Posted by randyOH on November 18, 2004 at 17:39:14:
Where are you? I live in OC. I do not see any opportunity around here at all. I think it will take at least two years for this market to settle down to the point where you might be able to do something.
My feeling is the next five years will be bad for the bubble markets on the east and west coasts and south Florida, but good for the rest of the country. So I think a good strategy would be to invest in another market for the next five years, then sell out and start investing in SoCal. How does that sound to you?
“Sellers” market has a Downside! - Posted by MiltonTonic
Posted by MiltonTonic on November 17, 2004 at 21:06:26:
It seems to me there are both pros and cons of investing in a sellers market. For an investor Flipping homes, a quickly appreciating sellers market benefits you at the end when you go to sell it. Time works with you in this market as your home appreciates greatly in short time you hold it.
However, it seems also that there is a much larger pool of motivated sellers during a flat or buyers market(when homes are not appreciating at super high rates) , which provides more opportunities. I think the increased number of opportunities outweigh benefits of the sellers Market for flippers.
creative financing works both in up-cycle and down-cycle…but the inventory shifts if you want to do it effectively.
In a good real estate market, it may take you more legworks to find a deal, but it would be profitable when you sell(not much work on selling)…
In a flat/down real estate cycle, you have a lot of motivated people (not much negotiations needed)… and you have to do better on the sell and put your competitor behind you(terms, bought it cheap, etc)…
Market trends create profit…it just shifts the channel of demand and supply
Posted by randyOH on November 17, 2004 at 22:35:10:
The other problem with a hot seller’s market is you may be buying at the top. Then you probably will have a negative cash flow and a property that is going down in value. About the worst situation I can imagine.
Even in a buyer’s market, a newly rehabbed house should sell a lot quicker/easier than the competition (homeowners who haven’t rehabbed their houses). Shiny/new always sells houses.