What is Are Investors Doing and Seeing in Today's Market?
It continues to be a very interesting time in real estate. We are still actively doing deals and seeing some of the best best deals since we have been in business. Here are some trends that we are seeing:
- The rental market is seeing increased pressure as the number of rentals explode. This typically means that you need to market better than your competition or lower your price to get your properties filled.
- Financing for investors seems to be increasingly difficult to get. This dictates the need to buy and sell creatively. You can do this by using owner financing, subject-to, lease options, and private money. If you are not using some or all those techniques you or are either limiting the number of deals you could do or probably not doing any deals at all in today's market.
- Retail prices have not fallen as much as wholesale prices. This means that the price of what you can get for a wholesale deal (traditional sold only to an investor) has fallen dramatically (50% or more) in the last year and half versus only a 15%-20% fall in retail. This is due to financing, the supply of wholesale deals, and the challenge of retailing in today's market. This is a good thing if you can take advantage of cheap prices and can hold.
- More investors and even non-investors that have houses (Sometimes their previous residence) are holding houses to rent than previously. Many times this is not by choice, it's purely because they can't sell them. This causes a large supply of rentals and sometimes opportunity with frustrated landlords that never wanted to be one to begin with.
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