Strategy in this Market

[Bobby Paquette]

What’s some strategies you’re taking in this current market? 

[Carlos Ptriawan]

Quote from @Steve Vaughan:

Quote from @Carlos Ptriawan:

Quote from @Bobby Paquette:

What’s some strategies you’re taking in this current market? 

sell condo and buy falling single family, every market is different but this is the best time to acquire higher end OO property in general.

Yep.  If I was hunting, equity capture on nicer homes would be the play. 
That and mortgage assumption or sub2 to keep low rates in place.  

Yes I capture the fact that during Q3-Q4 2022, condo appreciation ranges between -10 to +5%.
While Single Family appreciation is between -5 to -35%.  The more luxury it is, the worse is the appreciation. But that didn't happen in condo market.

So I have appreciated asset like a condo, where I can re-invest into an under-appreciated asset like Single Family. 
This is one of the weirdest time in real estate market where the gap between high-end condo and low-end SF is only $100k. 

There's also another phenomenan and this is more like in "general" observation, especially in CRE, the spread between bank lending and commercial lending is the highest now compare to 2008 era ! this is because the perceived higher risk of CRE investments. This give a very high reward/risk investment to invest in debt secutization like asset-backed MBS. When spread is normalized, the IRR is north of 20%. I almost see this as very riskless strategy to make money lol