In the world of real estate, equity is king. Every homeowner, at one time or another, has pondered ways to extract more value from their most cherished asset. With the glittering horizon of Philadelphia serving as a backdrop, one emerging trend is captivating those in-the-know: the strategic overhaul of a property’s outdoor space to fortify its market worth. Companies like Terren Landscapes, nestled in the lush suburbs of Philadelphia, are pioneering a nuanced approach, illustrating that the road to unlocking home equity might just be paved with well-appointed cobblestones.

The principle is simple yet ingenious. By investing in landscape design and installation, homeowners are not merely beautifying their domains, but they are directly augmenting their home’s intrinsic value.

1.  Return on Landscape Investments

A report by the National Association of Landscape Professionals suggests that homeowners can expect a return of over 100% on landscaping investments. To put that in perspective, consider the ROI on other popular home improvement endeavors—like remodeling a kitchen or bathroom, which can often garner a return of anywhere from 60% to 120%.

This promising prospect has prompted homeowners, particularly in affluent regions, to team up with high-caliber companies. The objective? To reimagine their outdoors into a realm where functionality fuses with artistry.

2.  Beyond the Aesthetic Appeal

But the pull of landscape installations isn’t limited to its aesthetic allure alone. Thoughtful landscaping offers tangible financial benefits in the guise of energy savings. Properly placed trees and shrubs can act as natural insulators, reducing heating and cooling costs. Moreover, a well-maintained landscape can bolster a property’s drainage system, mitigating risks associated with water damages—a solution that can sometimes lead to lower home insurance premiums.

3.  Drawing Potential Buyers

In the frenetic realm of real estate, first impressions can make or break a deal. A property enveloped in a cloak of vibrant blooms, cascading water features, and impeccably manicured lawns can intrigue potential buyers, even before they step through the front door. It’s a silent testimony to the homeowner’s commitment to quality and care.

This sentiment is echoed by Terren Landscapes, which has, over the years, sculpted some of the most breathtaking outdoor living spaces in the Philadelphia region. Their handiwork stands as a testament to how landscape installations can be a nexus of art and investment.

4.  The Financial Landscape

As homeowners set their sights on landscape redesign, many are leaning on real estate loans tailored for home improvements. These loans, often with competitive interest rates, serve as a financial conduit, allowing homeowners to realize their vision without draining their coffers.

Lenders, recognizing the potent ROI of landscape installations, are more amenable to underwriting such ventures. It’s a harmonious dance between homeowner ambition and financial pragmatism.

5.  A Sustainable Vision

Beyond the immediacy of monetary returns, there’s an intangible yet profound allure to landscape installations—the promise of sustainability. Companies, cognizant of the changing environmental narrative, are weaving in green practices. From rain gardens that prevent water runoff to native plants that demand less water and care, the focus is clear: curate a landscape that’s both exquisite and ecologically responsible.

As the sun sets over the skyline of Philadelphia, casting a golden hue on its sprawling suburbs, it’s evident that the city and its environs are on the cusp of a landscaping boom. A movement championed by visionaries like Terren Landscapes, reminding us that our homes’ true potential might just lie in the world outside our windows.

What is Build-to-Rent? 

Build-to-rent (BTR) is a real estate investment approach centered around the construction of purpose-built rental properties, such as apartment complexes or housing communities, with the primary intent of generating rental income. In contrast to traditional real estate development, which often involves selling individual units or homes, BTR focuses exclusively on creating rental units. This strategy is gaining in popularity due to the rising demand in the rental market from buyers turning towards renting due to affordability concerns. 

Build-to-Rent (BTR) Increasing Demand 

According to Fixr.com’s “Build-to-Rent Homes Report 2023” The National Association of Homebuilders estimated that “69,000 BTR homes began construction in 2022.” Fixr goes on to predict that this number is slightly higher due to the construction of homes sold to other parties specifically for rental purposes, totaling this estimate to actually be closer to 119,250.  The chart below showcases an over 50% increase in build to rent starts over the course of five years. 

Reported by Fixr.com based data from the Census and National Association of Homebuilders (NAHB).

Who is Driving this Build-to-Rent Demand?

According to the report, demand for BTR homes is split between Gen Z (55%) and Millennials (41%).  Tenants in these age demographics prefer the lifestyle opportunities that BTR properties can provide. Because purchasing a home may be unaffordable for many, the option and flexibility that comes from renting one of these BTR properties is much more attractive. There are no maintenance costs, no mortgages to pay, and the community amenities and benefits without the added price tag of home ownership. 

Where is Build-to-Rent Demand the Highest? 

According to data provided by RentCafe, Phoenix, Arizona tops the list for the most tenants moving into 6071 rental properties in the last five years, increasing from 2168 units in 2017 to 8239 units in 2022. Charlotte, North Carolina however had the highest percentage growth for BTR units in five years at 621%. Below are the top 20 areas with the most BTR units, with Phoenix, Dallas, Detroit, Houston, and Atlanta making the top five. 

Top 20 Metros with the Highest BTR Units Built Over the Past 5 Years

Reported by Fixr.com based Yardi Matrix data.

 

The growing build-to-rent market offers real estate investors lucrative opportunities to capitalize on for their next investment property purchase. LendingOne’s Private Client Group offers investors in this market customized financing options such as a Bridge-to-Permanent Loan and a BTR CO Bridge Loan. Learn more here

Demand in the single-family rental market has been increasingly on the rise. As housing prices continue to climb and inventory is unable to keep up with the growing demand, potential buyers are shifting their focus more towards renting. 

John Burns Research & Consulting recently released their Single-Family Rental Survey reporting on the current metrics surrounding the SFR market. They surveyed over 234K owners of professionally managed SFR homes across 52 markets in the first half of August.  According to the report, the SFR market has stabilized in recent quarters from the cooling-off period the country experienced following the pandemic boom. They are seeing a national blended SFR rent growth holding steady at 6.5% from Q1 to Q2 of this year, and new lease growth has increased from 7% to 8% nationally from Q1 to Q2. Additionally, operating expenses have grown nationally, causing an offset in rent gains. 

We outline our top three takeaways from the report for real estate investors interested in the current state of the single-family rental market. 

 

1. Blended SFR Rents Are the Fastest Growing Asset Class 

The survey reports that national blended SFR rent growth (7% YOY) exceeds apartment rent growth (2% YOY) and new and resale home price appreciation (1%-2% YOY). Overall, blended SFR rents were reported to be growing faster than other asset classes like new home and apartment markets or the resale market. 

Sources: Reis Services, LLC; Census Bureau; Moody’s Analytics; Burns Home Value Index™ (BHVI); Atlanta Federal Reserve Board Wage Growth Tracker; Blended single-family rent growth as published in the Burns Single-Family Rental Market Index.

 

2. Average Rent Prices Nationally Reached $2,054 in Q2 

The report states that approximately half of respondents reported average rents of $1,750 – $2,250, resulting in a national average rent of $2,054 in Q2.  Northern California had the highest weighted average monthly rent at $2,900, with the Midwest averaging the lowest at $1,700. Northern Florida rents averaged $2,100, a higher average rent than the Southeast region’s $1,750. 

Source: John Burns Research and Consulting, LLC (Data: 2Q23, Pub: Aug-23)

 

3. Occupancy is at an All-Time High (97% Average) 

According to the survey, operators reported a 97% average occupancy rate nationally, with 13% of operators seeing 99%-100% occupancy across their portfolios.  Overall, occupancy rates were up significantly from Q2 (95%) to Q1 (72%). Northern California held the highest occupancy rate at 99% with Southern California, Southern Florida, and the Northwest following at 98%. 

Source: John Burns Research and Consulting, LLC (Data: 2Q23, Pub: Aug-23)

 

This growing single-family rental market offers real estate investors lucrative chances to scale their portfolios and increase revenue. LendingOne offers a variety of rental loan products that can provide the necessary financing options investors need. Click here to learn more.

For real estate investors seeking to turn distressed properties into lucrative opportunities, fix and flip loans are an essential tool. This specialized financing option is designed to support fix and flip investors’ strategy, allowing them to purchase rundown properties, renovate them, and sell for a profit. In this comprehensive guide, we will explore all aspects of fix and flip loans, their benefits, and how they empower investors to thrive in the competitive real estate market.

What Are Fix and Flip Loans?

Fix and flip loans, also known as rehab loans or hard money loans, are short-term financing options tailored specifically for real estate investors pursuing fix and flip projects. Unlike traditional mortgages that focus on long-term property ownership, these loans cater to the unique needs of investors seeking swift returns on their investment. Fix and flip loans are secured by the property being renovated, making the process efficient and accessible for experienced and novice investors alike.

The Benefits of Fix and Flip Loans

  1. Quick Access to Capital: Fix and flip loans offer quicker approval and funding, enabling investors to seize time-sensitive opportunities in the real estate market. With a simplified application process, investors can access the necessary capital to purchase distressed properties and begin renovations promptly.
  2. Short-Term Loans: These fix and flip loans typically span from six to twelve months, aligning with the quick turnaround strategy of fix and flip projects. Investors can execute renovations and sell the property within a relatively short timeframe, recouping their investment capital and profits fast.
  3. Minimal Credit Requirements: Fix and flip loans prioritize the property’s potential for profitability and the investor’s experience rather than relying heavily on credit scores. This leniency opens doors for more investors to leverage opportunities.
  4. Higher Loan-to-Value (LTV) Ratios: Fix and flip loans often boast higher LTV ratios compared to traditional mortgages. Lenders finance a substantial portion of the property’s purchase price and renovation costs, reducing the need for a significant upfront capital investment.
  5. Flexibility in Property Types: Fix and flip loans can be used to finance a wide range of property types, including single-family homes, multi-unit buildings, and commercial properties. This versatility empowers investors to explore various market segments.

Applying for a Fix and Flip Loan

  1. Research Lenders: Begin by researching reputable fix and flip lenders who specialize in short-term financing. Consider their interest rates, loan terms, and customer reviews to make an informed decision.
  2. Preparing Documentation: Gather the necessary documentation, such as property information, renovation plans, financial statements, and personal background, to support your loan application.
  3. Loan Application Process: Fill out the loan application form and submit all relevant documentation to the lender. A fix and flip loan typically involves a faster approval process compared to traditional mortgages.

Maximizing Success with Fix and Flip Loans

  1. Conduct Thorough Market Research: Before embarking on a fix and flip project, conduct comprehensive market research to identify profitable locations, emerging trends, and potential buyers.
  2. Create a Detailed Renovation Plan: Develop a detailed renovation plan and budget to ensure a smooth execution of the project. Stick to the plan to avoid cost overruns and delays.
  3. Build a Reliable Team: Assemble a team of experienced contractors, real estate agents, and other professionals who can contribute to the success of your fix and flip project.
  4. Time Management: Efficiently manage the timeline of your fix and flip project to meet deadlines and capitalize on market conditions.

Conclusion

Fix and flip loans are a game-changer for real estate investors seeking to capitalize on distressed properties and maximize their returns. With their quick approval process, short-term durations, and flexibility in property types, fix and flip loans empower investors to thrive in the dynamic real estate market. By conducting thorough research, preparing necessary documentation, and building a reliable team, investors can unlock the full potential of fix and flip loans and achieve success in their investment ventures.

Looking to invest in your next fix and flip property? Learn more about our fix and flip loans with competitive rates, low fees and high leverage options for real estate investors.