by Fuquan Bilal — February 13, 2019 at 3:15am
While all real estate is local, and trends take their time to circulate, it’s becoming undeniable that there has been some notable changes in the temperature of the market. This is exactly the moment many investors have been waiting for…
The last nine years have provided a great run up in US property prices. Many have gained great windfalls in equity.
Though, there is no doubt that many have been overpaying for real estate assets. Bidding wars, blind speculation and overbuilding have been rampant in some markets.
Even now the inventory available to the general public and through the MLS mostly reflects a sellers’ market and a retail market. The exception being some recent discounts on NY condos selling for 24% below asking price.
The uncertainty of when the market would correct has kept many of the most experienced investors on the sidelines. Despite the picture often painted of the risk taking real estate entrepreneur, the experienced only take very calculated risks, with outsized reward potential.
Those that have been active with their capital have been pursuing other strategies. For example; like me, using mortgage notes, tax liens, and buying assets in bulk to get appealing discounts.
With pricing leveling off, investors are enjoying more certainty. They know where they are at in the cycle. They can now forecast better, and start making moves. Whether you are fixing and flipping or doing turnkey properties, you can now make better judgement and not speculate. It’s time to get that money working harder.
While I have been very active in the market, I can absolutely relate. I recently backed out out of a deal down the street. It had an ARV of $1.2M. I was under contract to buy at just $313k. I still let it go because I just wasn’t sure where the value was going.
More sophisticated investors can now participate in the market with confidence. They can identify current trends and where we are in the cycles, and know where the numbers are headed. They can invest, and be sure of securing more profit with less risk of loss.
How are you re-engaging in the market this quarter?
Investment Opportunities
Find out more about investing in secured debt and real estate, visit: NNG Capital Fund