Wholesaling Real Estate: Is There Still Time to Get In?
Some interested in getting into real estate investing have been asking whether they have already waited too long. So has the window of opportunity of flipping houses for big profits passed? Is the housing market already too saturated with investors wholesaling real estate? Or is this just the beginning of a great new era for the American property market? Despite some claims that the market is becoming crowded and home prices are rising too quickly, the hard numbers and historical data show a completely different story. Look at the raw numbers and compare them to those of the last housing boom and you’ll no doubt find that there are far fewer real estate agents and investors out there. You’ll also find that, even in the hottest markets and most affluent areas of the country, homes are still selling for 30-50% under their previous values. Appreciation is still creeping up at a tiny fraction of the velocity witnessed in the early 2000s. Consider that recent buying activity has been largely fueled with cash, meaning debt is low, and those that have taken out mortgage loans have such low interest rates and strong equity positions that there is no bubble to be burst. Those that have invested in their real estate education also know that history has invariably shown that home prices double every 10 years on average and housing booms normally last a good 10-15 years. We aren’t even really in boom territory yet. Recovery yes, maybe one foot into boom territory, but the data suggests we can expect another 150% appreciation in home prices before hitting the top again. Right now we are seeing the merging of all the trends needed to create the perfect conditions for flipping houses. There are still plenty of distressed and discounted investment opportunities and combined with rising property values potential spreads for wholesaling real estate are widening every day. There may be a lot of people interested in wholesaling real estate and many that are trying their hand at it. But there are few that have actually invested in the education to do it right and well. This means plenty of opportunity for flipping houses fast and for sizable profits and significant amounts of volume for those that really apply themselves and commit to good business practices.
Is there still time to get into wholesaling real estate, or have you already missed the boat?