The Pandemic Has Changed the Dynamics of the Real Estate Business
One of the things that would-be investors want to know is this: how long will the whole investment process take? After all, we are busy people and we want to know how much time and effort we would have to put in, right? This is a reasonable ask, and in fact you should be asking your realtor or your investment guide all of these questions. A lot of investors simply want to know how long the loan application and approval, the actual paper work etc. is going to take.
How long does the investment process take?
There are a few options that will determine the time frame of your investment process. We are assuming here that one is opting for a brand new single family home(which in my view is simply the best choice). So you can opt for a home that is nearly ready; which the builder is ready to hand over possession of. Here, the thing that will take time of about 40 to 45 days is the loan process. The process of closing the deal will take about a month even in the unlikely event of someone buying the property in cash.
Sometimes you would opt for a property under construction where you can add the time of two or three months to the time frame, within which you can finish off the loan formalities. However, I find that the most common scenario is investors choosing a model and the builder starting to build based on this after finding a buyer. This can take as little as four months in my experience but could take up to a year.
Why things have changed now during COVID.
What has changed recently is the pandemic throwing the supply chains off track. Lumber is an issue. Labor is an issue. The supply and delivery of raw materials and fittings such as doors and windows is an issue. What this does is, it creates significant delays in the whole process of building and handing over possession to the buyer. Right now, the supply chain issues remain and delays are not uncommon.
So if you're planning to invest, remember to factor in at least some delays, and, in cases, delays of up to several months over the usual time taken for the investment process. It starts with house hunting where you survey a lot of options and narrow them down to what suits you in terms of price, location, aesthetics, and your financial goals. You then apply for and get the loan, close the deal and find a property manager and then, as I always say, do nothing!
If you have any more questions about how long the investment process takes or indeed any question about real estate investing, we are here to answer those questions for you. We are ICGRE, a real estate company designed to help empower you with the knowledge you need to create a safe, financially secure future. Remember, even if the process does take a bit of time, choosing to invest in real estate is going to be life changing – in a very good way!Call us to set up a free meeting and we will take you through the whole process.
Looking For An Investment Road Map You Can Trust? Look No Further
How long should you research before you decide to start implementing your plan to invest in real estate? 10 years? 20 years? 30 years? And what resources do you need and which bootcamps do you need to attend before you finally take the plunge? It may surprise readers to know that a lot of people think all of this is necessary, but it really is not! Real estate investing is actually a lot simpler and much less intimidating that you may think it is. You will find that things readily fall into place when you use what they call The Adiel Method.
Read my book!
When people ask me for a resource that will help to guide them on their quest to create future wealth for themselves and their family, I recommend a book. Full disclosure, that book is written by me, but it is an excellent resource for those looking to learn how to start investing in real estate – even if I do say so myself! Read the book“Remote Control Retirement Riches: How to Change Your Future with Rental Homes,” which you can get off of Amazon right now for a few dollars. This is a simple road map that will help you achieve your financial goals. Whether it is your kids’ education, a fancy car, elder-care for your loved ones, or even just a truck load of fine chocolate if you so wish!
The point I'm making here is that you don’t really need a lot of resources to start investing. Do your due-diligence by all means – read up about the markets, read up about the documentation required, find out about the local regulations etc. But the formula for real estate investing is fairly simple and you don’t need to go to bootcamp for it – just attending one of ourquarterly expos could resolve your questions and help you get started.
Anyone can do it.
We have had young people and middle aged people and senior folk start on their investing journey. We’ve had people who want to buy one home and we've had people who want to buy 10, 20 or 100 homes. My formula is simple: choose to buy single family homes in large metropolitan areas of the Sun Belt states. Avail the 30-year fixed-rate loan and make the minimum down payment. Then hand over its management to a property manager so that you start to earn yourself a tidy amount in rent; which will also help you in repaying your loan. And now prepare to do absolutely nothing – because that is how you prepare for your retirement riches: by doing nothing!
Still want some guidance on this whole business of real estate investing? Well, we at ICG Real Estate are happy to help. All the resources you need to learn more about real estate investing, we make available to you for free. Call us or meet us in person. Remember, real estate investing is simpler and more rewarding than you think!
ICG uses single-family home investments, bought in advantageous locations and the best U.S. markets. We enable you to enjoy the clout that comes from purchasing a multitude of houses, even if you only buy one.
165 N. Redwood Dr. Suite #150 San Rafael, CA, 94903