As the housing market transitions, here’s what real estate investors can expect—and how they can adjust.
Real estate investing can be profitable in any market, but successful investing strategies often vary widely depending on broader market conditions. As the housing market transitions quickly from frenzy to flatline, here’s what real estate investors can expect and how they can adjust accordingly.
“When there are speed bumps, there are typically opportunities for investors who are ready to act,” said Andy Heller, a veteran real estate investor and founder of the Regular Riches training program for real estate investors. “A potentially generational opportunity for investors to buy property below market. Those opportunities typically last one to four years.”
According to Heller, investors preparing to take advantage of that opportunity should do three things in advance of the downturn:
- Identify one or two acquisition strategies to focus on
- Identify funding sources
- Identify both preferred and backup exit strategies.
“Right now, they should be identifying an acquisition method such as REOs or short sales or buying on the courthouse steps,” said Heller, whose preferred acquisition source during downturns is real estate owned by the bank (REO). “Identify a source and get good at it. … Don’t be a jack of all trades, be a master of one or two.”