Once the first quarter of the year is in the books, Real Estate Investors will begin to ramp up for an active spring real estate market. But in this Real Estate Investing world, only the most prepared investors take advantage of the opportunities that will come in with in those next few weeks.
Real Estate Investors Work On Business Strategy
After Real Estate Investors get through the second quarter of the year, that’s about the best time to reevaluate a rehab strategy for the next nine months that remain. To best way Real Estate Investors shape their business strategies, is to listen to what the market is saying. It’s best to take time to study your local market and its metrics.
Real Estate Exit Strategies:
- Inventory: Market inventory levels represents the number of homes for sale at any given time, it’ll show how long said inventory would last at the sales current pace.
- On Average, Days On Market: An average of days will represent how long a home had been listed for sale before brought under contract.
- Median Sales Price: Shows how much the average home sells for in a given market.
- Foreclosure Rate: This rate identifies the amount of homes that are in a distressed situation, these homes can play a big factor in determining local property values.
Real Estate Investors have become synonymous to cycles. When the Great Recession hit about a decade ago, it was a sobering reminder that the market is susceptible to macro level that decline drastically. Market experiences do peak but extended of a period of time.
Although, few are aware of repetitive patterns that transpire on a micro level. Within cyclical trends in the housing sector, there are small trends that have an impact on individual housing markets. Real Estate Investors know that popular neighborhoods within a specific city will be subject to a different trend from one another. Those trends are changing and evolving constantly.
This means that the strategy you have in place needs to be reevaluated on a regular basis. What may have worked on a rehab in 2010 may not be relevant in today’s competitive market.
Real Estate Investors know that updates done on a rehab need to make the property more attractive. Outdated trends and old sizzle features will turn a potential buyer off.
It would be smart to evaluate the rehab designs implemented in previous rehabs, this helps the Real Estate Investor to determine whether or not these strategies are still relevant. Try to use unbiased opinions to go through designs you deem both necessary and expendable. Don’t be scared to get rid of any designs you feel are irrelevant, today there is very little room for error in real estate landscape.
A smart Real Estate Investor will consult with a trusted contractor in their area, there will be a good chance they are aware of what is trending at the moment. Extract what you’ve learned in recent projects and perhaps include that to your next rehab checklist.
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