scale quicker, and outmaneuver the competition. Charles Goodwin PAGE 30 OPERATIONS Paws for Profits Welcoming pets is good for business when everyone knows the rules. Real Property Management PAGE 38 Close Clean, Close Confident A good title partner protects your deal, your timeline, and your reputation. Michelle Esparza PAGE 42 Innovation Is Process Great ideas are not enough: Success depends on how you execute. Jim Tannehill PAGE 44 From Clipboard to Dashboard Smart, scalable property management integrates automated rent collection, digital leases, and more. Joel Moyes PAGE 48 A “Sound” System Beats a Studio
Deals Don’t Wait for Wednesdays Use these resources to track hyper-local insights and help source your ideal investment. Susan Reilly PAGE 60 Pick the Property That Pays Here’s how to decide whether single-family or multifamily aligns with your ambitions. Gaylene Rogers Lonergan PAGE 64 Are You Lending Across State Lines? Check licensing regulation. What’s routine at home could pose serious risk somewhere else. Cornerstone Licensing Services PAGE 66
Real estate teams need more than cameras: They need a system that turns content into ROI. Skyler Wilson PAGE 50 INVESTOR REVIEW Be Your Own Bank Take the middleman out of your money—and keep the profit. Hannah Kesler PAGE 54
PAGE 38
Uncle Sam Needs Property Managers With more than 500 million square feet of owned real estate, federally-owned property creates opportuniy, security, and challenge. Chris Barns PAGE 56
Beware the Shiny New Penny Advancements in the lending space mean change for real estate investors, but don’t abandon your core business. Alex Kaddah PAGE 28
PAGE 60
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DESIGN
Hood Ideas That Turn Up the Heat NO LONGER CONTENT TO BLEND IN, TODAY’S RANGE HOODS TAKE CENTER STAGE AND GIVE KITCHENS A BOLD NEW IDENTITY.
MICHELE VAN DER VEEN
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I t’s time to find the perfect hood design for your next project–and trust me, this is a must in today’s kitchen design. A bold, stylish hood instantly gives any kitchen that “WOW” factor it deserves. Gone are the days of sterile, commercial-looking vents. Kitchen hoods have officially taken center stage—they’re the focal point and heart of the home. With so many incredible textures, materials, shapes, and bold colors available, achieving a spectacular kitchen design is easy, exciting, and fun! Your goal? Make a statement. Go bold. Go big. Say good-bye to the boring hood designs of the past and hello to something that commands attention and sparks curiosity. A well-designed hood doesn’t just look good—it feels like something amazing is about to be cooked in that kitchen. So, let your creativity run wild, and dive into these 16 hood design ideas. 1. KEEP IT CONSISTENT A simple way to conceal a kitchen range hood is by maintaining a consistent look throughout your space. Using the same cabinetry design on the hood as you do on the surrounding kitchen cabinets creates a cohesive, streamlined appearance that ties the kitchen together. 2. CONTRASTING IDEAS Make the kitchen hood pop by designing it with intentional contrast. Use colors, textures, or shapes that differ from those of the surrounding cabinets. Think: bold hues and unique materials. Use contrasting colors on the hood vs. the cabinets, contrasting textures on the hood vs. the cabinets and contrasting shape on the hood
vs. the cabinets. This design strategy draws attention to the hood itself, turning it into a true focal point.
3. OPEN END THE BACKSPLASH
Most people picture a kitchen hood extending straight up to the ceiling. For a really bold, eye-catching look, try venting it directly through the wall. This allows your backsplash to run all the way up to the ceiling, creating a sleek and uninterrupted vertical line. This is a unique look that is sure to grab buyers’ attention. 4. FOCUS ON FLOW In an open-floor kitchen plan, it’s usually better to keep the hood more discreet. Creating cohesiveness throughout the room helps everything feel more connected, especially when the kitchen opens to a living room or family room.
5. DEFINE THE DESIGN THROUGH METAL
When most people think of a metal kitchen range hood, stainless steel comes to mind. But why not shake things up a bit with copper or brass? These metals add warmth and character to a space, making them perfect for French Country, Spanish, and eclectic kitchen designs. Their earthy tones add a cozy feel! 6. KEEP IT TALL Anchor the hood to the ceiling to create a taller, dramatic look. Height can eliminate awkward dead spaces and help balance other kitchen elements such as windows, cabinets, and backsplashes.
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7. TIE IT ALL TOGETHER As the heart of the kitchen, the range hood unifies your design. Use it to incorporate finishes already used in the room, such as applying rustic wood from the island base in a decorative way to create visual cohesion.
8. CABINETS CREATE CONSISTENCY
Blending the hood with the kitchen cabinets creates a timeless, traditional look. Using the same style, color, and material gives the kitchen a clean, minimal aesthetic—one that feels both cohesive and classic. 9. BARREL IT Most range hoods are square and boxy. Why not go for a totally fresh look that turns heads? A barrel-style hood, with its rounded or curved shape, adds softness and elegance to a kitchen. These curved lines can create a more feminine, graceful feel that sets your design apart.
10. KEEP ANGLES SHARP AND CLEAN
Sharp, strong lines give kitchen range hoods a bold, masculine edge. Designs featuring square or rectangular shapes convey strength and precision, creating a clean, structured feel. 11. MATCH IT UP A timeless, favorite look is to match the kitchen hood with the countertop material, like granite or marble. This custom touch elevates the space, giving it a high-end, cohesive look that feels classy and sophisticated.
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12. PATINA A patina finish can give a kitchen hood a beautifully aged, Old-World character. It is best suited for specific home styles: Spanish, eclectic and Tuscan. Typically featuring a green or brown film on bronze, patina hoods add vintage charm. 13. MODERNIZE IT For a sleek, contemporary vibe, opt for a seamless hood with clean lines and smooth materials such as a solid-color marble. This creates a minimalist, modern look that feels both fresh and timeless. 14. MAKE IT BOLD Bold kitchen hoods make a statement. The material you choose plays a big part. Paint and large-format tile in light and dark bold colors can create pop for your kitchen. 15. SHAPE IT WITH SHIPLAP Nothing says Modern Farmhouse better than shiplap—add adding it to the kitchen hood offers a fun twist. Although shiplap is commonly found on walls, applying it to the hood can be a great way to tie the kitchen to the rest of the house’s modern Farmhouse design. 16. RAW AND RUSTIC Stone kitchen hoods are a bold way to bring rustic charm to the heart of your home—the kitchen. Especially in ranch-style houses, their natural texture adds weight and presence, creating a powerful focal point that draws you in. WHEN DID RANGE HOODS GET SO STYLISH? How and when did designers start transforming kitchen hoods into
Make a statement. Go bold. Go big. Say good-bye to the boring hood designs of the past and hello to something that commands attention and sparks curiosity.”
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MICHELE VAN DER VEEN
Michele Van Der Veen is the host of Good Day segments, including Flip It, Decorate Like a Designer, and Stage to Sell. She started her career in real estate investing more than 30 years ago. A published author, Van Der Veen has been recognized and featured in international magazines for her unique approach to interior design. Acquiring a formal education from the Interior Designers Institute of California, her experience stems from building custom homes to flipping more than 100 homes and working in commercial real estate development alongside her father at a young age. Not afraid to push the limit on her designs and investments, Van Der Veen will often be heard reassuring her team about her decisions by saying “Don’t worry, we are the comps!”
the shift accelerated. Designers now craft beautiful hoods from nearly every imaginable material, ranging from rustic wood to patinaed metals. Stainless steel and venting microwaves are officially yesterday’s news. Achieving a unique and captivating look may take a bit of time and work, but the bottom line is this part of the kitchen can make a statement. Today, a great looking kitchen hood is almost expected and even sought by potential homebuyers. With kitchens at the top of every homebuyer’s list, investing your money into this great centerpiece only helps you sell
beautiful statement pieces? Not long ago, a simple exhaust fan built into an over-the-range microwave was considered ample ventilation. As ovens and ranges advanced and became more powerful, the need for better airflow grew, ushering in demand for stainless steel, commercial-looking hoods for residential use. Those hoods came in two styles: canopy hoods that vented through the wall and chimney hoods that vented through the ceiling. Over time, designers began to reimagine the hood. Where it was once viewed as a dirty necessity that moved steam and grease from the kitchen, the kitchen hood is now the crown jewel of the kitchen. In 2024, especially,
For more on Van Der Veen’s work or to contact her, visit iHeartHomescorp.com.
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12 | think realty magazine :: july - august 2025
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INVESTMENT STRATEGY
SPONSORED CONTENT Want to Invest Like a Pro? Take Lessons From the Field GET THE REAL NUMBERS, REAL ROADBLOCKS, AND REAL STRATEGIES THAT HELPED THESE FOUR INVESTORS THRIVE.
SUSAN NAFTULIN
E ver wonder what a real estate success story looks like from the inside? Our four investors break down their best deals, biggest challenges, and smartest moves— offering practical, real-world insights you can learn from. Their stories show that although there’s no single path to success, there are clear principles every smart investor should know. PROFIT IN PRACTICE The following examples of profitable investments serve as valuable guideposts, highlighting what is possible when real estate investors do their homework. It’s important to note the somewhat varied circumstances for each situation,
illustrating there is no one-size-fits- all approach to successful investing. ANITHA. We purchased the property for $83,000; after a short three-month property rehabilitation, it appraised at $168,000. We currently have $34,000 in equity, with a monthly cash flow of $384 after PITI (principal, interest, taxes, and insurance) and operating expense reserves. Our cash-on-cash return is 20.6%, and the property’s quick leasing proves its profitability. ANDREW. I acquired a triplex 10 months ago for $140,000. I invested an additional $225,000-$260,000 in renovations, bringing the total investment to around $400,000. As we approach refinancing, the property is appraised at nearly
SERIES NOTE
This article is the second in a two-part series featuring insights from four successful real estate investors—Vanessa H., Andrew S., Archana N., and Anitha P.—who spoke with Rehab Financial Group, LP. In this installment, they share profitable investments, obstacles they’ve encountered, risk management approaches,
and key tips for new and experienced investors.
14 | think realty magazine :: july - august 2025
$700,000, a $300,000 increase in value. I expect to receive $30,000-$40,000 in cash post-refinancing for reinvestment. VANESSA. A recent profitable investment involved purchasing a property from a lender who had repossessed it from an investor. This presented a unique advantage as many major improvements were already complete, allowing me to focus on smaller details. I acquired the property for $93,000, and after investing another $34,000 in repairs and renovations, my total investment came to $120,000. After improvements, the property’s after-repair value (ARV) reached $200,000, demonstrating the potential for substantial profit when identifying opportunities others might overlook. ARCHANA. Archana benefited from a waiting game. Her profitable investment involved a unique situation where the previous seller merged two properties: Upon inspection, I noticed several issues that warranted negotiation. The property was listed at $145,000, but I waited three weeks with problems like improperly configured utilities and questionable wall integrity before offering $25,000 less than the asking price. Through negotiations about necessary repairs, I secured an even lower price. After the acquisition, I strategically enhanced the property by converting a four-bedroom layout into five bedrooms, significantly increasing the property’s market value. This experience taught me that understanding property specifications and negotiating aggressively can lead to lucrative outcomes. Sellers often become more flexible than expected when you highlight issues during negotiations and are prepared to walk away. These examples demonstrate the importance of maintaining a thoughtful
and strategic mindset in all real estate investments. This includes a systemic approach to thorough research of comparable homes in the area, analyzing details like room count and renovations to understand value drivers, and estimating potential appraisal values based on similar properties’ improvements and market performance. By selecting properties with growth potential and investing in meaningful enhancements, substantial value can be unlocked over time.
Both of these obstacle offered valuable lessons that shaped my investment approach. VANESSA. Property investment
challenges often involve finding good deals. Opportunities exist, but they can be elusive. While the MLS can be limiting, cheaper wholesale properties carry risks. So I use the MLS, and I’m just patient. Last time I sat and waited three months. It was frustrating, but then I found two excellent deals. ANITHA. We faced several challenges, including water leaks in rehab properties. A mainline pipe leak cost $12,000, but we found a free city program. Our first property needed complete plumbing replacement. The second had a gas leak from a vendor error. Taking charge as general contractors improved our skills. ANDREW. Title issues during my second purchase halted underwriting. A hidden cracked sewage pipe impacted our budget. Securing reliable tenants remains challenging, but including contingencies helps manage unexpected costs. These experiences offer valuable lessons, including the importance of dependable partners for success. Additionally, patience and a strong network are vital for managing property situations. Plus, be sure to investigate and handle title issues properly. When resolved, these challenges become growth opportunities in property investment. PLAYING IT SMART VANESSA. Risk management is key for financial security. I screen team members thoroughly, including contractors and property managers, through reference checks and trusted recommendations
LESSONS FROM THE TRENCHES
Obstacles are inevitable in real estate investing. The challenges discussed below are common issues, but it’s helpful to see how each investor handled them successfully. ARCHANA. Every investment stage brings challenges that refine strategies. Communication with my property managers was a significant challenge. I didn’t have good property managers on two of my properties. Their vague responses and delayed updates hindered tenant placement. As out-of-state investors, we relied on our management team, but their negligence created problems. I changed the property managers both times. Having a good property manager is imperative. You need property managers to be a phone call away and responsive. Contractor relationships also proved challenging. A miscommunication led to window repairs instead of replacements. Though I found a more reliable contractor, I learned the importance of oversight. Even with experienced professionals, involvement in material selection and quality control is crucial.
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from my investor accountability group. I also maintain a contingency budget beyond lender provisions for rehab projects and set aside monthly funds for rental property repairs. ANITHA. We include a 5-10% contingency fund for rehabs. For instance, with a $40,000 budget, we keep $10,000 extra. If we are surprised by costs that exceed the budget, we see what we can cut but still have a cushion to address the necessary things. With regard to timelines, we double our general contractor’s timeline estimates and treat two months as four. This helps us manage unexpected delays, like what often happens with city permits. ANDREW. Initially, I found my mentorship program’s deal analysis tool overwhelming. However, my realtor helped me simplify the data, showing that all essential information was there. I just needed to interpret it correctly. Understanding financial metrics is crucial for risk minimization. Additionally, thorough market research is essential before investing in new areas. START STRONG All four investors agreed on the key elements to help new investors succeed. The list below provides an excellent primer for those just starting their real estate investment journey and serves as a good reminder for those with experience. NEW INVESTORS NEED PROPER GUIDANCE. Seek out strong mentorship to accelerate your learning and build your deal analysis skills. High-quality programs connect you with like-minded investors and provide valuable training resources. Stay focused on your goals while learning from peers’ experiences.
Rehab Financial Group stands ready to provide financing with personalized, attentive service and support for those ready to act. They offer an attractive 100% fix-and-flip loan solution with zero down payment requirements, making it possible to transform real estate investment aspirations into tangible reality.
Plan strategically, especially when making major decisions like leaving a W2 job. Be open about your challenges and share your achievements within your network. LEARN TO EMBRACE DISCOMFORT. Initial unease is natural in property investment, but experience builds confidence. Investment success requires patience and getting comfortable with uncertainty. Although analysis is essential, acting provides better lessons than theory. A positive mindset and belief in your capabilities are necessary for success. RESEARCH GROWING CITIES WHERE MAJOR COMPANIES ARE DEVELOPING. This type of activity signals rental growth potential. Understanding material costs through hardware store visits helps you make informed renovation decisions. Maintain spreadsheets to compare contractor quotes. BUILD AN EFFICIENT TEAM. Focus on strong relationships with agents, contractors, property managers, and lenders, like Rehab Financial Group with its 100% Fix and Flip Premier Loan. STAY FOCUSED DURING THE INSPECTION PERIOD. This phase can make or break your project, so it’s vital to pay attention to five key areas: foundation, roof, plumbing, electrical systems, and HVAC. Each of these components plays a significant role in the overall integrity and functionality of the property. The valuable perspectives these four accomplished real estate investors share can serve as a practical guide for readers embarking on their investment journeys. Their firsthand experiences and proven strategies offer a wealth of knowledge that can help shape successful investment decisions.
SUSAN NAFTULIN
Susan Naftulin founded RFG with partner Jeffery Goldberg in 2009. In addition to serving as managing member of RFG, Naftulin is an active member of the American Association of Private Lenders and previously served several terms on the Ethics Advisory Committee, where she continuously upheld the real estate industry’s values and supports professional conduct in private lending. Prior to becoming managing member of RFG, Naftulin held several senior management positions in the mortgage industry, including general counsel, managing attorney, chief operating officer, and senior vice president for both privately and publicly held mortgage lenders. Before entering the mortgage industry, Naftulin was a creditors’ rights attorney with the Philadelphia law firm of Fox Rothschild LLP. Naftulin holds two Bachelor of Arts degrees from Carnegie-Melon University and a Juris Doctor from the University of Pittsburgh School of Law.
16 | think realty magazine :: july - august 2025
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MARKET & TRENDS
Find Predictability in an Evolving Rental Landscape TRACK THESE TRENDS AND VARIABLES TO HELP MAKE INFORMED DESICIONS ON HOW TO PROMOTE, PRICE, AND MANAGE YOUR PROPERTIES.
MICHAEL LUCARELLI
T he U.S. rental market has been and continues to be a dynamic landscape. With so many factors influencing it, from the economy to availability to changing consumer preferences, real estate professionals have a lot to track. Trends have much to do with how you market, price, and manage properties. Market predictability helps you make critical decisions. Predictably, tenets can still guide you even in times of rapid change or
research, finding that 41% of urban residents moved to suburban areas. Much of this was the result of the remote work revolution. In 2025, 28.1% of Americans are still working from home. People no longer have to let being tethered to a company office dictate where they rent. They’re choosing suburbia because of a lower cost of living, the desire for a better quality of life, and the growing amenities available. Overall, rental rates tend to be lower in the suburbs. A rental property analyst
uncertainty. Let’s review key trends and how to adjust to align with them.
KEY RENTAL MARKET TRENDS IMPACTING 2025 What’s happening in the rental market right now? There are four major trends to explore. 1. URBAN VS. SUBURBAN SHIFT. Since the pandemic, the country has seen a migration from urban to suburban living. A National Association of Realtors reviewed recent Census data in its
18 | think realty magazine :: july - august 2025
might choose to convert their listings to long-term rentals, as demand in this segment is higher, which could help you expand this area of your rental business. 4. MULTIFAMILY VS. SINGLE-FAMILY RENTALS. Multifamily and single-family rentals have unique characteristics and investment profiles. Their cap rates may differ, but both may have low risk depending on their location and condition. Multifamily will increase operating income but require more maintenance, repairs, and management oversight. Look at the specific demand trend in your region by property type and availability when considering where to invest your own dollars or make suggestions to clients. ECONOMIC AND POLICY FACTORS Economic and policy factors influence the rental market and its stability. Interest rates remain high in 2025, which means mortgages are still out of reach for many people and keep them renting. Houses available to buy fluctuate and are location-specific, with new builds still moving forward. However, the evolving story of tariffs will affect this, as many materials are not widely available domestically. Inflation, wage growth, and employment rates also affect the affordability factor. Rent control laws and tenant protections also fall under this category. This typically happens locally, with regulations in place to cap rent increases. Laws that protect tenants outside of national laws, like the Fair Housing Act, may determine how you screen tenants,
promotions and messaging about moving from the city to the suburbs. 2. RISING RENT PRICES AND AFFORDABILITY. Rental prices have been rising steadily since 2020. The latest data shows a 3.5% increase from February 2024 to February 2025, with the current average being $1,980. This dataset has positive news: The growth is slightly below pre-pandemic averages; however, it is still 33.9% higher than they were before. There are more influences over pricing than demand and availability, which gets to the root of what a consumer considers affordable. Inflation, which had decreased in 2024, is back on the rise. Consumer confidence fell in the first quarter of 2025. Demand takes a hit if those in the market simply can’t afford the rent. If this is the picture in your region, you can look for signs of market predictability, but that may be challenging in a volatile economy. You can look at the data from your properties’ rent history and what potential tenants are saying about their budget. If the gap is too wide, it may be time to apply creative pricing strategies to avoid longer vacancies. 3. SHORT-TERM VS. LONG-TERM RENTALS. Some markets are filling the availability gap with short-term rentals from platforms like Airbnb. These tend to be much more expensive and have restrictive rules for guests. Some renters may need to use it as a solution for their initial move while they decide where they want to put down roots. Short-term rentals are increasingly subject to regulatory challenges and may be oversaturated in certain locations. One possible result is that property owners
estimated the savings to be around 11% across the country. It can be even greater when comparing high-cost cities. In this trend, there is some market predictability to add to your playbook. If you have rentals in suburban areas with an uptick in new residents exiting the city, you can count on continued demand. However, this may lead to an increase rental rates, depending on availability. It also helps you define specific groups to market to, creating inspiring
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the choices you can make, and the rules for evictions. Stay aware of those on the books and any proposed laws. TECHNOLOGY AND TENANT PREFERENCES Today’s tenant has a new set of preferences. It depends on their age group, whether they are a single renter or a family, and what’s most important to them. Many properties have amenities that can fill these needs, including proximity to shops, services, and entertainment. For the property itself, many renters seek out must-haves like pet-friendly policies, smart technology, energy- efficient appliances, and properties with sustainability features. They may also prefer properties with office space for remote workers, an outside living area, and a garage. Finally, many renters want more flexible lease terms. They may rent for a shorter term as they search for a property to buy; others may want to sign for longer than the standard year. Recognizing these trends can inform how you promote properties, highlighting flexibility. HOW REAL ESTATE PROFESSIONALS CAN ADAPT With so many trends, what’s the response? It depends on your market and who you represent. There are several strategies you can consider. First, you can help landlords and property managers remain competitive by discussing the demand for the area and what renters want. Focusing on these trends enables them to stay competitive and avoid vacancies.
Today’s tenant has a new set of preferences. It depends on their age group, whether they are a single renter or a family, and what’s most important to them.”
MICHAEL LUCARELLI
Be sure to review investment opportunities with people looking to buy, comparing cap rates to understand potential profitability. Provide them with data about the property and the demand for the area. Also, leverage market data to anticipate shifts. Stay current on what’s happening locally and nationally. When you identify trends, follow them and make some assumptions about how they may impact rental demand and pricing. A MOVING TARGET Rental market changes are part of the landscape. Sometimes, the changes are more turbulent than others. Beyond following trends and understanding how to respond, streamlining applications with tenant screening technology is critical to bringing renters and properties together. The road ahead may be uncertain, but data is your best source for how to pivot. With these practical strategies, your rental business can flourish in 2025.
Michael Lucarelli is the CEO and cofounder of RentSpree. Since starting RentSpree with business partner Paul Sirisuphang in 2016, Lucarelli’s goal has been to reimagine how people rent homes by pioneering a new rental platform that allows agents, landlords, and renters to interact seamlessly. Lucarelli is the recipient of Forbes 30 under 30, Los Angeles Business Journal 20 in their 20s, ASPIRE Alumni Entrepreneur of the Year, RISMedia 2023 Real Estate Newsmaker, and a HousingWire Rising Star. Under Lucarelli’s leadership, RentSpree has been named three times to Inc. 5000’s list of fastest-growing private companies (2022, 2023, 2024).
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MARKET & TRENDS
The Market Has Shifted. Have You? WITH TIGHTER MARGINS AND HIGHER RATES, HERE’S HOW INVESTORS ARE PIVOTING.
JEFF ROTH
D eals are not penciling. Prices are falling in more markets. Agents and mortgage brokers are getting skinnier and skinnier. Bottom line? The markets are changing, and not always in the way investors expected. At the start of the year, many anticipated that mortgage interest rates would finally begin to fall. Instead, rates
have stayed higher for longer than forecast, putting continued pressure on borrowing costs. This has been compounded by the Federal Reserve’s decision to hold off on cutting the federal funds rate due to persistent inflation, keeping floating rate debt expensive. Home prices, meanwhile, are starting to soften in more markets. But even with that dip, housing remains unaffordable
for many prospective buyers, tempering demand. For investors, this creates a difficult environment: not only is it harder to find properties that cash flow well, but rising costs across the board—from materials to labor—are squeezing already tight margins. Concurrently, cap rates remain lower than sellers would like, making it tougher to justify pricing in today’s
22 | think realty magazine :: july - august 2025
lending climate. And for those following the Buy, Rehab, Rent, Refinance, and Repeat (BRRRR) strategy, viable markets are getting fewer. All signs point to a more cautious, compressed investment landscape—one that demands creativity, resilience, and a close watch on economic indicators. So, how are investors and market participants adapting?
Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” —William Pollard
INNOVATIONS THAT ARE WORKING
Investors are adjusting to market changes in the following four ways. First, investors are expanding their search for viable investments. They are looking out-of-area and out-of- state for deals when their local market doesn’t pencil or make financial sense to invest in at this time. Second, tax strategy is playing a larger role in investment decisions. Investors are factoring in the benefits of bonus depreciation and cost segregation. Additionally, they are using short-term rentals to offset active income, provided they meet material participation requirements by actively managing the property. Third, in markets that are becoming more balanced—or even becoming buyer’s markets—sellers must approach pricing more thoughtfully and strategically. Fourth, investors are weighing the long-term value of a property as rents go up and debt goes down—even if cash flow is tight initially. That said, investors with strong cash flow should still consider value-add opportunities.
MOVING FORWARD Although making predictions is
value over time of their investment. We can expect markets to continue to change, interest rates to stay higher for longer, more markets to become balanced, and available inventory to increase. Keep yourself informed, stay flexible, and continue to innovate to win. To Your Success!
always risky, three trends are likely to continue for the near-term future: 1. MORTGAGE RATES WILL STAY HIGHER FOR LONGER. 2. MARKETS WILL BECOME MORE BALANCED. 3. INVENTORY FOR SALE WILL INCREASE COMPARED TO THE SAME TIME LAST YEAR. So, plan on the rate of price increases to slow—and even fall—in some markets. CONTINUOUS LEARNING Because market conditions are always changing, we need to be students of the market, look for trends, notice what other investors are doing to succeed, and plan. Good deals are getting harder to find and margins are being squeezed in existing deals. Investors are looking in more favorable markets, factoring tax strategies in deal analysis, being thoughtful about pricing when selling, and factoring the
JEFF ROTH
Jeff Roth is the founder of Arbor Advising in Ann Arbor, Michigan. Arbor Advising is a real estate consultancy passionate about helping clients invest, buy, and sell in Michigan. Contact Jeff at jeff@arboradvising. com, visit www.arboradvising.com, or subscribe to the weekly newsletter at www.arboradvising.com/subscribe.
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Funding
K iavi has surpassed 100,000 funded loans, representing more than $27 billion in volume. According to data from ATTOM, Kiavi is the first and only business-purpose private lender to real estate investors to reach this milestone.
A DATA-DRIVEN RISE TO THE TOP
This achievement underscores Kiavi’s consistent growth and strength as a reliable financing partner to real estate investors nationwide. Since its founding in 2013, Kiavi has served more than 26,000 customers and financed over 102,000 properties. The company has also expanded its offerings from a flagship fix-and-flip loan to a comprehensive suite of products serving a wide customer base ranging from first-time investors to seasoned professionals. “This milestone is more than a number,” said Arvind Mohan, Kiavi CEO. “It is a testament to Kiavi’s relentless execution and the power of our data flywheel, proving what’s possible when technology and industry expertise converge. “Every single one of Kiavi’s 100,000 loans fuels our AI/ML models, creating an unmatched data advantage that delivers even better, more accurate insights and faster, more reliable capital for our customers. We succeed when our customers succeed, and we couldn’t be more excited to continue scaling with our customers for the next 100,000 loans,” he added. CUSTOMERS FUEL GROWTH With 84% of Kiavi’s transactions coming from repeat customers, the company is celebrating its milestone alongside its customers. Preston Letts, owner of Family Snowball LLC, a real estate investor in Alabama with more than 200
SPONSORED CONTENT Kiavi Breaks Records, Again KIAVI’S TECH-DRIVEN APPROACH JUST MADE IT THE FIRST TO FUND 100,000 INVESTOR LOANS.
KIAVI
24 | think realty magazine :: july - august 2025
Kiavi is the first and only business- purpose private lender to real estate investors to reach this milestone.”
completed transactions, was the recipient of Kiavi’s 100,000th funded loan. He accepted a suite of prizes from Kiavi. “Kiavi has played a crucial role in helping my business grow,” Letts said. “After completing over 35 loans with Kiavi, I’ve been able to scale my business by using their reliable and consistent financing. I’m excited to be Kiavi’s 100,000th loan, and look forward to our continued growth together.” This milestone comes on the heels of a record start to the year for Kiavi. In the first four months of 2025, Kiavi originated a record $2.5 billion in loan volume across its various products, a 36% increase over the same period last year, and set a monthly volume record in April with $730 million in loan originations. In addition to its record volume, Kiavi recently closed two separate $300 million rated securitizations and expanded into 13 additional states, broadening its reach to serve real estate investors in 45 states and Washington, D.C. The organization won the “Best Real Estate Investment Platform” award from FinTech Breakthrough, was named to the HousingWire Tech100 for the eight consecutive year, and launched
an After Repair Value (ARV) and Cash- to-Close Estimator tool to help investors instantly assess the post-renovation value and ROI potential of a deal.
Kiavi is a top lender to residential real estate investors in the United States. The company’s technology platform, data-driven approach, and leading capital execution allow Kiavi to provide real estate investors with a transparent online experience, competitive pricing, and reliable capital to scale their businesses. With more than $27 billion in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors (REIs). Kiavi harnesses the power of data and technology to offer REIs a simpler, more reliable, and faster way to access the capital they need to scale their businesses. Formerly known as LendingHome, Kiavi is committed to helping its customers revitalize the approximately $25 trillion of aged U.S. housing stock to provide move-in ready homes and rental housing for millions of Americans across the country. For more information, visit www.kiavi.com.
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Funding
SPONSORED CONTENT Avoid the Top 3 REI Missteps THESE MISTAKES TRIP UP EVEN EXPERIENCED INVESTORS.
Dominion Financial Services LLC. NMLS ID # 898795, 32 South St Baltimore MD 21202. Dominion Financial Services LLC. NMLS ID # 898795, 1029 N Calvert St Baltimore MD 21202. Dominion Financial Services, LLC is licensed or exempt from licensing in all states, except Nevada. Dominion Financial Services, LLC is licensed in Minnesota as a Mortgage Originator (License No. MN-MO-898795). Dominion Financial Services, LLC is licensed in Arizona as a Mortgage Banker (License No. 0950308). Dominion Financial Services, LLC is licensed as a California Finance Lender and Broker under Department of Business Oversight (License No. 60DBO 91679). Dominion Financial Services, LLC is licensed in South Dakota as a Mortgage Lender (License No. ML- 05220). Dominion Financial Services, LLC is licensed in North Dakota as a Money Broker (License No. MB103364). Dominion Financial Services, LLC is licensed in Vermont as a Commercial Lender (License No. 898795 CLL). Dominion Financial Services, LLC is licensed in Oregon as a Mortgage Lender (License No. ML-5763). Dominion Financial Services, LLC is licensed in Idaho as a Mortgage Broker/Lender (License No. MBL-2080898795). Dominion Financial Services, LLC is licensed in Colorado as a Mortgage Company. Dominion Financial Services, LLC is licensed in the District of Columbia as a Mortgage Dual Authority (License No MLB898795) Dominion Financial Services, LLC is licensed in Florida as a Mortgage Lender (License No. MLD1796). Dominion Financial Services, LLC is licensed in Pennsylvania as a Mortgage Lender (License No. 104295). Dominion Financial Services, LLC is licensed in Texas as a SML Mortgage Company.
DOMINION FINANCIAL
F ix-and-flip investing remains market shaped by rising interest rates, tighter credit, and fiercer competition, investors must move smarter, faster, and more strategically. Unfortunately, a few common missteps continue to trip up even the most experienced players. One of the most common mistakes? Slow financing. Traditional lenders require more documentation, longer underwriting, and often appraisals that delay closings by 10–15 business days. In fast-moving markets, that’s the difference between winning and losing a deal. Dominion Financial eliminates wasted time with 48-hour closings , no appraisals , and in- house underwriting , so you don’t miss your window. one of the most profitable paths in real estate. However, in today’s Another pitfall is tying up personal capital. Many investors still fund deals out of pocket, limiting flexibility and overexposing themselves to risk. With Dominion Financial’s 100% Loan-to-Cost (LTC) financing , you can fund both the purchase and the renovation without investing your own money. That preserves cash, increases
project capacity, and protects you in today’s interest rate environment. Finally, conventional lending is falling short for many investors. As banks tighten up, private lending is becoming the go-to, offering agility, investor-aligned underwriting , and certainty of execution. Dominion Financial was built for this shift to faster, more flexible capital, with fix- and-flip, rental, and ground-up financing tailored for today’s market conditions. By avoiding these three mistakes, you can stay competitive, preserve capital, and close more deals with confidence in 2025. Holding instead of flipping? Dominion Financial offers a DSCR Price-Beat Guarantee on rental loans. We’ll beat any competitor’s quote. READY TO MOVE FASTER AND FLIP SMARTER? Dominion Financial offers 100% LTC bridge loan financing with no appraisals and closings in as little as 48 hours. Call (410) 883-8493 or visit dominionfinancialservices. com to get preapproved.
26 | think realty magazine :: july - august 2025
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