If you're reading this article, you may be serious about building wealth through real estate or you may just want to explore the core concepts further. Regardless, we thank you for visiting OfferMarket, and we hope you find the ideas presented in this article to be insightful, actionable, valuable and worthy of the time you've taken from your busy day.

 

Our mission at OfferMarket is to empower you to build wealth through real estate. To do this, we provide real estate investors with [off market investment property deal flow](https://www.offermarket.us/listings), [fix & flip loans and DSCR rental loans](https://www.offermarket.us/loans), [fix & flip insurance and landlord insurance](https://www.offermarket.us/insurance), and tools and insights to build knowledge and expertise.

 

## Why invest in real estate?

 

Asking why is a powerful way to learn. These are the reasons why people invest in real estate:

 

**Income**

 

Real estate generates rental income. Whether it's a single family rental or a self-storage facility, people pay to use real estate. If the rent they pay is high enough to cover the ongoing expenses to finance, manage and maintain the property, then the property generates cash flow that can be used by its owners for any manner of activity, including buying more real estate!

 
 
**Asset appreciation**

 

Real estate values tend to go up over time. It's important to proactively protect real estate using cost effective maintenance, disciplined management and [insurance](https://www.offermarket.us/insurance).

 

**Inflation protection**

 

One important basis for valuing real estate is replacement cost. Over time, as building material and labor becomes more expensive, it becomes more expensive to build houses. Homebuilders therefore need to charge higher prices for new homes. This serves as a driver for price appreciation of existing homes. 

 

In most real estate markets, where there is not excess supply or low demand from renters, landlords have the ability to increase rent at a faster pace than inflation. Using the income approach to [valuing real estate](https://www.wallstreetoasis.com/resources/financial-modeling/real-estate-financial-analysis), as rental income increases, so too does the price an investor is willing to pay for the property. For example, if a single family home generated $1,000 per month in rent in 2010 and $1,500 per month in rent in 2020. In 2010 that property may have conservatively been worth $100,000 in 2010 and $150,000 in 2020.

 

Owning real property sure beats having cash sit in a bank account, and it performs better during periods of high inflation other asset classes.

 

**Tax efficiency**

 

While the property is generating income and increasing in value, it is also depreciating. The roof may need to be replaced every 25 years, the floors may need to be replaced every 30 years, the furnace may need to be replaced every 15 years. For this reason, the IRS allows real estate investors to depreciate the value of their house (not the land value) over 27.5 years. 

 

If you are financing your investment property with a mortgage, you are racking up thousands of dollars per year in interest expense.

 

On an ongoing basis, your investment property requires maintenance. Let's say your dishwasher needs to be replaced, or your house needs to be painted. Capital improvements such as a kitchen or bathroom remodel may also be required to keep your property in good condition and optimize rental income.

 

Depreciation expense, interest expense, maintenance expense, and capital improvements offsets rental income and reduces or even eliminates taxable income.

 

If you sell real estate, you can do a 1031 like kind exchange and use the proceeds of the sale to purchase a new investment property. This allows you to defer capital gains tax indefinitely while you hold the new real estate.

 

## 4 Pillars Of Real Estate Investing

 

**1. Compounding**

 

The value of a high quality asset over time will compound. We met a gentleman who bought a 5 story brownstone in New York City for $100,000 in 1975. That property is worth over $5,000,000 today and generates over $12,000 in monthly income.

 

Compounding takes time so you need to be disciplined to hold the asset and not sell in fear when prices go down or greed when prices go up.

 

As Warren Buffett famously said "*price is what you pay, value is what you get*". Buffett's teacher, Ben Graham, once said "*In the short run, the market is a voting machine, but in the long run, it is a weighing machine*.”

 

**2. Location**

 

Location, location, location. You've heard this saying countless times. When investing in real estate, you need to truly understand the local market. Here are some things that great real estate investors consider:

 

- Population growth
- Economic development
- Major employers
- Major industries
- Median income
- Market rent
- Market rent growth
- Poverty rate
- Housing inventory
- Developable land
- Developer activity
- Historical home price appreciation
- Owner occupied housing rate
- Crime
- Tax rate
- Public school ratings

 

**3. Valuation**

 

Understanding the above points will allow you to understand the risks of owning real estate in a given market. Recognizing asymmetric risk will save you from making the mistakes of buying at all or buying at the wrong price.

 

**4. Financing**

 

Like most infrastructure, real estate is highly capital intensive. Properly structuring your real estate investments will allow you to acquire real estate, optimize its cash flow, and avoid the risks of excess leverage.

 

## How Jon Gray Invests In Real Estate

 

<iframe width="560" height="315" src="https://www.youtube.com/embed/UKkykksZHOU" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

 
 

## How Sam Zell Invests In Real Estate

 

<iframe width="560" height="315" src="https://www.youtube.com/embed/ryn5nXFEE8w" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

Investing in real estate is an incredibly powerful way to build wealth and achieve financial independence. Learn how to invest in real estate.

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How To Invest In Real Estate | OfferMarket

How To Invest In Real Estate

## What areas do you do serve in Delaware?


 


We work with all properties in Delaware that have a non-rural designation. Use this [rural designation search tool](https://www.offermarket.us/blog/rural-designation-search-tools) to see if your property is considered rural.


 


## How do DSCR loans work in Delaware?


 


The overall process of getting a DSCR Loan in Delaware is approximately as follows. You submit an application for a loan (you can get started on your loan with an [instant quote](https://www.offermarket.us/loan)) answering 14 questions about your property. An instant quote will tell you if you qualify for the loan in under 1 minute of your time. It will also show you the a preliminary interest rate and loan amount. Once you select desired LTV (which can be changed later), your quote will be converted to a Loan File for processing purposes.


 


You will have to submit documents as part of your Loan File for underwriting. Documents we may ask for will include personal and property documents such as purchase contracts, current leases, borrowing entity documents, deeds, title work (we will engage a title company or an attorney on your behalf to draw up these documents), background and credit reports (that we will order), bank statements for liquidity verification as well as other documents that may be applicable to your specific deal. Full list of requirements can be found here in [DSCR loan requirements](https://www.offermarket.us/blog/dscr-loan-requirements).


 


We will also handle all the aspects of scheduling and appraisal for you. Please note that we have a promotion, where new clients receive a 100% refund at closing for their appraisal and existing clients forever get a 50% refund for their appraisal at closing as our way to say thank you for allowing us to partner with you! Once all the loan documents are submitted, the Loan File goes through underwriting, at which point the underwriting committee may ask for additional documents depending on their discretion. Once the committee receives all the documents and approves the file, closing can be scheduled.


 


The closing, will be handled by the title company or at the office of closing attorney. Once closing is complete, funds will be wired. Post closing, the loan will be entered into servicing and you will receive information regarding setting up auto-pay or other options that may be available for your loan depending on the specific servicer's capabilities.


 


## Can you lend on properties worth less then $100k?


 


In short, no, appraisal as is value must come in at above 100k. We can only lend on properties that are less then $100k if they are in a portfolio with other properties and the portfolio's total as-is value on the appraisal is above $250k. In order to qualify for our loans, the property must appraise for at least $100k as-is at the time of the appraisal, however, total loan amount may be less then 100k, minimum loan amount is $55k.


 


## Do you do cash out refi no seasoning for Delaware loans?


 


We do offer refinance options with no seasoning requirements. Here is the general criteria for cash out refi no seasoning for Delaware loans. Easiest way to see if you qualify is to answer a few question in our [online quoter](https://www.offermarket.us/loans). It will compare all of our lending criteria against your answers and give you a response in under 1 minute without you needing to read anything. If in case you want to do it the hard way, please read on to see some of the guidelines below with a [full list of our requirements here](https://www.offermarket.us/blog/cash-out-refi-no-seasoning).


 


Minimum loan amount has to be above $55,000. Minimum As-Is value on the appraisal has to be $100,000. Between 1-4 units. Must have an active lease with proof of security deposit collected. Property condition must be [C4 or better](https://www.offermarket.us/blog/property-condition-ratings-c1-c2-c3-c4-c5-c6). Minimum credit score of 680. Credit score between 680 to 699, gets maximum LTV of 70%, credit score of 700+ gets maximum LTV of 75%. Max LTC, 100% (less than 90 days seasoning), 140% (90 to 179 days seasoning). Minimum verified rehab, 20% of purchase price (less than 90 days seasoning), n/a (90+ days seasoning). Minimum verified rehab, is an improvement that has been done to the unit to verify increase in as-is value in such as short period of time (less then 90 days) to justify the no seasoning period. Origination fee of 1 to 2 points depending on the loan amount to keep the lights on. Lender fee, $1,995 (doesn't go to OfferMarket), includes multiple fees to several different 3rd party verification services, necessary to certify the information in the Loan File for closing. Appraisal at AMC market price, we also have a promotion that new clients get 100% of their appraisal refunded at closing and 50% refund for existing clients. Time to close, 20-25 days.


 


I know this is a lot of information. You don't have to lift a finger to calculate any of this to see if you qualify, all you have to do is answer 14 simple questions about your deal and we will tell you if we are a good fit for you and what kind of deal we can offer you. To get an answer on your specific situation, please answer 14 simple questions here in our [online quoter for Delaware DSCR loans](https://www.offermarket.us/loans).


 


## Do I need to have my property insured to qualify for funding?


 


Yes, but if you don't already have insurance, we can roll it into the lending process with no extra charge or effort to you. Our insurance team works with thousands of carriers and is intimately familiar with the insurance requirements of your loan. They will be able to ether talk to the agent of your choice or find the most competitive offer without our network of carriers to complement your loan with no extra effort or expense to you. If you already have insurance, you should get an instant quote to see if we can offer you a more competitive rate and save you thousands of dollars over the lifetime of your policy. [Get you instant insurance quote](https://www.offermarket.us/insurance) here.


 


## What are the best DSCR Lender Delaware?


 


There are many DSCR lenders in Delaware and you have many options to get your loan funded. As fellow rental property investors, we built OfferMarket to be a low cost DSCR lender. We believe you should never have to wonder if you're getting the best possible terms from your lender. You should never need to waste time negotiating. That's why we provide you with our best possible term sheet every single time -- you get our lowest rate and lowest fees.


 


Your first loan with OfferMarket is the start of a long term relationship. It's our opportunity to provide you with remarkable value and prove that we deserve to be your partner on your real estate investing journey. We feel a sense of obligation to prove we deserve your business on each and every loan.


 


## Are you able to lend on rural properties?


 


We can't lend on rural properties. How can I find out, if my property is rural? Here are more detail on how to verify if your property is rural in our [Rural Designation Search Tools](https://www.offermarket.us/blog/rural-designation-search-tools). The 2 search tools are hosted by USDA Rural Development Property Eligibility and CFPB Rural and Underserved Areas Checker. Both of the tools must flag the property as none rural for it to be eligible for our funding. Use these instruction to find out [if your property is considered rural](https://www.offermarket.us/blog/rural-designation-search-tools)


## What are the requirements for a DSCR loan in Delaware?


 


If you scroll up on this page, you will see a simple checklist that details high level requirements for our DSCR loans in Delaware. If you want a more detailed quote for your specific deal, click "start" next to "apply for a DSCR loan" and our online quoting system will produce an accurate quote based on 14 questions related to your deal. Most investors are able to get a complete quote in under a minute because those 14 questions most investors will know answers to. Our most detailed [DSCR Loan Requirements](https://www.offermarket.us/blog/dscr-loan-requirements) can be found here. Once you complete an online quote, you can proceed to your Loan File, where you can peruse the Loan Terms which will detail all the fees and proceeds of the loan in one convenient interface. [Get an instant loan quote and Loan File](https://www.offermarket.us/loans)


 


Otherwise, you can read on to see common guideline breakdowns:


 


### Credit Score


 


In most cases, a 720 credit score will qualify you for the lowest interest rate and highest loan amount. We recommend protecting your credit score and striving for a 740+ score to make sure you get the best terms.


 


### No Seasoning


 


Most DSCR lenders require 6 months of seasoning. At OfferMarket, we have a no seasoning program for qualified borrowers. We also offer 90 day (3 month) seasoning for borrowers with 700+ credit score or 5+ rental experience.


 


### Rural Properties


 


Rural properties are not a good fit for DSCR loan programs. If your property is considered rural in any of the following ways, it may not be eligible:


 


- Rural designation by Federal Government (CFPB, USDA)
- Rural designation by appraiser
- Population under 10,000
- 5+ miles from a 100,000+ population center


 


Rural designation is a gray area so we recommend proceeding with caution on any purchase where the subject property checks one or more of the above bullets. We can't lend on rural properties. How can I find out, if my property is rural? Here are more detail on how to verify if your property is rural in our [Rural Designation Search Tools](https://www.offermarket.us/blog/rural-designation-search-tools). The 2 search tools are hosted by USDA Rural Development Property Eligibility and CFPB Rural and Underserved Areas Checker. Both of the tools must flag the property as not rural for it to be eligible for our funding. Use these instruction to find out [if your property is considered rural](https://www.offermarket.us/blog/rural-designation-search-tools)


 


<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
<thead>
<tr>
 <th>Guidelines</th>
 <th>Criteria</th>
</tr>
</thead>
<tbody>
<tr>
 <td>Max Loan Amount: Purchase</td>
 <td>80% of purchase price (20% down payment)</td>
</tr>
<tr>
 <td>Max LTV: Refi</td>
 <td>75% cash out, 80% rate and term</td>
</tr>
<tr>
 <td>Min credit Score</td>
 <td>660</td>
</tr>
<tr>
 <td>Min seasoning</td>
 <td>No seasoning or 3 months depending on experience, loan amount</td>
</tr>
<tr>
 <td>Appraisal</td>
 <td>On-site (As Is 1004/1007 for single family, As Is 1025 for 2-4 units)</td>
</tr>
<tr>
 <td>Credit report</td>
 <td><a href="https://www.offermarket.us/blog/what-is-a-tri-merge-credit-report" target="_blank" rel="noopener noreferrer">Tri merge</a></td>
</tr>
<tr>
 <td>Property location</td>
 <td><a href="https://www.offermarket.us/blog/rural-designation-search-tools" target="_blank" rel="noopener noreferrer">Non-rural</a></td>
</tr>
</tbody>
</table>
</div>


 


Full list of requirements can be found here in [DSCR loan requirements](https://www.offermarket.us/blog/dscr-loan-requirements).


 


## How to get a DSCR Loan in Delaware?


 


The easiest way to start your Delaware DSCR loan is to click the start button next to "apply for DSCR loan" banners at the top or bottom of this page. OfferMarket's team has expansive experience working with real estate investors across Delaware.


 


## What are the requirements for a DSCR loan in Delaware?


 


If you scroll up on this page, you will see a simple checklist that details high level requirements for our DSCR loans in Delaware. If you want a more detailed quote for your specific deal, click "start" next to "apply for a DSCR loan" and our online quoting system will produce an accurate quote based on 14 questions related to your deal. Most investors are able to get a complete quote in under a minute because those 14 questions most investors will know answers to. Our most detailed [DSCR Loan Requirements](https://www.offermarket.us/blog/dscr-loan-requirements) can be found here. Once you complete an online quote, you can proceed to your Loan File, where you can peruse the Loan Terms which will detail all the fees and proceeds of the loan in one convenient interface. [Get an instant loan quote and Loan File](https://www.offermarket.us/loans)


 


## Why use Delaware DSCR Loans to buy investment properties?


 


DSCR (debt-service coverage ratio) loans can help real estate investors shorten their cash cycle and grow their rental portfolios more rapidly in a few key ways. First, the higher leverage and lower down payments allowed by DSCR loans mean investors can acquire more properties with the same amount of cash on hand, rather than tying it all up in larger down payments. Additionally, the option for interest-only payments creates more positive cash flow that can be reinvested into new property acquisitions. Finally, DSCR underwriting based solely on the rental income of the property itself, rather than the investor's personal income, enables investors to scale their portfolios more quickly without running into debt-to-income ratio restrictions.

 

## What areas of Delaware are good for investment properties? 

 

Delaware, the second-smallest state in the U.S., offers a unique proposition for real estate investors. While the overall population growth is projected to be slow and steady, the state's focus on stability and affordability makes it an attractive option for renters.

 

The favorable business climate in Delaware, known for its corporation-friendly laws, attracts numerous businesses, creating a stable job market for potential renters. Compared to national averages, Delaware offers a lower cost of living, appealing to renters seeking value, which can translate into strong rental yields for investors. Additionally, Delaware's thriving tourism industry, with its beautiful beaches and historic towns, impacts rental demand in coastal areas and popular destinations, especially during peak seasons.

 

### Greater Wilmington Area

 

Wilmington is experiencing slow but steady growth, with an estimated 10,000 new residents expected in the next five years. The local economy is driven by finance (with multiple banking institutions), healthcare (ChristianaCare employing 18,000 people), and manufacturing (particularly in the chemical industry).

- 19801 (Downtown Wilmington): This revitalized downtown area features a growing entertainment district and numerous job opportunities. Rents here could see moderate increases due to demand from young professionals.
- 19710 (Brandywine Hundred): An upscale suburban area known for its excellent schools and proximity to major employers. Rents in this region could see stable growth due to limited housing availability and steady demand from families.
- 19703 (Newark): A university town with a mix of students (University of Delaware with 23,000 students) and young professionals. Rents in this neighborhood could see moderate increases due to student demand, with fluctuations during academic semesters. Proximity to Wilmington could also drive some rental increases.

### Dover Area

 

Dover is experiencing slow growth, with an estimated 5,000 new residents expected in the next five years. The local economy is supported by state government, healthcare (Bayhealth Kent General Hospital), and logistics.

 

- 19901 (Downtown Dover): This area is undergoing revitalization with a focus on arts and entertainment. Rents here could see moderate increases as demand rises.
- 19904 (Kent Acres): A family-friendly area known for its good schools and proximity to Dover. Rents in this neighborhood could see stable growth due to steady demand.
- 19903 (Milford): A growing town that attracts young professionals and families, located near Dover Air Force Base. Rents here could see moderate increases due to rising demand.

DSCR Loan Delaware offers real estate investors the opportunity to secure financing based on debt service coverage ratio to optimize their investment returns.

DSCR Loans for Rental Property Investors in Delaware

DSCR Loan Delaware

## Does it make sense to sell a house without repairs?

 

Selling a house in poor condition may seem counterintuitive. You might be thinking but I want to maximize my sale price, shouldn't I spend money repairing the property? Or don't homebuyers want to buy a turnkey property?

 

Across multiple recent surveys, a majority of prospective homebuyers are interested in saving money by buying fixer uppers. Perhaps this doesn't come as a surprise, but mainstream television has glorified the DIY fixer upper approach to home remodeling. Millennials, with more energy and student debt than other generations are most interested in this approach.

 

The objective, therefore, is not to maximize the sale price in gross terms. The objective is to maximize the sale price while minimizing the capital (i.e. cash) needed to achieve that sale price. That is to say, you need to carefully evaluate the return on invested capital when considering repairing a home or investment property before selling. If you do this properly, you will find that it often makes financial sense to sell a home in poor condition.

 

Let's take a look at an example. If you have a $100,000 property in poor condition and you can invest $100,000 to bring the ARV (after repair value) to $250,000, it might be tempting to move forward with the rehab project in pursuit of that $50,000 in forced equity. Before you do, here are the things you should be considering:​

 

## Market condition

Is it a seller's market where demand from buyers is outpacing the supply of housing inventory? Or is it a buyer's market where homes are selling below list price and sitting for long periods of time?

 

## Neighborhood

Do homes often sell for $250,000 in this neighborhood, or is $250,000 a stretch and unlikely to achieve no matter how much patience you have leaving the home on the market?

 

## Project requirements

Do you have the right team to successfully complete the project in a timely and cost effective manner? How sure are you that you can conduct the renovation quickly and within your budget?

 

## Which improvements pay off?

Most home improvements deliver less in added home value than their cost. That is to say for every $1 you spend, you are likely to get less than $1 in added home value. It's important to choose your repairs wisely.

 

We would love to provide you with a table of estimated home improvement payback percentages but the truth is that home repairs and renovations are incredibly subjective to the local market, cost of labor, cost of material, and home specifications. For example, adding a second bathroom to a 4 bedroom house is going to have significantly higher payoff than re-doing the single bathroom in said house. Are you following us?

 

## What should you do before selling your house? 

 

Selling a home in poor condition and avoiding expensive projects doesn't mean you should not do anything before selling your home.

 

## Roof leaks

Make sure your roof is not leaking. Patch the leaks, prime and paint water stains. Buyers don't want to deal with active leaks. It raises concerns about immediate cash needed beyond down payment and closing costs. Notice we are not saying you need to replace your entire roof.

 

## Bathrooms

Re-caulk the tub and clean the tiles. Give buyers a clean slate. No one wants to inherit your mildew, moldy caulking.

 

## Plumbing and HVAC

Make sure these systems are in working order, again avoid replacement.

 

## Professional cleaning and photography

Before going on a date you dress up and make an effort to look your best, but you don't necessarily go out and spend thousands on clothing, jewelry and plastic surgery. The same holds true for intelligent, effective home selling.

 

## To give your property the best chance of finding love, we recommend the following:

 

- "deep clean" the interior
- power wash the exterior
- 25 professional photos
- Matterport 3D walkthrough
- virtual staging

 

All of the above should run you less than $2,000.

 

## Make it clear you are selling the property as-is

This means you are not making any representations or warranties about the condition of the property and you are not going to fix things that are discovered during the inspection.

 

## How does selling AS IS compare to fixing up before selling?

 

| Comparison | As Is | Traditional |
|:-------------------------------------:|:-------------------------:|:-------------------------:|
| Listing price point | More attractive to buyers | Less attractive to buyers |
| Investment required (% of home value) | 0 - 2% | 1% - 10%+ |
| Time to sell | Fast | Slow |
| Hassle | Low | High |

 

* Comparison data presented in the above table is based on national averages and estimates. 

 

## Sell AS IS with OfferMarket

 

OfferMarket is an AS IS real estate marketplace. We believe you should be able to sell your home AS IS and receive competitive offers. Our streamlined transaction flow and proprietary listing distribution technology targets thousands of qualified buyers and makes them compete for your home. 

## How it works:

**1. Create free listing.**
Set your terms, launch your campaign.

**2. Make buyers compete.**
Once we have a critical mass of interested and pre-qualified buyers (typically within 2 weeks), we will coordinate a Safe Showing. You will typically receive multiple competitive offers within 24 hours of your Safe Showing.

**3. Review offers: accept or reject**
If you accept an offer, we send our contract to you and the buyer and introduce you to our title company for closing.

**4. Close your sale.**
Buyers on OfferMarket are carefully qualified and expected to close within 30 days of offer acceptance.

Selling a house in poor condition? This guide shows how to do it fast and profitably, considering value and ROI.

Selling A House In Poor Condition

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket also provides DSCR rental loans, bridge loans, hard money, fix & flip, rehab, ground up construction loans.

Rental Loans

Property value growth rates:

Eldred PA 16731 Real Estate is a city in McKean County, Pennsylvania. Looking for houses for sale in Eldred, PA? Learn more in this real estate market overview.

*Quote takes 1 minute, no credit pull

*1 quote from 40+ carriers

*New listings daily

Eldred, PA

* Takes 2 minutes, no credit pull

Property value growth rates:

Walkability: low

Nearby attractions:

How far is Eldred, PA from:

School District: Otto-Eldred School District

Major employers in McKean County:

Sources:

Looking for houses for sale in Eldred, PA?

Browse listings!

* Takes 2 minutes, no credit pull

*Quote takes 1 minute, no credit pull

*1 quote from 40+ carriers

*New listings daily

Eldred, PA

* Takes 2 minutes, no credit pull

Property value growth rates:

Walkability: low​

Nearby attractions:

How far is Eldred, PA from:

School District:​ Otto-Eldred School District

Major employers in McKean County:

Sources:

Looking for houses for sale in Eldred, PA?

Browse listings!

* Takes 2 minutes, no credit pull

Walkability: low

School District: Otto-Eldred School District