BOSSE’s 2024 Predictions

The million-dollar question – do I invest in real estate right now or wait? Have you been sitting on the sidelines debating when to get in the game…unsure of what prices and interest rates are going to do? As we wrap up 2023 and enter 2024, we wanted to provide you with some information to better inform your investing decisions. Spoiler: there is never a ‘wrong’ time to start investing in real estate! 

There are several factors that impact the housing market in Texas: 

Interest Rates: after 18+ months of interest rates rising with what felt like no end in sight, it seems like interest rates will remain flat throughout 2024. Yes, they are higher than they were several years ago, but historically, interest rates are still relatively low. 

Housing Supply and Demand: The population growth in Texas has created a housing shortage for several years now. That pent-up demand, mixed with existing homeowners staying put because of their existing low-interest rate mortgages, is keeping prices stable. 

Overall Affordability: While not as affordable as it used to be, Texas one of the more affordable states, with the average home value in Texas at roughly $300,000. 

Economic Growth: The strong Texas economy has added jobs at a faster rate than most other states. This has fueled the high demand for housing. 

The combination of high mortgage rates, low inventory and high home prices make it a tight market for both buyers and sellers. So what does that mean for you, as an investor? It’s time to get real! 

Get Real about the Value: Investors need to continue to buy properties smartly, considering the current value of the home and the realistic after-repaired-value (don’t factor in appreciation). If real estate is not your main focus, considering working with a real estate agent who can really advise you on property valuations, desirable neighborhoods and more (BOSSE Lending is happy to connect you to a few of our favorite real estate agents).

Get Real about the Rehab: Make sure your repair costs are accurate and have a little cushion for when the AC breaks. In 2021, if your repair costs went up, it was okay, because while you were working on the rehabilitation of the property, the value was going up. In 2023 and 2024, that will most likely not be the case, so be sure to have your costs buttoned up and add that contingency line item. 

Get Real about the Exit Strategy: When going into a new project, understand how you are getting out of it. Are you selling it for a quick profit or planning to keep the property as a long term rental? If it’s the latter, line up your rental loan from day 1. And you guessed it, BOSSE can connect you with our 30-year-loan lending partners! Because of the high interest rates on 30 year loans, plan to only be able to refinance at around 60-65% LTV. This means that you likely will not get much, if any cash out!

Please note, that while BOSSE is actively surveying the marketplace, we are not experts and do not have privy to any information that you do not have. Use your best judgment when purchasing real estate, including not just the market conditions, but also your personal situation and finances.

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Ashley

President
Ashley’s decade of experience and passion for working with real estate investors to optimize their portfolios uniquely positions her to help clients reach their financial and lifetime goals. Ashley advises clients on investments throughout the acquisition, renovation, and listing services processes. She also offers in-person and online courses to investors with the goal of sharing her real estate and investment expertise and her best practices to optimize their investments in today’s marketplace. A native Texan, Ashley is a graduate of the University of Miami. She is very active in the community, notably with Ronald McDonald House and Shoes That Fit, a charity dedicated to helping school-age children living in poverty.

The BOSSE Difference

In real estate, opportunities pop up fast. With BOSSE Lending, you can feel confident knowing you are working with a dedicated, reliable investment partner who is invested in your success.

“In addition to lending, we are able to advise our clients on their investments throughout the process – acquisition, renovation and listing services”.

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Private Money 101, Fund Your Flips with BOSSE

We offer personalized investment advising and market insights, joint venture opportunities, and are personally invested in every loan we approve. Our private money lending is managed in-house, meaning we have more control over the underwriting process, making it faster and hassle-free. With flexible rates, zero junk fees, and quick decisions and closings, Bosse provides a reliable and efficient investment solution.

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