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The Extreme Short: How To Save Yourself & Make Money In The Crash

by blogger1
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on Thursday, 21 July 2022
BestTransactionFunding

While newer investors may still be very bullish on growth in the US real estate market, those who lived through 2008 are certainly having some traumatic flashback moments.


There are certainly many, many similarities in the data from the run up to the Great Recession. We also know that a soft landing is almost impossible to pull off. Markets invariably overcorrect before they recover.


This can not just put a huge hole in your savings and capital, but can wreak havoc on income as well. So, if a crash or correction is possible, then how can you save yourself, and continue to make money through it?


The Consequences Can Be Extreme

Failing to act, or even just acting too slowly to changes like these can have serious, and long term consequences.


2008 sent many CEOs and multi-million dollar producing real estate players lining up among hundreds of others begging for minimum wage jobs in restaurants. Many lost their families, and spent a decade or more to build back.


It’s true that a few made it, came through COVID, and are prepped for what's next. Those are the ones most focused on shorting the real estate market right now.


Short Or Long?

There are two choices at this pivotal time in the market. You can play this phase of the cycle short or long.


You can hold for cash flow and until the market rebounds higher. Though rentals may not be as reliable as you hope.


Remember that it may take 10 to 14 years for the market to come back to where it is today. If you don’t want to be holding those assets that long, or risk losing them, then you should be shorting the market. Getting out faster, with the expectations of prices coming down.


If you haven’t already made these adjustments, don’t just go short, you may need to extreme short to get out fast enough. If you haven’t already missed your window of opportunity.


So, what are some of the things that you can do to do this?


Sell Your Home

Preserve that equity and capital by cashing out now. It is better to regret selling and have money in the bank, than regret holding and have nothing. Just like going to Vegas, you’ve got to know when to cash in your chips and step away from the table.


Exit Those Rehabs

This may not be a great time to be fixing up and flipping homes. Don’t finish or begin on any more line items if you don't have to for a certificate of occupancy. Save that cash, sell a little cheaper, and exit.


Exit Rentals

Sell off any rental properties that have peaked for this phase of the cycle. You can buy them back cheaper later, if you want to.


Make Money By Wholesaling

Real estate is still going to be the best way to make money. You just have to play the extreme short. Sell before you buy it, and use 100% leverage by wholesaling properties using transactional funding.

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Transactional Funding, Wholesaling Becoming Critical as Market Shifts

by blogger1
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on Thursday, 18 August 2016
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Property wholesaling and transactional funding are about to play a far more vital role in the finances of thousands as the US real estate market shifts…

The head of the world’s largest real estate brokerage, Keller Williams, recently spoke out warning that the outlook for the property market isn’t as rosy as it has been. This follows right on the heels of warnings of softening in the hospitality market as NYC’s One57 hotel swirls in rumors of efforts to sell. In reality we don’t know when a new correction will hit, how deep it will be, or how long it will last. Most agents and investors, as well as consumers won’t recognize it until we are deep, deep, into the correction. It may already be in play, or it may not hit for another decade. Regardless; it pays to be ahead of the curve.

When the shift does hit some will be changing strategies, and direction. Some will try investing overseas before those markets change, others will head back into old fields and careers, etc. Of course US real estate has proven to best for the long run. But not everyone has the guts and finances to hold during softer years. But you’ve got to make money – so what do you do?

Wholesaling houses to those that can rehab or hold as rentals can be the ideal way to augment your income and pick up the slack from any other areas. This can be full time or casually as you come across deals. The beautiful thing about wholesaling real estate is it doesn’t matter what direction the market is heading in. Lock in the spreads and right terms, and the buyers will come.

Regardless of how much cash you have or don’t, transactional funding provides the fuel to do unlimited deals and keep your cash rolling in, and the ability to protect what you’ve built. If you haven’t been wholesaling this is certainly the time to be learning about it, and building your network and brand in this space. That is if you want to survive and thrive in the next couple of decades…

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