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The real estate market is consistently changing, and staying current with the latest news and trends is important. In a recent conference call, a group of real estate investors discussed the current state of the market and what they saw in terms of trends and shifts. Here’s a breakdown of the conversation:
The call started with a brief update on the state of the real estate market. While there hasn’t been any significant news in the last week, the number of people applying for mortgages is decreasing. Wells Fargo’s CEO recently said they anticipate a 50% drop in revenue from the mortgage business this year compared to last year. This decline is largely due to fewer people doing refinancing, but there is also a decrease in new people looking to buy houses.
Despite this slowdown, there is a positive trend for real estate investors in the market. More homeowners are becoming motivated to sell their properties, feeling like they’ve missed the boat on sitting at the top of the market. This has led to more flexibility with pricing and offers, making it a suitable time for real estate investors.
The group of investors discussed their investment strategies, focusing on properties in the affordable range of $125,000 to $200,000. This price range allows for multiple exit strategies, including selling as a turnkey or to a homeowner. The group also discussed the importance of considering the monthly mortgage payment when pricing a property. With interest rates increasing, people’s affordability has decreased, affecting the market.
The conversation also involved staying on top of market shifts and changing investment strategies accordingly. For example, the group discussed doing as many assignments as possible rather than closing on a property and hoping to exit at a certain price. Doing reverse wholesaling was another strategy discussed, where the investor focuses on what a buyer would be willing to pay and negotiates based on that.
Overall, the conversation highlighted the importance of staying current with market trends and being adaptable to investment strategies. While the current state of the market may seem daunting, there are opportunities for those willing to be flexible and make changes accordingly.