During the holidays business tends to slow down a bit for my company which I'm sure its like this across the board but I also notice in different media forums how some people are still posting checks and cranking out deals. Was curious to know what business looks like for you during the holidays season???
Filling rentals and finding retail buyers slows down this time of year for sure.
Where investors can take advantage late in the year is supposedly banks look to unload foreclosures late in the year to get them off their books. Not sure how true that is, but I have heard that from multiple people who have been doing this a lot longer than me.
I have two closings scheduled, I still do analysis and make offers,...all behind "closed doors" so the Boss thinks I'm taking a break. "SHHHH..."
I second @Michael Noto - I've noticed a lot of new bank owned homes come on the market, or prices reduced, in December. Seems like a good time to make offers if you have the cash!
The rental business slows down. All of the services around real estate sales and purchases slow down which makes it harder to stay on track for the buying and selling.
I have a deal under contract to sell and one to buy at this time. No slowing down for the deal makers.
It's my favorite time of the year to buy REOs, I've always had a closing right before new years every year. You can get some good discounts when you put in offers in the middle of December for properties that have been on the market for a couple months when you have no contingencies and a close date before the end of the year. I picked up a nice new rental this year, closing next week.
As far as my rentals, I don't have a ton of vacancies but I had on open up on Friday and it was filled by Saturday with the tenant moving in on the 1st.
We use the 4-wks from end of exam period to start of spring semester classes to affect maintenance and renovations in our student units.
This year we are also in the midst of a full-gut renovation which should be completed in January.
We also have two offers in on properties which expire New Years Eve.
So, while things are usually slow on the lease-up side of the business, we are busy.
Having attended several Xmas parties with a diverse group of friends one or two will take you aside looking for a rental or a rehab property for a family member or just how to get 'into' the business as the Xmas bonus & matched retirement prospects are becoming a thing of the past.
My favorite 70 yr old friend owns a very successful mfg company & he loves to chat about China, downsizing personnel & interesting tax issues. His biggest compliment to a group we were with is that every-time he & I have a discussion I make him 'think' outside the box.
But he did try & talk me out of my last passive income tax avoidance idea :)
I take it that the majority of RE businesses slows down which would be expected for the holidays. I have a few local guys that has several deals in their pipeline to sell but have not been able to. I'm sure as usual business would ramp back up for everyone after the fist couple of weeks into the new year.
There are less buyers in the marketplace for commercial but I counsel my clients now is a great time to look and buy something.
Less buyers means a greater spread on basis points when buying.
If cap is 7.6 we might can get a 50 basis points premium to 8.10. In the summer time it's harder as more buyers are active by volume. So the sellers feel they do not have to move the needle as much to get a deal done.
So even though it's around Christmas time I am working on deals for my clients.
This is the first year in a long time that I have not seen any discounting going on. Usually, there are a handful of houses in the various towns I watch that the banks will take a significant reduction on the list price.
This year, I'm not seeing any price reductions at all. And, of course, the houses are sitting.
As for me, I'm just wrapping up the 4th of 4 rehabs I've been on. And then I had two turnover this month - which is extremely rare. Both were mid month even.
One was because the renter bought a house and closing was beginning of the month but he was staying a little longer in the rental while he fixed up his new house. Luckily I have the security deposit to cover this month's rent and then I already have it rented for the first week of next month (needed some time to do make ready stuff).
The other house in crete had turnover because the tenant lost their job and couldn't pay rent. Luckily for me, they agreed to move out immediately so their security deposit will cover this month's rent and I've got a ton of showings (surprisingly enough) set for tonight (tenant moved out yesterday. Hopefully, I can get that one done by the 15th.
So I'm swamped as swamped can be:
1) Putting together cabinets to finish up my money pit rehab. That one is rented to a healthcare in-hom service company that is dying to get in.
2) Showings on crete house. Then make ready stuff like painting.
3) Showings on another house. Rehab just completed.
4) Make ready on the braceville house (lots and lots of painting) for move in on the 8th.
I've been going non-stop this month trying to manage all 4 of these rehabs and get them rented. 2 are done and rented. 1 is done and on showings. The other rehab is about a week away. And with the two turnover, it looks like I'm not catching a break til january.
Oh btw, I went a looked at another solid opportunity/deal this morning about 7am after I picked out/up a whole house full of lights and dropped those off. Putting in a bid on it today. Offer should be real close to having a shot at this one.
How is that for being a glutton for punishment?
Ah. I love it so!!!!! :-)
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