The REO business has dried up, trustee sales have declined and hedge funds have taken a large chunk out of the inventory. On the subject of hedge funds, I take it as a compliment that these well established companies see our market place as a great place to invest – something we at NorCalREIA have known since I started investing on September 14, 2001. That being said, this does really heat up the competition. We are investors, NOT speculators. Each transaction has to make sense and stand on its own either as a wholesale, retail or rental. Each property has a job today… Not tomorrow.
The Sacramento Bee recently published an article from Zillow which ranked Sacramento “a good sellers market.” The Sacramento area ranked No. 3 on Zillow’s national list of top home sellers’ markets. California markets dominated this list with San Jose and San Francisco ranking No. 1 and 2, respectively. The top 10 also included Los Angeles, San Diego and Riverside. The top three buyers’ markets were Chicago, Cleveland and Philadelphia. No California markets cracked that top 10.
Uncertainty looms going into the New Year, including the fate of Bush tax cuts, and potential tax increases are due to be implemented. One thing we know for certain is that taxes are going up. We also know that interest rates are at an all time low, and this provides a great opportunity to build a rental portfolio, using either banks or owner financing.
Are you a real estate investor or on the education / investment club circuit? Do you see opportunities when you are driving? Do you glance over and see a house with “the look”? Getting back to the office doing some research to find out if it is an opportunity? Next can you put on your detective hat and chase the owner or decision maker down? Not much competition on an a vacant house!
One of the key factors I see for investors is our own psyche. This is probably what makes or breaks many investors. We are in a tough business, with lots of moving parts. We are “ON” when we are in the hunt, negotiating, making an acquisition, drawing up contracts or cashing checks. Lets touch on the other 90% of our time spent working, all of the tedious and time consuming grunt work. Either we have a team or we do it ourselves, either way it takes time and time is money. A team is imperative. I am not sure I know of any successful investor that is just a lone renegade.
Lets get an action plan started for 2013. Let’s start by setting goals, S.M.A.R.T. goals. Specific-Measureable- Achievable-Realistic-Time based goals. Next, let’s implement a business plan. What commitment and actions are you going to take to accomplish your goals? There are many good resources on these subjects. STOP, take time to set your goals and build your business plan. Map out your plan and follow your dreams.
This business so often takes us back to the basics. This is a good time to follow that path.
Good luck, wishing you good health and prosperity in 2013.
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