How mortgage firms are navigating around the pandemic

In keeping with the volatility of the times, returns on investment are hard to estimate, Casper noted. But planned just right – methodically, with consideration to each element – investors can make a profit off their fix-and-flip ventures.

“It is hard to suggest a certain ROI on the project as there are so many other factors to take into account,” Casper said. “These variables – such as the location, duration of the project as well as the extent of renovation – need to be factored in. Doing research and working with the right partners – including the right financing partner and contractors – can help mitigate some risks, and help ease unexpected outcomes.”

Given scarce construction amid an aging housing stock, multifamily investments figured prominently among transactions recently closed by Eastern Union – one of the nation’s largest commercial real estate finance firms.

A perennially popular investment, multifamily saw a noticeable uptick among the numerous transactions across 240 American cities in 32 states on which Eastern Union recently closed. The upward trend is not only spurred by a construction slowdown, but soaring values for existing homes that erode affordability for first-time homebuyers.

“Multifamily always take up a very large portion of the transactions that go on in the country,” Eastern Union CEO Abraham Bergman said in a recent interview with MPA. “There are a lot more people out there who are OK with renting an apartment. The new American Dream might be renting an apartment so you can move anytime you want. So, you’ve definitely seen a big demand for housing across the country.”