Current Real Estate Market & The Opportunities For The Action Takers

Hello Investors.

Yes, Inventory is LOW...See The Nationwide Inventory Below.

Yes, People are overpaying for properties....BUT there are still opportunities for the ACTION TAKERS.

The Real Estate Market is stronger than ever and the INTEREST RATE is still HISTORICALLY LOW.

There is speculation of INFLATION happening some time in 2022 but even if that happens, Real Estate has an edge against Inflation...Which is a major advantage over other asset classes.

I am still closing deals for myself and for my motivated clients.

Base on my recent discussion with clients, here are some of my thoughts:

1. Fear - Nobody ever won a race from the spectator stands.

2. Goal setting is very important. Without knowing your goal, there is no way to chart a path. It is like turning on your GPS and not loading a destination. If you don't know where you are going, you will never get there.

3. Costs of rehab and new construction are increasing and so are property values and rents. Nobody is going to sell a house for less than they paid or rent a property for no profit just because costs went up.

The bigger problem here is often when investors fail to adjust their price model to match their cost model. Simple, you pay more, you charge more.

4. "Risk of inflation is high." If you are an investor who owns properties that can be seen as good.

Property values and rents both increase at or above inflation, so real estate is an inflation adjusted investment. The best strategy against inflation is debt spending.

That is why the federal government targets higher inflation. As the value of the dollar decreases, you pay back the loan in future dollars that have lower value. If you fear inflation, take out loans.

5. "The old rule of thumbs are saying don't invest right now". Keep in mind those rules were developed when market conditions were different. Rules and laws always change over time. The biggest mistake you can make is applying old rules to a new game.

6. "Higher costs = higher downside". Cost and upside are not directly related. People have been buying high cost real estate in California for years and doing great.

In fact I predict that Texas will see similar upside over the next 10-30 years. Texas is running out of buildable land and experiencing population boom.

There is a lot of uncertainty right now and fear. Smart people know the market is reacting in a predictable way to what is happening.

The thing to remember is that opportunity always exists in every market, you just have to do some research..

There is opportunity, but along with it comes risk. Smart money is always one step ahead of dumb money. That is literally what makes it smart money.

A strategy from three years ago may not work today, but listen to how those investors are pivoting for tomorrow.

Share with anyone that will benefit from this.

Looking forward to helping you achieve your Real Estate Goals.

Wale Lawal is an Investor-Agent and Investor in the Houston, Texas Market.