Posted over 4 years ago

Is it Time To Buy or Sell Real Estate?

Is this the time to buy or sell real estate investments?

Lots of things are soaring. Bitcoin has more than tripled this year and looks like it is begging for a correction – unless you believe the recent massive bull run has been justified and supported by real growth in business fundamentals. The stock market too. So, is it also time to sell real estate too, or should investors be buying more of it?

The State of the Housing Market

There are some very clear and perhaps permanent trends happening in some commercial real estate sectors. However, when it comes to housing there is an interesting balance of both distress and an incredible surge in prices. We may have never seen such a market that is so well balanced between motivated sellers and motivated buyers before.

There is little certainty on exactly how the housing market will fluctuate over the next 12 to 48 months. Yet there is clearly a lot of money to be made in both long term hold for cash flow and wealth building. And these investments provide far more downside protection than other asset classes, in addition to potential quick short term gains.

Over the year ahead we are likely to see billions of dollars in defaulting mortgage loans, as well as double digit increases in some property prices.

So, what are the best ways to navigate this space now?

Property Flips

Flipping offers the ability to make money both buying and selling in the current market. Buy low, sell high, reinvest. This can work for single family homes, small multifamily buildings, and even large apartment complexes.

Mortgage Notes

The same can be done with mortgage loan notes. You can acquire them at discounts, and either hold for long term cash flow or flip them fast for lump sum profits. Or for those that want to hedge their bets by both taking out cash profits now, and banking on long term cash flow, may consider selling partial notes. This can be done by providing either upfront or a future percentage of payments.

Hybrid Funds

A hybrid fund can offer the ability to simultaneously invest in physical real estate assets and notes, and benefit from all of these strategies happening simultaneously. This provides access to all the upside potential, and averts risk. They also provide more consistent short, medium and long term rewards. Investing through a hybrid fund also provides access to all of these investments, and exclusive deals thanks to combined buying power and professional experience.