| Remember a couple of months ago when the market was saturated with buyers and the biggest problem was trying to find inventory? It sort of felt like the “wild west” of real estate. People were doing crazy things. And some were making crazy money. They were gambling on the market overpaying and overleveraging themselves on the purchase of their flips. They were betting on the property appreciating without really adding any value to it. They thought they had a pair of pocket aces in their hand, but now that the market has shifted, they’re starting to realize all they have is a 2-7 off suit. I’ve been in this game a long time – over 20 years. And this isn’t the first time I’ve seen this. It’s all played out over the years a couple of times now. Inventory in the marketplace is increasing and lowball offers are starting to look like an actual option for sellers. Does that mean that we’ve come to the end and there’s no place here for you any longer to invest? Heck no! The truth is that it’s still a great time to be in real estate – it’s never been easier to get your offer looked at and even accepted. Interest rates lurking around 7% have decreased the pool of end buyers. If you listen to all of the untrained investors and agents, you might just believe that their doom and gloom is the only reality. If you look at the actual numbers, housing prices and days on market will vary, but the opportunity for you to seriously cash in on this market if you know what you’re doing is quickly increasing. Many of my students are a hybrid of an agent and an investor and they know how to put a property on the market and get it sold. Just the other day my Probate Fox student Dan was sharing with me an amazing story of how he was able to submit the winning offer on a property that should have gone for at least 300k more than what he paid for it. This was a property that was in a ritzy neighborhood that should have sold for way more, but because most agents and investors don’t know when and how to move forward on a deal, Dan was able to cash in while everyone else missed out on a serious payday. The American dream of home ownership is still very much alive and kicking. This isn’t the first time rates have skyrocketed. For those of us who have been in the business for a while, this ain’t our first rodeo. To be honest, this is nothing compared to what we saw back in ’08. But you do need to pay attention to make sure prices match the rates. And this is precisely why NOW is the time to center your entire business around probate. You’ll always have high margins regardless of the market if you can find motivated sellers with no emotional attachment to the property. There are mountains of probate properties sitting vacant because there is a serious lack of probate real estate professionals to help. To your success, Ernie “The Lemonade Maker” Vargas | The Probate Fox |
November 30
The Market Flipped Just Like That
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