Market Conditions:

 

As we all know the market is not what it was several years ago.  In over the last number of years it was pretty easy to flip a house.  The times were good, renters were becoming buyers and banks were eager to get their business by creating loan programs making it easy to buy.  Times were great!
 
Now, and for the near future, things are different.  The individuals and families that could qualify in years past no longer qualify, and unfortunately many of the buyers of years past are now loosing their homes due to adjustable mortgages, higher fuel costs, and job loss.  This is not news to anybody reading this article, but what might be news is the new trends real estate investors have to be aware of to still be able to be "ahead of the curve" of the changing market conditions.  This is the new reality many investors are facing today:

1.       It is harder to sell properties outright

2.       Many individuals/families do not qualify for financing at this time for a number of reasons

3.       There is a fortune to be made if an investor approaches the market correctly in today's market

Here is how to adjust to today's market conditions and adapt to the above mentioned trends:

1.       Do not buy a house using your own money and/or a loan that has to be paid off within a year or two.  Many buyers get in trouble when they use their savings, credit cards, or short term loans to buy houses.  In years past, this was less risky because it was pretty easy to re-finance or flip the property and get your money back.  Protect yourself, use private lenders with no short term balloon payment or purchase the property with seller financing.

2.       Grow your longer term rental portfolio.  This does not mean you have to buy real estate now that you plan on owning for 15, 20, or 30 years.  Plan on owning your properties for at least 1 year, or more.  Many lenders require a seller to have held title for up to 12 months before they will lend to a buyer for that property.  Renting to a tenant-buyer through a rent-to-own program or renting as a traditional rental and then flipping the house once the market corrects itself are two potential solutions. 

3.       Whether you are looking to build a small or large portfolio of long term rental properties or properties you would like to sell again in the coming years, now is the time to buy!  Sure, houses are still selling, and some are still flipping houses quickly, but it is no longer the norm. 

My advise,
Buy now; build equity and monthly cash flow.  Wait out the bad mortgage market, and cash in on your pot of gold at the end of the rainbow when the market corrects itself in the years to come!
 

Now is the time to Buy!!

If you have any questions about this artice, or any other questions, please write me at: bsnyder@greaterpittsburghproperties.com