I wanted to take a minute to talk about OPPORTUNITY today. We are all looking for it. We strive to find it. And we feel successful when we acquire it.
The opportunity I am talking about today is geared toward investment real estate and where I am seeing the elusive opportunity in this banger real estate market.
With the market inventory incredibly tight in North Idaho, our “Opportunity” continues to be thinking outside of the box. Other investors that aren’t as worried about cash flow have driven prices to levels that just seem silly. I don’t understand their logic and can only guess they are banking on appreciation or just have hoards of cash to get into something.
As an investor in the trenches right beside you, I am sure you are experiencing the lack of opportunity as well. I wanted to take some time and share a few ways we are still helping our investors win even in this tight market.
Here are 6 places I see opportunity in this market:
1. Get your rents in line.
With the rapid appreciation on sale prices, we have also seen rapid appreciation on rental rates. If you haven’t raised rents in a year, I can pretty much guarantee that you’re behind and leaving money on the table. If you’d like help raising your rents, please call me and I will be happy to fill you in on what I do to keep tenants happy and keep the rents in line with the market.
2. Refinance your high rate loans.
Rates are so low right now. If you’ve got private notes or mortgages above 5% you should consider letting me hook you up with a preferred local lender. There are a few local lenders that seem to be pretty aggressive right now and the rates are the best I’ve seen in a long time.
3. Consider tapping your equity.
I’d consider this one especially if you want to be in growth mode and prepared for when the next winning opportunity comes across your desk. With all this appreciation, you may have a lot of dead equity sitting in your asset. It may be worthwhile to tap that equity and be prepared for the rare deal when it pops up.
4. Disinterested off-market sellers.
Here you are looking for abandoned houses, buildings, overgrown lots, etc… We are always sending stock letters to these potential sellers. Sometimes they work and we are able to bring a “deal” to the market. We have investors that call and give us a heads up on these potential deals. We are happy to send the letters for you and make sure you get first crack at the deal. Please call, text, or email us an address if you see something that might work. We will do all the hunting and make sure the lead goes back to you.
5. Think outside of the box.
If everyone else is buying housing, maybe you should look at bare land splits, commercial, house hacking, short term rentals, etc… I’ve found that the people succeeding in this market know what their investment formula is and they stick to it. If you’re not sure what your niche could be, please reach out and we can chat about where you might be able to find investment opportunities in this market.
I’m still in a growth mode and not wanting to sell, yet I work with clients who are in a slowing down phase and are getting top dollar as they sell off their properties. You cannot beat this time to liquidate an asset. Taxes are also at the lowest levels they’ve been in decades! You could shield your tax burden with a 1031 Exchange or just cash out at a premium and count your dollars. If you own multi-family right now, they are trading at ridiculous prices. I’m happy to do a market analysis on your portfolio as a whole or just a parcel, if you are toying with selling.
Thanks for reading this far. I hope you find some opportunity that strikes a chord with your investment plans. Please reach out if I can be of any help to you, your friends, family, co-workers, etc… Also if you’d like to schedule a time to meet with me at the click of a button, click below to check out my Calendly app that allows us to easily find a time that works for both of us.
Onward to Opportunity-