The elephant in the room
Its right there in front of you…. no one wants to talk about it…. Real Estate Investing has gotten tougher to do. There I said it, it’s out in the open so let’s have a conversation. The real estate business is so good it’s bad.
It is a sellers-market that means that any move-in ready house priced right, at under $200K sells quickly. Jobs are plentiful, so buyers have money and renters can afford the rents. That makes being a real estate investor trying to do deals harder. If you are selling its great, if you are a landlord it’s great. If you are buying not-so great.
In the last three months I have been to 5 events in 4 states and several REIA meetings. I have had dozens of conversations with real estate investors, REIA owners, developers, equity investors, and industry suppliers. Real estate investing activity is down because deals are getting harder to come by. New investors wanting to learn the trade are not as plentiful as they once were.
Attendance at REIA meetings is down, Attendance at Real Estate Meet Ups is down, attendance at real estate training is down. Hard money lenders and other vendors who serve investors are looking for business, they are starting to market more because deals and new clients are not walking through the door. Real estate Gurus are looking for new ways to attract students.
So, what does all this mean for you?
If you are a Real Estate Investor or just starting out to be one you will need to adjust what you are doing. Here are things others are doing around the country.
Multi-family investors are starting to look at alternatives such as Mobile home parks, and commercial real estate like strip centers and offices. Attendance at events for these alternatives has doubled in the past year.
Flippers who use to find their own deals are looking to real estate agents or companies who wholesale houses to find deals. Some flippers are getting into rental properties.
Other things people tell me they are looking into or doing are:
- Buying land to divide into mobile home or housing lots.
- Attending Sheriff tax sales auctions to get deals.
- Financing their buyers to get a higher price to make money on skinner deals.
- Attending training classes to learn new strategies and how to implement them.
- Looking at cheaper houses where there is less competition
- Looking at mobile homes on land
- Buying and selling vacant lots
- Partnering with other investors who have found a deal
- Buying rental properties
- Doing a buy-hold long term (5 year) plan to pick up price appreciation and debt pay-down from rents.
If you are an investor it is time to get some training to learn a new strategy. If you are an industry vendor, it’s time to go back to basic marketing for new clients. If you are an instructor or Guru than you will probably need to use social media to attract some new just starting out investors to your learning platform.
I have been through these up and down cycles in the real estate business for more than 35 years. There is always business to be had, people are moving, buying homes, building, and renting every day. Deals are being done. You will need to broaden your focus and get some new ideas or new strategy training to expand your opportunity for deal making.
As more people give up that will leave more deals for you! Be Ready!