3 Tips To Increase The Probability Of Success In Today's Market
I wanted to share with everyone 3 tips to increase the probability of success in today's changing real estate market.
Tip#1: Stay away from the high-end rehabs!
In today's market, you want to make sure that you are avoiding the high-end homes to buy and rehab. When the market starts to change substantially, this is the price point that is going to get hit the hardest first. If you plan on buying, renovating and selling homes, you want to make sure that you are in the median home price or lower. Another reason for this is because if the flip does not work, you can always hold the property as a rental as a backup.
Tip #2: Always have more than one exit strategy!
This is a mistake that I make from time to time. In today's competitive and changing market, you never want to rely on one exit strategy in order to successfully complete an investment. I personally always like to try to have two exit strategies. In the past, I have gotten stuck when I only had one option and it was to wholesale the property. Sometimes a property is going to make more sense if you actually buy it and then resell it on the MLS ( Wholetail). When you have more than one exit strategy, you are also going to have more confidence going into the investment because you know you have several options if the original idea does not work out.
Tip #3: Stay as Liquid As Possible!
With the market starting to change, cash is going t be king when all the houses go on sale in the next year or so. I personally have been trying my best to stockpile my cash and not have my own funds on the street for too long because I want to have the liquidity to be able to buy all the deals I can when things go on sale during the next correction. If you can, try to stay as liquid as possible by only doing short-term flips were your money won't be on the street for years at a time. Trust me, this will be worth it when you have the funds to buy real estate at 50% of the value on the MLS :).
I hope you got some value from some of these tips today. If you are ever interested in finding out how we can work together potentially, feel free to reply to this email or reach out to me personally and we can talk about some options.
Thanks and Happy Holidays!
Greg Helbeck
845-826-2238
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