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&nb
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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 Selle
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10 Things a New Investor Should Do (Proactive Steps)

By: Loreal Loftus

1. Educate Yourself Now
   Learn the basics: wholesaling, buy-and-hold, subject-to, seller financing. The more strategies you know, the more deals you can turn into “yes.”
2. Pick Your Lane
   Don’t chase everything. Decide whether you want to wholesale, flip, or hold rentals and focus there.
3. Study Your Local Market
   Track days on market, price reductions, and foreclosure filings in 2–3 ZIP codes. This gives you a feel for shifts before others notice.
4. Build a Buyers & Lenders List
   Start meeting cash buyers and private lenders today. When you get a deal, you’ll already know who can close.
5. Practice Deal Analysis
   Run comps, calculate ARV, and estimate repairs on 100 properties before you buy. Speed and accuracy with numbers is your safety net.
6. Network Consistently
   Go to your local REIA (like MnREIA), meet agents, wholesalers, and other investors. Most deals are shared within relationships, not public listings.
7. Get Marketing Going Early
   Even a small direct-mail, cold-calling, or driving-for-dollars system builds mo
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10 reasons why the real estate market could weaken in the next 6–12 months, leading to more foreclosures and more motivated sellers

By: Loreal Loftus

1. High Mortgage Rates Stay Stubborn

• Mortgage rates are stuck in the 6–7% range. This keeps monthly payments high, pricing out buyers and putting pressure on sellers who need to move.

2. Rising Inventory

• Active listings are already up 20%+ year-over-year. More homes on the market = more competition = sellers forced to cut prices or offer concessions.

3. Job Market Softening

• If unemployment ticks up, more families will struggle to make mortgage payments, which often leads to delinquencies and foreclosures.

4. Flat or Declining Home Prices

• Home prices have cooled. If values drop just a little, some homeowners who bought recently with low down payments could be underwater (owe more than the house is worth).

5. Expensive Operating Costs
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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 Read More...

Finding the Right Real Estate Leads and Deals in Any Economy, Regardless of Interest Rates and House Prices

Real estate investing has long been one of the most reliable ways to build wealth. But with constant shifts in the economy—whether rising interest rates, fluctuating house prices, or changing market conditions—it can sometimes feel like a challenge to find the right deals. The good news is that it’s possible to succeed in any economy, and you don’t need to let interest rates or housing market trends throw you off track.

Whether you’re just starting out or have years of experience under your belt, there are proven strategies you can use to consistently find the right leads and deals. In this blog, we’ll explore how to find deals in any economy and how you can adapt your approach to continue profiting from real estate, no matter what the market throws at you.

1. Focus on the Fundamentals: Motivated Sellers Don’t Care About Interest Rates

While interest rates and house prices often make the headlines, motivated sellers are the heart of any real estate deal—and they don’t care about the current economic trends. Motivated sellers are people who need to sell their property for reasons beyond market conditions. They might be facing financial hardship, going through a divorce, relocating, or dealing with a di
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Don’t Be Scared to Be a New Real Estate Investor: Let MnREIA Guide You

Starting out in real estate can feel like a giant leap into the unknown. Whether you're attracted to the idea of flipping homes, owning rental properties, or finding creative financing solutions, it’s normal to feel overwhelmed by the sheer number of things you need to learn. But guess what? You don’t have to navigate this journey alone.

At MnREIA (Minnesota Real Estate Investors Association), we believe in empowering new investors and helping you overcome the fear that can often come with stepping into real estate. The good news is that you can be successful in real estate, even as a beginner—and MnREIA is here to help you find your passion, learn the ropes, and make smart decisions along the way.

Why It’s Okay to Be Scared

First off, it’s okay to be scared. Everyone starts somewhere, and fear is a natural part of the process. You may be questioning, “What if I make a mistake? What if I lose money?” The truth is, every investor—whether experienced or brand new—has faced these same fears.

The key is not letting fear paralyze you. Instead of avoiding challenges, embrace them as part of your learning journey. Remember, the most successful investors didn’t get there by avoiding mistakes; they got there by making informed decisions
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Unlocking Success in Real Estate: Creative Leads for New Investors with MnREIA

Real estate investment is an exciting and lucrative venture—but for many new investors, it can seem daunting. With so many options, from traditional buying and selling to flipping homes and rental properties, where do you even start? One of the most important lessons any investor can learn early on is that creative leads are the key to finding profitable deals.

If you’re a beginner looking to jump into real estate, the idea of finding properties that offer true value might seem overwhelming. But don't worry! There are countless creative strategies you can use to find leads and set yourself up for success. In fact, creative leads are often what separate average investors from the truly successful ones.

Let’s explore some of the most effective ways new investors can tap into creative leads, find opportunities that others may overlook, and start building their real estate portfolios—especially when you partner with organizations like MnREIA (Minnesota Real Estate Investors Association) to accelerate your growth.

1. Look Beyond the MLS: The Power of Off-Market Deals

As a new investor, it’s tempting to focus all your efforts on properties listed on the Multiple Listing Service (MLS)—but here’s the truth: competition on the MLS can be fier
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Navigating the Real Estate Market: How Creative Financing and Finding Motivated Sellers Can Help You Thrive

The real estate market is constantly evolving, and while many investors are concerned about where the market is headed, it’s important to realize that there are always opportunities, no matter what direction things are moving. Whether the market is booming or facing challenges, you can still succeed by using the right strategies. One of the most effective ways to navigate the market—especially in uncertain times—is through creative financing and finding motivated sellers. Let’s dive into what you can expect from the market and how these strategies can help you thrive.

What to Expect from the Real Estate Market

Real estate markets can fluctuate for a variety of reasons, including changes in interest rates, shifts in supply and demand, economic downturns, and external factors like global events or political changes. While it's true that a market crash or downturn may be inevitable at some point, it’s also important to remember that real estate is a long-term game. Markets might dip, but they also rise again. What’s crucial is how you respond to market changes and how you structure your deals to capitalize on opportunities.

In times of uncertainty, many investors fear the worst. But if you can train yourself to read the market correctly and act strategically, you ca
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Fannie Mae and Freddie Mac: Cornerstones of the U.S. Housing Finance System

Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are pivotal entities in the American housing finance system. Created by Congress, these government-sponsored enterprises (GSEs) ensure liquidity, stability, and affordability in the mortgage market. Let’s delve into their roles, functions, and impact on housing finance.

Key Functions of Fannie Mae and Freddie Mac

1. Providing Liquidity to Mortgage Markets

Fannie Mae and Freddie Mac purchase mortgages from banks, savings institutions, and mortgage companies. By doing so, they provide these lenders with cash, which can then be used to issue new loans. This cycle ensures that lenders have the resources to meet the ongoing demand for home loans.

2. Packaging Mortgages into Mortgage-Backed Securities (MBS)

The GSEs package the purchased mortgages into mortgage-backed securities (MBS), which are sold to investors. By guaranteeing the principal payment and interest on these securities, Fannie Mae and Freddie Mac attract investors who might not traditionally invest in mortgages. This process:

• Expands the pool of funds available for housing.
• Makes the secondary mortgage market more liquid.
• Lowers interest rates for borrowers.

3. Stabilizing the Ho
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