**Last updated:** May 4, 2022

 

A fascinating 13 year bull market has finally given way to deteriorating market conditions both in the real estate sector and the broader economy. In this report, we'll look at market data to understand how various real estate investing strategies have fared since the COVID-19 pandemic began. Our focus, in line with our [real estate investing platform](https://www.offermarket.us/), will be on single family residential real estate.

 

The COVID-19 pandemic-fueled housing bubble has shown signs of mania, with retail buyers (people buying personal residences), [iBuyers](https://www.offermarket.us/real-estate-glossary/ibuying), [REITs](https://www.offermarket.us/real-estate-glossary/reit) and and Wall Street investment firms collectively bidding up the value of homes to levels that are -- in many geographic markets -- rather concerning.

 

For more insights into the health of the US housing market, US consumer and broader US economy, review our [Federal Reserve Economic Data Dashboard](https://www.offermarket.us/blog/federal-reserve-housing-market-economic-data).

 

## Investment Comparison: Real Estate vs PropTech vs Stock Market

 

There are many different ways to invest in real estate and performance certainly varies.

 

## PropTech Stocks

 

[PropTech](https://www.offermarket.us/real-estate-glossary/proptech), short for property technology, has received record amount of private investment from venture capital firms and the asset class was front and center among the 2020-21 SPAC merger boom.

 

## PropTech Stocks 1-Year Returns

 

Compass, the technology-enabled real estate brokerage IPO'd with a market cap of --, that market cap has shrunk by 71% in the past year.

 

**Opendoor**, the leading iBuyer, has seen its market capitalization decline by 65% over the same timeline.

 

**OfferPad**, the second largest pure-play iBuyer has halved in value over the past year.

 

**Zillow** stumbled 69% over the trailing 12 months and shut down its Zillow Offers iBuying business. Related content: [Reading Between The Lines: What Zillow's iBuying Pause Really Means](https://www.offermarket.us/blog/reading-between-the-lines-what-zillow-ibuying-pause-really-means)

 

**Redfin** is down a remarkable 84% over the past year, also running into difficulties with its RedfinNow iBuying program.

 

Looking at these specific examples, we see three core items that have destroyed shareholder value:

 

### Record Low US Housing Inventory

 

The number of active listings in the United States is down from 1 million units in January 2020 to under 400,000 units in March 2022.

 

<iframe src="https://fred.stlouisfed.org/graph/graph-landing.php?g=NVDj&width=670&height=475" scrolling="no" frameborder="0" style="overflow:hidden; width:670px; height:525px;" allowTransparency="true" loading="lazy"></iframe>

 
 

### Doubling of Mortgage Interest Rates

 

<iframe src="https://fred.stlouisfed.org/graph/graph-landing.php?g=OMYo&width=670&height=475" scrolling="no" frameborder="0" style="overflow:hidden; width:670px; height:525px;" allowTransparency="true" loading="lazy"></iframe>

 
 

### iBuying Has Been Exposed As A Deeply Flawed Business Model

 

The unit economics of iBuying are alarming. Most of these companies lose money on a per unit basis. iBuying is effectively unprofitable (to marginally profitable at best) home flipping at scale. For more on this, we recommend reviewing [Mike Del Prete's Research](https://www.offermarket.us/blog/mike-delprete-research-ibuyer-power-buyer).

 

## Mortgage Stocks 1-Yr Returns

 

**LoanDepot** is down -85% on concerns about the impact that rising interest rates are having on refinancing demand, and low purchase transaction volume due to record low housing inventory.

 

**Rocket Companies**, parent of Rocket Mortgage and Quicken Loans, is down -61% for the same reasons. 

 

**United Wholesale Mortgage** is down -55% for the same reasons.

 

This is what happens when housing inventory reaches record lows and a major interest rate spike eliminates refinance demand.

 

## Owning Actual Real Estate 1-Year Returns

 

Meanwhile, owners of real estate have performed convincingly well over the past year. The Case-Shiller Home Price Index is up over 19% over the past year -- an unprecedented appreciation driven by low inventory and increased demand.

 

Landlords have seen median rental income increase more than 5% over this time period.

 

Passive real estate investors have seen REITs outperform the market:

 

- Vanguard Real Estate ETF (ticker: VNQ): +5%
- Invitation Homes (ticker: INVH): +14%

 

## Stock Market Performance 1-Year Returns

 

- S&P 500: -1%
- Dow Jones Industrial Average: -3%
- Nasdaq Composite: -12%

 

## Real Estate vs Real Estate Services vs Stock Market

 

Owning real estate may be a better business model than facilitating real estate transactions, and in the past year has proven to be a better asset class than the broader stock market.

 

We believe everyone should have real estate in their portfolio.

 

## Follow On Twitter For Real Estate Insights

 

<blockquote class="twitter-tweet"><a href="https://twitter.com/hashtag/proptech?src=hash&amp;ref_src=twsrc%5Etfw">#proptech</a> stocks 1-yr returns: <a href="https://twitter.com/search?q=%24COMP&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$COMP</a> -71%, <a href="https://twitter.com/search?q=%24OPEN&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$OPEN</a> -65%, <a href="https://twitter.com/search?q=%24OPAD&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$OPAD</a> -50%, <a href="https://twitter.com/search?q=%24Z&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$Z</a> -69%, <a href="https://twitter.com/search?q=%24RDFN&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$RDFN</a> -84%&mdash; Daniel Sperling-Horowitz (@dwshorowitz) <a href="https://twitter.com/dwshorowitz/status/1520970716547805184?ref_src=twsrc%5Etfw">May 2, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

<a href="https://twitter.com/OfferMarketUS?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-show-count="false">Follow @OfferMarketUS</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

<a href="https://twitter.com/dwshorowitz?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-show-count="false">Follow @dwshorowitz</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

In this report, we'll look at market data to understand how various real estate investing strategies have fared over the past year.

PropTech vs Rental Property Investing | OfferMarket Blog

Real Estate vs PropTech vs Stock Market

**Last Updated:** February 09, 2025

 

<div style="position: relative;width: 100%;overflow: hidden; padding-top: 56.25%;">
<iframe style="position: absolute; top:0; left:0; bottom:0; right:0; width: 100%; height: 100%;border: none;" src="https://www.youtube.com/embed/yvb5eUw5ipI?si=_YF-7Zx1dombKx2r" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen>
</iframe>
</div>

 

[Private lenders](https://www.offermarket.us/blog/private-money-lenders) play a crucial role in the financial landscape, offering alternatives to traditional banking institutions. With a growing number of individuals and businesses seeking quicker access to funds, these lenders provide flexible solutions tailored to specific needs. They often cater to those who may struggle to secure financing through conventional means, making them an attractive option for many.

 

Understanding private lending can empower borrowers to make informed decisions. From real estate investments to personal loans, private lenders can offer competitive rates and streamlined processes. As the demand for accessible financing continues to rise, knowing how to navigate this unique lending space becomes increasingly important for savvy borrowers.

 

![Private Money Lending Fast, Flexible Real Estate Financing.jpg](https://cms.offermarket.us/uploads/Private_Money_Lending_Fast_Flexible_Real_Estate_Financing_409a5f4572.jpg)

 

## **Understanding Private Lenders**

 

Private lenders play a crucial role in the financing sector, offering alternative options for borrowers. These [lenders](https://www.offermarket.us/blog/private-lender) provide flexible loan solutions, making them attractive to those who face challenges in securing traditional bank loans.

 

### **Definition of Private Lenders**

 

Private lenders include individuals or organizations that provide loans without being part of a traditional banking system. They typically focus on personal loans, real estate financing, or [business loans](https://www.offermarket.us/blog/private-individuals-that-loan-money#:~:text=terms%20and%20conditions.-,Business%20Loans,-Private%20individual%20business). Unlike banks, private lenders often prioritize quick decisions, less stringent credit requirements, and a more personal approach.

 

### **Types of Private Lenders**

 

Several types of private lenders exist, each serving different needs:

 

1. **Hard Money Lenders**: They offer short-term loans, often backed by real estate. [Interest rates](https://www.offermarket.us/blog/dscr-interest-rates) tend to be higher than traditional loans. 
2. **Private Equity Firms**: They manage investment funds that lend capital for projects or business operations. They usually work with larger amounts and specific investment criteria. 
3. **Peer-to-Peer (P2P) Lenders**: They connect borrowers with individual investors through online platforms. These lenders enable personal loans often with competitive rates. 
4. **Private Mortgage Lenders**: They provide loans for real estate purchases without relying on banking institutions. These lenders may cater to borrowers with non-traditional credit situations.

 

These various types of private lenders create diverse options tailored to meet different financing needs effectively.

 

## **Advantages of Using Private Lenders**

 

Private lenders offer distinct [benefits for borrowers](https://www.offermarket.us/blog/borrower-benefits-dscr). They play a crucial role in providing financial solutions that might not be available through traditional banks.

 

### **Faster Approval Process**

 

Private lenders often provide quicker approval times compared to banks. They can assess applications and make decisions within days, sometimes even hours. This speed allows borrowers to access funds when urgent financial needs arise. With fewer bureaucratic steps, private lenders streamline the application process, making it easier for individuals and businesses to secure necessary financing.

 

### **Flexible Terms and Conditions**

 

Private lenders typically offer more flexible terms and conditions than traditional lenders. They adjust loan amounts, repayment schedules, and interest rates based on individual circumstances. This adaptability makes it easier for borrowers to find loans that fit their specific situations. Whether it’s a short-term loan for an immediate need or a longer-term investment, private lenders can cater to diverse borrowing requirements.

 

## **Disadvantages of Private Lenders**

 

Private lenders come with several drawbacks that borrowers should consider before pursuing loans. Understanding these disadvantages helps in making informed lending choices.

 

### **Higher Interest Rates**

 

[Higher interest rates](https://www.offermarket.us/blog/rising-interest-rates) are a common concern with private lenders. While these lenders provide fast access to funds, their rates can be significantly higher compared to traditional banks. For instance, private loans may range from 8% to 15% or more, depending on the lender and borrower's credit profile. This increased cost can lead to larger total repayments over the loan's duration.

 

### **Less Regulation**

 

Less regulation is another notable issue associated with private lenders. Unlike traditional banks, which operate under strict federal guidelines, private lenders often follow their own rules. This can result in loan terms that are less favorable and may lack transparency. Borrowers might face unexpected fees or unfavorable conditions that don’t exist in more regulated environments.

 

Below is a summary table that compares the benefits and disadvantages of [private money lending](https://www.offermarket.us/blog/loan-from-private-money-lenders) based on the provided key points:

 

<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table><thead>
 <tr>
 <th>Advantages of Private Lenders</th>
 <th>Disadvantages of Private Lenders</th>
 </tr></thead>
<tbody>
 <tr>
 <td>Faster Approval Process - Approvals can be completed in days or even hours, providing quick access to funds for urgent needs.</td>
 <td>Higher Interest Rates - Loans may carry significantly higher rates (often between 8% and 15% or more), increasing total repayment costs.</td>
 </tr>
 <tr>
 <td>Flexible Terms and Conditions - Loan amounts, repayment schedules, and interest rates can be tailored to the borrower’s specific needs.</td>
 <td>Less Regulation - Operating with fewer federal guidelines, private lenders may offer less transparent terms and unexpected fees.</td>
 </tr>
</tbody>
</table>
</div>

 

![Private money lender pro and cons](https://cms.offermarket.us/uploads/Private_Money_Lenders_Pros_and_Cons_bc6d4eebf7.jpg)

 

## **Choosing the Right Private Lender**

 

Choosing the right private lender is crucial for meeting financial needs effectively. Borrowers must evaluate specific factors before making a decision.

 

### **Factors to Consider**

 

* **Interest Rates:** Compare rates from various private lenders. Rates typically range from 8% to 15%. Finding a competitive rate reduces overall repayment amounts. 
* **Loan Terms:** Review the terms offered by each lender. Understand repayment periods, penalties for late payments, and any potential fees. Flexible terms may offer better alignment with personal or business plans. 
* **Approval Speed:** Investigate how quickly lenders process applications. Some may provide funds within days, while others take longer. Quick approval benefits borrowers with urgent financial needs. 
* **Lender Reputation:** Research the lender’s reputation. Look for [reviews](https://www.offermarket.us/blog/dscr-loan-reviews) and ratings from previous borrowers. A strong reputation often indicates reliability and customer satisfaction. 
* **Transparency:** Ensure the lender provides clear information about their processes and fees. Transparency helps avoid unexpected charges and unfavorable conditions.

 

### **Questions to Ask**

 

* **What are the interest rates?** Knowing the specific rates is essential for calculating total costs. 
* **What terms do you offer?** Understanding the specific repayment options available helps in planning. 
* **How long does approval take?** Clarifying the timeline for receiving funds supports better financial planning. 
* **Are there any hidden fees?** Asking about additional charges upfront prevents surprises later. 
* **Can I see customer reviews?** Requesting testimonials gives insight into other borrowers' experiences.

 

## **Case Studies in Private Lending**

 

Examining real-world examples can provide valuable insights into how private [lending](https://www.offermarket.us/blog/dscr-lending) works in practice. Below are a few case studies that illustrate different scenarios in which private lenders have played a pivotal role.

 

### **Case Study 1: Real Estate Investment**

 

A small group of investors needed quick capital to purchase a promising real estate property. Traditional banks required extensive documentation and a lengthy approval process, which risked losing the opportunity. Instead, they turned to a [hard money lender](https://www.offermarket.us/blog/hard-money-lender) who provided a short-term loan with a higher interest rate. 

 

Although the rate was above average, the speed of approval allowed the investors to secure the property before competitors could act. Later, after securing additional funding through conventional means, they repaid the loan and went on to generate significant returns from their investment.

 

### **Case Study 2: Business Expansion**

 

A growing business encountered a sudden market opportunity that required additional capital for expansion. Unable to wait for a traditional bank’s slower approval process, the business owner approached a private equity firm. The firm provided a medium-term loan under conditions that were tailored to the business’s growth projections. 

 

While the interest rate was moderately higher than standard bank loans, the customized repayment schedule and the firm’s willingness to adjust terms during the expansion phase proved beneficial. This enabled the business to scale operations quickly and efficiently.

 

### **Case Study 3: Personal Emergency Loan**

 

An individual faced an unexpected financial emergency and needed funds immediately. Traditional banks could not process the application in time, so the individual opted for a peer-to-peer lending platform. The platform connected the borrower with multiple individual investors who collectively provided the necessary funds at competitive rates. 

 

Despite the varied sources of funding, the platform ensured a streamlined process and clear communication regarding [repayment terms](https://www.offermarket.us/blog/dscr-loan-terms#:~:text=What%20are%20typical%20DSCR%20loan%20repayment%20terms%3F), which allowed the borrower to manage the emergency without long-term financial strain.

 

These examples highlight the diverse applications of private lending and illustrate that while higher interest rates and potential risks exist, the benefits of speed and flexibility can be critical in time-sensitive situations.

 

## **Practical Tips for Borrowers**

 

When considering a private loan, it is important for borrowers to approach the process with care and preparation. The following tips provide practical guidance to help borrowers make well-informed decisions:

 

### **1\. Assess Your Financial Situation**

 

Before [applying for any loan](https://www.offermarket.us/blog/apply-for-dscr-loan), take the time to evaluate your current financial position. Consider your income, expenses, and any existing debts. A clear understanding of your financial health will help determine the loan amount you can reasonably repay without overextending yourself.

 

### **2\. Compare Multiple Lenders**

 

Do not rely on a single lender’s offer. Reach out to multiple private lenders to compare interest rates, repayment terms, and fees. This comparative [analysis](https://www.offermarket.us/blog/debt-service-coverage-ratio-analysis) can reveal more favorable conditions and help you choose a lender who aligns with your financial needs.

 

### **3\. Read the Fine Print**

 

Carefully review all loan documents and agreements. Pay close attention to any clauses regarding penalties, fees, and repayment conditions. If any part of the agreement is unclear, ask for clarification before signing.

 

### **4\. Prepare Documentation**

 

Even though private lenders typically require less documentation than traditional banks, having thorough records of your income, [credit history](https://www.offermarket.us/blog/dscr-loan-credit-score), and any relevant financial details can help speed up the approval process. Organized documentation also demonstrates financial responsibility, which can lead to better loan terms.

 

### **5\. Seek Professional Advice**

 

Consulting with a financial advisor or legal expert can provide additional insights into the [terms of the loan](https://www.offermarket.us/blog/dscr-loan-terms). Professional advice is particularly important if the loan terms are complex or if you have any doubts regarding the agreement.

 

### **6\. Maintain Open Communication**

 

Throughout the borrowing process, maintain clear and open communication with your lender. Address any questions or concerns promptly to ensure that both parties have a mutual understanding of the terms and conditions.

 

By following these practical tips, borrowers can minimize risks and make decisions that align with their long-term financial goals.

 

## **Regulatory Environment and Future Outlook**

 

The regulatory landscape for private lending differs significantly from that of traditional banks. While private lenders benefit from fewer restrictions, this environment also presents unique challenges for both lenders and borrowers.

 

### **Current Regulatory Environment**

 

Private lending is not subject to the same stringent regulations as traditional banking. This lack of regulation can lead to increased flexibility but may also result in less protection for borrowers. It is important for borrowers to carefully review the terms offered by private lenders and to be aware of any potential legal or financial pitfalls.

 

### **Emerging Trends**

 

In recent years, technology has played an increasing role in private lending. Online platforms have made it easier for borrowers to connect with multiple lenders, and the rise of peer-to-peer lending has expanded access to funds. As digital solutions continue to advance, borrowers can expect even greater efficiency and transparency in the application process. However, this shift also requires borrowers to be vigilant about cybersecurity and data privacy.

 

### **Future Outlook**

 

The future of private lending appears robust, with continued demand for faster, more flexible financing options. As the economic landscape evolves, private lenders are likely to refine their processes and offer even more competitive terms. Regulatory bodies may also increase oversight, which could enhance consumer protection without significantly impeding the agility of private lending practices.

 

In the coming years, borrowers can anticipate a market where technology and improved regulatory frameworks work in tandem to create a more balanced environment. This evolution may lead to increased trust in private [lending](https://www.offermarket.us/blog/fast-lending) options, offering a reliable alternative for individuals and businesses alike.

 

[![Need a PRivate loan, instant quote, takes 1 minute, no credit pull, no obligation](https://cms.offermarket.us/uploads/Need_a_Private_Loan_1_9f17de19f9.jpg)](https://www.offermarket.us/loans?ref=tjcontent)

 

## **Conclusion**

 

Private lenders play a crucial role in providing flexible financing solutions that cater to diverse needs. Their ability to offer quicker approvals and adaptable terms makes them an attractive option for those facing challenges with traditional banks.

 

However, borrowers must remain vigilant and informed when navigating this lending landscape. By carefully evaluating potential lenders and understanding the associated risks, individuals can secure loans that align with their financial goals.

 

With the right approach and knowledge, private lending can serve as a valuable resource in achieving financial objectives.

 

## **Frequently Asked Questions**

 

### **What are private lenders?**

Private lenders are individuals or organizations that provide loans outside the traditional banking system. They focus on personal loans, real estate financing, and business loans, offering alternatives for those who may struggle to secure financing from banks.

 

### **What are the advantages of using private lenders?**

Private lenders offer faster approval processes, often providing funding within days or even hours. They also provide flexible terms, allowing borrowers to adjust loan amounts and repayment schedules based on their needs, making them a viable option for urgent financial situations.

 

### **What are the disadvantages of private lenders?**

Private lenders typically charge higher interest rates—ranging from 8% to 15% or more—which can lead to larger total repayments. They are also less regulated than traditional banks, resulting in potential issues with unfavorable loan terms and a lack of transparency.

 

### **How do I choose the right private lender?**

To choose the right private lender, compare interest rates, review loan terms, assess approval speeds, and check the lender’s reputation. It’s also essential to ensure transparency regarding fees and to ask questions about interest rates, hidden charges, and customer reviews.

 

### **When should I consider a private lender?**

Consider a private lender when you need quick financing, have difficulty obtaining loans from traditional banks, or seek flexible terms for specific projects like real estate investments or personal expenses. However, make sure to weigh the costs and risks involved.

 

## **DSCR Loan Quote**

 

![DSCR loan quote](https://cms.offermarket.us/uploads/DSCR_loan_quote_c3ae268aed.jpg)

 

Our mission is to help you build wealth through real estate. Let's grow and optimize your rental property portfolio!

 

- Get your instant [DSCR loan quote](https://www.offermarket.us/loans?ref=content-private-lenders) today!
- Save big on premiums with our [landlord insurance rate shopping service](https://www.offermarket.us/insurance?ref=content-private-lenders)!
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A comprehensive review of private lenders, covering benefits, risks, types, and guidelines to help borrowers make informed financial decisions.

large_Working with Private Lenders.jpg

medium_Working with Private Lenders.jpg

small_Working with Private Lenders.jpg

thumbnail_Working with Private Lenders.jpg

Benefits and Risks of Working with Private Lenders.jpg

Private Lender Insights: Benefits & Risks

The Benefits and Risks of Working with Private Lenders

<img load="lazy" src="https://cms.offermarket.us/uploads/blake_wheeler_z_BHU_08hdzh_Y_unsplash_0a1c230449.jpeg" alt="Image of townhomes in Caroline County Maryland MD">

 

Below you will find a list of top rated property management companies Caroline county. Identifying the top property management firm in Caroline county will take research. Make sure to talk to company representatives, interview them with the questions we provide below and read reviews. This process is paramount in identifying the best firm that will address all of your landlord needs and justify their monthly fees while keeping your tenants happy. 

 

## Skipjack Solutions
<img load="lazy" src="https://cms.offermarket.us/uploads/ski_165601c1d8.png" alt="SkipJack Solutions Logo">

 

Description: We’re local and we’re reliable. We can be there so you don’t have to, whether that’s to deal with the mundane and routine or the complete remodel. Our taskmasters have an acute attention to detail and a network of service providers to address with any issue. It’s handled. That’s all there is to it. Let our team of professionals take the stresses out of your short-term rental or AirBnB listing. We can navigate through the cumbersome license application process and prepare your space for rentals. After developing a checklist of necessary items, we will clean, shop and ready the house for new guests. With our specialized services, we make it easy to get more rentals with less effort so that your property can be monetized toward your long-term goals. We routinely receive high reviews (SuperHost status), which in turn generates more bookings. In most cases, we are nearby and available to greet guests, show them the features of the property and, if problems should arise, and guests have questions or needs, we can respond. Skipjack Solutions can help to relieve some of the burden and worry of ownership of a second home or property: from everyday coordination of grounds and house maintenance to seasonal projects and improvements. We handle the day-to-day operations or we have options to be on standby for occasional needs and unexpected issues. We have a stable of reliable vendors on call to address any concerns and provide peace of mind. We will ensure all is well on the home front! You can avoid potentially disastrous situations and ensure peace of mind. Priceless! 

Website: [http://www.skipjacksolutions.com/](http://www.skipjacksolutions.com/) 

Google Rating: [5.0](https://www.google.com/search?q=caroline+county+md+property+management+companies&biw=1792&bih=821&sz=11&tbm=lcl&ei=8xGLYZPaBuSvytMP7I2rgAk&oq=caroline+county+md+property+management+companies&gs_l=psy-ab.3...32946.33183.0.33358.3.3.0.0.0.0.87.150.2.2.0..2..0...1c.1.64.psy-ab..1.1.87...33i10i395k1.0.OZKB0hk4TL4#lrd=0x89b83de7fecd5dbd:0xf667ef159c0c2672,1,,,&rlfi=hd:;si:17755422932022863474,l,CjBjYXJvbGluZSBjb3VudHkgbWQgcHJvcGVydHkgbWFuYWdlbWVudCBjb21wYW5pZXNI0prYhbiwgIAIWkgQAxAEEAUYABgBGAIYAxgEGAUiMGNhcm9saW5lIGNvdW50eSBtZCBwcm9wZXJ0eSBtYW5hZ2VtZW50IGNvbXBhbmllcyoCCAOSARtwcm9wZXJ0eV9tYW5hZ2VtZW50X2NvbXBhbnmqASUQASohIh1wcm9wZXJ0eSBtYW5hZ2VtZW50IGNvbXBhbmllcygA;mv:[[39.144358,-75.50695209999999],[38.612732,-76.3653687]]) 

Google Reviews: [6](https://www.google.com/search?q=caroline+county+md+property+management+companies&biw=1792&bih=821&sz=11&tbm=lcl&ei=8xGLYZPaBuSvytMP7I2rgAk&oq=caroline+county+md+property+management+companies&gs_l=psy-ab.3...32946.33183.0.33358.3.3.0.0.0.0.87.150.2.2.0..2..0...1c.1.64.psy-ab..1.1.87...33i10i395k1.0.OZKB0hk4TL4#lrd=0x89b83de7fecd5dbd:0xf667ef159c0c2672,1,,,&rlfi=hd:;si:17755422932022863474,l,CjBjYXJvbGluZSBjb3VudHkgbWQgcHJvcGVydHkgbWFuYWdlbWVudCBjb21wYW5pZXNI0prYhbiwgIAIWkgQAxAEEAUYABgBGAIYAxgEGAUiMGNhcm9saW5lIGNvdW50eSBtZCBwcm9wZXJ0eSBtYW5hZ2VtZW50IGNvbXBhbmllcyoCCAOSARtwcm9wZXJ0eV9tYW5hZ2VtZW50X2NvbXBhbnmqASUQASohIh1wcm9wZXJ0eSBtYW5hZ2VtZW50IGNvbXBhbmllcygA;mv:[[39.144358,-75.50695209999999],[38.612732,-76.3653687]]) 

Phone: (443) 362-8083﻿ 

Address: 109 Green St, St Michaels, MD 21663 

Property Management Monthly Fee: [Contact to find out](http://www.skipjacksolutions.com/contact-us/) 

Leasing fee: [Contact to find out](http://www.skipjacksolutions.com/contact-us/) 

Lease renewal fee: [Contact to find out](http://www.skipjacksolutions.com/contact-us/) 

 

## Home Advantage Property Management
<img load="lazy" src="https://cms.offermarket.us/uploads/Dark_Green_Logo_1_6fbaf69f3b.png" alt="Home Advantage Property Management Logo">

Description: Home Advantage Property Management is a family-owned full-service property management company specializing in residential rental property and apartment building management in the greater Baltimore/Annapolis area. Our goal is to take the headaches of being a landlord off of your shoulders by handling all the day-to-day chores that come with being a professional landlord, while ensuring that you get the best possible return on your investment. 

Website: [http://www.homeadvantagepm.com/](http://www.homeadvantagepm.com/) 

Google Rating: [4.3](https://www.google.com/search?q=caroline+county+md+property+management+companies&biw=1792&bih=821&sz=11&tbm=lcl&ei=8xGLYZPaBuSvytMP7I2rgAk&oq=caroline+county+md+property+management+companies&gs_l=psy-ab.3...32946.33183.0.33358.3.3.0.0.0.0.87.150.2.2.0..2..0...1c.1.64.psy-ab..1.1.87...33i10i395k1.0.OZKB0hk4TL4#lrd=0x89b802be488b99c9:0xa9f6bc27d7405649,1,,,&rlfi=hd:;si:12247183115981706825,l,CjBjYXJvbGluZSBjb3VudHkgbWQgcHJvcGVydHkgbWFuYWdlbWVudCBjb21wYW5pZXNIzZrm5eaAgIAIWkYQAxAEEAUYARgCGAMYBBgFIjBjYXJvbGluZSBjb3VudHkgbWQgcHJvcGVydHkgbWFuYWdlbWVudCBjb21wYW5pZXMqAggDkgEbcHJvcGVydHlfbWFuYWdlbWVudF9jb21wYW55qgElEAEqISIdcHJvcGVydHkgbWFuYWdlbWVudCBjb21wYW5pZXMoAA;mv:[[39.144358,-75.50695209999999],[38.612732,-76.3653687]]) 

Google Reviews: [19](https://www.google.com/search?q=caroline+county+md+property+management+companies&biw=1792&bih=821&sz=11&tbm=lcl&ei=8xGLYZPaBuSvytMP7I2rgAk&oq=caroline+county+md+property+management+companies&gs_l=psy-ab.3...32946.33183.0.33358.3.3.0.0.0.0.87.150.2.2.0..2..0...1c.1.64.psy-ab..1.1.87...33i10i395k1.0.OZKB0hk4TL4#lrd=0x89b802be488b99c9:0xa9f6bc27d7405649,1,,,&rlfi=hd:;si:12247183115981706825,l,CjBjYXJvbGluZSBjb3VudHkgbWQgcHJvcGVydHkgbWFuYWdlbWVudCBjb21wYW5pZXNIzZrm5eaAgIAIWkYQAxAEEAUYARgCGAMYBBgFIjBjYXJvbGluZSBjb3VudHkgbWQgcHJvcGVydHkgbWFuYWdlbWVudCBjb21wYW5pZXMqAggDkgEbcHJvcGVydHlfbWFuYWdlbWVudF9jb21wYW55qgElEAEqISIdcHJvcGVydHkgbWFuYWdlbWVudCBjb21wYW5pZXMoAA;mv:[[39.144358,-75.50695209999999],[38.612732,-76.3653687]]) 

Phone: (410) 626-7411﻿ 

Address: 1052 Lido Drive, Annapolis MD, 21409 

Property Management Monthly Fee: [8%](http://w.mawebcenters.com/HomeAdv/services931.html#Fees) 

Leasing fee: [Contact to find out](http://w.mawebcenters.com/HomeAdv/services931.html#Fees) 

Lease renewal fee: [None](http://w.mawebcenters.com/HomeAdv/services931.html#Fees) 

 

## Important factors to consider

 

When evaluating a property manager there are several important factors that you need to consider other than their monthly fees to make a good decision. While monthly fees are important, renewal fees and leasing fees are a key consideration, sometimes other services property managers provide might be well worth above average fees. Consider reviews and what others have to say about about their experience with each property manager before moving forward and signing a contract. Do your research!

 

Here are additional factors that you should take into the account:

 

- Staff on call and available 24/7 in Caroline county
- How quickly they address maintenance issues
- Do they have an extensive list of contractors in Caroline county
- Do they have a large team of professionals in Caroline country to server as back ups
- How many years of experience do they have in Caroline county, managing rental in different locations sometimes calls for additional skills
- Do they have a competitive rate for Caroline county? If their rate is higher what justifies that? If its lower, is it because they lost clients and need to discount their service?
- Are they locally operated in Caroline county? Proximity to your rental property is key to providing best property management service. 
- Do they collect rent in person in Caroline county or do they have more sophisticated tool to handle rent collection?
- Why tenant services do they provide?
- Are there other top property management companies Caroline county?
- Will they find tenants Caroline county?
- Will they post house listing Caroline county?
- Will they evict tenant Caroline county?
- Do they have good testimonials from other landlords Caroline county?
- Will they quickly find tenants Caroline county?
- Do they have decades of experience Caroline county?
- Do they have access to best contractors Caroline county?

- Do you feel comfortable entrusting you investment property Caroline county to this property management company Caroline county after having an interview with them?

 

## Questions to ask a potential property manager

 

Below you will find a list of interview questions you must ask a potential property management firm before agreeing to hire them to manage your property. These questions will help you identify a good firm and set expectations from day one. Make sure to note their responses so you have an easy way to compare between candidate firms that you interview. Remember you are the client, they will manage and represent you to your tenant, this is a key to being a successful landlord, so no questions are off limits to help you figure which company is the right fit. If any of the responses rub you the wrong way, make sure to note that down and always go with your gut feeling. If something is wrong in this early stage, then its more than likely additional problem will follow, especially when you are not in the room and the firm engages with your tenant directly. Imagine loosing a long term tenant because property management firm didn't do a good job maintaining your property, this is a scenario these questions will help you avoid. Best property management companies Caroline county should have easy time giving you solid answers for below questions. 

 

1. What is your monthly property management fee?

2. What is the leasing fee?

3. What is lease renewal fee?

4. Do you have a point of contact who is available 24/7?

5. Do you have a back-up contact in case the first contact is not available?

6. Do you provide any warranties, such as tenant durations warranties? 

7. Do you provide any warranties on how quickly you can find a tenant for my rental?

8. Do you handle all types of rental maintenance issues? 

9. How many rentals do you manage in Caroline county? 

10. What have I not asked you that I should know about? (this is a great open ended question that might reveal more about the company that you didn't anticipate)

11. Why should I choose you over other best property management companies Caroline county? (this is another great open ended question that might reveal more about the company that you didn't anticipate)

 

## Can landlords sell properties with tenants in place? 

 

Landlords often believe that they have to vacate their property and stage it to get top dollar for their portfolio rental. OfferMarket exists to dispels this notion. Everyday tired landlords or busy landlords post their rental properties with tenants in place on our free and open real estate marketplace to see if another rental investor would give them an offer for their rental. 

 

OfferMarket specializes in augmentation of rental portfolios, ether through disposition of outlier properties or through acquisition of attractive rental with tenants already in place. If you want to test the market and see if you get offers on your rental with tenants in place, [create a free listing](https://www.offermarket.us/sell) and see if other landlords would offer you an even higher price than the market since you already have tenants in place and they would have to do less work to make it cashflowing. On the other hand, if you are looking for cash flowing properties, [checkout our map](https://www.offermarket.us/listings) to see if there are any rental properties that might catch your eye, feel free to talk directly to the seller, schedule a tour or submit an offer, completely free and without any obligations. OfferMarket exists to help Maryland landlords buy and sell properties, commissions free, with ease and expediency. 

 

Checkout our [listings on our map](https://www.offermarket.us/listings) or [create a free listing to test the market](https://www.offermarket.us)

OfferMarket helps busy landlords by connecting them with top property management companies in Caroline County to manage their real estate portfolios.

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Best Caroline County Property Managers - OfferMarket

Best Caroline county property management companies

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

Private Lending | OfferMarket

Private Lending

Buyers Pay Buyer&#39;s Agent Commission In Off Market Deals

The Deal Is Not Priced For The Seller To Pay A Buyer&#39;s Agent

Avoid Unnecessary Friction

Who Pays Agent Commission On OfferMarket?

Buyer Agents That Understand Off Market Listings Add More Value For Their Clients

<div style="width:100%;"><iframe width="100%" height="315" src="https://www.youtube.com/embed/anbSNLi1Y7w" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>

 
 

## Buyers Pay Buyer's Agent Commission In Off Market Deals

 

Unlike on-market MLS transactions where the seller pays the buyer's agent commission (typically 2.5% - 3%), the standard in off market and wholesale real estate transactions is for the the buyer to pay their agent's commission.

 

There are a few reasons why buyers pay their buyer's agent commission:

 

## The Deal Is Not Priced For The Seller To Pay A Buyer's Agent

 

Most off market deals for investment properties -- properties in poor condition, distressed sellers, leased rentals -- are not priced with the expectation that the seller or wholesaler will be paying a buyer's agent's commission. Why? Because most off market deals do not involve buyer's agents who ask for the seller to pay their commission. Off market deals either do not involve a buyer's agent at all, or they involve an investor-friendly buyer's agent who understands that in an off market transaction their client (the buyer) pays their commission. 

 

If you want the seller to pay your commission, then add your commission on top by increasing your offer price.

 

## Avoid Unnecessary Friction

 

Many single family and small multifamily investors deal direct and do not have agent representation. Asking a seller or a wholesaler to figure out how to pay the buyer's agent commission is an added complexifier and reduces the chance the agent-represented buyer will have their offer accepted.

 

### Buyer's Agent Off Market Faceplam Moments

 

Aside from the commission component, agents who do not have off market deal experience are known to add significant friction to the deal. One example is pushing back when the wholesaler's contract specifies a title company but the agent wants to try to change the title company. 🤦

 

Another example is when the agent gets upset that the wholesaler is making more on the deal than they are, and then tries to reduce the wholesaler's assignment fee. This is not the way to get your client a new property. 🤦‍♀️

 

The most cringeworthy example is perhaps when the buyer's agent contacts the seller or wholesaler and asks if they pay buyer's agent commission and then tells them that their commission is 4% (standard agent commission is 2 - 3% off market and on market). Going one step further, when they are told that they should have their buyer pay their commission or add it to their client's offer price, they steer their client away from the deal. This is an incredibly common occurrence and fascinating exposé of the failings of the current agency model and rampant breach of fiduciary duty. 🤦🏽

 

A final example is when agents don't understand wholesale real estate and assignment of contract. If this applies to you or your agent, read [Wholesale Real Estate 101](https://www.offermarket.us/guides/wholesale-real-estate-101). 🤦🏼‍♀️

 

### Agents For Flippers Get The Flip Listing

 

Fix and flip buyers typically have an agreement -- implied or explicit -- with their buyer's agent that the agent will be the listing agent when the rehab is completed and the property is ready to be sold on market. That commission check will be higher, so the agent doesn't need to rock the boat trying to get the seller to pay their commission in the off market deal.

 

## Who Pays Agent Commission On OfferMarket?

 

Off market listings on the OfferMarket investment property marketplace are designed to accommodate buyer agents. Buyer's agents submit offers directly on the OfferMarket listing and specify how they would like their commission to be paid. To avoid unnecessary friction that can lose the deal for a buyer, it is recommended that the buyer pays the buyer's agent's commission.

 

In an off market transaction, the buyer is expected to pay their agent for bringing them the deal. But we recognize that it's open for negotiation.

 

Depending on the seller's motivation, net proceeds sensitivity, and buyer demand for the listing (i.e. multiple competitive offers received), the seller may reject a request from the buyer/buyer's agent for the buyer's agent to be paid by the seller. The seller may request a lower commission, since off market transactions typically have lower commissions to the buyer's agent (2% instead of 2.5% or 3%). The seller may counter offer and request a higher offer price in order for the seller to justify paying the buyer's agent commission.

 

## Buyer Agents That Understand Off Market Listings Add More Value For Their Clients

 

Off market, wholesale and For Sale By Owner (FSBO) real estate transactions are typically not priced for the seller and assignor (wholesaler) to pay buyer agent commission. Unless the seller explicitly states in their listing that they are offering a 2% or 3% commission to buyer's agents, it should not be expected of the seller and/or assignor to pay the buyer's agent commission for an offer at asking price. 

 

If you're an agent representing a buyer in an off market transaction, there's no need to worry, there's always a way to make the deal work for all parties involved.

 

The following are the most common arrangements to ensure the buyer's agent is fairly compensated:

 

1. Buyer pays their agent a 2% commission (most common for wholesale, distressed properties)
2. Buyer increases the purchase price in their offer and asks for the seller to pay a 2% to 3% commission (most common for wholesale, distressed properties)
3. Seller happily accepts offer at asking price and pays fair commission to buyer's agent (most common for [FSBO](https://www.offermarket.us/real-estate-glossary/fsbo) and [OfferMarket Exclusive Listings](https://www.offermarket.us/listings).

 

Investor-focused buyer's agents are easy to work with and get an off-market deal done quickly. Buyer's agents who are not familiar or experienced with off-market transactions frequently introduce major friction which derails deals and causes unnecessary effort and stress for all parties. If you are an agent representing a buyer in an off-market transaction, it is important that you reset your expectations according to the norms of off-market transactions and adapt to get the deal done for your buyer with terms that work for everyone.

Buyer's agents (and buyers represented by agents) that understand off-market, wholesale and FSBO listings add more value for their clients.

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Who pays the buyer's agent commission in an off market, wholesale transaction?

Buyers Pay Buyer's Agent Commission In Off Market Deals

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