More Investors are Considering Fix and Flip and Buy and Hold Investment Properties in Kansas City
The market for fix and flip and buy and hold investing is continuing to grow. This is the case nationally, as well as in the Kansas City real estate market. In this article, Worcester Investments will explore what these different types of investments are. We will also detail why investors are flocking to these investment properties.
We will also explain how you can invest successfully in properties by working with Worcester Investments. As a strategic multifamily investment company, we offer private financing for fix and flip and buy and hold investments. For those who want to experience high returns on investment, these options might be worth considering now, before the market grows much more.
It may not be the time to be indecisive in the Kansas City real estate market. While you may not be an accredited investor according to the SEC, there are still opportunities to take action. More aggressive investors can potentially thrive in this environment, while those who wait will remain on the sidelines.
A Refresher on Real Estate Investment: Fix and Flips and Buy and Holds
If you are interested in either of these options for investment in Kansas City real estate, here is a refresher. Understanding investment definitions empowers you to make the right choices for you. Remember, you do not need to be an accredited investor to participate in these investment opportunities.
Fix and Flip: An investor might decide to purchase a home, then reposition it for the market. This could include any number of repairs or renovations. The goal here is to make the house more attractive and desirable. Then, the investor puts the home on the market and sells it at a higher price than they paid for it. There are certainly high returns on investment to be had here.
This is a relatively practical way to invest in real estate. It is very popular on home renovation television shows, too, so there’s plenty to learn. There are also many resources available to help you make this investment work for you. If you schedule a call with our Investor Success Team, we can also offer strategies and information to help you invest wisely. Our multifamily investment company is committed to offering this support.
Buy and Hold: A buy and hold is different from a fix and flip for obvious reasons. Instead of trying to sell the property, the investor rents it, or decides to live in it, while intending to sell the investment property at another time.
What are the Advantages or Disadvantages of These Real Estate Investments?
Advantages of the Fix and Flip: This investment practice can be a good choice if you purchase in a particularly desirable location. Additionally, if you have skill in redesigning a home, you can make a significant return. According to ATTOM data for 2021, the average return on investment was 32.3 percent, which would be considered a high return on investment.
Disadvantages: To make this investment successful, you will need to have a team of contractors assist you in repairing the home. Additionally, when home prices or interest rates are high, a fix and flip investment property can be more difficult to sell.
Advantages of the Buy and Hold: The advantage of the buy and hold option is that you will make returns, as long as you earn occupancy fees. You can also sell the property in the Kansas City real estate market eventually. Our multifamily investment company observes that this situation can happen quite a bit.
Disadvantages: A disadvantage here is that you introduce risk as you continue to hold the property. For example, if you fix and flip a property during a particularly good time for sellers, you will experience high returns. If you hold, and then later you’re ready to sell and the market is unfavorable, this can hurt your investment. Others will point to renting as introducing risk, as you want to ensure you have excellent tenants.
Why are These Investment Strategies Attracting Attention Right Now?
There are a number of reasons why both investment strategies are engaging investors at this time. Here are observations about each type of investment that explain the excitement around these Kansas City real estate strategies.
Fix and Flip: Fixing and then reselling a property takes some time. According to Investopedia, it takes an average of 162 days to fix, renovate, and sell a home. Remember, too, that this represents an average. If market conditions are unfavorable for sellers, fixing and flipping can buy you some time until the next market turn-around. Investors will choose to repair a home during challenging conditions with the expectation that by selling time, conditions have changed.
Buy and Hold: In a market where interest rates are high, more people have trouble affording a home. They want to rent instead, but desire a high-quality investment property that has the comforts of owning a home. Therefore, buy and hold investors can do well in these market conditions.
Both of these observations from our multifamily investment company are worth considering. They give you an idea of why the market is growing at this particular time. Therefore, it may be a good time to invest in Kansas City real estate yourself. You may, in fact, realize high returns on your investment, even if you don’t qualify as an accredited investor.
How Our Multifamily Investment Company Can Help with Your Real Estate Investment Goals
Are you interested in a fix and flip or buy and hold as a strategy for investment? Worcester Investments can help.
If you are not an accredited investor who qualifies for our Kansas City real estate fund, we still have options. We offer private financing for anyone who requires a loan for the home investments we described above.
We have no minimum loan requirements. We have opened the playing field to give all investors a chance to make high returns on investment a reality.
If you are interested in working with us, schedule a call with our Investor Success Team to learn more. We hope to be your partner as you transform an investment property to your advantage.