Preparing For Real Estate Investing in 2023

Here are some ways you can prepare yourself for successful real estate investing in 2023!

After the last two years of turbulence in the real estate market, we are finally starting to see things calm down. As we move from a red hot market into a lukewarm one, many people are curious about what to expect. Although the future of the real estate market is uncertain, there are a few things you can do to prepare yourself for investing in real estate in 2023.

Figure Out Your Finances

Getting your finances in order is the first step to investing in any type of real estate. It is important to evaluate your current financial situation to determine what type of investment makes sense for you. It’s best to be conservative in your estimation as the future of the real estate market remains uncertain.

You will need to factor in your current savings, assets, income and expenses and forecast how things will change by adding an investment property into the mix. Make sure you consider all costs associated with an investment property in your budget, such as a down payment, closing costs, title/settlement costs, cash flow to pay off debt, and miscellaneous expenses. You may need proof of income and debts to secure a loan, so this is also a good time to gather documents and organize the information.

Seek Out Financing

Once your personal finances are in order, it is time to find the appropriate financing. Interest rates on conventional loans are at an all time high, therefore investors should seek out alternative financing options. Private lenders and hard money lenders are great resources for alternative financing as they have more freedom and flexibility to provide a customized loan. The increasing cost to borrow is something all investors should be preparing for as finding affordable financing becomes challenging.

Keep Up With Market Trends

Profitability has always been dependent on the type of property and the location you invest in. In today’s market both factors are undeniably the most important to consider when making a decision on an investment.

In the past we’ve seen great returns on fix and flips and single family rentals, however, it will be more difficult to find profitability in those types of properties today; multifamily properties are projected to be a more stable investment this year.

While the market as a whole has softened, some locations will fare better than others as we head into 2023. Staying informed of market trends this year can help you in your search for the right investment property.

We embark on this new year in real estate with optimism, knowing that although opportunities may be harder to come by, they do exist. We encourage investors to get prepared, stay informed, and always be searching for innovative ways to keep growing a portfolio.

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About CALCAP Lending

A division of CALCAP Advisors, CALCAP Lending benefits from the expertise of a seasoned team of professionals with extensive, successful track-records covering a variety of disciplines and leading large, nationally-recognized institutions. A private money direct lender, CALCAP Lending provides short to mid-term financing for property investors and businesses looking to purchase, refinance, renovate, and construct residential or commercial properties.

Lending FAQs

You've got questions, we've got answers.

What is private money lending?

Private money lending is a collateral-based lending strategy that is often associated with shorter terms and more attractive features. A private money loan offers more flexibility than a conventional mortgage or bank loan.

How does a private money loan work?

Private money lenders provide financing using money from private entities. Private money loans often work as bridges to help investors gather funds to achieve their short term real estate goals, but long term, permanent options may also provide.

Why would I choose a private money lender?

There are many advantages to using a private money lender for your real estate investments! Private money lenders can be more lenient when it comes to borrower credit issues, often there are no prepayment penalties, you can leverage your cash to buy multiple properties, and private money loans are quicker when compared with institutional loans.

Can I get prequalified for a loan?

CALCAP has a responsive loan team who are able to prequalify you. Contact a loan specialist at 833.816.5580 to get started.

How long does the lending process take?

Private money lending can be a quick and painless process. From start to finish, 30 days is common, however, turn around times can be as short as 10 business days.

Can I still be approved for a loan if I have bad credit?

Generally yes, we understand that people have temporary financial issues that come up, and we want to work with you to help you rise up financially to a better place. Offsets to credit concerns may include experience as a real estate investor, good cash reserves, and/or larger down payments.

I am a broker or investor, how can I work with CALCAP?

Business is built on relationships. Ours is no different. CALCAP Value and Preferred Partners receive exclusive rates and services. For more details and to submit your application, visit our partners page.

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