Posted by William, Columbus, OH on January 30, 2000 at 16:47:50:
Bill: I agree with David. Back in the late 70’s people were doing just fine with creative R.E. investments even though the interest rates were climbing up to 14% & better. The key is always finding motivated sellers and doing a creative deal that solves problems while making you a profit. Whether you wholesale or retail it’s still the same.
Interest rate increases - Posted by Bill Genreett
Posted by Bill Genreett on January 30, 2000 at 06:54:03:
I am interested in investing in real estate full time. I will begin by flipping homes in September 2000. I have read several courses on flipping homes. None of the courses have addressed the issue of rising interest rates. If the interest rates rise as the federal reserve say there are going to, will there be a lot of rehabbers in the market willing to purchase property from flippers like me? Moreover, will there be a lot of retail buyers in the market if interest rates keep rising? Is it feasible to flip homes when the interest rates are high? Or is flipping just something that can be done when there is a hot real estate market?
High Interest Rates? Good for business. - Posted by Sean
Posted by Sean on January 31, 2000 at 15:39:38:
I consider high interest rates to be better for creative financiers. When interest rates were rock bottom the real estate market where I’m at (LA County, CA) was red hot… houses were put on the market and sold within a month for the asking price, all cash.
Now it has cooled quite a bit and is likely to cool still further as interest rates rise. That makes people more willing to listen when you offer terms.
Re: Interest rate increases - Posted by David Alexander
Posted by David Alexander on January 30, 2000 at 11:38:49:
first let me say I’ve never been through a tuff market.
with that said realize you make you money when you buy, same with flipping. You may have to make better deals, because the holding period may be longer for the investor doing the rehab and retailing the property, but you will still be able to make money. The first place to start, learn to find motivated sellers they are in all markets.
David Alexander
It doesn’t matter if you seek out the right situations - Posted by Michael Morrongiello
Posted by Michael Morrongiello on January 31, 2000 at 22:28:45:
This business is a lot like the liquor business. Its good when times are good and it can be GREAT when times are tough…
If you seek out MOTIVATED and FLEXIBLE sellers or they seek you out as a soulution to their problems you’ll have plenty of business to handle. Higher interest rates then to cool the economy and create more uncertainty among potential buyers. This then has the effect of encouraging more of a buyers marketplace to form. Thats good for any one looking for bargains.
Michael Morrongiello