What are you doing different now?

Question

We all had a reality check 1-2 years ago depending on where you live. The changes in the housing market have had widespread effect, good and bad, on every area of real estate investing. 
Can you share what your business is and what you had to change in your REI business in order to still be successful?
Or
How you were able to capitalize on this market change?

Account Closed · Answer

I am doing basically the same thing I have done for the past decade... So I haven't really changed much. The number of available deals, and the way I market has changed, but the underlying business is still the same.

Acquire cashflowing properties and businesses and then INCREASE the cashflow.

We tend to try and make it more complicated than that, but it isn't.

Reginald Esteban · Answer

Buy, hold, and wholesale.

Kathy Potter · Answer

Mark,
I hope you are right. I picked Cary, North Carolina after narrowing to about 10 other markets. They have not had the boom many areas did. They just plug along 3-5% per year. Even thought they have seen an increase in inventory and less transactions in 2008, their year over year prices went up 4% (knock on wood or something like that). They have a good diverse business climate of tech, entrepreneurs, acedemics, medical. Moderate weather but have four seasons. Two hours to mountains , two to the ocean, above average income and education, great schools, low taxes and insurance, sizable influx of people. They are creating quite a few 55+ communities, taking people from Florida. So far so good, great tenants!
Kathy

Matthew Gil · Answer

I am buying and holding as many decent deals I can find in my market niche.  This blue light special that we are in ain't going to last forever.

Mark McGlothlin · Answer

Kathy - referencing your post from the 9th about finding good / better markets away from home.  I started doing that several years ago and it's even more imperative today - there are markets out there that are relatively healthy (note the relatively).

Full disclosure - I became so interested in the market evaluation concept, I rounded up some guys and gals much smarter than me and we started a company to research and rank markets for investors.

Over time there will be some markets that recover much earlier and to a much greater degree than others - there will be some very interesting investing to do in those markets.  You're right on track.

Eric Medemar · Answer

As a real estate wholesaler I have put far more emphasis on finding good buyers rather than finding good deals on property.  Good deals on property seem to be popping up all over, while good investors seem to have gone the way of the dinosaur.

Jason Hanson · Answer

In this market I am being very, very picky. I am also holding onto most everything for the next few years.

A lot of folks are doing the same and when the market picks up and people decide to sell, a lot of folks are going to make a killing.

Kathy Potter · Answer

I am mostly a buy and hold investor. One thing I did differently was find a more stable market and invest far away from home. Had never done that before. It is a little challenging managing cross country but I bought nice sfr in a nice area so I have had GREAT tenants.

Kathy Potter · Answer

Dan,
I haven't ever held anything more than 10 years myself. Most 2-5 years, I like to cash in once in a while, but I always seem to replace them and still landlord.
I have fixed and flipped a handful, I really enjoyed that. What part of the country are you in? Is fix and flip a good idea right now, will they sell?

Kathy Potter · Answer

Dan,
What do you do with the foreclosures?