What’s Up With This Crazy Ass Market??

There have been a lot of headlines lately on a number of Real Estate Investment websites and forums talking about the fact that the market is either heating up, or is absolutely on fire again (in the more desirable neighborhoods)! So whats up with this crazy ass market??

Well I can tell you this much….we have been selling houses faster now than back in the boom years, which is absolutely crazy to me! On the retail side of our business even if the houses are priced aggressively they are selling in less than 2 weeks on the market, and on the wholesale side of my business every rehabber and their mother is calling me 10 times a day literally begging for my next wholesale deal, so that they can rehab it and make a big fat profit check doing so! It seems that the days of every investor with half a brain being able to pick low hanging fruit deals (listed REO’s, HUDS & other auction deals) with fat paychecks attached to them has come to an untimely end! Personally I thought this day wouldn’t come for at least another year, which should tell you a couple of things: The first is that I have been thinking about this day and preparing my business for it ahead of time (and hopefully some of you have been reading my articles and doing the same thing)….and secondly deep down I am happy that not for much longer will I have to listen to story after story of newbie investors telling me about how brilliant they are because they made X amount of dollars flipping some type of foreclosure! Now don’t get me wrong, I am happy to see everyone make money, but you really need to understand as an educated investor, that buying foreclosures is only one very small and never constant acquisitions strategy in a much larger business!

So now that this day of low hanging fruit disappearing has come early, fortunately my Real Estate business is set up to thrive and grow while most of my competition will begin to struggle to find deals……which means its pretty much going to be raining money in our Real Estate office, since we basically control the flow of quality off market motivated seller deals in my market place. Now I’m not trying to sound arrogant or full of myself, but this is just the reality of the current market conditions! Since more than 90% of our acquisitions are non-foreclosure properties, it means that more and more of those investors who are having a harder time getting foreclosure deals are going to be calling me for deals!! And over the last few months this had allowed our wholesale department to really increase our spreads and ultimately our profitability on every deal (its important to know that our rehab buyers have been making more money as well)! So the bottom line is that this improving market is good for not only wholesalers, but also rehabbers as well…..so its a win win for everyone who is in the game right now!

So back to the point of this article which is what should we as investors think about this market? To be honest I really don’t have a magic and absolute answer for you all, but what I can say is that people will only sit around for so long not buying and waiting for the market to bottom. At this point the smart money and educated mid to higher end buyers have been sitting around for five years or more waiting for this mess to clean it self up, and I think they have all decided its time to get off the sidelines and start buying their family the dream home they always wanted for a fraction of what it would have cost them back in the boom years! In addition there is absolutely no inventory out there right now on the MLS for both investors as well as retail buyers looking for immaculate turn key houses with all the bells and whistles. So this has created what appears to be the perfect storm for those of us positioned to take full advantage of it!

Right now in my own business we are cranking up the marketing machine to maximum capacity and trying to get as many leads in the door as possible, because like any storm this surge in demand wont’ last forever…..but while the getting it good we are going to make sure we get ours! So get off your butt and either get into the real estate game or ramp up your existing REI operation, as the time has never been better in my mind and I have been actually buying houses since before the boom……which should qualify my opinion as being worth a little bit!

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