Real Estate Investor · Los Angeles, CA · Member since 2014 · 9 posts · 4 votes
I've been in negotiations on an REO I've been hoping to flip. It's a cash offer we were hoping to quickly close and get on the market by late october. The new asset manager handling the deal is taking weeks to get back to us when usually it's a day or 2 tops. My ARV was based on summer prices and at this rate it wouldn't go on the market til november and in NE ohio it's going to be a snowy mess. Other than adjusting my ARV to reflect the lower resale value around winter is there anything else i should consider? Is having something on the market around Christmas a nightmare? How do people like to schedule around winter?
Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
12y
I personally have noticed that the winter markets are slower in all my markets even if there are no weather issues. I personally would evaluate at a lower price. That is my favorite time to buy as I get to pick up cheaper houseshouses
I live and invest in NE Ohio and the winters are miserable! If your exit strategy for the property you are planning on flipping is selling it to a retail buyer then it is going to be tough to get a buyer in the winter months. These buyers are still shopping in winter but I've noticed their motivation is limited until the sun shows back up in late March.
If your exit strategy is to sell to another investor then no worries, investment properties sell all year round in NE Ohio! If you need someone in the area to check on your deals for you feel free to contact me. Thanks
Rehabber · Niantic, CT · Member since 2012 · 443 posts · 150 votes
12y
Hi @Ryan Z. , @J Scott discussed this very topic recently at a meetup in NYC. He knows exactly how much prices in his areas dipped in the winter months and talked a bit about his strategy for dealing with this issue. I believe it had to do with factoring in the cost of holding on to the property until a better time to list it, or else discounting the price if listing during a down time of year. Here in CT, as in Ohio, the "hold" scenario kinda stinks when you're faced with freezing temps. Anyway, hopefully J can chime in here with what will be a much more coherent and useful reply!
Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
12y
I personally have noticed that the winter markets are slower in all my markets even if there are no weather issues. I personally would evaluate at a lower price. That is my favorite time to buy as I get to pick up cheaper houseshouses
I live and invest in NE Ohio and the winters are miserable! If your exit strategy for the property you are planning on flipping is selling it to a retail buyer then it is going to be tough to get a buyer in the winter months. These buyers are still shopping in winter but I've noticed their motivation is limited until the sun shows back up in late March.
If your exit strategy is to sell to another investor then no worries, investment properties sell all year round in NE Ohio! If you need someone in the area to check on your deals for you feel free to contact me. Thanks
Mike
thanks Mike, i grew up in Mentor and the property is not far from you in Willoughby. I'm definitely trying to sell to a retail buyer. The deal is all cash holding cost won't be huge but i don't think it would be worth it to hold until spring. I'll just have to adjust my ARV and see if the deal still makes since. Would love to talk to you more about the Market in that area. You seeing a lot of investors out there?