HOUSINGNEWS REPORT
MY TAKE
Using tech, we can look at the market conditions of a major metropolitan area and pinpoint submarkets that may be successful , even if the general outlook of the market is distressed.”
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Location No Longer Holds Investors Back
borrow more towards their flip projects. With private hard money lenders, the loan-to-value ratios are often conservative, meaning investors may only be able to borrow a small fraction of the property’s value. With online lenders such as RealtyShares, borrowers may be able to obtain a loan for up to 80 percent of the value of an improved commercial or residential property or up to 100 percent of renovation costs. Every property is different, but compared to the terms a bank or a hard money lender may offer, online lenders have a distinct edge. Tech’s Impact Is Here to Stay It’s indisputable that technology has made a definite impression on the real estate industry. Online marketplaces are utilizing tech to streamline financing for fix-and-flip deals in ways that haven’t been done before. Looking ahead, I foresee tech continuing to mold the lending space for flippers. In terms of the bigger picture, the push toward innovation can only have a positive impact on real estate as a whole.
Another aspect of tech that makes it a boon for investors is its ability to transcend geographic limitations. With hard money loans, the lender may prefer to focus on a specific region or property type. They may want to concentrate on funding deals locally, for instance, or lend exclusively to certain types of borrowers. Those barriers are reduced and in some cases, eliminated altogether for investors who are interested in expanding past the reaches of their local market. With online lenders, it’s possible to fund flips in different cities within a particular region or delve into markets that may have previously been inaccessible because of their location. Platforms are identifying and analyzing submarkets in larger cities where opportunities for investors may be going undiscovered. Using tech, we can look at the market conditions of a major metropolitan area and pinpoint submarkets that may be successful, even if the general outlook of the market is distressed.
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Aside from eliminating geographic obstacles, tech is enabling investors to
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