Sorry guys- been a long time. I’ve been SLAMMED with these REO Listings from Countrywide. I’ve sold 8 in the last 3 weeks, all with multiple offers ABOVE asking price, all within the first 3-4 days on market. Yes, the below $250k priced homes are flying off the market. We’re down to a 6 month inventory from a 14 month supply months ago in this price range, and it’s considered to be at a ‘balance market’ level. I’m not kidding- the below $250k REOs are flying right now- if they’re priced right. Email me if you want the best deals. I’ll try to update my market charts this week for you guys…
Here’s a nice little article from azcentral.com. It talks about the sub- $200k market being ‘hot’. There’s not many of facts to back it up, but, I have to agree with most of it. There’s a ton of deals out there right now, and the $200k market seems to be fairly hot. The reason being, in my opinion, is that is the AFFORDABLE price range for most buyers nowadays. So it appears ‘hot’ due to the activity going on there. The article also mentions how most of the buyers out there seem to be investors. Hmmm, I wonder why?
HOWEVER, where I disagree somewhat is that the $200k-$400k price range is where the KILLER deals are. The reason? Not as many people can afford that right now, and the majority of nicer, newer homes are in that price range. Bottom line: there are BETTER deals in the higher price ranges than the lower- you have less competition, and tons more equity. It’s very common to find deals with $50,000, $70,000, $100,000 or more in equity (read, BELOW VALUE). At the end of the day, there’s PLENTY of deals out there right now- it’s insane how easy I’m finding great deals. The day is coming, however, where they will be much harder to find, and everyone will be saying ‘I wish I would have’!
Valley Real Estate Developer Conley Wolfswinkel gave a ‘pep talk’ at an ASU Real Estate conference this week. In spite of the market’s current condition, he remains optomistic of good times ahead. The article at azcentral.com states:
Wolfswinkel said he believes the current slump will provide some excellent bargains in hindsight for people willing to go against the grain.
"You always make much more money in bad times than in good times," he said in urging conference participants to focus on buying high-quality properties.
I have to agree, fortunes are made in markets like this. If you’re capable of expanding your real estate portfolio, now’s the time to do it. Everyone wants to wait until the bottom of the market before they purchase. However, the problem is that you don’t know it’s the bottom of the market until we’ve moved back up off the bottom- and by then, you’ve missed out.
I’ve always believed that people’s true colors come shining through when they’re put under abnormal or stressful conditions. We’ve all known people in our lives who are kind, sincere and genuine 98% of the time. However, you give them a few drinks and they become mean, cold hearted, selfish and even combative. Or there’s people who completely change their personalities in stressful situations, whether it be a major life crisis, or a Super Bowl game. True we all behave differently to some extent under various pressures of life. However, I’m talking about people sacrificing their morals, integrity and relationships when times get tough.
Since the downturn in the Real Estate market, I’ve noticed a major shift in colleague’s personalities and integrity as a whole. On a daily basis I’m hearing more and more stories of investors pulling scams, stabbing business partners in the back, even taking advantage of people for their own personal gain, all while having no remorse for their own actions. True, this has always existed in this industry, but it seems to be happening more often in the past couple years.
My own personal experiences are no different. Business Associates I’ve known for years have sold their souls to the devil in order to make a few bucks, forcing me to cut all ties immediately. People who have always been honest and trustworthy have now become expert scam artists and stabbing everyone in the back. It’s sad to see those relationships perish, but I refuse to associate with anyone with those kinds of standards and morals.
From what I see, the market changed, money became tight across the country, and people panic. Instead of adapting to the changes in the market and holding your values, many people decide it’s easier to screw someone else over than to hold true to their morals and standards. Essentially, their true colors were finally allowed to shine through. To them, it’s better to screw other people over, risk going to jail and throw away trusted relationships than it is to adapt to the market. So that begs the question- does the market have control over who you are as a person?
If you believe so, maybe you’re in the wrong industry. I can assure you, that every industry is impacted by the real estate market. You’ll feel the effects no matter where you go. Is it possible to build your net worth while holding true to your morals? To be honest, it doesn’t matter what the market is doing, it’s a matter of what YOU are doing. YOU must shift the way you do business and deals. YOU must shift the way you handle tenants, vendors, and find properties. YOU must change the way the systems and mechanics work in order to adapt to the ever-changing market place. However, the things YOU must not shift and change are your morals and standards. It is possible to be successful while retaining your integrity. Yes, times are different, deals are different. What you would’ve paid 85% 3 years ago you won’t touch for more than 75% now. I get that.
The way you are adapting to this market shows every fiber of who you are as a person. Are you bailing out when the times get tough? Let me throw this out to you- maybe the market isn’t ‘tougher’ right now- maybe it’s just DIFFERENT. Are you freaking out while waiting for the market to turn around? Are you sacrificing and taking risks that you normally wouldn’t take? Maybe a simple change in the mechanics of your business is all you need. I promise you, this won’t be the last change in the real estate market. It is constantly changing, and as a result, you must change your business systems as well. If you find yourself changing your morals and integrity, that should serve as an alarm going off in your head that you’re not adapting properly. It would probably serve you to take a step back, realize that MANY people are making great money in this market, and all you need to do is shift the business mechanics, not who you are as a person.
I know for a fact that those who sacrifice their integrity pay for it, one way or another. Those who maintain their integrity and shift their business systems to adapt to the market, realize ongoing success and wealth throughout their careers. Sometimes a hard look in the mirror is the toughest thing you can do, but is usually the most profitable. If you’re not making as much money, or expanding your portfolio as rapidly as you’d like, maybe it’s time to take a look inside and ask yourself some tough questions.
