Cryptocurrency and Real Estate Investing – Is It the Future?



Even though it is still approached with caution by the public, cryptocurrency is slowly but surely gaining a foothold in various markets. The doubts, of course, are understandable, as Bitcoin’s value in particular fluctuates quite unpredictably. Coindesk reports that the world’s most popular cryptocurrency ended September with its lowest volatility for over a year, but also suggests that this is merely the calm before yet another storm. Despite issues like these, many experts believe that cryptocurrency will shape the future of finance, and as that future unfolds, we could soon see a significant role for cryptocurrency in real estate.


Cryptocurrency is becoming more accessible


Although Bitcoin is primarily used today as a trading commodity, FXCM notes that Bitcoin is also gaining ground in various traditional businesses. These include entertainment outlets, restaurants, and even casinos. Several global retailers, such as Walmart, Amazon, and McDonald’s, are also projected to have cryptocurrency payment systems installed in 2019.


With many businesses jumping on the bandwagon, it’s only right to ponder how cryptocurrency will affect real estate. Forbes Real Estate Council’s Matthew Murphy believes that cryptocurrency will innovate the real estate sector via blockchain. This is the decentralized technology used by Bitcoin and other cryptocurrencies to record transactions. Because of its decentralized nature, blockchain is perceivably indestructible and impervious to hacks. Transactions in real estate are often done offline, through personal engagements between specific entities. The introduction of blockchain smart contracts can change this norm, as real estate assets can now be tokenized and traded. There would also be no need for a middle person to facilitate the transactions.


Real estate is beginning to welcome cryptocurrency


Meanwhile, some real estate entities are already accepting cryptocurrencies as payment. Just last March, the New York Post reported on the first two units in New York City to be sold under a Bitcoin contract. The real estate developer, Ben Shaoul, shared that he had used the third party service BitPay to receive Bitcoin payments. The service, in turn, paid Shaoul’s company in cash. Several other listings accepting Bitcoin have also turned up in Miami, the Bay Area, and even across Australia and Canada.


It is interesting to note that listings with cryptocurrency options tend to get more exposure, and are also often luxury condos. Though such listings are becoming more common, Redfin agent Aaron Drucker advises first-time home buyers not to go for Bitcoin transactions because it’s currently too risky. Leave these to buyers who are out to buy their second or third homes.


Millennials could be key to cryptocurrency in real estate


All in all, cryptocurrency’s entry into the real estate market comes at an opportune time, as previously pointed out on Anchor Loans, the increasing number of Millennial home buyers. This demographic already accounts for 34% of buyers in the market, hence the need for house flipping strategies that appeal to them. When it comes to cryptocurrency, research showed that about 30% of Millennials prefer investing in Bitcoin than in stocks or government bonds. In general, Millennials are more open to this new technology in order to create opportunities for themselves. That’s why it’s safe to say that the generation has helped fuel the cryptocurrency trend, making it a household word in numerous industries.


Perhaps Millennial buyers’ demand will increase the role of cryptocurrency in real estate. Global acceptance of the digital currency may still be in its infancy, but with cryptocurrencies already seeing uses in real estate and other businesses, it’s only a matter of time.


Elaine Nelson is a former real estate agent who worked in the industry for six years. She operated mainly in Kansas. Elaine shares her real estate insights in the digital space whenever she’s not busy being a stay-at-home mom and wife. She also likes to read about real estate trends and contemplate how these will affect the future of the industry.


Three Fix-and-Flip Investors Share How Anchor Loans Made a Difference

Anchor Loans Before and After


We recently spoke with three fix-and-flip investors, all of whom used Anchor Loans on their own projects (before and after photos above). In their own words, here’s how Anchor Loans made the difference in their individual projects and in their investments going forward.


Over the course of your relationship with Anchor Loans, what’s made them stand out to you?


Vartan A.: “A couple of things. One is speed. The speed is a big factor, how things get processed, and that they can fund quickly. Another factor is service. That is, their customer service. They know what our needs are and they’re knowledgeable about our business. That makes our job a lot easier and smoother.


“The service and speed are definitely a big part. I also want to mention [Anchor Loans account executive] Lance Spencer. Lance has been very accessible. Any time I need something done quick or in a special way, Lance always accommodates.”


Zachary L.: “At the time [when my relationship with Anchor Loans began] it was really about the personal relationship when we were just getting started, and now it’s just their quick turnaround and their reliability. I always know that they’re going to be able to get it done. There’s never any fear.”


Hernan H.: “Their reliability. In one word, that’s it. They’re bankable. You can take them for their word if they say they’re going to do something. They’re a company that stands behind what they say. I can make promises knowing I’m receiving the same kind of quality, a seriousness on the side of Anchor. If they say “yes I can fund this for you in three days or four days or five days,” they’ll get it done.”


Is there a specific instance where your close personal connection with Anchor Loans made a difference for you?


Zachary L.: “Definitely. It happens all the time when you take on a project where you have a partner or someone who wants to use their own broker or go with a certain outfit, and it’s always a big pain. For me, it’s about that familiarity and that relationship, so I’m always sort of pushing to Anchor because there’s so much going on in an escrow situation and you don’t want more hassle.


“When we go hard, with released contingencies, there’s just fear with some of the newer outfits or people I don’t know. Are they really going to come through? You never want to lose your earnest money deposit. I’ve never had an issue with Anchor delaying something or not being able to get documents out in time.”


Vartan A.: “There has been more than one instance where speed and service have played a role. In fact, I’ll come back to how Lance has helped out. It’s been very critical. Sometimes we deal with a lot of moving parts in our business, like listing agents or buyers’ agents or homeowners. Everybody wants things a certain way, and I want to buy the property and to accommodate these different people. So, sometimes if you have the right team, like Lance and his team, everything becomes much smoother.”


What do you see as the big difference between Anchor and other lenders with whom you’ve worked?


Zachary L.: “Before I used a lot of private money, investors or smaller lenders. It was a bit more amateur and a bit looser. It’s a lot less reliable. Moving forward with Anchor, it’s just very consistent.


Hernan H.: I’ve always considered Anchor my primary lender because of the relationship that was established at the personal level as well as business. Again, back to the fact that they’re a company you can count on. As an investor, when I’m sitting in front of a seller, I need to be sure I give promises that can be fulfilled, and that really relies on whether I’m finding it with my own cash or coming to anchor with a loan, that’s an important factor there for me.”


Ready to get started with Anchor Loans? Contact our team and start your fix-and-flip investment project today!

Empty Rental Property: How To Make It Rent-able

What to do with empty rental property









An empty rental property isn’t the worst thing that can happen in your real estate business, but it’s far from ideal. An empty rental unit costs almost as much to maintain as an occupied unit, except without the benefit of rental income.

So, what do you do if you find yourself in a situation where your rental property is unavoidably empty? Here are three steps to take to make your empty property as rent-able as it can be.

1) Check what else is available

Have you stayed on top of the rest of the rental market in your area? If you find your property vacant and haven’t kept up with rental trends, it’s possible the market may have shifted in such a way that your property is no longer as desirable as it once was.

Make sure you have a good feel for what sorts of properties are renting in your area, and if you find the market has passed you by, take steps to bring your property more in line with current trends.

2) Reassess your property’s strengths and weaknesses, then adjust strategy

After seeing what else is on the market, take a close look at your own property’s strengths and weaknesses. What does it offer that others don’t? Where does it fall short? Assessing the property in light of the rest of the market is a key step towards understanding why you may be without a tenant.

Once you’ve taken stock of your property, consider your strategy for getting it in front of potential renters. How are you marketing your property? If it’s not showcasing what’s best about the unit or house, you may be leaving money on the table.

3) Look for new or different markets

Once you’ve gotten a good handle on your property and how it aligns with the market as a whole, you may want to consider a more radical step —targeting a different market for your property.

The market for potential renters is changing nationwide. Most notably, it’s getting younger. Driven by the comparative affordability, millennials are turning to rental units rather than home ownership as their long-term housing solution. Adjusting your rental strategy to target this growing pool of potential renters could move your property from vacant to occupied.

It may also be worth exploring the potential of marketing your rental property as a vacation unit. Though long-term renters are ideal for many reasons, if your property is in a market ripe for tourism or vacationing, your rental property could be a good fit. Consider exploring this market as you look to get a new renter into your available property.

Five Ways to Build a Long-term Real Estate Investment Strategy


Many view real estate investing as a short-term game. Fix-and-flip investing, in particular, can seem like an opportunity to get in, make some money, and get out. But for those with the vision, drive and skill-set to thrive in this industry, real estate investing can be much more lucrative when viewed as a long-term opportunity.


Building a long-term business, though, can be a challenge. You’ll not only have to manage your business profitably, but you’ll have to ride out changing market conditions and successfully navigate among competitors while growing your customer base. For those willing to take on the challenge, this form of real estate investing can bring rich returns.


Here are five strategies to consider as you build your real estate investment business for the present — and for the future.


1) Start by mastering one thing


Real estate investing is a deep, diverse field with many elements and strategies to consider. Rather than trying to master them all at once, focus on perfecting one aspect of your business at a time. Once you’ve developed your skills there, move to another facet. Soon, you’ll have a well-rounded skill set, one that will be primed for years of growth. What’s more, you won’t have burned yourself out in the process by trying to do too much too soon.


2) Build your team of experts


To succeed in this business, where time lost is money wasted, it’s critical to have a team of experts you can depend on to get things done quickly, and done right the first time.


Ideally, your team of experts should include:


  • A skilled general contractor with an excellent track record for on-time, quality workmanship. You will also need a backup contractor in case your go-to is not available (and a backup to your backup).


  • A lender that can approve and fund your project financing as quickly as possible.


  • One or more real estate agents who specialize in investment properties.


  • A CPA with expert-level experience in tax laws specific to real estate investing.


  • A qualified real estate attorney who knows from experience that complicated legal issues can arise unexpectedly in property investing.



3) Develop different strategies for different competitors


Investing in real estate is a zero-sum game. There is a limited number of available, desirable properties in a given market, and to be able to succeed at the highest level and leverage these properties to your advantage, you have to be able to handle competitors well. It’s not enough to plan for general competition, either. You must prepare for different kinds of opposition from different kinds of investors. For example, are you prepared to compete for off-market properties where sellers may prefer cash offers? Be sure to develop different strategies for dealing with bigger, well-established competitors, as well as leaner upstarts.


4) Hone your marketing skills


In his book The 33 Ruthless Rules of Local Advertising, author Michael Corbett wrote “If your doors are open, you should be advertising.” Though his book was first released in the mid-1990s, before the explosion of social media and Internet advertising platforms, Corbett’s advice holds true today. Businesses must market themselves to succeed, and yours is no different. Learn what it takes to cut through the clutter of your market, start advertising, and don’t let up. The kind of advertising you do may be a bit different than what Corbett envisioned, but the goal will be the same—maximizing your ROI.


5) Reinvest


Finally, as you build and grow your business, don’t forget to reinvest what you earn, both in your business and in yourself. Consistently returning your profits back into your business will keep it healthy and growing for years to come, while making time to develop your skill set will help you meet new challenges as the world of real estate changes around you.

How to Create and Increase Your Real Estate Portfolio with a 1031 Exchange


You may have gotten your feet wet with fixing and flipping real estate. There are few things more exciting than being part of a significant property transformation and watching your profits grow. If you’ve sold a flip before, you know there is a significant payout to the IRS under the name Capital Gains Tax that sneaks in and takes quite a chunk of your earnings. While the profit (hopefully) makes that tax pill easier to swallow, did you know there is a way to defer the taxes associated with selling a property?


It’s called a 1031 exchange. As part of tax code 1031, you can take a long-term investment property, sell it, and purchase up to three more properties without paying taxes on the sale. As with most things tax-related, many wonder what the catch is, and here it is:


The IRS knows if they allow you to use the entire profit gained from the sale of one investment property to purchase more properties, you will eventually sell those properties as well, and they can grab an even more substantial amount in the future. It’s pretty tricky, but it really benefits both sides. In this article, we will teach you how to create and increase your real estate portfolio with a 1031 exchange.


Getting Started


It is crucial to note at this point that you can only use a 1031 exchange with an investment property. You can’t complete a 1031 exchange with the sale of the single-family home that you have been living in consistently for the last twelve years.


You can, however, buy a multi-family home, fix it up while living in one unit, and rent out the rest of the units. In this instance, your primary dwelling also happens to be an investment property. In that scenario, the property may be eligible for a 1031 exchange.


There is also another loophole to the rule: if you buy a single family home, own it for five years, live in it for a couple years, and then rent it out, it can be considered an investment property. You can then sell that investment property and complete a 1031 exchange with it.


Before you purchase any home or investment property with the intent to 1031 exchange it in the future, you want to make sure it’s a good investment. Talking with realtors in your area that deal specifically in investment properties is a good start.


What to Look For in an Investment Property:


There are quite a few ways you can gauge if the property you are looking into will be a good investment. If it’s your starter investment property, it most likely will not be a commercial property so we will focus on residential.


1) Location, Location, Location!

Chances are you aren’t going to want to invest in your own backyard. You want to find an area that has a high rental yield and is growing. If you are going to rent out your property, you need to make sure there is a demand for that type of rental. Compare several areas and even several states. Periodically, some real estate companies will publish articles about the best places to invest in based on the numbers and data they have at hand. It is a good idea to look into those areas and investigate further.

2) Consistency

It’s said that the market recycles about every seven years. Knowing this, you’ll want to take a look at as much data on the area as you can to notice any peaks and valleys in the market. You want a location that stays pretty consistent rent-wise and population-wise. You especially want to run in the opposite direction if you notice a pattern of really high highs and low lows, as those investments typically are riskier than others.

3) Maximum Gain

Remember, you are purchasing a property to sell in a few years. You want as much capital in that property as you can get when you go to sell, so you can spread your investment even further. How do you find such a venture? You find homes that already have some equity them in after the purchase price. To do this, you could go through public records and locate a property where the owner has been having trouble keeping renters in it or paying their bills. You can write a letter to them inquiring if they would be willing to sell. If you buy a house that is not yet listed, you may have some room to negotiate a price that would be mutually beneficial.


Phase Two: Increasing Your Portfolio


Once you have your property and hold onto it for a few years, you should be able to use it in a 1031 exchange. To do this, you can choose up to three other properties (in most cases) to put the gains down on. The catch is that the property or properties combined purchase price must be equal to or higher than the profit you made from selling your first property.


For example: Let’s say you sold your rental property and made $90,000 on it. You then take the money and put $30,000 down on three other properties, each purchased for $150,000. You could not purchase one property for $60,000 and pocket the remaining $30,000.


An increase in portfolio doesn’t have to be in number only, however. You may exchange a small house in a shabby neighborhood for several units in a lovely part of town. While there are rules and caveats to each investment, the possibilities are really endless with 1031 exchanges.


As always, you want to speak to a real estate agent who has experience working with 1031 exchanges. There are specific paperwork and protocols to follow, and DIY-ing it has is perks in many places, but a 1031 exchange isn’t the place or the time to learn something new on your own. Find a real estate agent you can trust, because once you start using 1031 exchanges, there’s no limit to how large your portfolio can grow.


Andrew Schmeerbauch is the Content Director at Clever Real Estate and an active real estate investor in St. Louis, looking for financial freedom and passive income from multifamily investment properties.

From Anchor’s CFO: As Your Company Grows, Be Sure to Offer This Surprising Top Employee Perk

In one of the tightest labor markets in a very long time, companies are looking for ways to attract and retain employees. Therefore, it should come as no surprise that many of the most attractive employers are making substantial investments in expensive and thoughtful perquisites. Employers looking to hire and keep premiere talent would be well served to include in their benefit packages the most valuable and cost effective perk – encouragement.


In an effort to out-do one another, cutting edge employers have raised the stakes in creative and enticing perks. In an article from Business Insider, Rachel Gissett identifies 30 “Incredible Perks” including:


  • 5 months paid leave for mom and/or dad plus an additional 8 weeks of paid medical leave for mom (American Express)
  • 6 days PTO to volunteer for a charity of choice and an annual stipend of $1,200 to donate to charity of choice (
  • Employer match on employee contributions to 401(k) of up to 8% (USAA)
  • Global soccer tournament between offices from around the world (Bain & Company)

These are expensive employee benefits (maternity/paternity pay could easily exceed $100k for some higher level employees). Yet, they are also very strategic – designed to promote those things which are mutually beneficial to the employee and the employer (commitment to family, giving back to the community, savings, team building and fitness).


Perks like these are outstanding and those employers should be applauded. However, research has found that the things most important to employees are tied to encouragement. In an article in Inc., contributor Issie Lapowsky listed the 10 things employees want most in a job and two of them are related to encouragement, (#1 and #6) and only one of them had to do with pay and benefits (#10). Employees want to know that what they do at work and how they do it matters. It is important for them to be convinced that they are important.


The amazing thing about this perk is that it does not cost the employer a penny. It does require a commitment from the top and buy-in from all who manage to be fully engaged in the practice of specific, genuine and consistent encouragement. The word encourage means “to give courage”; courage to take risk, learn from mistakes, be curious and go the extra mile. Withholding encouragement works in the opposite way – it robs employees of the confidence and resolve to excel.


Managers who find it hard to encourage are usually dealing with some of their own insecurities. If they were never (or rarely) encouraged, doling it out in generous portions will not come naturally. Many of those who are stingy in this area feel that telling someone they are doing a great job will engender complacency. It has been my observation that employees will be much more inclined to work even harder if they are acknowledged for their effort and contribution. In the unlikely event that you have an employee who responds to encouragement by dialing down the diligence, you have the wrong employee and you should fix that.


Companies that make significant financial investments in employee perks are usually effectively encouraging their employees. There is a connection between the value management places on employee morale and a sincere commitment to encouraging employees – it is unusual to find one without the other.  Obviously there are a number of ways to employ a resolve to foster an environment of affirmation and each company needs to find those that work for them. At Anchor Loans, we have incorporated a number different tools to cultivate a culture in which employees are regularly reminded of how they are making a difference here. We encourage our employees to encourage one another publicly (we post on our Kudos wall, expressions of appreciation for a job done extraordinarily well). We honor an employee of the month publicly. We give managers a monthly budget to be spent on team building events.


It would be full-on naiveté to think that you can attract and retain exceptional employees with encouragement alone. It is just part of the compensation package. What you give employees sends them a clear message regarding how you value them. Think of words of encouragement as a safe. It helps ensure that the financial investment you have made in your employees is not taken by someone else.


Bryan Thompson, Anchor Loans’ CFO, has over 20 years of finance and operations experience, including with mortgage firms. His expertise includes analyzing projections, creating annual budgets, raising capital and creating robust financial modeling.

Anchor Loans Surpasses $1 Billion in Loan Originations in Q3 2018

Calabasas, Calif., Sept. 4, 2018Anchor Loans, the nation’s number one hard-money lender to the fix-and-flip industry, has again exceeded $1 billion in loan originations in a single year. This is the third consecutive year Anchor has provided over a billion dollars of financing to real estate investors, and sets a new Q3 record for the company. Anchor’s loan fundings for the month of August surpassed $150 million, setting a new monthly record for Anchor and putting them on track for projected annual originations of 1.5 billion for the year.


“We are proud to have set this record for the third year in a row, now exceeding over $6 billion in originations since 1998,” said Stephen Pollack, president and chief executive officer of Anchor Loans. “We have maintained our leadership position in the industry for loan volume and we are thankful that our customers continue to recognize our true partnership as they build their businesses and investments.”


Anchor’s experience, relationships and proprietary Fintech platform continue to set the firm apart from other lenders in its ability to rapidly evaluate, underwrite and fund loans, usually in as few as 3-10 business days. All of this translates into what is now the nation’s premier direct-private lender to the fix-and-flip market.


About Anchor Loans

At Anchor Loans, we have brought borrowers and investors together for more than 20 years to create mutually beneficial opportunities for all parties. We do this by specializing in the financing of rehab properties that contribute to the improvement of the neighborhoods where they reside. Because we know, understand and anticipate the needs of our clients, we offer the fastest and most reliable funding options on the market resulting in lucrative, honest and long-term relationships. By focusing our mission on these key areas, we continue to grow at a record pace, expanding into new markets and establishing ourselves as a leader in the lending sector for real estate investments.

10 Reasons Real Estate Investors Use Hard Money Loans

10 Reasons Lenders Use Hard Money Loans


When investing in real estate, using hard money loans can bring significant benefits to your negotiations with the seller. Our team at Anchor Loans has great experience offering hard money loans to our clients, and within this latest post, we’ll explain 10 reasons to use hard money loans as an investor.


1) Faster close


Since hard money loans are designed to cut through the red tape of conventional financing, using hard money loans gives investors the ability to negotiate shorter closing timelines with sellers. Providing sellers with proof of approved funds lets them know you can expedite the transaction, edging out any competitors waiting the 30-45 days conventional lenders take to approve and release funds.


2) Limit dependence on credit


Property value and borrower experience drive the loan amount and terms of hard money financing, meaning hard money lenders will not judge an investor solely on their credit history when considering a loan application. The value of the real estate will be the key consideration.


3) Secure more properties


Hard money loans allow the investor to reserve their own capital as they secure more properties—conserving cash on hand to complete other projects. With the added leverage of hard money loans, investors’ funds aren’t all tied up in one project.


4) Cash-out refinance loans available


Investors can use hard money loans to do a cash-out refinance on the properties they own. This provides additional capital to fund all-cash property purchases, or to apply down payments on additional properties.


5) Avoid focus on bankruptcy


Some investors have difficulty getting new loans due to past financial issues, such as bankruptcies. With hard money loans, a past bankruptcy will not automatically disqualify a borrower, since loan approval will be based more on the value of the property.


6) Lenders offer advice


A hard money lender can also offer expert advice on the borrower’s real estate project. Since the safety of their loan is tied directly to the subject property, hard money lenders will have a vested interested in the success of the project.


7) Hard money lenders provide solutions


Hard money lenders are also more likely to be flexible than traditional lenders and can offer solutions to challenges investors encounter in the process of improving and reselling or renting their investment properties.  Hard money lenders encourage regular communication and transparency while the project progresses, to avoid any surprises and to provide solutions as soon as issues arise.


8) Tailored Loan Options


Hard money lenders can provide investors with loan options tailored to their specific needs. Loan-to-Value (LTV), interest rate, points, and term lengths can all be adjusted on a case-by-case basis. Hard money lenders can also give investors the option to bring cross properties they own as additional collateral to meet LTV requirements.


9) Stronger negotiating position


A hard money loan gives the investor a stronger negotiating position when competing with other property investors. A hard money loan can be considered a more reliable source of funding than conventional bank financing.


10) Quick approvals


Hard money loans can be approved in as little as 3 to 5 days. Traditional loans can take up to 45 days to receive approval.



Our team at Anchor Loans is here to guide you in choosing your property financing options. To learn more, call us today!

Anchor Loans Recognized on 2018 Inc 5000 List

Calabasas, Calif., Aug. 15, 2018 – Anchor Loans has been selected for the 2018 Inc. 5000 list of the fastest-growing private companies in America. The magazine Inc. 5000 posts an annual list that recognizes the nation’s greatest and most inspiring entrepreneurs.


Each business selected is ranked from #1-5000 on the list. Factors such as 3-year growth and revenue determine ranking. This is Anchor Loans’ first year on the list, and the company is ranked No. 886.


Inc. 5000 honors U.S. entrepreneurs who are creating companies, value and jobs. This recognition provides nationwide exposure for Anchor Loans and broadens the public’s awareness of the financial services provided and the team of experts behind them.


Inc. 5000 was founded in 1979 and is based in New York City. The elite list has included companies such as Microsoft, Timberland, Vizio, Intuit, Chobani, Oracle, and over the years.


About Anchor Loans

At Anchor Loans, we have brought borrowers and investors together for more than 20 years to create mutually beneficial opportunities for all parties. We do this by specializing in the financing of rehab properties that contribute to the improvement of the neighborhoods where they reside. Because we know, understand and anticipate the needs of our clients, we offer the fastest and most reliable funding options on the market resulting in lucrative, honest and long-term relationships. By focusing our mission on these key areas, we continue to grow at a record pace, expanding into new markets and establishing ourselves as a leader in the lending sector for real estate investments.

Three Market Indicators Fix-and-Flip Investors Should Watch


Fix-and-flip investing is no casual money-making scheme. It takes careful planning and foresight to succeed in every step, from purchasing your property, to renovation, to the eventual resale of your investment property.


Understanding the market conditions that help lead to a “sold” sign is key to getting the best return on your investment. Here are three market indicators that will help you better assess whether it’s the right time to start your fix-and-flip investment project.


1) Population Movement


It’s critically important to understand population trends in your target market. After all, the end goal of every fix-and-flip investment is the “flip” — selling your renovated property to a new buyer.


Finding a buyer depends greatly on the number of potential home buyers in your area, and understanding how many people are entering or exiting your market will help you determine whether or not it’s a good time to invest.


The U.S. Census Bureau offers in-depth information on population trends around the country, including a recent study on the fastest growing cities in the United States.


2) Economic Strength


A second indicator of the potential quality of your fix-and-flip investment is economic strength. If your local economy is going strong, there is a good chance potential home buyers will be more willing to make a home purchase in the near future. A shrinking economy, however, likely means a weaker real estate investment market will follow.


A related indicator is the relative economic diversity of an area. A city or region’s local economy will tend to be much stronger if it includes diverse industries, but cities that bank on one industry tend to be very vulnerable. WalletHub recently explored the most and least economically diverse economies in the country. Examining their data could help you determine if your area is ripe for investment.


3) Construction Trends


Construction and construction spending represent the third indicator fix-and-flip investors may want to monitor. Increased construction spending can mean a short supply of housing in a given market, and closely monitoring construction trends can give fix-and-flip investors a better understanding of the true inventory available in their markets.


The U.S. Census Bureau supplies detailed information on both new construction permits and how much construction companies are spending on new residential construction on a quarterly basis. Keeping an eye on this data could give you a better idea of what sorts of houses your potential buyers are looking for and whether they may be interested in a new home or a newly renovated property.