As published in Around Kennesaw magazine:
The Holidays are upon us, and the spirit has moved me to adapt a familiar Christmas tune to share some tips on ways investor clients can and should benefit from the current shifting real estate market.
On the 1st day of a shifting market, savvy investors… Invest in hybrid cities. Cities like Ellijay, Kennesaw, Macon, and Savannah are offering decent cash flow and stable prices.
On the 2nd day of a shifting market, savvy investors… Negotiate with sellers. Know the market and be aggressive with your terms.
On the 3rd day of a shifting market, savvy investors… Purchase multi-family housing to live in and rent. This is my favorite house hack! Purchase a duplex, triplex, or any multi-family property of up to 4 units with an FHA loan. You can live in one of the units, collect rent on the other(s), and still only make a 3.5% down payment on the loan. This is a no-brainer!
On the 4th day of a shifting market, savvy investors… Buy New Construction. Yes, you can build it to rent it! Builders with existing inventory need to pay taxes and as the year ends, they are ready to make a deal.
On the 5th day of a shifting market, savvy investors… Take advantage of creative financing. One example is “Subject to” which is a little-known approach where the buyer can take over the existing financing.
On the 6th day of a shifting market, savvy investors… Get a Home Equity Line of Credit (HELOC). This is a great time to cash out the equity in your home and jump into the market!
The key to understanding how to benefit from a shifting market is to know that national news is not always relevant to your local real estate market. Some areas are trending toward complete buyer’s markets and some toward seller’s markets, but the trends in your individual market are what’s important. It’s important to know the following key factors: days on the market, inventory available, and absorption rate. Understanding this information will help you decide what to do next, and help you act fast when you are ready to jump into the market.
Wishing you and yours a safe and blessed holiday season!