If you’ve been reading the blogs or checking out the various videos that I do, you know that the current real estate market has been a bit wonky.
And I’ve mentioned a few things to both my AstroFlipping student members and others on how we can navigate the market right now, despite the raise in rates and the correction that’s most likely in effect.
But it’s one thing to hear this from me. It’s a different thing to hear it from other experts.
One challenge he encountered was one that I think a lot of us have gotten these last few months…
The gap between what sellers think their homes are worth and what investors believe their homes are worth on the market.
This isn’t exactly a new thing – many sellers will look at the price of their property through sites like Zillow and go off that. The problem with that is, they aren’t taking stock of any changes that have been made or any damage that’s been done, etc.
As Chris, Pace, and I discussed, the people who have their eyes and hands on the pulse of the market are real estate agents. That’s why it’s super important that you are using agent outreach to learn what’s happening.
For Chris and his franchise team, they’re looking at a reduction on prices for the properties they’re selling. That means if they’re looking at a home at $300,000, they would need to tell their fix and flipper they were looking at about $245K.
The sale price might be at $285K, to be on the safe side, and something that Chris wouldn’t guarantee or expect because of the changing landscape.
Or as Pace calls it, “a FLRRR” – basically, a flip that became a BRRR or a ‘Buy, Rehab, Refinance, Repeat’ property.
Now, this isn’t necessarily a bad thing, as we discuss in the video below:
Atlanta is one of the hottest markets right now and Chris describes a property that they’re in the process of working on.
It’s a great location for a property – near an up and coming neighborhood and only a few minutes from downtown. And because of the desirable location, Chris and his team decided they would work this as a fix and flip, rather than a wholesale.
That’s the awesome thing about these little adjustments to the market and why successful wholesalers and real estate investors are able to stay on top during these market shifts.
Because we shift our focus!
There are so many different avenues that we, as wholesalers, can go down that don’t necessarily have to be wholesaling. That’s why building relationships with others is crucial!
Not only does Chris tell us how he got this deal, but later he tells us how the team calculated the cost of property repairs in seconds. It’s pretty dope!
Guys, just because the market is weird doesn’t mean there isn’t an opportunity for us, for our buyers, or for our sellers. You just have to go and find it.
And if you need help to do that, then come and join us at Astro.