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Will a Stock, Tech Bubble Hurt or Help Real Estate Wholesaling?

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on Thursday, 16 October 2014
BestTransactionFunding

Will a new stock market, tech industry crash help or hurt real estate wholesalers?

Inman News has been in a flap since the stock market started to tumble last week. Whether a mere blip or the beginning of a new apocalypse it’s worth asking how another major deflation in the stock market and tech industry will impact real estate.

It’s coming. Whether it is now or a couple years from now analysts having been proclaiming the stock market is at least 60% over valued for a while, and the tech world is ready for its own shake up. So what effects are we already seeing, and what will the outcome of a bubble bursting look like?

While super hero day traders following a wholesaling style strategy might be hit less hard than Warren Buffett’s buy and hold followers or VCs betting on a wide spread of startups, or big elephants like Zillow which don’t have any net profit to prop up their valuations, there will be some major shifts for all.

This compares to the bulk of housing market which Trulia claims is still vastly undervalued. Inman notes that the market has immediately reacted to recent fluctuations by driving down mortgage interest rates, and spurring a spike in refinance applications.

Many real estate professionals and companies might be glad for a tech slow down. A little slower pace of innovation and a sucker punch to Zillow will not only mean more money coming to real estate, but a chance to catch up, and improve on the basics versus worrying about keeping up with next year’s tech changes.

A turn down in tech and stocks invariably creates more interest and need to invest in real estate. This comes in various forms from up sizing houses, and increasing direct investment, and more money put into mortgage markets. It will also drive more selling off of houses and real estate in some areas where owners have lost big in the stock market and tech companies.

The great news is that wholesaling real estate still works in all of these conditions and markets and is fueled by them. It creates great opportunities to help those needing to sell fast, and serve the others scaling up their buying activity. Fortunately, with access to plentiful capital from Best Transaction Funding wholesalers are only really limited in maximizing these opportunities by their own goal setting.

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