Business is good or bad, in between your ears.
You can choose to listen to the naysayers and sit on the sidelines and wait for the sky to fall, or you can use your knowledge and skills to find profitable real estate transactions.
Real estate investor’s outlook for the rest of 2015
Real estate inventory has tightened up and prices will continue to move upward in growth areas, like parts of the South. Of course, all areas do not go up the same, as real estate is local in nature.
The investors and real estate business professionals who were wiped out by the Recession have been replaced by newbie investors looking for financed purchases and wholesalers hoping to flip houses.
Most real estate professionals like myself have started to retail to the general public due to the rise in prices and return of somewhat accurate appraisals.
The more exit plans you have in your real estate model, the more opportunities you can avail yourself to. Our current model includes: Retail sales to end users, buy-and-hold, rehab, manage and sell to investors and we wholesale “AS IS” houses for a quick flip.
Don’t press to create an opportunity, and I would suggest patience (but I sure don’t have much—actually, I have none!). The truth is, the best real estate opportunity comes around every 24 hours. Be diligent, proactive and aggressive to find the most profitable opportunities in your area.
Affordability and difficulty in qualifying for retail buyers to buy homes from investors?
Lenders don’t want to lend in low-income areas where the chance for failure is much greater. If you stick in growing communities in the local area of a metro market, simply look at those areas that have higher income per household.
Only true investors engage in buy-and-hold, and we do this regardless of the market conditions as we understand the benefits of long-term holds.
As interest rates climb (as predicted for the second half of the year), fewer people will qualify and this won’t hurt the real estate professional who buys and sells retail as long as he is in the first-time homebuyer’s price range and avoids low-income areas.
About the author:
RJ Palano has been an active investor for 35 years. He has experienced the thrill of victory and the agony of defeat in his investing and these experiences have shaped his vision, work ethic and demeanor. Acquiring properties in over 50 cities and 12 states has provided him a lot of wisdom. RJ currently provides a full cycle real estate system for International and domestic investors in metro Atlanta, Georgia.
Visit RJ’s site here.
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