Are investors sitting on the sidelines these days?

Question

I have worked with many people from Bigger Pockets that have invested in many opportunities that we have offered. In any of our opportunities I have always received a good amount of interest and feedback and eventually we have come to a meeting of the minds and closed the deal. Great win-win scenarios. I even raised money around the holidays for specific projects with relative ease.

I have noticed a massive reduction in traffic and interest to the opportunities presented at this time. The strange thing is that the latest one is a smaller investment and quicker turnaround time resulting in a higher ROI, but the interest has been almost nonexistent.

Is anyone else noticing this? Are you seeing similar trends?

I thought 2017 was going to hit with a bang and so far it just feels like people are sitting on the sidelines. Markets are stable and rising. Stock market is strong. Sure we have a wild card president now but I hardly see that as a reason to sit there with concrete boots on.

I would love to hear others opinions and possible additional experiences on this. Thank you.

Jerry W. · Answer

My local area has experienced a slow down in the economy. The surprising thing is that real estate has not dropped off much in price. We have a lot of out of state and out of country investors buying in the middle of Wyoming. I have seen a pretty big big increase in foreclosures all over the state, even locally. I am being more cautious, but of course will always be looking for deals.

John C. · Answer

I do believe some private investors may be salivating at the returns they see in the stock market so they may be moving more investment $$$ towards that arena. And yes due to rising demand it is harder to find a good deal. One must be able to pivot and adjust to the market.

Looks like we are in Stage 2 of Dave Lindahl's "4 stages of a market cycle".

Watson Smith · Answer

@Steve Snyder are you seeing this in California or all over the country? I know in Georgia there aren't many investors sitting on the sideline. I see you do private money loans and I personally know plenty of people that do them as well. The drop in their business is due to people able to get what they need through banks again.

Steve S. · Answer

Yeah you might be right. However, I do believe the wild card president is going to rollback some banking regulations, which in my opinion will offset any slow downs from the rate hike. As of yet there hasn't been any hit to the stock market. I guess we will wait and see.

Shayne Fee · Answer

A lot of people are taking a wait and see approach right now. With interest rates going up and the wild card president you mentioned volatility (real or perceived) is high. When people are unsure, what do they do?

Are investors sitting on the sidelines these days?

Are investors sitting on the sidelines these days?

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