To many people in real estate
Member since 2023 · 191 posts · 21 votes
To many people in real estate
Most Popular Reply
Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votesQuote from @Chris Kendrick:
Quote from @Joe Villeneuve:
The answer is to learn how to do market analysis correctly. Not all areas are the same. You need to learn how to find the micro-markets within the markets you are looking at. Markets are more than just geography. They are based on the common size of properties within that geographic area where the inevitability is based on a lot of numbers with $$$ in front.
The answer I just gave you, based on some of your earlier replies, probably isn't what you're looking for. The complete answer involves learning how to find the properties, not a quick answer of where and what is available. The competition you observed isn't just happening now. It's been around all the time since the beginning of REI. Most REI spend their time looking for deals and come away with the same observation, or make bad deals just to make a deal, and then rationalize it into a good one.
The best answer is to stop looking for deals, that's where all the competition is. Start learning how to make deals out of opportunities. Those opportunities are all around you, right in front of you, and there all the time...with very little competition, because most investors don't see them. You want to avoid the bad deals, the competition, the frustrations...? Learn how to design deals/offers by learning as many strategies as you can...and never stop. The more strategies you learn, the more opportunities (without competition) will fall in your lap...because you're one of the minority that sees them.
Ok so you dont know, thanks
52 Replies
- Member since 2019 · 7k+ posts · 4k+ votes3y
Quote from @Chris Kendrick:
just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing, there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this
that's the supply side.
You should go to open house every weekend and see what's your competition when purchasing as well :) they're much larger in number. - 3yRandall AlanPro MemberInvestor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
Quote from @Chris Kendrick:
just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing, there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this
Chris,
A quick story… an instructor I work with has a saying…. “You will either find a way to make it happen, or you will find an excuse to not do it.” The instructor isn’t even in real estate, but I feel like this quote is appropriate for you. You are looking for all the reasons why “it” won’t work, when everyone around you is like “It totally works”.
Yes , until interest rates come back down it is hard to make deals work right now… so short term it is more ‘hang tight for the market to adjust / correct”. But it just seems like you are trying to talk yourself out of the game. If that is really your perspective, maybe real estate isn’t your game. There is nothing wrong with that.If you simply focus on the “challenges” as you see them, you won’t find a way to make it happen. The challenges you are quoting really aren’t any different from any other time in the market. There is always a supply of houses. If there is more supply… there is more supply. That’s really not a reason… just an excuse. Some houses sit on the market… maybe because the flippers are looking for a certain profit level… maybe because they spent too much and the market turned and they would take a loss at this point. As an investor, I’m looking at my properties. I really don’t care how many others are on the market… it’s much more important to look at the sold properties. As long as mine is priced in line with the recent sales in the same area mine should sell. They will sell faster the lower the interest rate goes because more buyers will be able to afford more house.
So either choose to find a way, or look for the excuses… each will take you to where it is supposed to. My train of thought for you on supply would be “Ok, I know there are more houses on the market right now, but houses are selling at $XXX/sf on a regular basis in my area, so as long as my sales price is at or below that number for a comparable house it should sell.” Point being: acknowledge the challenge, and then acknowledge how you will still be able to make it work in spite of the challenge.
All the best!
Randy
- Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes3yI have maybe 26 SFH rentals in NC. I post on Zillow, get around 50 responses over a few days, heavy phone screening, show to 3-5 parties. Usually have signed agreement within 10 days of posting. The last new construction I just finished was rented unadvertised 2 months before completion.
Quote from @Chris Kendrick:
Quote from @Nicholas L.:
that's why i asked you to clarify - you said "how in the world can someone get in this competitive space"
i didn't know whether you meant buy, or sell or rent
my rentals are rehabbed, high quality, and priced competitively, and I allow pents - so they rent quickly
i don't flip so can't answer that for you
So i assume your area is not like mine in NC where there are ton and tons of houses to rent?
If there are 'tons and tons' of house available, it's never affected me. I can beat the big guys all day long on tenant selection and price. - Member since 2023 · 191 posts · 21 votes3yWhen did you get your rentals, have you gotten one recently in less than a year, seen lots of rents on there that been on there for over 2 or 3 months
Quote from @Terrell Garren:
I have maybe 26 SFH rentals in NC. I post on Zillow, get around 50 responses over a few days, heavy phone screening, show to 3-5 parties. Usually have signed agreement within 10 days of posting. The last new construction I just finished was rented unadvertised 2 months before completion.Quote from @Chris Kendrick:
Quote from @Nicholas L.:
that's why i asked you to clarify - you said "how in the world can someone get in this competitive space"
i didn't know whether you meant buy, or sell or rent
my rentals are rehabbed, high quality, and priced competitively, and I allow pents - so they rent quickly
i don't flip so can't answer that for you
So i assume your area is not like mine in NC where there are ton and tons of houses to rent?
If there are 'tons and tons' of house available, it's never affected me. I can beat the big guys all day long on tenant selection and price. - Member since 2023 · 191 posts · 21 votes3yNot trying to talk my self out of nothing, but would you be worried if houses and houses for rents been sitting on the market for more than 3 months
Quote from @Randall Alan:
Quote from @Chris Kendrick:
just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing, there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this
Chris,
A quick story… an instructor I work with has a saying…. “You will either find a way to make it happen, or you will find an excuse to not do it.” The instructor isn’t even in real estate, but I feel like this quote is appropriate for you. You are looking for all the reasons why “it” won’t work, when everyone around you is like “It totally works”.
Yes , until interest rates come back down it is hard to make deals work right now… so short term it is more ‘hang tight for the market to adjust / correct”. But it just seems like you are trying to talk yourself out of the game. If that is really your perspective, maybe real estate isn’t your game. There is nothing wrong with that.If you simply focus on the “challenges” as you see them, you won’t find a way to make it happen. The challenges you are quoting really aren’t any different from any other time in the market. There is always a supply of houses. If there is more supply… there is more supply. That’s really not a reason… just an excuse. Some houses sit on the market… maybe because the flippers are looking for a certain profit level… maybe because they spent too much and the market turned and they would take a loss at this point. As an investor, I’m looking at my properties. I really don’t care how many others are on the market… it’s much more important to look at the sold properties. As long as mine is priced in line with the recent sales in the same area mine should sell. They will sell faster the lower the interest rate goes because more buyers will be able to afford more house.
So either choose to find a way, or look for the excuses… each will take you to where it is supposed to. My train of thought for you on supply would be “Ok, I know there are more houses on the market right now, but houses are selling at $XXX/sf on a regular basis in my area, so as long as my sales price is at or below that number for a comparable house it should sell.” Point being: acknowledge the challenge, and then acknowledge how you will still be able to make it work in spite of the challenge.
All the best!
Randy
- Member since 2019 · 7k+ posts · 4k+ votes3y
Quote from @Chris Kendrick:
Not trying to talk my self out of nothing, but would you be worried if houses and houses for rents been sitting on the market for more than 3 monthsQuote from @Randall Alan:
Quote from @Chris Kendrick:
just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing, there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this
Chris,
A quick story… an instructor I work with has a saying…. “You will either find a way to make it happen, or you will find an excuse to not do it.” The instructor isn’t even in real estate, but I feel like this quote is appropriate for you. You are looking for all the reasons why “it” won’t work, when everyone around you is like “It totally works”.
Yes , until interest rates come back down it is hard to make deals work right now… so short term it is more ‘hang tight for the market to adjust / correct”. But it just seems like you are trying to talk yourself out of the game. If that is really your perspective, maybe real estate isn’t your game. There is nothing wrong with that.If you simply focus on the “challenges” as you see them, you won’t find a way to make it happen. The challenges you are quoting really aren’t any different from any other time in the market. There is always a supply of houses. If there is more supply… there is more supply. That’s really not a reason… just an excuse. Some houses sit on the market… maybe because the flippers are looking for a certain profit level… maybe because they spent too much and the market turned and they would take a loss at this point. As an investor, I’m looking at my properties. I really don’t care how many others are on the market… it’s much more important to look at the sold properties. As long as mine is priced in line with the recent sales in the same area mine should sell. They will sell faster the lower the interest rate goes because more buyers will be able to afford more house.
So either choose to find a way, or look for the excuses… each will take you to where it is supposed to. My train of thought for you on supply would be “Ok, I know there are more houses on the market right now, but houses are selling at $XXX/sf on a regular basis in my area, so as long as my sales price is at or below that number for a comparable house it should sell.” Point being: acknowledge the challenge, and then acknowledge how you will still be able to make it work in spite of the challenge.
All the best!
Randy
That's part of risk management. At any given time, I also have 1 or 2 units has vacancies. That's where the portfolio come to rescue.
Quote from @Chris Kendrick:
There are some good one online , that i have seen, i guess your going through a wholesale company or on a list for oneQuote from @Bob S.:
There are tons of properties in my market. But yet i still do 4 to 5 meals per month I’ve done 500 overall. it’s all about your network. And I never buy anything online all deals are off-line.
I can get as many as I want, I get them from my network, The good deals are not online,
All the best
- Member since 2023 · 191 posts · 21 votes3y
Quote from @Bob S.:
Quote from @Chris Kendrick:
There are some good one online , that i have seen, i guess your going through a wholesale company or on a list for oneQuote from @Bob S.:
There are tons of properties in my market. But yet i still do 4 to 5 meals per month I’ve done 500 overall. it’s all about your network. And I never buy anything online all deals are off-line.
I can get as many as I want, I get them from my network, The good deals are not online,
All the best
Network? Whats that
- Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes3y
Quote from @Chris Kendrick:
When did you get your rentals, have you gotten one recently in less than a year, seen lots of rents on there that been on there for over 2 or 3 monthsQuote from @Terrell Garren:
I have maybe 26 SFH rentals in NC. I post on Zillow, get around 50 responses over a few days, heavy phone screening, show to 3-5 parties. Usually have signed agreement within 10 days of posting. The last new construction I just finished was rented unadvertised 2 months before completion.Quote from @Chris Kendrick:
Quote from @Nicholas L.:
that's why i asked you to clarify - you said "how in the world can someone get in this competitive space"
i didn't know whether you meant buy, or sell or rent
my rentals are rehabbed, high quality, and priced competitively, and I allow pents - so they rent quickly
i don't flip so can't answer that for you
So i assume your area is not like mine in NC where there are ton and tons of houses to rent?
If there are 'tons and tons' of house available, it's never affected me. I can beat the big guys all day long on tenant selection and price.MLS, auctions, short sales, foreclosures, new construction. Yes.
Quote from @Chris Kendrick:
Quote from @Bob S.:
Quote from @Chris Kendrick:
There are some good one online , that i have seen, i guess your going through a wholesale company or on a list for oneQuote from @Bob S.:
There are tons of properties in my market. But yet i still do 4 to 5 meals per month I’ve done 500 overall. it’s all about your network. And I never buy anything online all deals are off-line.
I can get as many as I want, I get them from my network, The good deals are not online,
All the best
Network? Whats that
really? All the best to you,
- Member since 2023 · 191 posts · 21 votes3y
Quote from @Bob S.:
Quote from @Chris Kendrick:
Quote from @Bob S.:
Quote from @Chris Kendrick:
There are some good one online , that i have seen, i guess your going through a wholesale company or on a list for oneQuote from @Bob S.:
There are tons of properties in my market. But yet i still do 4 to 5 meals per month I’ve done 500 overall. it’s all about your network. And I never buy anything online all deals are off-line.
I can get as many as I want, I get them from my network, The good deals are not online,
All the best
Network? Whats that
really? All the best to you,
Didnt think you would tell us
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes3y
The amount of people has NOTHING to do with it.
How visible you are does.
And because of that...
this happens:
And because of that...
This happens:
The more people in this space.. means more cold callers, DMM and texting..
All that does is educating the masses that companies that buy houses exist... and what do you think they will do to either check who they are, get more info, or who are these rude bumhols that keep pestering them with aggressive intrusive marketing?
They all go to GOOGLE!!
Then Google happily directs everyone to the #1 ranking website.. (ahem.. us) and boom.. we make even MORE money with THEIR marketing budget.
Again.,.,
The amount of people in this space doesn't matter. How much smarter you are than them, does!
Work smarter my dude.. not harder!
- 3yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
Quote from @Chris Kendrick:
Quote from @Bob S.:
Quote from @Chris Kendrick:
Quote from @Bob S.:
Quote from @Chris Kendrick:
There are some good one online , that i have seen, i guess your going through a wholesale company or on a list for oneQuote from @Bob S.:
There are tons of properties in my market. But yet i still do 4 to 5 meals per month I’ve done 500 overall. it’s all about your network. And I never buy anything online all deals are off-line.
I can get as many as I want, I get them from my network, The good deals are not online,
All the best
Network? Whats that
really? All the best to you,
Didnt think you would tell us
That's because everyone here (well almost) already knows this going in.
Why is it, that when someone answers your question, and you don't understand the answer, you act as though they are the idiot....and not helpful. You do realize that those of us on here don't get paid to answer questions. We are here trying to pass down our knowledge, using our experiences, and for some reason when we are belittled by someone with little experience, looking for answers that they actually are getting, but don't appreciate those answers, stay on, continuously trying the answer that question...even though the person asking that question doesn't appreciate, or understand the answer...and treats the person that actually did answer their question, with disdain.
- 3yRandall AlanPro MemberInvestor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
Quote from @Chris Kendrick:
Not trying to talk my self out of nothing, but would you be worried if houses and houses for rents been sitting on the market for more than 3 monthsQuote from @Randall Alan:
Quote from @Chris Kendrick:
just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing, there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this
Chris,
A quick story… an instructor I work with has a saying…. “You will either find a way to make it happen, or you will find an excuse to not do it.” The instructor isn’t even in real estate, but I feel like this quote is appropriate for you. You are looking for all the reasons why “it” won’t work, when everyone around you is like “It totally works”.
Yes , until interest rates come back down it is hard to make deals work right now… so short term it is more ‘hang tight for the market to adjust / correct”. But it just seems like you are trying to talk yourself out of the game. If that is really your perspective, maybe real estate isn’t your game. There is nothing wrong with that.If you simply focus on the “challenges” as you see them, you won’t find a way to make it happen. The challenges you are quoting really aren’t any different from any other time in the market. There is always a supply of houses. If there is more supply… there is more supply. That’s really not a reason… just an excuse. Some houses sit on the market… maybe because the flippers are looking for a certain profit level… maybe because they spent too much and the market turned and they would take a loss at this point. As an investor, I’m looking at my properties. I really don’t care how many others are on the market… it’s much more important to look at the sold properties. As long as mine is priced in line with the recent sales in the same area mine should sell. They will sell faster the lower the interest rate goes because more buyers will be able to afford more house.
So either choose to find a way, or look for the excuses… each will take you to where it is supposed to. My train of thought for you on supply would be “Ok, I know there are more houses on the market right now, but houses are selling at $XXX/sf on a regular basis in my area, so as long as my sales price is at or below that number for a comparable house it should sell.” Point being: acknowledge the challenge, and then acknowledge how you will still be able to make it work in spite of the challenge.
All the best!
Randy
Every area has houses that sit like that. Unless you go visit the property or do your research you won't necessarily know why... but there is almost always a reason... poor layout, bad neighborhood, poor condition, over-priced, dilapidated, or any other reason... in the end it doesn't matter. What you AREN'T looking at is all the houses that actually sold, it seems to me. Again... the houses you are finding is because you are looking for houses on the market. Therefore that is what you are going to find... houses on the market. If you need encouragement, you can go find the ones that sold on Zillow or Redfin, etc by turning on the "sold" button... and you will see hundreds of yellow dots in your city that were sold (would be my guess).
I myself had our last flip that sat on the market for several months. That was the market telling me that my price was too high, but I didn't want to sell it for less. What had happened is that we started it before the interest rate hikes, and we were the most expensive house in the neighborhood. I didn't want to take less... so what did I do? I turned it into another rental in our portfolio until the markets resets after the high interest rates. You do what the market tells you to do.
Randy
- Member since 2023 · 191 posts · 21 votes3y
Quote from @Randall Alan:
Quote from @Chris Kendrick:
Not trying to talk my self out of nothing, but would you be worried if houses and houses for rents been sitting on the market for more than 3 monthsQuote from @Randall Alan:
Quote from @Chris Kendrick:
just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing, there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this
Chris,
A quick story… an instructor I work with has a saying…. “You will either find a way to make it happen, or you will find an excuse to not do it.” The instructor isn’t even in real estate, but I feel like this quote is appropriate for you. You are looking for all the reasons why “it” won’t work, when everyone around you is like “It totally works”.
Yes , until interest rates come back down it is hard to make deals work right now… so short term it is more ‘hang tight for the market to adjust / correct”. But it just seems like you are trying to talk yourself out of the game. If that is really your perspective, maybe real estate isn’t your game. There is nothing wrong with that.If you simply focus on the “challenges” as you see them, you won’t find a way to make it happen. The challenges you are quoting really aren’t any different from any other time in the market. There is always a supply of houses. If there is more supply… there is more supply. That’s really not a reason… just an excuse. Some houses sit on the market… maybe because the flippers are looking for a certain profit level… maybe because they spent too much and the market turned and they would take a loss at this point. As an investor, I’m looking at my properties. I really don’t care how many others are on the market… it’s much more important to look at the sold properties. As long as mine is priced in line with the recent sales in the same area mine should sell. They will sell faster the lower the interest rate goes because more buyers will be able to afford more house.
So either choose to find a way, or look for the excuses… each will take you to where it is supposed to. My train of thought for you on supply would be “Ok, I know there are more houses on the market right now, but houses are selling at $XXX/sf on a regular basis in my area, so as long as my sales price is at or below that number for a comparable house it should sell.” Point being: acknowledge the challenge, and then acknowledge how you will still be able to make it work in spite of the challenge.
All the best!
Randy
Every area has houses that sit like that. Unless you go visit the property or do your research you won't necessarily know why... but there is almost always a reason... poor layout, bad neighborhood, poor condition, over-priced, dilapidated, or any other reason... in the end it doesn't matter. What you AREN'T looking at is all the houses that actually sold, it seems to me. Again... the houses you are finding is because you are looking for houses on the market. Therefore that is what you are going to find... houses on the market. If you need encouragement, you can go find the ones that sold on Zillow or Redfin, etc by turning on the "sold" button... and you will see hundreds of yellow dots in your city that were sold (would be my guess).
I myself had our last flip that sat on the market for several months. That was the market telling me that my price was too high, but I didn't want to sell it for less. What had happened is that we started it before the interest rate hikes, and we were the most expensive house in the neighborhood. I didn't want to take less... so what did I do? I turned it into another rental in our portfolio until the markets resets after the high interest rates. You do what the market tells you to do.
Randy
I do look at houses that sold, i see alot that took 1 to 6 month to sell or rent, so basically i need to setup a plan that it probably will not sell or rent for at least 5 months of reserves on hand which i have to pay in mortgage, dont have much money to let the property just sit forever i will either sell or flip it, if the price of the property is over 200k , obviously i cant rent it out cause rent will not cover the mortgage, so i must flip/sell it
- Member since 2019 · 7k+ posts · 4k+ votes3y
Quote from @Chris Kendrick:
Quote from @Randall Alan:
Quote from @Chris Kendrick:
Not trying to talk my self out of nothing, but would you be worried if houses and houses for rents been sitting on the market for more than 3 monthsQuote from @Randall Alan:
Quote from @Chris Kendrick:
just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing, there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this
Chris,
A quick story… an instructor I work with has a saying…. “You will either find a way to make it happen, or you will find an excuse to not do it.” The instructor isn’t even in real estate, but I feel like this quote is appropriate for you. You are looking for all the reasons why “it” won’t work, when everyone around you is like “It totally works”.
Yes , until interest rates come back down it is hard to make deals work right now… so short term it is more ‘hang tight for the market to adjust / correct”. But it just seems like you are trying to talk yourself out of the game. If that is really your perspective, maybe real estate isn’t your game. There is nothing wrong with that.If you simply focus on the “challenges” as you see them, you won’t find a way to make it happen. The challenges you are quoting really aren’t any different from any other time in the market. There is always a supply of houses. If there is more supply… there is more supply. That’s really not a reason… just an excuse. Some houses sit on the market… maybe because the flippers are looking for a certain profit level… maybe because they spent too much and the market turned and they would take a loss at this point. As an investor, I’m looking at my properties. I really don’t care how many others are on the market… it’s much more important to look at the sold properties. As long as mine is priced in line with the recent sales in the same area mine should sell. They will sell faster the lower the interest rate goes because more buyers will be able to afford more house.
So either choose to find a way, or look for the excuses… each will take you to where it is supposed to. My train of thought for you on supply would be “Ok, I know there are more houses on the market right now, but houses are selling at $XXX/sf on a regular basis in my area, so as long as my sales price is at or below that number for a comparable house it should sell.” Point being: acknowledge the challenge, and then acknowledge how you will still be able to make it work in spite of the challenge.
All the best!
Randy
Every area has houses that sit like that. Unless you go visit the property or do your research you won't necessarily know why... but there is almost always a reason... poor layout, bad neighborhood, poor condition, over-priced, dilapidated, or any other reason... in the end it doesn't matter. What you AREN'T looking at is all the houses that actually sold, it seems to me. Again... the houses you are finding is because you are looking for houses on the market. Therefore that is what you are going to find... houses on the market. If you need encouragement, you can go find the ones that sold on Zillow or Redfin, etc by turning on the "sold" button... and you will see hundreds of yellow dots in your city that were sold (would be my guess).
I myself had our last flip that sat on the market for several months. That was the market telling me that my price was too high, but I didn't want to sell it for less. What had happened is that we started it before the interest rate hikes, and we were the most expensive house in the neighborhood. I didn't want to take less... so what did I do? I turned it into another rental in our portfolio until the markets resets after the high interest rates. You do what the market tells you to do.
Randy
I do look at houses that sold, i see alot that took 1 to 6 month to sell or rent, so basically i need to setup a plan that it probably will not sell or rent for at least 5 months of reserves on hand which i have to pay in mortgage, dont have much money to let the property just sit forever i will either sell or flip it, if the price of the property is over 200k , obviously i cant rent it out cause rent will not cover the mortgage, so i must flip/sell it
yes in real estate you need to do your own intellegence and come with the lowest risk/reward ratio business planning much ahead of time, with alternative plan as well.
- Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes3y
It sounds like you are having a different experience in your markets than other members that are replying. Most of us invest in pretty competitive markets where properties sell and rent quickly...and where demand has been so high that rents have skyrocketed over the past few years. Rents are softening but still much higher than a couple of years ago. But, the Fed is committed to higher rates, asset valuations are under pressure across all personal and business balance sheets, the economy is on shaky ground, and stuff is starting to break; so, time will tell how this plays out.
Most of us buy properties and in locations where there is little risk of extended periods of vacancy. It sounds like you found the opposite.
- 3yRandall AlanPro MemberInvestor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
Quote from @Chris Kendrick:
Quote from @Randall Alan:
Quote from @Chris Kendrick:
Not trying to talk my self out of nothing, but would you be worried if houses and houses for rents been sitting on the market for more than 3 monthsQuote from @Randall Alan:
Quote from @Chris Kendrick:
just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing, there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this
Chris,
A quick story… an instructor I work with has a saying…. “You will either find a way to make it happen, or you will find an excuse to not do it.” The instructor isn’t even in real estate, but I feel like this quote is appropriate for you. You are looking for all the reasons why “it” won’t work, when everyone around you is like “It totally works”.
Yes , until interest rates come back down it is hard to make deals work right now… so short term it is more ‘hang tight for the market to adjust / correct”. But it just seems like you are trying to talk yourself out of the game. If that is really your perspective, maybe real estate isn’t your game. There is nothing wrong with that.If you simply focus on the “challenges” as you see them, you won’t find a way to make it happen. The challenges you are quoting really aren’t any different from any other time in the market. There is always a supply of houses. If there is more supply… there is more supply. That’s really not a reason… just an excuse. Some houses sit on the market… maybe because the flippers are looking for a certain profit level… maybe because they spent too much and the market turned and they would take a loss at this point. As an investor, I’m looking at my properties. I really don’t care how many others are on the market… it’s much more important to look at the sold properties. As long as mine is priced in line with the recent sales in the same area mine should sell. They will sell faster the lower the interest rate goes because more buyers will be able to afford more house.
So either choose to find a way, or look for the excuses… each will take you to where it is supposed to. My train of thought for you on supply would be “Ok, I know there are more houses on the market right now, but houses are selling at $XXX/sf on a regular basis in my area, so as long as my sales price is at or below that number for a comparable house it should sell.” Point being: acknowledge the challenge, and then acknowledge how you will still be able to make it work in spite of the challenge.
All the best!
Randy
Every area has houses that sit like that. Unless you go visit the property or do your research you won't necessarily know why... but there is almost always a reason... poor layout, bad neighborhood, poor condition, over-priced, dilapidated, or any other reason... in the end it doesn't matter. What you AREN'T looking at is all the houses that actually sold, it seems to me. Again... the houses you are finding is because you are looking for houses on the market. Therefore that is what you are going to find... houses on the market. If you need encouragement, you can go find the ones that sold on Zillow or Redfin, etc by turning on the "sold" button... and you will see hundreds of yellow dots in your city that were sold (would be my guess).
I myself had our last flip that sat on the market for several months. That was the market telling me that my price was too high, but I didn't want to sell it for less. What had happened is that we started it before the interest rate hikes, and we were the most expensive house in the neighborhood. I didn't want to take less... so what did I do? I turned it into another rental in our portfolio until the markets resets after the high interest rates. You do what the market tells you to do.
Randy
I do look at houses that sold, i see alot that took 1 to 6 month to sell or rent, so basically i need to setup a plan that it probably will not sell or rent for at least 5 months of reserves on hand which i have to pay in mortgage, dont have much money to let the property just sit forever i will either sell or flip it, if the price of the property is over 200k , obviously i cant rent it out cause rent will not cover the mortgage, so i must flip/sell it
Vacancy concerns lessen the more units you have that can offset the loss a couple could make. With one unit that makes sense.
You definitely need to have adequate capital to pull off a flip.Randy
- Real Estate Agent · Knoxville, TN · Member since 2020 · 79 posts · 29 votes3y
I am one of the top Realtors in my area (Knoxville, TN) and I help a lot of investors start or grow their portfolio. I can tell you, there are MANY ways to get in this business. I just helped a client YESTERDAY buy his first rental. Multiple offers and we still got it (Not cash fyi). Surround yourself with the right Realtor and team and I am sure you can do it as well. Good luck my friend.
- Member since 2023 · 243 posts · 199 votes3y
I understand what you’re saying.
In my area, there are a lot of rentals that have been in the market for 2-3 months.
Almost all are flips (except for 2). The interiors are done in “repo-gray”. Gray floors. Gray walls. I’m not exaggerating.Why? It’s the cheapest flooring available at Home Depot. Neural color walls are easier to deal with.
But look at the replies here. They’re experiencing quick turns on getting tenants.
Well, adding these two facts is the solution you are looking for!
Those other properties that sit are either too high in their rent, not a good distance from their job, looks “eh” or “ew”, or the location is simply not as safe as others.
A tenant wants the best looking place with the safest location and the cheapest rent. Will your place have this? Also, how is the decór? Consider staging it with greenery and hiring a professional photographer. Have it look so fantastic, on the site(s), you will look around your home and think
“Why am I in this dump?! Man, I wish I can own that pla…oh, I do.”
Use rentec as suggested. If you do these things, you’ll have a quick turn like them. - Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes3y
Quote from @Todd Jones:
I understand what you’re saying.
In my area, there are a lot of rentals that have been in the market for 2-3 months.
Almost all are flips (except for 2). The interiors are done in “repo-gray”. Gray floors. Gray walls. I’m not exaggerating.Why? It’s the cheapest flooring available at Home Depot. Neural color walls are easier to deal with.
@Todd Jones LOL, you are so right. Here is a new construction rental I just finished. Agreeable gray walls and Home Depot gray floors. I think I've used the same combination on 6 houses.
- 3yJohn MorganPro MemberRental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
Many of us feel we have more control over RE with more predictable gains and outcome vs the stock market. Lots of us got crushed in the stock market the last year or so and feel more comfortable parking our cash in RE. Both are great investments and it’s good to diversify.
No offense Chris, but I've seen several of your posts floating around the BP forums over the last month or so, and based on your negative and defeatist attitude in the face of the plethora of information at the tips of your fingertips with the search function, and also the fact that you keep swatting away advice that is literally being spoon fed to you, I'm not confident that the RE space is right for you.
- Real Estate Agent · Philadelphia, PA · Member since 2013 · 451 posts · 369 votes3y
Chris, you have a horrible mentality, dismissing people who have been very successful in the RE space. You won't succeed in this business, so you might as well get off this site & stop wasting everyone's time.
- Member since 2023 · 191 posts · 21 votes3yUmm ,sure
Quote from @Alex L.:
No offense Chris, but I've seen several of your posts floating around the BP forums over the last month or so, and based on your negative and defeatist attitude in the face of the plethora of information at the tips of your fingertips with the search function, and also the fact that you keep swatting away advice that is literally being spoon fed to you, I'm not confident that the RE space is right for you.
