Minnesota Real Estate Investors Association, Inc.

Minnesota Real Estate Investors Association, Inc.

Tag: Market Timing (2 articles found) - Clear Search

It’s a vicious cycle


Bank financing is getting harder to qualify for, interest rates are rising, and people are getting scared.  This is exactly what most investors have been waiting for.  Opportunity is brewing, the question is, are you ready for the coming storm? 

Inflation is destroying the value of the dollar. Every time this has happened in the past, people look for other investments and commodities to beat inflation or at lease does not lose too much value from it.  Hard assets like gold and silver tend to do well in times of out-of-control federal spending and inflation.

Real estate is another hard asset that does well over time. This is why so many people are looking to put their money into real estate.  Real estate investors are struggling to find good deals right now, but as the storm approaches, deals will become more readily available, however, the easy bank financing is also drying up.  This presents a problem to investors who have not prepared for this and started to raise their own private financing. 

Having access to private money is a game changer and will separate the doers from the wantabees.  You see most people get into real estate when things are going up because they heard about all the money that can be made in real estate.  However, that money was mad by the dowers who bought when everyone else was getting out and then resold years later to the new investors getting in.  It’s a vicious cycle, the question is, when will you be the buyer?  When everyone is getting out so that you can be the seller when everyone is getting back in, or when everyone is getting back in?

Is Now the Time to Sell?


The simple answer is yes.  The correct answer is a little more complicated than a simple yes or no.  There are many factors to take into consideration and there are pros and cons to selling at any time.

Here are the top 3 things you need to consider before answering that question for yourself.

  1. Do I/we need to sell right now?
  2. Do I/we need to buy another house when I/we sell?
  3. Why do I/we need to sell?

1) Do you really need to sell right now or are you just thinking about selling because of the high market prices?  There are many reasons to sell, but high market prices is probably the worst reason unless you are an investor.

2) If you need to purchase another house in order to sell, then you will have a hard time in a strong buyer’s market finding a replacement home.  In this case it would be best to find a new home first, then sell your existing home.  The problem is if you sell your current place, you will probably have to overbid on a property to get one under contract to close on your time frame.

3) Why do you need to sell right now? If you have a reason to sell then you will be able to make logical decisions because you have a clear reason.  If you just want to sell to see what the market will bring or to access cash from the property, then you might make some bad decisions because you don’t have a clear reason why.

If you have a clear reason why you have to sell, then give us a call because we have flexible options to might make the process a much more smother transition and most people tell us that it reduces their stress level knowing that they have a buyer that can work with them on their time schedule.