Investing in a down market

[Sarah Hatton]

Thought I would share my response to a recent client's question: "what would be a good flip now with the market changes?"

well isn't that the million dollar question! Surprisingly, we have seen some great projects throughout these market changes. As always, it comes down to the purchase price, if you can get the property at a low enough price it can still work. I think the best approach in this market would be to find properties that fit the DSCR rental loan requirements in the case that you can't sell or prefer to hold onto the property. This way you are holding onto your equity for a little bit longer but can still refi/cash out in a couple of years when the values rebound, while making income/cash flow. We've also done quite a few bridge loans to investors that are negotiating good purchase prices then just reselling to end user quickly there after, smaller markups, but almost not financing expenses when only held for 1-2 months.

Lenders — what's the advise you're giving clients who are asking this question?