What is the next major opportunity for real estate investing?
Over the next 2-3 years we will be experiencing a home-flipper’s paradise. Less than five years ago the job of a flipper consisted mainly of sound rehabbing and marketing. We were in the middle of a buyers’ market in every city across the US with little exception. Back then rehabbers had to focus all of their attention on finish-out and selling, finding deals was the easy part. In recent years we’ve seen that market turn upside-down. Sales have increased double digits each year and inventories have been gobbled up by home buyers and hedge funds alike.
Today the most time intensive activity for a flipper is locating deals, the rest almost does itself. But 2014 brings forward the Affordable HealthCare Act, Basil III, and Dodd Frankat a time when the stock market is likely peaking and ready for adjustment. Diminishing corporate returns don’t always bode well for housing but a slowdown right now is exactly what home-flippers need to bring balance to the market and loosen inventory. For seasoned flippers, more deals will be a game changer and getting your profit margins back into the twenty percent range will be well worth increasing your days on market from five to twenty.