myEmpirePROBuying a house is a big decision and timing can be everything.
While experts may disagree on when exactly is the best time to buy, one thing is clear: it’s important to do your research and make an informed decision.
As a real estate wholesaler, I’ve been buying and selling properties for years, and I’ve learned a thing or two about timing the market. Here are some insights to help you decide when the time is right to buy a house.
What do the experts say?
When it comes to buying a house, there are always experts with an opinion.
Real estate agents, mortgage brokers, and financial advisors all have their own take on the best time to buy.
However, it’s important to remember that these experts have their own agenda, and they may not have your best interests in mind.
For example, real estate agents may be motivated to sell quickly to earn their commission.
They may tell you that now is the time to buy, even if it’s not the best decision for you.
Similarly, mortgage brokers may encourage you to buy when interest rates are high, as they stand to make more money from your loan.
The role of a wholesaler
As a wholesaler, I’m always on the lookout for good deals.
My focus is on motivated sellers who need to get rid of a property quickly.
When I find a good deal, I lock it in and then sell it to investors.
This means that I need to be objective and not overpay for a property, or I risk losing money and damaging my reputation.
If you’re buying a house, it’s important to approach the market in a similar way.
Don’t get caught up in the hype of a hot market or the pressure from a real estate agent. Instead, focus on finding a good deal that meets your needs and budget.
Timing the market
Timing the market can be tricky, as it’s impossible to predict the future.
However, there are some signs that can indicate whether it’s a good time to buy.
For example, if interest rates are low, it may be a good time to buy, as you can get a lower mortgage payment.
Similarly, if there’s a lot of inventory on the market and few buyers, you may be able to find a good deal.
This is where doing your research comes in handy.
Look at the housing market in your area and compare prices to get an idea of what’s a good deal and what’s not.
Understanding the 3% Dip in Wholesale Real Estate Home Prices
Wholesale real estate has been experiencing a significant dip in home prices lately, reaching a 10-year low of 3%.
This news has been making the rounds and is being discussed on various real estate platforms.
In this blog post, we’ll explore what this dip means for the wholesale real estate market and what implications it may have for wholesalers.
What is Wholesale Real Estate?
Before we dive into the dip in home prices, let’s first define what wholesale real estate is.
Essentially, wholesaling involves finding deeply discounted properties, locking them up on a contract, and then flipping or assigning the contract to an end buyer or investor in exchange for a wholesale fee.
The goal is to earn a profit by finding great deals and selling them to buyers at a markup.
Understanding the 3% Dip in Wholesale Real Estate Home Prices
According to Redfin.com, home prices have experienced a 3% dip, reaching a 10-year low.
This news may seem concerning for those in the wholesale real estate industry, but what does it mean exactly?
It’s important to note that the dip in home prices isn’t across the board.
Instead, it’s primarily affecting the wholesale real estate market.
This dip could be attributed to various factors, such as a slowing economy, changes in government policies, or market fluctuations.
What Does This Dip Mean for Wholesalers?
For wholesalers, the dip in home prices could mean that it’s becoming more difficult to find deeply discounted properties.
However, it’s not all bad news for wholesalers.
While the dip may pose some challenges, it also presents opportunities for savvy investors.
For instance, it could be an ideal time to invest in properties while they’re at a lower price point.
Additionally, wholesalers who are adaptable and can pivot their strategies to fit the current market conditions may be able to find success.
Reminiscing the Early Days of Wholesaling
In December 2005, the founder of myEmpirePRO made his first wholesale fee of $10,000.
However, he could have made $20,000 if his negotiation skills were better.
The seller almost backed out of the deal, and he ended up losing $10,000.
Despite the hiccup, he still managed to close the deal and was thrilled with the $10,000 profit.
He then used half of the money to purchase a car, and the other half went into his business.
He had two to three deals in the pipeline, which he closed for an average of $30,000 each, making 2006 an extremely profitable year for him.
Wholesaling Real Estate Requires Consistency
Real estate wholesaling can be lucrative, but it requires consistent hard work, marketing, and networking. While some wholesalers can close four deals in a month, others average between two and four deals per month.
Patience, perseverance, and knowledge of the market are necessary for success.
How to Build a Successful Real Estate Investing Business: Lessons from a Pro
Real estate investing can be a lucrative business, but it requires discipline, hard work, and a well-planned system.
In this article, we will learn from a pro who has been in the business for over 15 years and has closed numerous deals worth thousands of dollars.
Building a Pipeline for Success
One of the key lessons our expert learned early on is the importance of building a pipeline, a lead pipeline that is.
This involves developing a system that will continuously generate leads and opportunities for deals.
It requires understanding how to feed the system with data and learning how to market your business effectively.
Mentors Matter
Having the right mentors can make a huge difference in your success as a real estate investor. Our pro’s first mentor was Richard Douglas, whose program he bought and later became his competition. Shortly after, he found Anthony, a partner with whom he closed three deals in the pipeline at the same time he was closing his first deal.
Closing Deals
Closing deals is the ultimate goal of any real estate investor, and our pro has had his fair share of success.
As with any business, setbacks are inevitable. In 2008, our pro’s business was wiped out entirely. However, he learned from this experience and came back stronger, wiser, and more determined.
Real Estate Investing: Surviving a Recession and Building a Lucrative Business
Real estate investing can be a highly lucrative business when done right.
However, it is not without its challenges, and one of the biggest obstacles is navigating a recession.
In this section, we’ll take a look at one real estate investor’s experience during the 2008 recession and what we can learn from it.
Building a Pipeline and Finding Mentors
One of the key lessons this investor learned early on is the importance of building a lead pipeline.
He stresses the importance of feeding the system from data and learning how to market effectively.
Additionally, finding mentors in the industry was crucial to his success. One of his mentors helped him close his first three deals, which averaged around $30,000 each.
The Recession of 2008
In 2008, the real estate market took a severe hit, wiping out many businesses and investments. This investor was not immune to the effects of the recession, and he lost everything. As the recession hit, he also had his first child, making it an even more challenging time.
Navigating a Recession
As the investor had around 30 deals on the table at the time, it was challenging to close them. Buyers, investors, and banks were hesitant to participate in the market due to the recession, which led to many deals falling through. Despite the challenges, he stresses the importance of staying vigilant and navigating through the downturn.
Stages of Real Estate Investing
The investor emphasizes that there are four stages of real estate investing. The first stage is feeding the system with data and generating leads. The second stage is marketing, while the third stage is negotiation and contract creation. Finally, the fourth stage involves disposing of the deal by assigning the contract to an end buyer. He encourages investors to bring their contracts to him and make money together.
Current Real Estate Market
The current real estate market shows signs of a recession. In March and April 2023, home prices fell by three percent, marking the biggest annual drop in over a decade. The most significant price declines were in pandemic boom towns and pricey coastal markets such as California, New York City, Austin, and San Jose.
Real Estate Prices in the US Experience Largest Drop in a Decade
Real estate prices in the US have experienced their largest year-over-year drop since 2012. In March 2021, the median US home sale price fell by 3.3% to $400,000, following a 1.2% decrease in February, which was the first annual decrease since 2012. The pandemic has affected real estate markets in different ways, with boom towns and pricey coastal markets like California, New York City, Austin, and San Jose among the largest price declines.
Factors Affecting Real Estate Prices
The rise and fall of real estate prices depend on a variety of factors. When interest rates are low, there is typically more interest in the market, leading to a spike in median sale prices. However, lower demand due to slower activity, especially in the economy, can cause prices to plummet, even with a higher supply of homes available for sale. Thus, while an increase in supply might lead to higher prices, it needs to be balanced with a reasonable level of demand.
Price Declines in Specific Metro Areas
According to data analyzed by Redfin, Boise, Idaho, saw the largest decline in home prices in March 2021, with prices falling by 15.4% from the previous year. Austin, Sacramento, San Jose, and Oakland were also among the cities with significant price declines. Boise also had the largest drop in pending home sales.
What to Expect in the Current Market
Real estate markets can be unpredictable, and the current situation is no exception. It is essential to pay attention to the data, including the number of homes sold, the inventory available, and interest rates. As a real estate investor, being flexible and open to new strategies is crucial in times of uncertainty. While this may be a challenging time for sellers, it is an opportunity for buyers to find great deals on homes.
Opportunities in Wholesale Real Estate Amidst Market Downturn
The real estate market has taken a hit in recent months, with the median U.S home sale price falling 3.3% in March to $400,000, marking the largest year-over-year drop since 2012. This follows February’s 1.2% decline, the first annual decrease since 2012. However, amidst this crisis, there are opportunities to be found in wholesale real estate.
Be Conservative with Offers
As a wholesaler, it’s important to be aware of the market conditions and adjust your offers accordingly. Regular retail buyers may not be aware of the market downturn, but as an investor or investor ally, you know to be conservative. Take at least 5% off your typical offer, in addition to what you see on the three-month-old comparables.
Deep Pending Sales and Home Prices
Nationwide, pending sales fell 26.6% on the seasonally adjusted basis to the lowest level since the onset of the pandemic in April 2020. This deep decline in pending sales is a major contributor to the deep in home prices. Fewer buyers mean sellers need to list their homes for less money. However, this creates an opportunity for wholesalers.
Negotiating Opportunities
With more news in the media justifying lower offers, wholesalers can make their offers with confidence. Even desperate sellers who need to sell their house will understand the market conditions and be more willing to negotiate. Wholesale real estate negotiation will become easier due to the downturn. If a seller wants to attract house hunters who remain, they must list their house for less money, which creates opportunities for wholesalers.
The real estate market can be unpredictable and volatile, with fluctuations in interest rates and economic conditions affecting supply and demand. In March 2020, the collapse of Silicon Valley triggered a quiet period in the market, leading to decreased buyer momentum and lowered housing prices. However, with the right strategy and approach, you can still find success in a quiet real estate market. In this post, we will discuss how to navigate a quiet real estate market and make the most of the opportunities available.
Understand the Triggers
One of the first things you need to do is understand the triggers that led to the quiet market. In this case, the collapse of Silicon Valley was the main trigger, but the heightened interest rates also played a role. Understanding these triggers can help you make informed decisions and anticipate market changes. Pay attention to market stockings and seek advice from experts like real estate agents to stay on top of the latest trends.
Don’t Let Fear Hold You Back
In times of uncertainty, fear can be a powerful force that holds you back from taking action. While there are fears of bank failures, inflation, and recession, it’s important to remember that a fear of recession is not the same as an actual recession. Don’t let fear stop you from marketing your services and seeking out opportunities. Instead, focus on a consistent marketing strategy that you can sustain over the long term.
Create a Consistent Budget
Consistency is key when it comes to marketing in a quiet real estate market. Instead of overhyping yourself and expecting quick results, create a budget that you can stick to for the next year. This means even if you don’t close a deal in the next 30 days, you keep moving forward with your marketing efforts. Setting yourself up for consistency is crucial in a quiet market where opportunities may be fewer and farther between.
Look for Out of Market Deals
In a quiet real estate market, you need to look beyond the traditional listings and seek out aftermarket deals. This includes pre-foreclosures, vacant properties, and non-owner occupied properties. By focusing on these opportunities, you can avoid the competition of traditional listings and find properties with potential for growth and profit.
Take Advantage of Lowered Housing Prices
One of the benefits of a quiet real estate market is lowered housing prices. This presents an opportunity for buyers to put in offers on properties they may not have been able to afford before. However, it’s important to remember that houses may be sitting on the market for longer, so patience is key. By taking advantage of lowered housing prices and seeking out aftermarket deals, you can find success in a quiet real estate market.
How to Partner with a Wholesaler: Tips for Protecting Yourself and Making Money
Partnering with a wholesaler can be a great way to make money in real estate. However, before jumping into a joint venture, it’s important to understand the terms of the deal and protect yourself from potential risks. In this blog post, we’ll go over some tips for partnering with a wholesaler and making money in real estate.
Start with Stage 1-4
If you’re new to real estate investing, it’s important to start with the basics. Before partnering with a wholesaler, make sure you have a good understanding of the stages of real estate investing, from finding deals to closing the deal. You can check out a free course on real estate investing on this channel page.
Protect Yourself with an NDA
One potential risk of partnering with a wholesaler is that they may steal your deal. To protect themselves, wholesalers may require you to sign a non-disclosure agreement (NDA) to prevent you from stealing their deal. While this is a reasonable request, it’s important to read the NDA carefully and make sure you understand what you’re agreeing to. If it’s a simple NDA that you’re not going to steal their deal, it’s probably worth signing.
Focus on the Purchase Contract
While it’s important to have a clear agreement with your partner, the only thing that really matters in a real estate deal is the purchase contract. Make sure the contract is solid and you have a buyer lined up before worrying about other details.
Submit Your Deals
If you have a deal you’d like to partner on, submit it to https://myempirepro.com/submit
We can partner together to find a buyer and close the deal.
Download Free Real Estate Books
If you’re looking for more information on real estate investing, you can download three free books on the topic at:
https://realestatemoneysecrets.com
In Conclusion
Partnering with a wholesaler can be a great way to make money in real estate. Just make sure to protect yourself by understanding the terms of the deal and signing any necessary documents, such as an NDA.
Focus on the purchase contract and finding a buyer before worrying about other details. With these tips in mind, you can successfully partner with a wholesaler and make money in real estate.