Man, are we seeing some interesting market conditions in residential real estate right now.
First there’s an inventory problem. There were only about half as many houses listed for sale in February 2021 as there were in February 2020. That means prices are up and houses don’t stay on the market for long. In really hot markets, houses are getting multiple offers above the asking price. With lower inventory, there are a whole lot fewer houses available for house flippers to buy—especially if they’re trying to buy at a discount.
Second, there’s the financing problem. Because of stricter approval requirements, about a third of buyers who could qualify for a conventional mortgage a year ago can’t qualify today. The market is flooded with penalty box buyers who have a credit score of 680 or 700 but are left out in the cold.
Put both of these problems together and you have a perfect storm for real estate investors. But for an entrepreneur, it’s a perfect opportunity!
If you know how to structure deals by paying the price the seller wants with the terms that you want, you can do great—even in today’s crazy market. You pay today’s price with tomorrow’s dollars.
If you can add creative financing to what you’re already doing, you could potentially close double or triple the number deals than before. You can buy the house by offering the price the seller wants and getting them to finance the payments with terms in your favor. Then you can sell the house and finance the terms in your favor.
By milking the cow from both ends, you can make far more money over time with the terms than from the one-time transactional payment.
If you’ve got five minutes, click this link and I’ll explain it in more detail.
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