Investors – Take Advantage Of A Changing Market


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Anyone who hasn’t been living in a cave these last few years, must be aware of how radically the housing market has changed. Even without ever switching on a radio dial or picking up the paper, it is very hard to go about without noticing the tell tale signs of the housing bust; vacated neighborhoods, and “bank owned” signs on lawns, just to name a few. Changing for the worse doesn’t always spell gloom and doom for investors. The most opportunistic investors know how to turn any bad situation around and make it work in their favor. Investing in today’s changing market requires investors to change course and adapt to the new rules.

As investors are concerned, the main difference between today’s market and the one that preceded it lies both in the availability of good deals, and the ease of selling. While it may be more difficult to sell for huge profits today, finding good deals is much easier. Successful investors today have become more efficient at buying at the lowest possible discounts because buying low is the surest way to minimize risks in a down market.

One of the characteristics of today’s market is slumping property values. The implication for investors is that, investment models like wholesaling and rehabbing are not as profitable at this time. Investors need to divert resources towards those investment models that don’t rely on property values appreciating by huge leaps within a short period of time. A rental property investment would be a favorable investment type in today’s market. Another favorable investment is commercial property for those investors who have the resources to invest in them.

The way real estate purchases are funded has also been revolutionized. Cheap access to credit is now a thing of the past as banks have introduced stricter rules to reduce the possibility of another round of mass defaults such as those that accompanied the housing bust. The crash in property values that resulted from this bust also means that the equity that property owners relied on for leveraging additional loans is no longer available. Investors finding themselves unable to qualify for traditional loans could take advantage of one of many alternative methods of funding, such as private lending. This shouldn’t be relied on for a long term investments because of their higher than average interest rates, and the lack of adequate regulation governing them.

At the end of the day, an investor who comes out on top, not just in today’s changing market but in any type of market undergoing a transition, is the one that is most flexible in diverting resources to more profitable investments. Such investors stay abreast with information regarding market trends, and always have an exit strategy in case something goes wrong.

Asking questions with these tips in mind will help save real estate investors thousands. For more ideas related to real estate investing, call or visit us at Homevestorsfranchise.com. We are the nation’s number one home buying franchise with over 15 years of experience. Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business. Come see us for more information.

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