The real estate market is changing in some very significant ways. Here are seven things every investor needs to know if they are going to make it in 2019…
One of the latest scams to hit the real estate world is fake clicks and PPC fraud. Scammers have spent enormous sums of money to buy up websites, code and build bots that click on ads, to earn them advertising revenues. This is a multi-million if not multi-billion dollar problem. If it wasn’t already hard enough to get real estate leads today, this means that a lot of the ad spend and clicks real estate investors are getting on their Google and Facebook ads are junk.
In turn, this can impact the data, and make some reports appear very misleading. It is important to factor this in when running these online ads and making decisions on data, as well as balancing other types of lead generation directly to motivated sellers and other customers.
Some real estate professionals are already reporting that lenders are tightening up as they see the market correct and values decline. This is going to especially make it harder for end retail buyers to get loans, on top of the rising interest rate environment we are in.
This will make seller financing even more important for exiting investments, while more opportunities to acquire properties through seller financing should emerge. Especially, as more US households could fall underwater on their mortgages again.
Don’t rely on anything you read in the headlines about ‘soft landings’ or it being different this time. Know your history of real estate, market cycles and larger economic cycles. Especially if this is your first time operating in a period when both the stock market and real estate market appear to be correcting at the same time.
Check out the underlying data for yourself, so that you can make wise and informed decisions.
This will be the first time 99% of those currently in the real estate industry will have experienced the ride down in a declining market for themselves. Most have zero experience on how to handle it.
They don’t have plans for sustainability, or know how to optimize their business for profit and survival. Get tuned into how to market smart, create scalable operations, and even grow during these times.
All of the above make having a strong real estate mentor even more valuable in the month ahead. If you can find one of the few experts who have lived through previous crashes and are still going, do whatever you can to get them to mentor you. It could make all the difference in whether you can survive and thrive in the months ahead.
Even if things don’t get that bad, they’ll show you how to excel and scale your business in the most efficient and profitable way.
Real estate mastermind groups can also act a lot like mentors. They can also connect you with a group of peers and vendors so you can work together and have an advantage in the market. Other experts in your mastermind group can help with optimizing marketing, accounting and taxes, capital structure, legal structure, and venturing into new lines of business to maximize revenue capacity.
Markets are going to be much different in 2019 than they were in 2017. Some have peaked, others will just be heading towards their peaks. Make sure you know which is which, what data to watch, and where to flip houses for the most profits, ROI and for being in and out the fastest.