Investing in real estate means seeking out properties that promise good returns and contribute positively to the community.

In our latest 239 Real Estate Roundtable podcast episode seven, I had the pleasure of chatting with Angela Rizzi. Angela is a veteran real estate investor whose wealth of experience and insights are truly remarkable. Her story, from buying her first property to becoming a successful investor, is incredibly inspiring.

During our conversation, we delved into various aspects of her journey, and I want to share some of the standout moments from our discussion.

Listen to the entire podcast here:

Angela’s Journey

Angela began her real estate journey with just one property. She openly shared how she encountered many challenges but pushed through with hard work and determination. From handling tough tenants to figuring out financing, her story shows the power of not giving up and always learning.

She stressed that every experience, whether positive or negative, is a chance to learn and move forward in your investment journey. Angela’s skill in turning obstacles into opportunities has been a key part of her success.

Her journey illustrates how persistence and a willingness to learn from every situation can lead to great achievements in real estate.

Current Trends in the Florida Real Estate Market

We kicked off our discussion by exploring the current trends in the real estate market. Zillow’s most recent prediction anticipates that home values will remain stable in 2024, with a slight decrease of 0.2%.

The Southwest Florida real estate market, in particular, is currently in a transitional phase, marked by a shift from the seller’s market of the past few years. Angela shared her insights on what investors should be paying attention to:

More Homes Hitting the Market

The number of homes on the market has increased compared to previous years. This gives buyers more options and leverage in negotiations.

Rise of Fixer-Upper Homes

There will be an increase in fixer-upper homes that buyers will renovate themselves. This could be a good option for buyers who are willing to put in some work to get a home at a lower price.

Steady Mortgage Rates

Mortgage rates are expected to hold steady. This could be a good time to lock in a low rate if you are planning to buy a home.

Increased Demand for Single-Family Rentals

Demand for single-family rentals is expected to continue to rise. This could be a good option for investors who are looking for rental properties.

Rising Interest in Sustainable Homes

Buyers and renters alike are showing a preference for eco-friendly and energy-efficient homes. Features like solar panels, energy-efficient appliances, and sustainable building materials not only appeal to environmentally conscious individuals but also offer long-term cost savings.

Types of Investment Mortgages

Next, we dove into the various types of investment mortgages available to investors. Angela explained the pros and cons of each type and how they can be tailored to fit different investment strategies:

• Conventional Mortgages: Best for investors with strong credit and substantial down payments. Angela pointed out that these loans typically offer lower interest rates but require more stringent qualification criteria.
• FHA Loans: these loans are ideal for those with lower credit scores and smaller down payments. Angela mentioned that while these loans are more accessible, they come with certain restrictions and mortgage insurance premiums.
• Portfolio Loans: Offered by private lenders, these can be more flexible but often come with higher interest rates. Angela noted that these loans are beneficial for investors who need customized terms or have multiple properties.
• Commercial Loans: Suitable for larger multi-unit properties and commercial investments. Angela emphasized that these loans are structured differently and often require a solid business plan and financial projections.

Importance of a Mortgage Broker

Angela highlighted the critical role that mortgage brokers play in the investment journey. Here are the main highlights we discussed during the podcast:

Expertise and Knowledge

Mortgage brokers have extensive knowledge of the market and can help investors navigate the complexities of securing the right mortgage. Angela shared how her broker’s expertise saved her from potential pitfalls.

Access to Multiple Lenders

They have access to a wide range of lenders and can find the best mortgage options tailored to an investor’s specific needs. Angela emphasized that brokers can often secure better terms and rates than investors might find on their own.

Time-Saving

Working with a mortgage broker can save investors a significant amount of time. Investors can focus on other investment aspects as they handle the legwork. Angela appreciated how her broker managed the paperwork and negotiations, simplifying the process.

Tips for Real Estate Investors

We also shared practical tips for those looking to get into real estate investing:

• Conduct Thorough Market Research: Always research the market before making any investment decisions. Understand the local conditions, demand, and competition.
• Maintain a Good Credit Score: Your credit score plays a significant role in securing favorable mortgage terms. Work on maintaining or improving your credit score.
• Build Relationships with Lenders: Having a good relationship with lenders can open doors to better mortgage deals and terms.
• Property Management: Effective property management is key to ensuring the success of your investment. Whether you manage the property yourself or hire a professional, make sure it’s well-maintained and tenants are happy.

Importance of a Real Estate Coach

We also talked about the value of having a real estate coach or mentor, especially for new investors.

A real estate coach can provide invaluable guidance and support to investors, helping them avoid common pitfalls and make informed decisions.

Angela shared how her mentor’s advice was crucial in navigating early challenges, accelerating her learning curve through the sharing of practical insights and real-world experiences.

Additionally, mentors often have extensive networks, which can be beneficial in finding deals, partners, and other resources. Angela noted that her coach introduced her to valuable contacts who significantly contributed to her success.

Tune in to 239 Real Estate Roundtable Podcast and Navigate the Real Estate Market

My conversation with Angela Rizzi on the 239 Real Estate Roundtable Podcast was an eye-opening journey through the intricacies of real estate investing. She shared personal experiences that vividly illustrated the current market trends and explained the different kinds of investment mortgages in a way that was easy to grasp.

For anyone looking to step into real estate investing, Angela’s tips were pure gold. Be sure to check out the full podcast episode for more detailed insights and advice.

Stay tuned for more episodes where we bring you stories and tips from real estate experts.