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Hurray For The Correction! It’s TIme To Invest

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on Thursday, 07 February 2019
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It looks like a new real estate correction is already in the works. It’s just the news many experienced investors have been waiting for. Now it’s time to get busy putting money into action and wholesaling those properties.


The New Housing Correction

The data is clearly showing a correction. It may not have arrived in your market yet. Though it is probably coming in the next couple of years. Your market may experience a spring in new growth and capital as investors ditch markets that have already peaked. Or yours could have already passed the peak and see some sellers letting properties go with steep price cuts.


Why It’s a Good Thing

Many investors have been waiting years for this moment. It may not feel good in the medium term for those that get caught slacking on protecting their recent windfall in equity. Though it can be cashed out or leveraged now, and it will bounce back.


Even more important than the return of better pricing and more negotiability for buyers is the certainty this data brings. As Fuquan Bilal of NNG Capital Fund puts it, now investors know where they are in the real estate cycle. They have a clearer vision of what is ahead. They can make moves with confidence.


It is very difficult for even the most experienced pros to perfectly time the market. You don’t have to. If you negotiate deep enough discounts you can still flip for a handsome profit with a decent discount left for your end buyer.


We may not be near the bottom yet, but historical data on your local markets will give you a great idea where that will be. For some this is now the ideal time to sell and cash out. For rehabbers, home buyers, and landlords this can be a better time to buy due to access to capital and rates. The wholesaler in the middle can profit while helping both parties.

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The New Housing Correction: The Good, Bad & Ugly Truths

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on Thursday, 25 October 2018
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It’s becoming impossible to ignore the new housing correction in the works. It brings some big challenges for those in real estate, but also some great opportunities. Here’s what you need to know, and how to make the most of it…


The Bad

Declining property prices aren’t much fun for most sellers. Some key markets have now been in a year long decline. Some double digits could soon really snowball. The National Association of Realtors reports that nationwide existing home sales fell 3.4% in September, after a stagnant August. New homes sales fell for the fourth month in a row. Nationally new home sales are down an average of 5.5%, with the Northeast seeing a new 3 year low for sales.


A large percentage of property owners are slashing their listing prices. Even as of July 2018, prices were down significantly in San Antonio, Austin and Honolulu. Some NY markets are seeing deep double digits cuts.


You don’t want to be stuck in the middle of a rehab project that you hoped to list at a new market high, only to find the bottom has fallen out of the market before you are finished.


The Ugly

By now everyone should be fully aware of these market fluctuations and cycles. Homeowners and investors should be prepared for them  Of course, many won’t be. Worse than the actual declines, is the fear that can grip markets. That fear is usually more damaging than logical corrections. The biggest threat to investors, homeowners and the market is that, doubled with the hangover of 2008, many will give up on buying and homeownership. They just won’t buy. That could be compounded by any downturns in the stock market, wider economy and tightening of mortgage lending. It doesn’t matter if you are buying properties for $1 if there are no buyers to flip them to.


The Good

On the brightside this brings opportunity to buy lots of property from lots of motivated sellers. If they act fast they may still walk away with cash. Lots of individuals and professional buyers have been waiting for this moment to take action too. So do anticipate many home buyers sitting on the sidelines with good credit and incomes. Do expect there are cash rich investors out there who have been waiting for slightly better asset prices. This is especially true when property prices get low enough to generate attractive returns as rentals. This means opportunities to quickly wholesale houses. Get n out and paid before values go down further. All with low risk. It’s just a matter of having the buyers lined up. Those that get working on these lists and relationships now can find this is one of the most transformative moments in their lives for making leaps in income and wealth. Are you ready?

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