House flipping, rental property investing, wholesaling, and every other type of real estate investing has had an incredibly profitable run-up over the past two years. Days on market shrunk as buyer demand soared and supply dried up. Flippers, rental property investors, and everyone in between saw profit margins they couldn’t have imagined before. But, now that may all change.
Rising interest rates have stopped many would-be homebuyers from making offers, forcing them back into renting instead of sending in over-asking bids. Now, home equity and flipping profits are starting to see a lag, as mortgage applications significantly slow down, showings become far less crowded, and price cuts become the new norm. Are we at the beginning of a real estate recession, and if so, how can we best prepare to still profit during the downturn?
James Dainard, master flipper, investor, and “On The Market” guest, has had to readjust almost every way he analyzes real estate deals. He’s managed to cash in some serious flipping profits over the past two years but understands that this year will be different. He shares exactly how smaller landlords, real estate investors, flippers, and wholesalers can “pad their profits” so they don’t get burnt on their next real estate deal.
In This Episode We Cover
Why price drops have doubled even though many homes are selling above asking price
Seller FOMO (fear of missing out) and why now may be a great time to find phenomenal deals
Why cash flow has reemerged as the most important investing metric for rental property owners
The 1% rule and why using it on every property could cost you money
Readjusting your expectations as a flipper and how to “pad your profits” the right way
Whether or not you should “trade up” your rental properties to protect your portfolio
And So Much More!
Links from the Show
BiggerPockets Forums
BiggerPockets Agent
Join BiggerPockets for FREE
On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Dave’s BiggerPockets Profile
Dave’s Instagram
Mortgage Applications Decrease in Latest MBA Weekly Survey
Nearly 1 in 5 Sellers is Dropping Their Price
Connect with James:
ProjectRE with James Dainard
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-13
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!
Learn more about your ad choices. Visit megaphone.fm/adchoices
