Prominent Financial group has been serving our community’s real estate and mortgage needs for over 15 years. We are passionate about educating our clients and guiding them through the right steps of building wealth through real estate. We get many questions regularly from our existing clients, new clients, and our social media channels - so we are happy to share some of them here with you to help position you into a place where homeownership turns from a life-long dream to a attainable reality. Scan our QR code below to follow us on Instagram for ongoing updates and tips. How are homeowners benefiting from the significant increase in equity that we saw over the past two years?
We have definitely noticed the spike in cash-out refinances, which have helped our clients in various ways. Some used that cash to pay off high interest debt, invest in home-improvement projects, and pay off student debt. While there are many different ways to utilize
your home equity, investing in a rental property may be one of the most financially profitable moves. With rents being at an all time high, it’s no surprise that investment real estate is booming, with more homes being sold to investors than ever before. In the third quarter of 2021 alone, investors bought 90,215 homes, amounting to $63.6 billion. How do I maximize my investment property profits?
Once you’ve decided to invest in a rental, it is important to diligently research the market trends by area including prices and vacancy factors, as well as checking for any city rules and regulations for short-term and long-term rental properties. One of the many factors of a successful rental is its design. When guests are looking for a place to vacation, they browse through hundreds of photos of competing properties until one of them wins the race. By creating a trendy and welcoming atmosphere, you are increasing your chances of getting that booking. One thing to keep in mind is the geographical location of your property as often times,
it helps to have it influence your design decisions. For instance, properties in Joshua Tree, Palm Springs, and other High Desert areas follow a modern minimalistic theme with accents of green plants and decorative rocks that make you feel one with the landscape around you. Whereas a cabin in Big Bear will likely have a more rustic feel with lots of wood and decor to encourage a warm and cozy feel for its guests. With interest rates going up, does it still make sense to invest?
Absolutely! If you are qualified and in a financial position to do so, investing in real estate is always a wise move. Not only is real estate a hedge against inflation, it is one of the fastest ways to significantly appreciate your assets overtime. Last year alone, the average annual gain in equity was $55,300 per borrower, which is a lot more than an average person could save on their own. With a well thought-out rental property, your mortgage could be paying for itself while you accumulate passive income
Prominent Financial Group 535 N. Brand Bvld., Suite 290 Glendale CA 91203 t: 818-476-4133 www.PFG365.com
and equity. By doing so, you allow yourself to build future wealth for yourself and generations to come. Even with the rate increases, cashing out your equity, especially on your owner occupied property - is still one of the cheapest ways to borrow money. Do I qualify?
Good question! There are various factors that are evaluated in the process of obtaining a loan, whether it’s your primary residence or an investment property. However one perk of qualifying for an investment property is that we get to use the future rental income from that property to help qualify you as an investor. There are different programs available, both conventional and stated income - meaning less obstacles and more open doors that lead you to a healthier financial position in your life. At Prominent Financial Group, we are passionate about educating our community and being a valuable resource to you so call us with any questions and we’d be happy to consult with you for free, no strings attached.
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