What are you doing in this current market?

Question

What strategies are you doing in this market? Warren Buffet is betting on the homebuilders, mainly DR Horton and then Lennar, what are your thoughts?

Julien J. · Answer

Private lending as bank financing is more difficult for investors.

Carlos Ptriawan · Answer

classic smart strategy. Other than buying multiple debt investment I also buy double digit cashflowing option ETF also like SVOL/JEPI/TSLY. It gives 15-20% cash flow with some manageable risk/reward outcomes.

Carlos Ptriawan · Answer

I am selling my primary with max. free tax benefit and buying much larger primary sqft that I can do house hack. So literally even if the rate is 10%, since I do house hacking, the rate has no impact for me since I am positive cashflowing from primary.The trick is I need to find older house, with very large lot, was not easy but finally we got it. This home is so good I could park small 25 cars without problem LOL.

Eric Gerakos · Answer

When interest rates are high, I lend money through first trust deeds. When rates are low, I borrow and buy more property.......

Zachary Ware · Answer

I agree with @Kenny Smith, you have to get creative right now. I also see people holding on to liquidity at the moment and improving their own systems. For some that is dialing in their deal sourcing, marketing, contact list and for others that is operational, making sure they are being as efficient and cost-effective in the tenant management, maintenance, and amenities.

Bobby Paquette · Answer

I like it!! Thanks for sharing

Kenny Smith · Answer

@Bobby Paquette

I think new builds are a great option these days!  If you work with their in house lenders as well, you're able to get way better rates than most traditional lenders.

I am all aboard house hacking, and specifically non-conforming duplexes.  Everyone needs a place to live, and why not do it in a creative way where you live in a portion of your home, and rent out the other.  This market is all about being creative right now.  Those that are creative are finding the deals and getting ahead.  Those that are not, are sitting on the sidelines hoping a traditional deal falls in their lap.  You have to be willing to get outside your comfort zone right now, and try something new. Thats my take on it.

Best of luck!

Kenny

What are you doing in this current market?

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