Invest in Real Estate the Right Way During Inflation

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What is the right and wrong way to invest in real estate? If only. It might be great if we could learn the “right” way or maybe the “best” way to invest, according to the Property Records of Florida. I can make sure there’s no “right” “wrong” or even “best” way to invest in real estate.

Why is This? It Depends on These Things

  • Your objectives
  • Your location
  • The property
  • The customer and probably the most important, the economy

The late ’90s was a great time to renovate and sell (though we didn’t because we didn’t contain the necessary cash to renovate, nor did we have the success necessary to entice lenders). Why was it a great time to flip? Because it was easy to sell. For those of you who weren’t in the industry then, knowing that all you needed in the late ’90s for being approved for a mortgage seemed to be a pulse. And what have been houses appraising for? Anything you needed these phones. Simply tell your appraiser what your buyer needed the house to appraise for and, as promised, that’s what the appraisal would grow to be, sometimes to the dollar.

The Shifting Landscape of Real Estate Investment: Navigating Changing Lending Requirements and Property Values

Let’s fast-forward to 2022 as well as we wonder where those loan officers and appraisers have gone. If you tried to sell a property in the past few years, you know that it may be tough for buyers to get a loan in fact it is an effort to get the exact property to appraise for as much as needed. Lenders have tightened their asking for requirements and appraisers are under considerably more scrutiny since the 2008 home finance loan meltdown. Not that either of the people is a bad thing, just the fact we work with today.

And this reality is in constant flux. Selling, and therefore flipping, is actually much easier once more than it was recently for assorted reasons: Lenders seem to be lending again, meaning buyers are back on the market looking for deals while prices and interest levels are low causing the market to stabilize somewhat leading you to increased house values. As you can see, the “best” way to invest in real estate is not necessarily the same year in and year out. When lending and values tend to be strong, sell, flip, wholesale, retail – unload the dogs from your portfolio.

The Importance of Adaptability in Real Estate Investment: Navigating Changing Market Conditions and Rental Demand

For the reverse overall economy, when lending froze and the particular economy depressed, we were thankful for being holding rental properties as we had more tenant applications than vacancies. Previous homeowners were losing their homes (for various reasons) and needed to downsize or just rent because they no longer qualified for loans.

Back when lenders were giving loans with not even requiring the borrower for you to qualify (no doc loans), it was difficult to get a tenant. The moral of this story: there is no “right” way or “wrong” way to invest in real estate. There are certainly “better” ways based on the circumstances discussed above, but don’t wait until you’ve identified the “right” way to invest or you’ll miss a huge amount of opportunity.