Affordable housing continues to dominate headlines. Nationally, home prices remain out of reach for many, with rates holding near 6.5%–7% . The U.S. housing market is estimated to be short by 3.2 million affordable units , according to Freddie Mac and HUD’s latest data. Against this backdrop, investors are facing a dual challenge: how to profit in a tough lending environment while also contributing to the country’s urgent housing needs. As a nationwide lender, CV3 sits on the front lines observing success strategies and pitfalls in today’s market. ADAPTABILITY = SUCCESS One striking theme from our borrowers’ success stories is the ability to remain adaptable. For example, a husband-and-wife team shifted from building million-dollar homes to constructing build-to-rent properties. By doing so, they maintained cash flow during a slowing market and added rental units at a time when housing supply is scarce. Another investor expanded by buying distressed homes in the $75K–$80K range, investing $25K–$50K in cosmetic improvements and refinancing into long-term rentals. This model creates housing at price points attainable for renters and first-time buyers. COMMON PITFALLS 2025 has exposed several traps for real estate investors: • Relying on outdated comps: T oo many projects are based on inflated 2021–22 valuations, leading to losses when ARVs fail to materialize. • Unreliable contractors: Delays or no-shows from subcontractors can sink deals. Maintaining a strong bench of trades is essential. • One-dimensional exit plans: Investors reluctant to pivot from a flip to a rental—even when market conditions demand it—often end up underwater. • Chasing influencer hype: CV3 has financed some social media stars who lost money on deals while their followers thought they were winning. Real success depends on local expertise and sound fundamentals. Social media is not reality. AFFORDABLE HOUSING AS AN INVESTMENT OPPORTUNITY Deep demand and safe long-term bets lie in affordable housing in 2025: • Rent growth is strongest at the lower price tiers as demand outpaces supply. • Government incentives and tax credits for affordable projects are expanding, giving investors multiple ways to structure deals profitably. • Neighborhood revitalization through cosmetic rehabs of distressed homes remains one of the fastest ways to create affordable rental stock while still generating cash-on-cash returns for investors. PARTNER, DON’T JUST BORROW Success in real estate comes down to three best practices: Having the right team, conservatively underwriting your deals, and maintaining liquidity. At CV3, we realize that investors don’t just need capital—they need partners who can stress-test deals, provide transparency, and guide them toward resilient strategies. Adaptability, discipline, and remaining focused on local market facts will be the key factors to winning in real estate today. Strategies, Pitfalls, and the Affordable Housing Opportunity INVESTING SMARTER:
(844) 721-3733 | www.CV3financial.com/think-realty
NMLS ID #2478266. For more licensing information visit https://nmlsconsumeraccess.org. Loans made or arranged pursuant to California Finance Lenders Law License 60DBO-183355. AZ Mortgage Banker License #1047792, FL Mortgage Banker License #MLD2457, Idaho MBL-2082478266, MN license #MN-MO-2478266, NV Mortgage Company License #5858, OR Mortgage License #2478266, UT Mortgage Entity License #13576219, VT CLL - 2468266. This is not a commitment to lend. All offers of credit are subject to due diligence, underwriting and approval. Not all borrowers will qualify and not all borrowers that qualify will receive the lowest rate or best terms. Actual rates and terms depend on a variety of factors and restrictions may apply. CV3 Financial Services, LLC reserves the right to amend rates and guidelines without notice.
thinkrealty.com | 43
Made with FlippingBook Online newsletter