Real Estate Investors: Timing is Everything!
If you are buying real estate as an investment, you know that timing is everything. It’s not always easy to find the ideal investment property, but good planning and timely action will ensure you secure houses with strong profit potential. Let’s take a look at a few other ways that timing is important for today’s real estate investors.
Time to Buy
We’re in a seller’s real estate market, which means properties are moving fast. There is more buyer demand than seller inventory, which puts investors at a disadvantage. Even houses that are in poor condition can be put on the open market and receive offers within days. If you are buying publicly listed properties, you have to be ready to act fast and you may have to be prepared to offer a little more. A cash sale is still very appealing to many homeowners because it simplifies and quickens the closing process. They may accept a lower price if the other benefits are worthwhile.
Otherwise, you will want to seek out off-market deals to find the best investment opportunities. You can join a home buying network like PropertyLark to get access to great off-market houses. You can search for “For Sale By Owner” properties or those being sold/auctioned off cheaper because of tax default or foreclosure. You can do your own marketing to attracted motivated sellers who want to sell fast for cash rather than going through the traditional real estate process.
Even in these off-market deals, you have to be ready to act quickly to beat other investors to the punch. Again, demand for all housing is high right now and you are likely not the only real estate investor in your area. It’s smart to have all your financing in order so you can make a cash offer and get the deal done without any complications or delays.
Time to Renovate
Once you have secured a good investment property, you have to get it ready for the next stage where you can turn a profit from it. This will likely involve a renovation or at least some strategic upgrades and repairs before it is ready to be rented out or resold in a flip. If you are a wholesale buyer/seller, then you need to find the next investor as quickly as possible so you aren’t stuck holding the property (and the costs of owning it) for too long.
Again, planning is critical in this stage. You should have run thorough property analytics before buying the property. Then, you will set a property-specific budget and renovation timeline. The more you plan and prepare, the better your timing will be. Ideally, you can get the property renovated and ready to rent or sell. Remember that until the unit is sold or rented out, all of the expenses are coming out of your pocket. Don’t let the process drag on too long. Remember the goal is to make money!
Time to Profit
When all is said and done, you will have a property that is move-in ready. You can then flip it for an immediate return on investment (ROI) or hold it and rent it out for long-term gains (appreciation plus monthly rent payments). Take all the necessary steps to get the unit sold to new buyers or occupied by tenants. This is another place where inexperienced real estate investors often lose too much time. They hold out for the highest price or the “perfect” tenants and end up leaving money on the table. When it comes to rental properties, you also have to factor in vacancy periods as lost time and money. Is it better to have a dependable renter at a lower rent price who will stay there for years or shorter-term tenants paying higher prices with longer vacancy periods in between?
For all your real estate investment needs, you should join the PropertyLark home buying network. Our exclusive network gives you access to off-market deals and other resources that will help you maximize your opportunities. Fill out the form to the right to see if you qualify for an exclusive membership.