Real estate investors interested in making money on a home are becoming less likely to flip the home and more likely to hold the property and rent it out, according to a new report from Auction.com. The likely cause? Oil prices.
The slowdown is partly due to the fact that there are fewer distressed assets available for purchase as foreclosure rates slow down. But it’s also partly due to the fact that there’s just not much inventory of any kind on the market.
Institutional investors notably slowed their pace of purchases in an attempt to focus on ramping up occupancy rates on rental units. Because of this, many are left wondering about the potential impact of a rise in rates and a moderation in investor demand.
“Nearly every part of the real estate process has been transformed by technology except for home financing. Getting a mortgage is still manual, frustrating and confusing,” said Nick Stamos, CEO and founder of Sindeo..
Legacy insurers are headed toward solid ground, with some experiencing their first full year of profitability since the housing crash. New entrants, meanwhile, are raising capital, entering the fray and gaining market share. Read More
First, I’m not suggesting totally yanking FICO or Vantage Scores or anything like that. What I am recommending is the adoption of other models that would equally, or even more effectively, determine who can repay a loan. Read More