Skip to content
Welcome! Are you part of the community? Sign up now.
x

Posted about 3 years ago

Market Guidance from our Real Estate Coach

The markets are extremely strong right now on the retail sale side. If you can take deals down and renovate and flip them quickly then this is a solid strategy. Anything that may take longer than 4 to 6 months to get through deed to deed on a flip please be extremely cautious. If you can get in and get out then you may be able to pull off one maybe two turns before the markets start on the downward cycle. The most critical thing you can do right now in the markets is flip with extremely tight turn times. I have been able to take deals down at a higher price if I am able to get them on the market quickly and flip them for a higher price. This is a very short term strategy that will not last long. Only those with advanced experience and with the right teams should deploy this type of strategy.

Get out of all buy and hold investments and pull to a cash position. There is very few products that can hedge against a down cycle in real estate. Your cash flow will never make up for the losses in equity you will experience in a down cycle. SELL ALL OF YOUR ASSETS AT THE TOP OF THE MARKET CYCLE WHICH IS WHERE WE ARE AT AND PULL TO A CASH POSITION.

As you get to a cash postilion, then you can go into fllps as long as you do it with tight turn times. As the market cycles down you need to buy right, renovate and sell right. If you miss in any of these areas, the market can hand you your rear end in a hurry. We latterly have months before they will start to release major inventory via foreclosures and new builds that will increase the supply in the markets. The supply will most likely outpace demand and we will start to head into the downturn in the markets. My buyers pay 12% and 3.75 Points or 20% of the net equity, whichever is greater, to lenders on deals they do in the system. Please get to a mentor that understands the up and down cycles. This is not a market where you want to try to navigate in on your own. For more information reach out to me weekly on our online National Calls. We do 8 to 10 of them a week. Thanks.

How to flip a home quickly and maximize your profits | Tips and Tricks



Comments