Game Changers for Wholesaling Homes in the New Year
2012 was a roller coaster year for the real estate industry with many changes. The question is, which of those events will have the biggest impact for those wholesaling homes and how will the game change in 2013?
There are 7 real game changers which all real estate investors ought to keep their eye on and be ready to adapt to…
While many put the media blitz on the fiscal cliff down to hype again the bottom line is that many Americans will be facing higher taxes in 2013. Whatever the number is, it is sure better than the 75% tax rate proposed in France but those who still want to keep the lion’s share of their incomes from wholesaling homes need to have a plan to minimize taxes right from the beginning of the year.
2. Battle for the Best Borrowers
As mortgage markets remain tight, but wealthy individuals keep buying up homes, all real estate professionals have turned their eyes on competing for the top tier of rich buyers and credit worthy borrowers. However, what makes a top end buyer and borrower has also changed. The Wall Street Journal poses that you need to be flush with about $50 million to make the banks really roll out the red carpet to keep your business today.
3. Foreign Buyers
Foreign buyers have been a huge part of the market over the last couple of years and will be in 2013. However, who those home buyers are is changing too. With major shifts in Asian real estate markets and China now boasting double the number of internet users than America, expect Asians to be the biggest buying force in the New Year.
4. Speculative Investing
As the housing market heats up, we’ll begin to see a lot more speculative investing. This might help fuel business for those wholesaling homes, but that doesn’t mean it is smart business. Still, there are some big bets being made with spec homes being built, ranging from $20 million waterfront pads in Florida to outrageous $322 million homes converted from gentleman’s clubs in London.
5. Private Equity
Massive billion dollar equity funds have made big waves in the residential real estate market over the last year and will continue to do so in the next couple of years. When you do the numbers, it really isn’t a need for investors who are wholesaling homes to worry, but stiffer competition can require adjustments to strategy and focus.
6. Turnkey Rentals
With everyone with a buck or two trying to grab a slice of the housing profits, turnkey rentals will continue to become more in demand. Even those wholesaling homes can cash in on this by acquiring properties which already have tenants and outsourcing the property management.
7. Everything Headed Up
While there have still been some pockets of depression in the last year, 2013 is expected to be the year when the entire nation really gets level again and begins entering a new boom phase.
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