Minnesota Real Estate Investors Association, Inc.

12-Month Outlook (What it Means for Real Estate Investors)

By: Loreal Loftus

1) “Moratoriums ending”

• The big pandemic-era protections are mostly gone. FHA’s special COVID recovery options were extended through Apr 30, 2025 and are now sunset, while FHA’s new, permanent tools (like the Payment Supplement) take over. Expect a more normal flow of defaults as temporary protections fade, partly offset by these new workout tools. 

2) FHA “issues” (loss-mit, delinquencies, policy changes)

• FHA rolled out the Payment Supplement (lets servicers use a HUD-backed second to temporarily reduce the principal portion of the payment for 36 months) and ordered servicers to implement it by Jan 1, 2025. FHA also issued 2025 updates tightening and clarifying permanent loss-mit options. Net effect: more borrowers get saved, but some will still roll into sale/foreclosure. 
• FHA delinquency is elevated versus conventional (Q2 2025 FHA delinquency ~10.57%), so distress skews FHA in many markets. 

3) Maxed credit cards / consumer strain

• Household debt is at new highs; credit-card balances ~$1.21T and delinquencies have been rising broadly. This pressure spills into housing budgets, boosting motivated-seller conversations (pre-foreclosure, divorce, relocations). 

4) Silent second mortgages

• “Silent seconds” (undisclosed ... Read More…

10 Things to Do Right Now if you are a New Real Estate Investor

By: Loreal Loftus

1. Learn Creative Financing

• Study subject-to, seller financing, lease-options, and innovations.
• These tools help you create deals even when sellers owe too much or rates are high.

2. Build Your Buyers List

• For wholesalers and agents, cash buyers are your lifeline.
• Network at REIA meetings, Facebook investor groups, and auctions.
• Collect contact info and buying criteria (price range, location, property type).

3. Master Deal Analysis

• Practice running comps, calculating ARV, and estimating repairs.
• Use simple formulas: 70% Rule (ARV × 70% – Repairs = Max Offer).
• Confidence in numbers makes you faster than your competition.

4. Track Local Inventory

• Watch for listings that sit 90+ days — motivated sellers hide here.
• Set up MLS alerts or Zillow/Redfin searches for your ZIP codes.
• More days on market = more negotiation power.

5. Get Comfortable Talking to Distressed Sellers

• Practice scripts for pre-foreclosures, divorces, inherited homes, and tired landlords.
• Sellers in distress want a problem-solver, not just another “lowball offer.”

6. Understand New Rules for Agents

• If you’re an agent, learn the new buyer-broker agreement requirements.
• Practice explaining your value and how compensation works now.

7. Line Up Private Lenders

• Start building relationships with people who want to lend mo ... Read More…

Creating a business plan for a real estate venture requires a thorough understanding of the market, strategic goals, and financial projections. Here are the key points to include in a real estate business plan:

1. Executive Summary

• Business Overview: Briefly describe your real estate business, its mission, vision, and what differentiates you in the market.
• Objectives: Define your short-term and long-term goals (e.g., number of properties to acquire or sell, revenue targets).
• Target Market: Identify who your ideal clients are (buyers, sellers, investors, etc.) and the types of properties you focus on (residential, commercial, luxury, etc.).

2. Company Description

• Business Structure: Are you a solo agent, part of a team, or running a real estate agency? Clarify your legal structure (LLC, sole proprietorship, etc.).
• Location: Where will your business be based? If you're focusing on a specific area, explain why it’s a good location for your target market.
• Business Model: How will your business operate? Will you focus on residential sales, property management, commercial properties, flipping houses, etc.?

3. Market Research

• Industry Analysis: Provide an overview of the current real estate market in your area (trends, challenges, opportunities). This might include property values, demand, and growth predictions.
• Competitive Analysis: Identify key competitors in your niche and analyze their strengths and weaknesses. What will make your business stand ou ... Read More…

Top Ways to Stay Focused and Thrive in Real Estate

Staying focused and productive in the competitive world of real estate requires strategic thinking, strong habits, and smart tools. Here are some tried-and-true methods to stay on top of your game and keep your career in real estate.

1. Improve Time Management
   Time is one of the most valuable resources in real estate. To manage it effectively, set clear, achievable goals, prioritize tasks, and plan your day meticulously. A solid plan can help you work more efficiently and reduce stress, enabling you to handle client interactions, property visits, and administrative tasks seamlessly.

2. Use the Pomodoro Technique
   To stay sharp and productive, break your work into intervals using the Pomodoro Technique. This method involves working in focused 25- or 55-minute blocks followed by short breaks. This approach helps maintain concentration, reduces burnout, and improves productivity over time.

3. Eliminate Digital Distractions
   Digital distractions can significantly impact your productivity. Turn off notifications, set specific times to check your emails and social media, and use apps that help you stay focused. Minimizing interruptions will allow you to give your full attention to client needs and property research.

4. Set Boundaries
   Establishing clear boundaries with colleagues, clients, and even family members is essential to maintain a healthy work-life balance. Define your working hours and let others know when you’re av ... Read More…

25% of all listing had a price reduction last month and inventory levels are rising. We are still in a sellers’ market, but we are transitioning into a buyers’ market.  When that happens, sellers buyers become picking and stubborn sellers slowly become more receptive.  The first phase of this transition is for sellers to drop their asking prices, and that is starting to happen. 

The next phase, if interest rates remain high, will shock the sellers and if they have to sell, they will drastically drop their price to get a sale and that has a snowball affect on prices.  The only thing that can help the sellers now is for inventory levels to remain low and interest rates to drop a little.

 

... Read More…