Real Estate Investing In 2013 (A Look On The Inside)
Real estate investing in 2013 looks to be a great choice for entrepreneurs
As we wrap up 2012, I thought I would share our vision for 2013 and what we see as the real opportunities in real estate and challenges in the coming year.
Let’s start with the good stuff…
The media is your friend right now in real estate and it will begin to fuel the recovery in the housing market. As the media starts to report improved results for new home starts and the general market recovery, more buyers will come into the market AND more sellers will begin looking to make that “move” that they’ve been putting off for the last 6 years.
Use this to your advantage. Actively share and promote positive news about real estate on your blog or newsletter. Talk about the real estate market and encourage your buyers and sellers to move in 2013. This will be a lot easier than it has been the last few years.
Real estate investing success is always based on having a really good understanding of knowing where you currently are in the cycle. Money is being made in up markets and money is being made in down markets. The reason for this is that smart real estate investors understand where the market is and where to focus their attention.
So being at or near the bottom now and the real estate market beginning to turn means that you should start to see inventories tighten up in your market (if they haven’t already) and you should start to see steady increases in pricing. The deals will be tougher to find at the real estate auctions, bank reos, and short sales. Don’t get me wrong – they are still there – but they will just be a little tougher to come by.
Real estate investors will need to focus their attention on direct seller marketing in 2013. You will need to focus on seller marketing that generates unique seller leads – leading to noncompetitive deals. Real estate deals with plenty of spread, but no competition. Get comfortable marketing directly to sellers using Craigslist, Youtube, direct mail, SEO lead capture pages, vanity numbers (like 1-800-SELLNOW), and guerilla marketing (door hangers, business cards, billboards, street teams).
Now what about the buyers? Well, the data still points to a massive influx of cash buyers coming into the market on a monthly basis. Last month alone, there were nearly 300,000 real estate cash transactions recorded in our system. That represented roughly $25 billion in real estate transactions.
The point is, cash buyers are here to stay. Too many people were “beaten up” by the market and simply are not “credit worthy” in the this environment. The banks are looking for reasons to turn people down, not loan them money. They are doing everything in their power to hoard cash reserves and do the minimum necessary to provide cash to the housing market recovery. They are still facing huge loses and it will be a few years before they loosen up enough to provide any real value to the real estate investing community.
Buyers simply have no choice. If they are serious about building a real estate portfolio, they will have to use creative financing from a private lender (cash to you) or they will need to be liquid themselves (cash to you).
So my advice…
Get a gameplan and a budget together on what you are going to do to generate uniques deals each month. Is it going to be bandit signs? What about direct mail?
Whatever it’s going to be – YOU MUST EXECUTE starting in January and then be relentless. DO NOT STOP FOR 12 MONTHS.
Creating these leads is all about consistency and repetition. People have to see it every month, every week, every day. They need to remember your name, your brand, your phone number (Again, this is why we created 1-800-SELLNOW).
DO NOT GIVE UP.
Now the best part of this is that if you will follow our simple Reverse Wholesaling method, then you will know exactly where the buyers want to purchase, what they are willing to pay, and how soon they want it.
When you have that kind of information from a cash buyer and you basically have a “purchase order” in hand, then the marketing for sellers becomes infinitely easier. There is no guessing involved. You become a very SMART real estate investor. You are simply filling orders.
So focus on engaging the cash buyers, then on creating deals directly with sellers.
Kent, I have been buying, renovating, renting and flipping over 100 foreclosed / REO / shortsale houses in 7 states since 2009. We currently have about 40 rental houses producing rental income of 20 % gross plus per year.
My law partner and I are attorneys and we have written and raised the investor capital from accredited investors since 2004. We have done 4 investmentr funds that were filed with the SEC and several state securities departments.
Our newest fund is this Distressed Realty Fund I, LLC that is rISING AN ADDITIONAL $5,000,000 selling $25,000 units selling through stock brokers..
I would like to talk to you about business ideas.
David Zussman cell 714-34-0785 email [email protected]
Thank you for such powerful information!
Hope with a plan for our success!