Selling in a declining market - Posted by Mark (SDCA)

Posted by Gene on May 10, 2006 at 11:19:19:

Personally, I recreate a lot. I am into kayaking and rafting so I go on lots of trip. Last year I spent 190 days on rivers.

I also spend a lot of time with my family. During the hottest years I was working 60 to 70 hours a week. It is nice to slow things down.

Right now I work less than 20 hours a week which is a really nice change.

I also study a lot.

And I continue to monitor my local market and I always look for deals.

Gene

Selling in a declining market - Posted by Mark (SDCA)

Posted by Mark (SDCA) on May 08, 2006 at 08:45:32:

Well under market properties are starting to pop up. I am confident about my ability to buy them and fix them.

But I am troubled about the exit strategy. Properties don’t seem to be moving well so selling at/near retail could be a problem. Because of the acquisition financing I would not want to keep the property long term or offer owner financing.

Part of me wants to tie up the property and assign the contract but I hate leaving so many dollars on the table.

Thanks,

Mark

Your answer… - Posted by Clint

Posted by Clint on May 09, 2006 at 06:24:16:

Terms,

Offer terms, take back mortgage, owner finance, lease option…Terms will sell where others won’t.

Clint

Re: Selling in a declining market - Posted by JohnK

Posted by JohnK on May 09, 2006 at 24:19:32:

“Well under market properties are starting to pop up.”

That’s because they are really NOT under market. That’s why they are popping up. Good luck!

Re: Selling in a declining market - Posted by Mike

Posted by Mike on May 08, 2006 at 22:40:46:

This is a time of great opportunity. The days of quick money are through but you can buy low and sell higher if you are willing to be patient.

Florida Land Sale www.ilovefloridaland.com

Re: Selling in a declining market - Posted by David Krulac

Posted by David Krulac on May 08, 2006 at 22:17:51:

Its not leaving money on the table, its making the deal work. There has to be profit for the buyer or you could get stuck with the property.

In 1981 the days on market were over a year, some proerties still sold, but only the ones priced right. your exit strategy has to be price them right and move the inventory off the shelves.

Re: Selling in a declining market - Posted by Natalie-VA

Posted by Natalie-VA on May 08, 2006 at 14:16:57:

Mark,

I know EXACTLY how you feel. My husband and I started doing a lot of wholesaling this year for different reasons. We got somewhat burned out after rehabbing for six years.

Anyway, we also hate to leave that money on the table, but it truly gives you more time to do more (and better) deals. We are on target to have a really great year without doing much rehabbing.

Joe Kaiser (thanks Joe) recently posted that you should look at it as 2 separate jobs: making deals and rehabbing. What he says really rings true to me.

–Natalie

Re: Selling in a declining market - Posted by Max-Va

Posted by Max-Va on May 08, 2006 at 11:59:34:

Buy low and sell below market. Don’t get greedy leave a little on the table for your end buyer. Remember pigs get fed hogs get slaughtered. Make it up in volume.

Buying at the top - Posted by Gene

Posted by Gene on May 09, 2006 at 09:58:55:

I think we are at the top, and we are seeing the beggining of a correction.

I disagree that this a time of great opportunity. I think a few years from now will be.

Re: Buying at the top - Posted by Sean W-ca

Posted by Sean W-ca on May 10, 2006 at 10:58:52:

what do we do until then???