Do you work with residential investors? Are you an investor yourself? If you answered yes to either of those questions, you know that the investing landscape has changed drastically over the last 3 years. The huge market adjustments we've seen in most areas has provided some great opportunities, but at the same time has brought a new set of challenges as well. Starting out as a property wholesaler myself years ago, I know numerous "buy & hold" investors that have seen their businesses come to a standstill as refinancing sources have dried up, especially for investors who hold their investments in an LLC. Many of them consider switching over to flipping their investment properties but they see other investors and regular home owners struggling to sell their homes in this slow buyer's market and hesitate to pull the trigger on new projects. What's the answer? How can you help them or move ahead with your own projects? It's starts with understanding the dynamic of what IS selling right now. Buyer's can literally choose from the cream of the crop right now in every price category. I liken it to going to an electronics store and finding out that the best new flat screen TV is on sale for 5% less than all the other TV's. It makes it hard to NOT buy that TV. It should be the same approach for flipping an investment property. 4 years ago, I always heard "rehab to the level of the neighborhood", otherwise you were wasting investment dollars. Now, the successful investors I know are carefully adding extra amenities (alarm systems, stainless steel appliances, etc) to make properties feel more upscale and then listing the homes for about 5% less than the competition. Most of them are also working within the lower-middle class price market (where homes are now incredibly affordable) and are looking for slightly larger "bread & butter" properties (the bargain prices are making 4 bedroom homes more attractive than 3 bedrooms). They are planning on those strategy adjustments with their initial offers and it usually means a little smaller payday, but the trade off is a significantly shorter time on the market to resell. You can help your investors by letting them know what are the standout features that would make a rehab project stand out from the crowd in a given neighborhood. Help make sure their project (or yours!) is the best VALUE big screen TV on the showroom floor! Contact me for more details or questions.
My name is Keith Kruger and I'm YOUR local real estate resource. I specialize in residential investment and commercial property in South Jersey and Philadelphia with a special emphasis on historical properties. I also work with buyers and sellers in my hometown of Marlton, Cherry Hill and Mt Laurel, New Jersey as well as surrounding areas.
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