Re: I think I,m going crazy… - Posted by Sean
Posted by Sean on April 17, 2007 at 13:50:10:
Yea, those folks who enjoyed sellers markets and great runups are finding a rising tide lifts all boats… but the truly great can figure out a way to win even when the tide is out.
I live in an area similar to yours… RE here has ebs and flows, but it hasn’t been a sellers market, other than some small pockets in decades here.
Here finding the deals is easy, selling them, that’s where the real skill and work comes in.
Here’s the truth about rapidly climbing markets… you can sell just about anything fast… because everyone wants to buy because next month it’ll cost more… And when the party’s over… they fall like rocks, because no one buys unless they have to because they know it’ll be cheaper next month… Those with the ability to buy (A qualified buyers) sit on the sidelines waiting for the bottom.
In a slow market its all about CREATING buyers… not selling houses. Forget trying to sell to A qualified buyers, you may wind up with a sale or two that way, but it won’t keep you afloat. Find yourself someone who can get some sort of financing, or has some sort of $$$ and once they fall in love with one of your homes (which doesn’t take much if you are the only path they have to owning a home) you figure out a way to make it work.
In a slow/declining market A qualified buyers will pick and choose… those that never thought they could buy are much more your friend.
Plan your figures on making a decent profit if your buyer can only get an 80% or 85% first, and adjust your offers to buy rehabs accordingly. If you can’t make a profit at 80%-85% LTV, pass on the property.