Hello!
How do you all compensate for the different markets in formulating your offers and your profits (sellers markets, buyers markets, neutral markets, cold markets)?
Thanks,
sixdirections
Howdy Sixdirections:
Know when to hold and when to fold and when to stay away. Sometimes even in buyers markets you can not buy low enough. My dad was involved in 100 plus houses in the Houston area that were bough 30% plus below retail. As the market continued to decline they saw that % decrease to near break-even deals at best.
I bought in a down market in Austin but too soon and could not hold long enough. I did mainly zero down deals at $70K each with rents of $600. These were the take my house please deals with no equity and now 10 years later they are worth $140K but I lost them in 5 years with no staying power. I had 40 of them at the time.
You strategy will be an important factor also. If I had listened to Tim Randle and taken his advice in his course I would have waited for better deals and maybe would have done a lot better with fewer deals.
If you buy and fix and resell you can do good in almost any market. You will need a better deal than average in a buyers market. Almost like in the 20% per year stock market, any fool could buy almost any stock and make it if fast appreciating areas. You need to be on your toes for sure in declining areas or stay out all together. If you buy at the bottom and have great cash flow there is no way but up from there.