Rehab And Flip, a prominent Florida-based real estate investment company, is shedding light on Tampa as a city to consider for house-flipping ventures. With its flourishing real estate market and ample investment opportunities, Tampa has become a prime destination for investors looking to capitalize on the lucrative world of house flipping.
Tampa, Florida Real Estate: A Hotbed of Opportunities
As one of Florida’s fastest-growing cities, Tampa offers an attractive environment for real estate investors seeking profitable ventures. The region boasts various investment properties, including single-family homes, condos, townhouses, and multi-unit buildings, catering to various investment strategies. Tampa’s real estate market provides an ideal balance of affordability and growth potential, making it an enticing choice for house flippers.
Tampa Investment Property: A Lucrative Market
Investors eyeing the Tampa market can benefit from its strong rental demand, attractive property prices, and steady appreciation rates. The city’s growing population, thriving job market, and robust economy contribute to the high demand for quality housing, making it an ideal location for successful house-flipping endeavors. Additionally, Tampa offers a variety of neighborhoods with different characteristics, allowing investors to target their preferred market segment, whether it’s upscale residential areas or revitalizing communities.
Tampa boasts a robust economy with a lucrative job market. As of December 2022, the city’s unemployment rate stood at 2.2%. A flourishing tourism sector and diverse industries contribute to the continuous fueling of the local economy.
Florida Real Estate: The Sunshine State Advantage
Florida is popular for real estate investors with its favorable tax environment, attractive climate, and diverse attractions. The state’s booming tourism industry, economic stability, and investor-friendly policies create a conducive environment for flipping houses and maximizing returns on investment. Tampa, in particular, benefits from its proximity to beautiful beaches, renowned entertainment parks, and a vibrant cultural scene, adding to its appeal as a prime location for potential buyers and renters.
Rehab And Flip: Your Trusted Partner in Tampa House Flipping
Rehab And Flip, a leading real estate investment company in Florida, specializes in identifying prime investment opportunities, acquiring distressed properties, and guiding investors through successful house-flipping projects. With a team of seasoned professionals, extensive market knowledge, and a vast network of industry contacts, Rehab And Flip ensures a seamless and profitable experience for its clients.
Rehab And Flip offer comprehensive services, including property scouting, thorough market analysis, renovation management, and effective marketing strategies. The company’s expertise in the Tampa real estate market allows investors to confidently navigate the intricacies of the local real estate scene, maximizing their chances of success.
About Rehab And Flip
Rehab And Flip is a premier real estate investment company based in Florida, specializing in identifying and acquiring investment properties for house-flipping projects. Focusing on providing exceptional returns on investment, Rehab And Flip guides investors through the entire process, from property acquisition and renovation to maximizing profitability.
Rehab And Flip specialize in acquiring various properties, including foreclosures, discount homes, investment properties, bank-owned foreclosures, REO properties, distressed properties, and discounted multi-family properties. This unique approach benefits home sellers by allowing them to address their immediate needs while opening up exciting investor opportunities.
Flipping houses in Tampa, Florida, presents a tremendous opportunity for real estate investors. The city’s vibrant real estate market and favorable economic conditions make it an ideal location for those looking to embark on profitable house-flipping ventures. At Rehab And Flip, the team provides the expertise, resources, and guidance to help investors succeed in this competitive market. To learn more about the lucrative investment opportunities in Tampa, Florida, real estate or to speak to a real estate professional for an immediate deal, visit https://rehabandflip.com/contact/ or call them at (813) 321-0049.
Flipping houses is an investment option that has been gaining a lot of popularity lately.
Florida real estate offers good opportunities for house flippers. Florida’s growing population and availability of many unused houses that deserve a second chance make it the right candidate for the house-flipping market. Rehab and Flip, a Tampa, FL real estate investment company, provides valuable tips for flipping houses.
1. Do not overspend
Investors should consider the ARV (After Repair Value) before finalizing how much to spend on the investment property. ARV is the estimated market value of the property after repairs and renovations. Looking at the market prices of similar houses in the area will give an idea of how much the house would sell. This information should be kept in mind while planning repairs and renovations on the investment property to make it market-ready. The bottom line is that investors should not spend too much more than the ARV.
2. Do a home inspection
It is a good idea to get a home inspection done before buying the property for investment. Firstly, make sure that the property is on habitable land and in a good neighborhood. Also, ensure that the area is not prone to flooding. It is best to avoid houses that have foul odors and too many leaks to fix. Always choose a home that appeals to the buyer’s market. An ideal “2 bath – 3 bedroom” home for a small family will sell quicker than a larger bungalow. A good real estate firm can guide the investors by matching the investor’s budget with the properties available in the market.
3. Review finances
Investors should choose a house that suits their renovation budget. The best is to start small and give the property a good modern facelift to make a quick, profitable sale.
4. Trust the crew and interior designer
A good investor should hire a good crew and interior designer, as it won’t be possible to get everything done on their own. Also, ensure to act as a team and trust the experts. It is best to not unnecessarily micromanage their work.
5. Plan for cost overrun
Home renovations generally tend to run over the budget a bit. Hence, make room for these extra expenses while budgeting the repairs and renovations.
6. Keep an eye on the market
A good investor always keeps an eye on the market to find the right time to sell. It is also not a good idea to keep the investment property on hold for too long.
7. Keep emotions under check
It is common for investors to fall in love with the property after renovation and not want to sell it. However, to stay in the market, it is best to keep personal touches and feelings at bay during renovation.
Why Rehab and Flip?
Rehab and Flip are industry experts at acquiring worn-down, distressed houses and passing them to investors. They have a decade of experience in Florida real estate. The firm has properties that cater to the needs of wholesale investors as well as newbies looking to make a break in real estate.
Call Rehab and Flip today, for the best deals and unparalleled customer reach in Tampa, Florida real estate, at (813) 321-0049.
4 Common Mistakes While Flipping A House In Florida
Florida has great weather, a growing population, low unemployment rates, and a great housing market. These factors make the state an ideal candidate for wholesale real estate investors. The booming population creates high demand in the housing markets. Rehab and Flip, a Tampa real estate investment company, points out the hurdles investors face while trying to rehab and flip a house.
1. Handling money/expense
It is not advisable to pay too much money on an investment property. Every dollar spent will add to the selling price of the property. All other costs such as taxes, rehab expenses, and insurance costs should also be taken into account before fixing a deal with the vendor. Also, the right property insurance is extremely important in Florida real estate, where hurricanes are common. When it is time for the property to be sold, it should be ensured that the price is set high enough to yield the expected returns, yet low enough to attract buyers. Hence, it is all about striking the right balance. It is a good idea to get professional help to get the goals right.
2. Handling time
Flipping houses is a time-consuming task. Time has to be invested in readying the house, scheduling inspections to ensure that the property complies with building codes, scheduling open houses for prospective buyers, and commuting to and fro till the sale is done. This will be an additional burden for an investor who already has a day job that gives a steady income.
3. Skills
If the investor who wants to flip the house is good with carpentry and plumbing skills, a lot of money can be saved as many tasks can be DIY. Otherwise, skilled professionals will have to be hired to fix the house up for a sale. This will eat into the investor’s budget.
4. Experience and knowledge
Another important factor in flipping a house is to get the right leads. The art of picking the right property at the right time and right place is a skill earned generally through experience. A professional firm waits for the right time and right property before investing and does not rush in to buy a property. Also, it is important to not take emotional decisions while buying an investment property.
Why Rehab and Flip works the best for both sellers and investors?
Rehab and Flip are experts at acquiring homes at the best prices and passing them on to investors worldwide for wholesale opportunities. Their specialized team provides services in investment property deals, quick closing of deals, fast rehab, and quick flips. Rehab and Flip deals in various properties, including discount homes, distressed properties, historic properties, and bank-owned foreclosures, to name a few.
To ensure that you get the best deals and the largest customer reach, call Rehab and Flip, a real estate investor for immediate deals in Tampa, Florida real estate, at (813) 476-3199 today.
[prisna-google-website-translator] Turn-key real estate is real estate that is ready to rent and start earning a return. It includes the wholesale priced property, all repairs or full rehab, as well as management of the property.
BTGH sells investment real estate on the wholesale market to investors who plan to do their own rehabs, but increasing interest has motivated us to offer turn-key solutions to investors who either don’t have the time or patience to restore or rehab residential investments themselves.
What is Turn-key Real Estate Investing?
A real estate investor who purchases a turn-key property can expect to have everything taken care of so that they can start earning dividends immediately, similar to a paper investment, like an annuity or bond. Turn-key real estate investors are purchasing property that includes management of the property, repairs and tenancy. The revenue produced from the rental usually pays for all services, with about 5-20% left. What’s left over is essentially dividends. This residual income can be taken quarterly or annually, but it’s suggested to take profits on an annual basis, to prepare for any unforeseen problems that may arise.
Potential Pitfalls:
Every investment includes risk. Turn-key real estate is no different. Owning rental properties isn’t without problems, and each rental property will have it’s own unique set of them. The primary issue most property owners face is human related. It’s difficult to find reliable, long-term renters and it’s tough to find good, reliable help. For these reasons, we suggest that property owners take their dividends annually, to avoid having to pay out of pocket for repairs and other unpredictable problems.
The costs of hiring a property manager are usually equal to what you’d pay if you decided to do all of the work and property management yourself.
The lost revenue most independent landlords face by not having a long term tenant in place is equal to around 1.5 months rent ANNUALLY. The costs of repairs to their rental properties are usually RETAIL. Now, while you may be able to predict lost income, it’s not so easy to anticipate repairs. While turnkey investors are still liable for all repairs to their properties, our property managers will take care of the repairs for the cost of materials and our labor. Our labor costs are by the hour – not the job.
If you’re a small independent landlord, the costs you incur and the average revenue you lose will equal the cost of hiring a landlord.
Cost/Benefit Analysis
At BTGH, we have a small crew of construction personnel that perform all of our repair, restoration and rehab projects. They work full time and have a steady workload, which allows us to keep costs down. We pay per the hour, not the project and we manage every project ourselves, so we absorb that cost as well.
By keeping all costs under the same umbrella, costs stay lower, equaling a faster ROI for investors.
Turn-key Investment Real Estate from BTGH
If you’re relatively new to residential real estate investing, consider a turn-key option. If you already have some properties, consider hiring a property manager to simplify your life and your business.
For those who are looking for a turn-key investment option, our system is simple – “Buy one of our wholesale priced houses and we take care of the rest.”
How many times have you heard the question, “Is the stock market rigged?”
Please, let us answer that question for you – Yes. The stock market is rigged, but we’re not the only ones who believe it. Michael Lewis, a sports and financial journalist & author who wrote, The Blind Side and Moneyball states that “the stock market is rigged” by HFT (High Frequency Trading) traders who “front run orders” placed by investors. He details this process in his newest book, Flash Boys.
Basically, in the traditional sense of stock trading, buyers of stocks place orders to be filled by brokers. Today though, computers do everything. In theory, it should be a rather safe, error free system that is impossible to rig. The truth though is that it IS rigged. Watch the video to see how.
Not Only the Stock Market
In fact, many so-called “risk” oriented American industries are rigged to the point that there is almost no risk involved for the owners of one of these enterprises. That, of course, results in massive profits on the backs of individuals who don’t know any better.
Like a Las Vegas casino or the insurance industry, the stock exchange puts the risk on the individual investor – not the broker, the shared company or the exchange itself. There are managed odds that make winning possible, but because only “the house” really knows how everything works, losing is PROBABLE.
Insurance is Rigged
For instance, for the insurance industry, the goal is to take in more money than is paid out, yet for the actual insured party, the goal is to give them NOTHING – “0 sum”. What that means is that the insurance companies will fight to make sure that there is no winner. In the case of insurance companies fighting each other over a claim: They’d rather the lawyers end up with the money than the claimant – “0 sum”.
To take it further and ensure that they ALWAYS come out winners, insurance companies influence our politicians to pass laws that benefit their industry – like Obamacare, which REQUIRES every man, woman and child in the US to purchase health insurance..
That influence comes in the way of massive campaign contributions, cushy jobs for family members of elected officials and, sometimes, even bribes.
What sets the stock market apart from insurance and the casinos though, is that the Stock Exchange is SELF REGULATED.
Yeah, they make their own rules.
Stocks are only paper with a PERCEIVED value.
Real Value
Stocks are only paper, like money is only paper. You can’t eat paper. (Ok, you CAN eat paper, but it doesn’t have the nutritional value of, say, vegetables or meat.) What we mean by that is that paper’s value is “perceived” and is only worth what the majority of the general population deem it’s worth. Paper has no real, beneficial, body & mind empowering value. Stocks and money are little more than I.O.U.s.
Real Estate on the other hand, is a REAL asset. Heck, it’s even in the name: R – E – A – L.
Why buy paper, instead of say, HOUSES?
People buy stocks and collect coins and cars and dolls because of a “perceived” value that is perpetuated by others in the industry… and the stock market is a VERY POWERFUL INDUSTRY. “Powerful“, as in it gives lots of money to political candidates to influence how their industry is regulated… or NOT regulated.
You see, the stock market is self-regulated, meaning that it makes it’s own rules and passes down punishment to those it regulates, with no (or very little) influence from the federal government. This of course keeps the general public from understanding how the industry really works.
Ignorance is bliss, right?
Self Regulation?
Self regulation is the fox watching the hen house. Self regulation is little more than a promise to the American people to do what’s right… when they get caught by the American people doing wrong. However, if no one gets caught, then obviously no one was doing wrong. So, obviously, self regulation puts the burden on the common citizen or “whistle-blowers” to speak out against those industries that are supposed to be regulating themselves.
And for their diligence and commitment to the American people, they’ll probably be killed.
The real problem with self-regulation is that people are inherently lazy. We don’t want to do any more than what actually NEEDS to be done.
On top of these horrible revelations of political and monetary gluttony, we’re right in the middle of the 3rd biggest stock bubble in recorded history! Read this article in Market Watch to see what we’re talking about. There’s even more here.
EPILOGUE
So, the lesson in all of this is to just save yourself some stress and aggravation and buy some investment real estate already.
Matt, one of our sales managers went to check on one of their properties which was set to close in 2 days. There was a little drywall repair that needed to be done before closing day.
We’d been repairing this particular house and getting it ready for the market for months, and it hadn’t been lived in for nearly a year, but when Matt pulled into the driveway, something felt different. There was a storage trailer on the side of the house and there appeared to be some recent activity in and around the house that made it feel… inhabited. Matt assumed that one of the neighbors had parked their trailer there because they just didn’t have any room in their own driveway, and he just ignored the other things. However, when Matt put his key in the door, it didn’t work.
Then he heard children. Was someone squatting on their property?
Immediately, he called Chris and Jim, who rushed right over. A quick inspection of the area led them to think the worst. Jim knocked on the door, but got no answer. All 3 of them could hear activity, so Jim banged on the door MUCH louder. The door opened a crack, and a short conversation revealed that the occupants had rented the house from someone unknown to any of us.
A person named “Juan Miranda” had rented the house to the new tenants for $1200/month, with a first/last/deposit price of $3600 – which they paid in CASH.
We weren’t prepared for this. We knew it was possible, but we didn’t quite believe that it could happen to us. Boy, were we wrong.
So, if it can happen to us, it can happen to you.
Not So Common
Oddly enough, while you may hear about crimes like this in the news, the truth is that this kind of scam is rare. That’s because they are one-time opportunities. It’s difficult to run a scam like this over and over again in the same city without getting caught. People don’t soon forget getting conned out of $3600, and they’re quick to tell their friends and family about their misfortune.
But that doesn’t mean that it can’t happen to you or won’t happen again.
How to Prevent Rental Fraud
How can you protect yourself from something so unpredictable?
Pay attention – Drive by your vacant property daily and look for changes that might indicate suspicious activity.
The Juan Miranda character apparently had enough time to change the locks and make some minor plumbing and drywall repairs without ever being detected. Not to blame the victim or anything, but we could probably have been more attentive.
If it’s a vacant rental property that you’re worried about, then hire a property manager. – Property managers are good at keeping houses occupied with legitimate tenants. (If you need a recommendation, we like Palm Island Property Managers)
Be prepared – We elected to pay the defrauded party to move, rather than put them through the torture of evicting them (which would have been a 45 day process). The house had already been sold, so evicting them would delay the closing AT LEAST 45 days, as well as put the property at risk for vandalism by the disgruntled party.
The headline for much of this year has been that home price gains are easing. Prices are still higher compared to last year, but not nearly as much as they had been. Now, suddenly, it looks as if home values could actually go negative on a national level.
“That will be the first time collectively, as a nation, we’ve seen prices drop since the low point or the trough of the housing crisis,” said Alex Villacorta, vice president of research and analytics at data firm Clear Capital.
Villacorta points to a 1 percent quarterly home price gain from the second to the third quarter of this year. Last year that quarterly gain was 3 percent.
The headline for much of this year has been that home price gains are easing. Prices are still higher compared to last year, but not nearly as much as they had been. Now, suddenly, it looks as if home values could actually go negative on a national level.
“That will be the first time collectively, as a nation, we’ve seen prices drop since the low point or the trough of the housing crisis,” said Alex Villacorta, vice president of research and analytics at data firm Clear Capital.
Villacorta points to a 1 percent quarterly home price gain from the second to the third quarter of this year. Last year that quarterly gain was 3 percent.
“The discouraging thing about that is, yes, we’re still in the positive, but that 1 percent has been waning from that three percent, and this comes after what should have been the most active buying season in the housing market for the summer that just ended,” he added.
The West, which has some of the largest metropolitan markets in the nation, has seen a huge drop in distressed sales, as fewer properties go to foreclosure. At their peak in 2009, just over half of all sales in the West were of distressed properties; today that share is just over 12 percent, according to Clear Capital. Investors, consequently, are moving on to other markets in the South and Midwest, where there are still bargains to be had. The West is therefore seeing sharper drops in home price appreciation. “And that is why the West is really that leading indicator, the canary in the coal mine, because as the West goes, both on the downturn and in the recovery,we’ve seen the rest of the country go as well,” said Villacorta.
A report from John Burns Real Estate Consulting ranks much of California in its “overvalued markets” category for September, but still sees continued price appreciation in 2015, albeit at half the rate of 2014.
Over at CoreLogic, which also tracks home prices, economist Mark Fleming is skeptical. “I suppose you can never say never, but realistically there does not seem to be any particularly strong reason why we should see sustained declines in house prices.” CoreLogic reported home prices nationally in August up 6.4 percent compared with August of 2013. That includes sales of distressed properties. In the summer of 2013, however, price appreciation was about twice that. Fleming says the drop in appreciation is welcome, a sign of a healthier market. “Many of those Western markets overshot equilibrium by a lot,” said Fleming. “Now we are moving toward things driving the housing market the way they used to.”
Demand, an improving economy, and more jobs. Those should help the housing market improve. They are not, however, helping first time home buyers to be able to afford a home, at least according to Credit Suisse, which reduced its estimates for housing starts accordingly.
“While housing still looks affordable usng conventional assumptions, we see first-time buyer housing costs approaching prior peak levels,” wrote Credit Suisse analysts in a note to investors. “The combination of higher mortgage insurance costs, higher interest rates, and higher home prices have already brought affordability back to the long-term averages for first-time home buyers.” They say home prices will see just 2 to 3 percent nominal growth in 2015 and 2016, with added risk as interest rates rise.
With affordability no longer a compelling motivator, and consumer confidence in housing weakening, at least according to these analyses, home prices don’t have quite the trajectory some had predicted. Whether they fall into the negative, even briefly and even due to seasonal factors, the impact on the nation’s home builders as well as on potential sellers could be damaging. As for the wider economy, it is unlikely to be able to rely on housing any time soon as a significant driver of growth.
Written by Mike Slatton, Political & Economic Analyst for BTGH
How to Vote for Your Investment
It’s almost election time, and this year everyone hates the Democrats – except the Democrats, of course – but is it smart to vote for the Republicans?
This time around, yes, but sometimes it’s smart to vote for the Democrats, too.
Basically, if you always vote for your investments, you’ll find yourself voting for both sides of the isle, at one time or another.
Bubbles, man. Market bubbles.
So what the heck are we talking about?
Buy & Hold, or Flip
Everyone has seen or experienced a market bubble, but few people seem to understand how they’re created. Well, lucky for you, we’re going to pull back the curtain and reveal the absolute, all-time secret to successful real estate investing.
You’re going to kick yourself for not realizing it sooner.
Regardless of what you’re investing in – whether it’s stocks, real estate, gold or rare automobiles – there are peaks and valleys to every market. Knowing what causes the peaks and valleys is what helps the rich get richer.Don’t Blow It!Those who don’t understand how bubble markets work, end up:
Don’t Blow It!
Those who don’t understand how bubble markets work, end up:
…holding too long
…buying at the top
…or buying after the bubble bursts.
If you’ve done any kind of investing before, then you’ve probably done one of these 3 things. The reason why is because you were not prepared for any of it.
Long Term vs Short Term Strategies
No one wants to wait a long time to get rich, but timing is everything, and sometimes a windfall or significant injection of capital is unpredictable. Investing in tangible assets when you have money and adopting a “buy and hold” strategy is more about timing than it is strategy. There will always be bubbles in every investment cycle. The difference between a long-term or short-term investing strategy is knowing when the bubble is going to grow and burst.
As investors, we know that capital needs to be invested quickly, otherwise it will be spent. There are always improvements that need to be made and everyone wants to drive a nicer car, but if you KNEW when the market was going to take off and peak, you would probably be a little smarter with your money.
So what do bubbles have to do with voting?
How to Invest when Republicans are in Office
Democrats
Consider what Democrats stand for. The party platform asserts that government spending provides “good jobs and will help the economy today.”
This is relatively true.
If you look at statistics (and who doesn’t love statistics ), Democrats are better at creating jobs, thereby stimulating the economy in a manner that results in slow, steady growth. Basically, if everyone has a job, then everyone will spend money.
Come on, Republicans! Don’t get mad! Statistics don’t lie. Regardless, that’s NOT what we (INVESTORS) are interested in.
The reason people don’t believe statistics (relative to politics) is because the aftereffects of a president’s (or other politician’s) term may not be felt until YEARS after they’re out of office.Many Democrats are adherents to Keynesian economics, or aggregate demand, which holds that when the government funds programs, those programs pump new money into the economy.
Keynesians believe that prices tend to stay relatively stable and therefore any kind of spending, whether by consumers or the government, will grow the economy.
So, after 8 years of DEMOCRAT managed “stability”, we’re ready to shake things up. We’re tired of boring, slow economic growth. We (Americans)want it(food, money, sex, 70″ TV’s, profits)NOW!
There are times when government funding is good for investors, and there are times when it’s not. That’s why it’s important to know history.
A quick analysis of federal housing funding will show that both Democrats AND Republicans have approved measures and supported funding for AFFORDABLE housing for low and middle income Americans. These measures and funding regard mortgage rates, building, rehabilitation of neighborhoods and more. All of these things either create more inventory, or put a stress on the current inventory.
Currently, America is enjoying very low interest rates, resulting in a steady increase of general home purchases and housing starts (new homes being built).
While things are pretty good now, they’ll get even better under the Republican control. This is why:
Within the first term of a Republican takeover, Obamacare will be repealed (or replaced), and small business owners will get a little tax relief as themarginal tax rate recedes. Bank accounts will swell a little, and credit scores will rise. Consumers will then start shopping for bigger and/or newer houses. To prevent a bubble, the FED will try to correct the market and curb spending by increasing interest rates… and this is the start of the fireworks. At this point, banks will see an opportunity to make money on new lending, and they will create pressure on the general public to “purchase while interest rates are still low“.
We all know what happens next.
*BUURRRP*
You’d either have to be stupid or crazy to be a politician, and it seems we elect the former more often than the latter. Good for us, as it makes predicting their behavior much easier.
Right now, take the advice of Warren Buffett: “You can only buy when everyone else is selling if you have held your fire when everyone was buying.” You can apply this advice directly to any investment market – especially real estate.
So, if you have capital, BUY houses, condos and other rental properties now, AND HOLD. Rent them out. Make some subtle improvements to keep them rented, and just be patient.
The market is holding steady – right now.
Within 2 years after the election of a Republican President, you’ll see the bubble start forming, and it’ll take 3 or 4 years to really build.
Currently, as real estate investors, we’re in a great position. The housing market is very stable and there is just enough demand for new houses that all housing values are gradually increasing. When the Republicans take office in 2016, educated real estate investors will start licking their lips and wringing their hands as the general consumer population thinks about how they can get a bigger house with all of the extra money they’re making at work and the money they’ve saved on taxes.
SELL!
3 to 5 years (2019 – 2021) after the election of a Republican President in 2016, when EVERYONE seems to be talking about getting INTO the real estate market, that’s the point you need to sell… and that’s when educated real estate investors WILL sell. In fact, that’ll be the point when the bubble is actually recognized as a “bubble”. Interest rates will start rising IN RESPONSE to the increase in home sales.
And the beast will start feeding on itself!
Our actions of selling when everyone seems to be buying is what creates the final surge to the peak of the frenzy. Then, when OUR actions of selling stop, and the interest rates are so high that consumers and investors stop buying… the market will correct itself, and the entire housing market will do a repeat of 1973, 1979, 1989, 1996 and 2006/07. The weekend investment warriors and shade tree investors will quickly pull out and cut their losses. Foreclosures will increase again, and in 5 years we’ll be buying all over again with a NEW long term strategy in mind.
That’s also how the stock market works, and why the majority of new stock investors also lose money.
Peaks Don’t Exist
Many new real estate investors will 2nd guess themselves for selling too early and not getting the optimum value for their real estate investment. What they don’t realize is that they got out right on time, as it was their ACTIONS that contributed to the creation of the market peak. In fact, selling at the top of the market is IMPOSSIBLE, because the peak market value for real estate is really just carried upward by momentum of the buying frenzy. The value peak of any property is the value point where people begin to say “no”. Once the buyers begin saying “no”, values ALL begin sliding back down.
History of Federal Housing Legislation and Other Stuff
George Santayana, a Spanish philosopher, said “Those who cannot remember the past are condemned to repeat it.” So, if you’re bored or actually interested in learning more about all of this stuff, here’s list:
When Republicans are elected after Democrats have been in control, the first thing they do isstart slashing taxes to stimulate the economy and accelerate growth. The “trickle down” effect is supposed to result in companies hiring more employees, but only drug addicts would think that hiring more employees would miraculously result in more revenue. CEO’s and business owners who are AWAKE look at those tax cuts as additional capital. They stop buying lottery tickets and instead invest in less risky assets like real estate, stocks and collectibles.
And so it begins…
Buying and holding real estate is essentially buying and renting it out. The time to start selling is when EVERYONE is buying. The time to start buying back is when EVERYONE is selling.
In 2016, put your investments first, and vote Republican.
To see the future, we must look at the past. If you take time to look at all of our housing bubbles, they all started with government intervention, resulting in the collapse when the plug was pulled on the program.
Tax breaks for home BUYERS creates a sellers market, inflating home values. Government funding provided to builders to create more affordable housing increases the inventory of homes, thereby bringing the values of the current inventory down.
For every push, there is a pull. For every Yin, there is a Yang.
If you know who is likely to do what and WHY they are likely to do it, then you can more accurately anticipate the next market inflation, the market peak and the bubble burst.
That’s why America is going to vote for a Republican President in 2016 – and in all honesty, it doesn’t matter who the Republican candidate is. With few exceptions, every elected official is a tool of their party. That means that they will do whatever the party wants. So, what does the party want?
