Well, the time has come… the market is shifting. Are you having trouble Finding Deals in this Market? Those who are investing in real estate, looking for good deals are getting a little tougher it seems. A quick little background: Legacy Frontline Team is a real estate investment company that primarily does property redevelopment, we also assist other investors with private/hard money lending. Here are some of the things we are seeing right now in the markets we invest in. Then continue reading to see what we are doing to overcome these challenges/changes.

  • Low inventory on houses

In our active markets as well as most of the country, home prices are increasing at a rapid rate. Therefore,  some property owners want to wait to sell because they may be able to get a higher price a few months down the road where others are trying to capitalize on the market right now.

  • Lots of investors

There are really good deals out there right now but with all of the buyers/investors looking, most properties are going into a bidding war and being sold above listing price. We’ve seen a lot of new investors who aren’t too familiar with the process, come in and outbid everyone else than realizing the deal doesn’t make sense and they’ll lose money. 

  • “Hours” on Market

Yeah, this may sound funny because typically you’ll see “Days on Market”. Right now we are noticing that we’ll see a property that was listed 10 hours ago, send it to our realtor for comparables, and find out that the property is already under contract. This means knowing your numbers and your capabilities and be ready to make an offer. 

  • Cash Offers and Quick Closing

There are so many investors out there who are putting in cash offers rather than financing the property. This means they can close very quickly and offer more. Which makes it harder for those who are using financing for investment properties. Makes sense why they say “cash is king”. It’s good to keep this checklist open and having all of these documents ready to go when you find your deal! 

  • Material Costs

Material costs are through the roof right now! For example, we’ve been in the process of planning some new builds and we put together the scope of work a couple of months ago. A couple of days ago we went to revise the scope of work because the prices have changed, guess how much the price went up? $25,000! Yikes!

There is so much more that goes into all of that but I’m sure you get the point so we’re not going to ramble. After seeing these changes we decided our best choice would be to change directions a bit. We’re still actively looking for properties, we’re just approaching it differently.

How? 

  • Off-market deals!

This may take some out-of-the-box thinking because let me tell you, they don’t come easy! Put together a plan to get in touch with property owners. If you need help with this, reach out to NBS Consulting! They helped us come up with a plan to find off-market deals and they can also help you! 

  • Rentals!

We have spoken to a ton of investors who have shifted their search from fix & flips to rentals. There are quite a few buy and hold deals available in our market but with that comes … tenants and other stressors. Also, another plus to getting into rentals right now is rates are so low! If this is what you are wanting to do, reach out to us! We would love to help get your deals financed!

Things are definitely changing and will probably continue changing as we go forward so be prepared! Have a plan in place to keep your business moving forward. Please reach out to us if you have any real estate needs, we are happy to help! 

Thank you so much for reading, check out our other blogs!

-Legacy Frontline Team