Lender · Phoenix, AZ · Member since 2008 · 351 posts · 40 votes
Being new to the game and just learning and birddogging etc. I have really only know this market. I am young so I never really even cared to pay attention to real estate before the crash. So I guess I am wondering what the next big push will be for investing.
Obviously know short sales are what is huge right know with the foreclosures but what happens when the market starts getting better and the short sales dry up? Do you turn to fix and flips or what? For people like I who wont be able to do fix and flips in the near future is wholesaling and possible L/O the route we will be taking? Just curious to hear what the experienced ones did while the market was on an up swing and not a down one.
Real Estate Investor · Springfield, MA · Member since 2009 · 142 posts · 103 votes
16y
Hi Matt,
The basic principles of real estate investing will work no matter what the market is doing.... that is buy low and sell high.
We were rehabbing and wholesaling as the market was going up and are still doing it as the market goes down. You just need to stay on top of the market direction and always buy at a big discount.
I'll be honest... we are doing way more deals and making a lot more money in this down market than when the market was hot.
I see alot of oppurtunity over the next couple years as the market starts to flatten out. Just pick your strategy and go at it full bore. I like rehabbing and wholesaling.... and I think they will never go out of style!!! :D
Lender · Phoenix, AZ · Member since 2008 · 351 posts · 40 votes
16y
I just didnt know if wholesales become harder to come by as the market flattens out and is on the up I guess...
I do think I will try to rehab a little bit I have always been intrigued by design and almost went to school for architecture. I do agree that rehabbing will never go out of style, I was just unsure of wholesaling.
Real Estate Investor · Springfield, MA · Member since 2009 · 142 posts · 103 votes
16y
I think wholesaling will still be good as the market flattens.
When the market was very hot I had trouble wholesaling because sellers were able to move their properties quickly, and they knew they had options. I find it much easier to buy at nice discounts in this market.
One strategy that was very popular when the market was going up was Subject To; taking over the existing mortgage on a property. I don't see too many people doing this nowadays because so many properties are upside down.
Real Estate Investor · St. Louis, MO · Member since 2008 · 443 posts · 91 votes
16y
You could start buying and rehabbing. I suggest wholesaling. You can do it in any market with great success. A word of advise from someone that has been doing this for over 6 years. DON’T follow the next best thing. Wholesalings your best option in any market in my opinion.
Lender · Phoenix, AZ · Member since 2008 · 351 posts · 40 votes
16y
I agree Brian I think wholesaling is what I need to concentrate on so I can do it in any condition. I also am set on getting homes subject-to and then either wholesaling it or just using a L/O as my out.
Real Estate Investor · Longmont, CO · Member since 2009 · 208 posts · 109 votes
16y
I'd see Subject To primarily as a way to build a portfolio of leveraged properties while flying under the radar of the lenders - they won't show up as mortgages in your name to scare away future lenders, and your credit rating does not matter. It's much more involved than Wholesaling, and for Subject To I'd be planning on keeping them for cash flow. Often Subject To will require some cash on your part, to catch up a delinquent loan and make some initial repairs or improvements.
In the future, I can see Subject To turning into an awesome tool for acquiring properties previously financed at low fixed rates, when inflation has driven rates sky high again. The loans at low fixed rates that you can take over S/T will be an incredible asset for an investor as they are able to pay them back at an accelerated pace with their tenants deflated dollars of the future.
Wholesaling is very simple and requires almost no cash or credit - just get the property under contract and then assign the contract. No risk on your part. Great way to start.
Rental Property Investor · Richmond, VA · Member since 2008 · 90 posts · 8 votes
16y
I've done it all and am changing things now to do nothing but wholesaling, and lease/optioning a few houses here and here, only if they are brain-dead, impossible to lose, get in without tying up any money, and very easy to find a tenant/buyer.
I sold everything retail before, but that ain't working too well so it will have to wait until later.
But nothing beats the ease (since there's less work involved, it's easier to train an assistant to do it all for you) and safety of wholesaling deals in a time when values are still going down in places, and no one can seem to get a loan.