myEmpirePROThe Maryland housing market is causing stress for buyers and sellers. For sellers, the challenges come from lack of knowledge and marketing, while buyers face difficulties due to limited inventory and high competition. In Maryland, home sales have fallen again, causing problems for buyers and sellers. In the current market, real estate agents must work hard to attract leads and convert them into sales, which takes time and dedication.
Hidden Gems in Real Estate
Sellers are calling their homes hidden gems, but buyers are finding it challenging to buy in this market. One buyer in particular, Julie Mitchell, is looking to sell and right-size. However, she is also looking to buy, and she is having difficulty finding the right property. The same homes are getting too many offers, and the lack of inventory is causing problems for buyers and sellers alike.
Real Estate Inventory
The lack of inventory is a major issue in the current real estate market. Agents are finding that they have no homes to sell, and sellers are finding that they have too much competition. Refinancing is also causing problems, as many sellers have refinanced when rates were very low making is hard to sell only to engage up to 6.5% interest rate. This has caused a significant reduction in inventory, making it difficult for buyers to find the right property.
Real Estate Investment Tips
Pay attention to interest rates and how they affect your cash flow. Master the art of estimating deals and maximizing your offers. Use free online resources, such as dealestimator.com, to calculate maximum allowable offers, after repair value, and subject-to value. Refinancing can have long-term effects, but it can be done again in a few years if a better interest rate is found.
Be careful with refinancing if there is no equity in the property or if cash has been taken out. Market rates for interest follow the market going rate, so it is important to break down the numbers based on the present rate and ongoing rent in the area. Focus on marketing to motivated sellers, such as pre-foreclosures, vacant properties, non-owner occupied properties; essentially tired landlords. Tired landlords are a good target because they are not emotionally attached to the property and have a reason to want to sell. Be prepared to offer incentives to get the market moving, such as waiving inspections and appraisals.
Free resources are available online to help estimate deals, such as dealestimator.com. Use these resources to input comparables and calculate values.
Conclusion
Real estate wholesaling involves mastering the art of estimating deals and making profitable offers. Wholesale real estate is an easy way to get into real estate. You find motivated sellers and lock their properties under contract, flipping that contract or assigning it to an end buyer for a fee. You don’t need experience, credit or cash, just the willingness to put offers on properties. You can make anywhere from $7,000 to $150,000 per deal.