Private Money Lender Advice: Pay Attention to Neighborhood Demographics Before Buying
As a private money lender, one of the things we’ve observed at LendingXpress is how important it is to know what sort of people are looking to move into the kind of houses you’re rehabbing. One of the biggest defining factors is whether the people have minor children. The National Association of Realtors just released a report detailing the differences in house preferences between those wit and those without children, and it’s worth paying attention to. The findings will help you determine whether a property is really a good deal before you start trying to find a hard money lender to finance the purchase.
Reaching out to a Hard Money Lender? Know Whether You’re Selling to People with Kids or Not
Not surprisingly, a major difference in house buying habits is that people with children are much more likely to base their decision to buy on the quality of local schools. How easy it is to get to local schools is also important to people with children, while people without don’t bother much about it.
Both people with and without children are more likely to be looking for single-family detached houses. People with children want a house with at least four bedrooms and two baths and around 2100 square feet. Those without children are happy with three bedrooms, two baths, and 1750 square feet.
We always recommend that real estate investors do a lot of research into prospective neighborhoods before buying anything. If you find a neighborhood with good schools but lots of three bedroom houses, it could be worth it to add one more bedroom. This will make the home more appealing to families who want to take advantage of the local schools. On the other hand, if the schools perform less than average, think twice before going to the time and expense of adding a fourth bedroom.
Please contact us at LendingXpress to find an experienced California private money lender. We’d be happy to talk with you about your upcoming projects!