The last few years of real estate investing have been a slow and tedious process. Deals have been available everywhere but we have all been sitting with legs crossed waiting to make the next move. During these times, we must all keep in mind some key real estate investing principles.
1. Buy Low, Sell High
We have all heard the phrase "Buy low and Sell high". Or "To make money in stocks or the real estate market, you have to buy when the market is down".
We have found that we are there. A majority of markets throughout the US have increases of up to 30% on property list prices. Coastal areas have some of the strongest and most consistent increases with states like Florida seeing some of the fastest market movement. 60-90 days are now the averages for listed properties to sell throughout these areas, with middle class housing starting to push to "In demand" status. Construction starts are up and help wanted ads for labor construction are also increasing. The bottom is now going away and we are moving higher.
2. What are the other large real estate investors doing?
Most of the deep pocket buyers have been buying for the last few years. With enough liquidity to hang in there until the market comes back, these players took their position early. Many have now in fact, started bringing properties back to market with substantial gains.
Larger stock brokerages are also moving large sums of money back into the housing market ready for the next growth season.
3. Hard money is getting softer.
Many of us know the hard money lender and know that if we need quick cash to put a deal together, they are always there if you are willing to pay the high price. 14%-18% interest was very common with many of these lenders and they were all too happy to lend. What we are seeing now, is competitiveness between the different lenders with many getting squeezed down to 8% or better. This was actually one of the first signs we noticed before we started seeing gains.
Another recent news report noted that Fannie and Freddie Mac (US Government backed mortgages) just posted gains of over 53 Billion for the first quarter of 2013.
How can we help?
Our current focus is Florida due to the large increases we currently see in land sales. Florida is also home territory for some of our buying partners and they know how to go find the deals. We not only search local listings for opportunities but primarily work with many banks and individual land owners. Many of these sellers are still trying to liquidate due to heavy inventories that are dwindling fast. If you are ready to invest, NOW IS THE TIME! Now is the time because most of the average consumers do not see the buying trend starting. By the time they do, we will have taken good positions.
Call us today...