We keep hearing that the local market is not great right now for investors and many are investing out of Maricopa County. It has been my experience that investors can thrive in any market as long as they do not focus on one thing. This current market may not be a good market for quick fix and flips or for assigning contracts as the margins are not as good as they have been in the past but it is a great time for buy and hold. Buy and hold is when you buy a property throw some lipstick on it and rent it out with the intention of making your money on the rent and equity over the long haul. It is also a great market for commercial properties – especially apartments. Real estate is constantly changing so it is important to study the market and go with the flow. This type of investing will keep your business making money in any market. AZREIA is the best resource for information on the market so make it a point to get yourself to the meetings and round out your investing strategy to include all types of investing so that you have the experience, contacts and knowledge to make money in any market.
If you haven’t heard Tina w/The Cromford Report, her outlook is usually pretty spot on. They predict that flip activity is expected to decline in 2019 which is in line with what we are already seeing with those types of transactions slowing. They also see sales prices rising at a slower rate, which for investors, means the spread could potentially be smaller on those rare flip opportunities. These are all reasons to be looking for other types of investment opportunities!
Your title partner will often offer classes on the current market and resources to help you identify potential properties to purchase. Also keep in mind if you are investing out of state, it is a good idea to start with your title partner to help you find good out of state contacts for your title and escrow needs. There is no end to the different ways to make money in real estate so don’t let any market slow you down.
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By Jill Bright, AVP/Sr. Sales Executive Chicago Title