Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
Real estate goes in ebs and flows. Right now, I feel like real estate is facing a ton of external forces be it interest rate, rising costs in the form of inflation combined with stagnant revenue. Given the environmental factors, what are some good tactics you are utilizing to be more efficient given these market conditions?
Personally, I've decided to take as many costs in house as possible. Be in having handymen on staff to keep repair costs low, having painters and people on staff that can complete unit turns at 50 cents on the dollar or even ordering materials from oversees at 40-50% of the cost, e.g. LVP, cabinents. I'd love to learn what other operators and investors are doing in this market.
Still flipping - Upstate NY and Southern Florida (Space Coast) and having 100% of the work contracted. The emergency plan, should it be needed, is to hold and rent through a massive downturn at exit. Although I am a 1-2 a year flipper we have borrowers still buying as aggressively as ever without any perceived change in strategy. I think one fortunate aspect of 1-2/year volume is the ability to pass on deals that aren't solids wins.