Anyone out there buying properties right now?

Buying & Selling Real Estate
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Anyone out there buying properties right now?

Marianne Lopez-Henthorn
Rental Property Investor · Fort McMurray Alberta, Canada · Member since 2018 · 62 posts · 26 votes

I'm just curious about who's buying in this economy right now. Out of all the REI Instagram accounts I follow, it seems not a lot are actively buying. In fact, it seems a lot of people have turned to private money lending.

I haven't purchased anything since summer last year and am hesitant to get into the market again.

Please let me know if you're still actively buying right now, or why you're not.

Thanks for your input!

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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y

The ones who stopped buying are fake investors. You adopt, you don’t stop. The ones actively buying see the opportunity the market has right now.

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    3y

    If you are making conservative investments that make sense the day you buy them, they usually look like fantastic buys 7 years later, even if you bought in 2007.

    This year I have invested in two deals passively and we syndicated an apartment purchase. 

    I look for cashflowing assets in markets with sound fundamentals.  

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    The ones who stopped buying are fake investors. You adopt, you don’t stop. The ones actively buying see the opportunity the market has right now.

    4Reply
  • Ray Hage
    Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y

    I haven't bought anything recently but I am still looking. And if I don't buy anything, I am looking for passive investments that will make money as well. 

    Investors don't stop. Investors change their strategy with the times and do the things that make sense. I wasn't planning on investing in a friend's car repair and rental business but the returns are great so I did. And guess what, if I see another investment (syndication, stocks, business startup, fix and flip, etc.) that makes sense, I will make the move. There is always money to be made in any market

    0Reply
  • Marianne Lopez-Henthorn
    OP
    Rental Property Investor · Fort McMurray Alberta, Canada · Member since 2018 · 62 posts · 26 votes
    3y

    @Ray Hage thanks for your reply. And everyone else's too.

    I agree, investors don't stop...but we do pivot. I just wanted to put feelers out there to see what strategies have changed, if any.

    2Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    3y

    @Marianne Lopez-Henthorn

    It's not easy to find good cash flowing deals. I've bought 6 SFR in the last year. I rent by the rooms in 2 of them because they cash flow more this way. Many tired landlords are selling and cashing out. I don't blame them. Lol. However, this is leaving a shortage of rentals available causing market rent to go way up. So that's why I'm still buying.

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Marianne Lopez-Henthorn

    We buy distressed notes and sometimes sprinkle in some real estate. We have been active buying $1-$3M a month. Still plenty of opportunity.

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  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    I just got in, in January. And I am losing a lot of deals this past April, but building up appropriately I feel. Definitely not deterred, people need to stop analyzing stuff historically and need to realize the way they move forward is how the new game will be played.

    While (scared) investors say the rates are too high or the prices are too high, strategic investors are still out there buying knowing very well inventory is low and the cost to build has literally changed the floor for pricing. When/if rates comes down, and those (scared) investors all come together they'll realize the cash flow they could've eaten month to month is now all due up  front in the downpayment IF they can even get their hands on a property. The biggest deterrent in the real estate market right now is inventory NOT rates. In primo areas, this inventory issue is likely going to be indefinitely. In **** areas, I don't know I let those cash flow only folks play ball there. They can't play in my field.

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    Trying, prices keep rising and inventory keeps falling. Most sellers don’t need to sell and ar willing to hold out for top dollar, especially if their new loan will ne at double the interest rate. 

    1Reply
  • Jon KellyPro Member
    Investor · Bethlehem, PA · Member since 2016 · 929 posts · 951 votes
    3y

    @Marianne Lopez-Henthorn if they turned to private money lending that means someone is buying, correct? I wouldn't worry too much about what a few accounts on Instagram are doing. 

    If you believe in real estate and the numbers work why wouldn't you keep buying? 

    1Reply
  • Ray Hage
    Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y
    Quote from @Marianne Lopez-Henthorn:

    @Ray Hage thanks for your reply. And everyone else's too.

    I agree, investors don't stop...but we do pivot. I just wanted to put feelers out there to see what strategies have changed, if any.


    Yep we have to pivot. In Fort Lauderdale, finding a break even cashflow feels impossible these days. Demand is crazy at the moment so I haven't made a move myself except to keep putting money away. Just be patient and do the same till you find the right RE deal for you.  I am still looking for hidden value but it's tough as we still have a lot of cash buyers in the market and the good stuff gets taken up quick!

    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Marianne Lopez-Henthorn:

    I'm just curious about who's buying in this economy right now. Out of all the REI Instagram accounts I follow, it seems not a lot are actively buying. In fact, it seems a lot of people have turned to private money lending.

    I haven't purchased anything since summer last year and am hesitant to get into the market again.

    Please let me know if you're still actively buying right now, or why you're not.

    Thanks for your input!


     What do you mean by "this economy" ? this "economy" is perfect to buy.
    I am buying and selling every 6 months , my last transaction is few weeks ago.
    This market isvery good as I can buy from the bottom. 

    most "investors" are FOMO, they buy high and sell low, I am trying to maximize my DTI again by buying from the bottom and sell overappreciated house LOL.

    0Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    3y

    Well, the thing about real estate is that if you can hold it long enough you can almost never lose. Time heals just about all mistakes in this arena.

    That said, at this point I expect this will be the first year in the last decade that I haven't bought at least one property. First of all, I need a break - I've been going at it pretty hard with my DEY model for a long time and I'm a little tired. Secondly, I got into my first STR last year and I find it consumes more time than I expected. Finally, I'm not that interested in purchasing outside my own market and deals are quite difficult to come by right now outside of some serious value-add (read: train wreck) properties. And since I'm kind of tired right now, I don't have any appetite for a full rehab.

    The bad thing about not buying is the tax hit - all these wrecks and rehabs helped me defer a lot of taxes over the years - but I think this year I'm going to just take the hit and rest for a little while. 

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  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 834 votes
    3y

    @Marianne Lopez-Henthorn

    Marianne, yes! Lots of people are investing. Especially in OH. I am an agent in Cincinnati and there are deals here with good returns and value add to be done! I just need the right investor to get it done! Let me know if you are interested in what you are hearing in Cincy!

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  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    3y
    Quote from @Marianne Lopez-Henthorn:

    I'm just curious about who's buying in this economy right now. Out of all the REI Instagram accounts I follow, it seems not a lot are actively buying. In fact, it seems a lot of people have turned to private money lending.

    I haven't purchased anything since summer last year and am hesitant to get into the market again.

    Please let me know if you're still actively buying right now, or why you're not.

    Thanks for your input!


     There's still lots of opportunities out there. You just need to be more diligent than before!

    [email protected]614-363-2787
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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Marianne Lopez-Henthorn
    I am still actively buying BRRRR deals.

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  • Elena Orselli
    Member since 2019 · 18 posts · 24 votes
    3y

    @Marianne Lopez-Henthorn Yes! Real estate will always hedge against inflation. Buy right, change strategy, know your numbers! Underwrite your deals tight.

    0Reply
  • Andres Murillo
    Real Estate Agent · Los Angeles, CA · Member since 2022 · 137 posts · 106 votes
    3y

    I have 5 active investor clients looking to purchase (the max I work with at any given time). My most recent listing had 10 offers from investors alone (opening escrow today). I'm personally submitting an offer on an off-market property today.

    Not all IG investors are truly investors. Most are content creators who use real estate as their content. I think of them as foodie IG personalities. They use food as their content subject of choice, but probably aren't cooks or have ever ran a restaurant.

    I think the buying activity depends mostly on strategy. "Cash flow" investors have to get creative - STRs, MTRs, rehab to rent, MF. "Growth" investors might have to diversify markets or change asset types. 

    1Reply
  • Carini Rochester
    Investor · Rochester, NY · Member since 2016 · 576 posts · 358 votes
    3y

    I have a great opportunity to sell a property that no longer fits my criteria, and sell at (what I think is) the peak of the market. But the other opportunity is that I have a great friendship with an investor who is ready to decrease his holdings and he wants to sell a couple properties to me. He will take a low down payment and hold the note. So, no bidding war, no loan applications, no saving for a down payment. The proceeds of the sale of one single family house will be the down payments for two multi-family properties.

    1Reply
  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    3y
    Quote from @Chris Seveney:

    @Marianne Lopez-Henthorn

    We buy distressed notes and sometimes sprinkle in some real estate. We have been active buying $1-$3M a month. Still plenty of opportunity.

     Yes, (We) buy hundreds of millions a month. Yes we do. 😁 

    0Reply
  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    3y
    Quote from @Joe S.:
    Quote from @Chris Seveney:

    @Marianne Lopez-Henthorn

    We buy distressed notes and sometimes sprinkle in some real estate. We have been active buying $1-$3M a month. Still plenty of opportunity.

     Yes, (We) buy hundreds of millions a month. Yes  (we) do. 😁 


    0Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    3y

    I believe in the power of leverage and therefore finance all RE purchases at as high an LTV as possible. The rate increases have nearly doubled the P&I. RE has not fallen close to enough in most markets to compensate for the rate increases. This is because low inventory due to sellers being happy with their current loans (compared to loan they would get on a new acquisition).

    Therefore our last active purchases (not including LP) were in Dec 2021.  It is good as we purchased $4M that month so we do not need to purchase at the cash flow of what we can achieve today.

    High leverage, finance RE has never been more expensive.  In addition, commercial loans have shorter fixed terms.  If commercial RE values fall due to increased rates that could be the discounted purchase.  I therefore want to have my war chest ready.  It may not happen (no crystal ball here), but I know that investing in non-commercial residential is not going to be producing the return that I expect.

    Note RE does not need to be the best investment option at all points in time.  We have had over a decade of outstanding RE returns.  My purchases in Dec 2021 appraised at purchase at $400K over my buy price.  I then put in ~$100K to get nearly $300K of value add.  $600K profit in ~1 year.  I do not see such an opportunity at this time.

    In summary, I have been sitting the sidelines for ~1.25 years (not including LP deals).

    Good luck

    0Reply
  • Sunny Alexander
    Real Estate Broker · Tampa, FL · Member since 2020 · 103 posts · 74 votes
    3y

    I recently purchased another primary property using my VA loan, so no out-of-pocket expenses since I negotiated seller contributions towards CC. We had previously purchased our first primary property just before the market skyrocketed, and we are now seeing great long-term rental returns in Tampa. With our new property, we moved to an "up and coming" area of Tampa and are currently generating $3K in cash flow from the previous house. Our plan is to upgrade our new property over the next few years and convert it into a high-end short-term rental if the numbers make sense. Although the move was difficult, the financial opportunity motivated us to make the switch.It was painful but aligned with our long term goals.

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  • Jason DiDonatoPro Member
    Real Estate Agent · 04072 · Member since 2022 · 5 posts · 1 vote
    3y

    Closing on a property in 4 days! Under contract for $35K less then original asking price. $50K for Renovation budget for total investment of $240K with estimated ARV of $295K. Using the BRRRR strategy and should cash flow $900 a month. Has potential to add additional unit on the Third Floor but will access that after unit is occupied.

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  • Jesse Rodriguez
    Rental Property Investor · Los Angeles, CA · Member since 2020 · 141 posts · 61 votes
    3y

    @Marianne Lopez-Henthorn Yes people are still buying like me. Due to current market conditions, I won’t stop buying just changing my strategy and pivoting (Like you mentioned earlier). Creative finance, in my opinion, is one the best strategies to use right now for many reasons!

    0Reply
  • Doug Spence
    Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
    3y
    Quote from @Eliott Elias:

    The ones who stopped buying are fake investors. You adopt, you don’t stop. The ones actively buying see the opportunity the market has right now.


    I respectfully disagree with this sentiment. I haven't purchased anything since last year, but I'm still a real estate investor - not a 'fake investor'. It all depends on the individual and their goals and risk tolerances. Its easy to peg someone as a phony for not doing deals, but what if that individual is just being patient? What if someone is a beginner and they're not finding any deals that fit their criteria right now? 

    I know lots of very savvy investors that are preserving capital right now, waiting for opportunities that they expect will be coming later this year/early next year, specifically in the multifamily space. Would you consider those individuals 'fake investors'? 

    1Reply
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