Is Real Estate Boom or Bust? Who Really Cares! Final Part in a 4-Part Series

The scales are balanced. Seller or buyer has no more leverage than the other. That’s good news for the real estate entrepreneur. After all one of the most challenging obstacles in the business over the past few years was finding a good deal. The sellers were arrogantly holding out for top dollar and sadly enough the day traders and retail buyers were racing to out spend each other. Things have certainly changed for the better as far as the entrepreneur is concerned. Sellers are beginning to sober up and come to the negotiating table with more realistic expectations. Buyers are still spending money on real estate.

Uh hum, are my wholesalers paying attention here?

With the scales balanced in most markets around the country, wholesalers should be making a truck load of money setting up the deal. After all, the wholesaler’s main focus is to solve problems for the seller (helping them get rid of their properties quickly without hassle) and the buyer, (bringing bargain deals).

I’ll end here with a provocative thought for you to chew on. With regard to the impact of media headlines, this a case of the market influencing the media or could it be….. the media influencing the market? Could it be possible that the media is giving real estate such a bum rap in effect, causing buyers to pump their brakes in panic, thus contributing to even lower sales? Now that deserves a scratch of the temple and a great big hmmmmm!

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Is Real Estate Boom or Bust? Who Really Cares? Part 3 of 4

Welcome back to planet earth!

A resale period of 60 days isn’t much time at all, relatively speaking. So where does all this adjustment downward leave the investor? Typically, the real estate investor has been the person jumping into the game with both feet and eyes closed. Their entire game plan was an attempt to time the market, hoping for a BIG hit. That game plan paid off for many. Some have gone on to teach their own seminars as the expert, yuk yuk! Unfortunately, others coming around at the tail end of the gold rush have gotten burned.

On the other hand the real estate entrepreneur treats real estate as a business. This person is in it for the long term. Sure they’re seeking wealth, but with a mindset totally opposite the typical investor from the boom. The entrepreneur understands true wealth is generated by time in the market, not in timing of the market.

The entrepreneur cares little about outside factors affecting the market for he is a transaction engineer able to handle most situations with a tool chest full of strategies. No matter the situation the real estate entrepreneur is ready and able to make a profit.

Good news is, contrary to the cloudy forecasts, most real estate markets around the country are still very healthy and balanced with a few simmering hot spots here and there.

That means the game is fair.
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Stay tuned for the Final Part in my 4-Part series on the Real Estate Market and its impact on Real Estate Investors....

Is Real Estate Boom or Bust? Who Really Cares? Part 2 of 4

In my local market in the Washington DC metropolitan area we’ve seen prices dip by 10 to 20 percent in some areas.

What’s happening is the market is adjusting from what was a feeding frenzy the past few years driven mostly by aggressive, uniformed speculators. These were the “day traders” of real estate who only came around when they smelled the opportunity to make a quick buck. As such many over paid for properties with the continued expectation of monthly appreciation.

Others placed deposits on preconstruction deals and are now pulling out of their contracts, even walking away from huge deposits. Estimated to represent 30 percent of buyers in some markets, these speculators caused a false sense of market strength, faking out builders who set out to supply more inventory for the mad rush.

Unfortunately this type of investor also faked out the consumer buyer who felt forced to keep pace with the rushing waters of the market or risk getting whisked out of the game. I’m not complaining here, because you better believe I benefited from the buying frenzy as a wholesaler and rehabber, sometimes beyond my own comprehension.

What’s left now is what we’re seeing today, which is a more realistic sales market. Instead of a property receiving multiple bids over asking price within hours of its listing going public, we’re now seeing properties sitting on the market an average 60 to 70 days before receiving any attention.

Stay tuned for Part 3....

Is Real Estate Boom or Bust? Who Really Cares? Part 1 of 4

If you’ve been reading the latest news headlines or catching the current financial news reports on television you may be falling for the hype about the doom and gloom surrounding real estate.

Real estate has tanked, according to the media, therefore no longer the investment vehicle of choice. That all depends on how you look at it. My point of view from the ground up is I see something entirely different from the media reporting the news from their cozy glass buildings.

Most such reports are directed at the passive investor looking for a safe place to park their money for maximum returns. Much to the contrary, savvy real estate entrepreneurs will make money regardless of economic cycles, interest rate hikes, recession, unemployment trends or ups and downs of the real estate market itself.

Today’s real estate sales have indeed slowed its pace from even a year ago in many of the once scorching hot markets around the country. There’s been reported nearly three times the inventory available for sale than a year ago.

What doesn’t receive much attention is the fact there are still many qualified buyers, money in hand, on the hunt for properties to purchase. Sure the inching up of interest rates has forced many retail buyers to spend their money more wisely. But, when you factor in the adjusted prices which have and seem to be on a continued slump downhill for now, it all balances out as far as how far a buyer’s money will go.