5 Tips for Investors in a Slower Market

Not all hope is lost in a slower market for real estate investors. Using the following five tips, there may be some money to be made.

1. Get Financially Ready- Make sure all costs (more than the price of a property) are calculated involving with the investment. Taxes, insurance and other factors can add up quickly. Having a reserve is always helpful. Keep the risk level in mind whether you are flipping to make a quick profit or holding on to the property to make a larger return in the long run.
2. Timing is Everything- Enter the market early because there are a variety of good buys, opportunities to negotiate price and lower interest rates.
3. Find the Best Deal- West Michigan real estate has plenty of great deals to be found. Foreclosures, short sales and builders who have unsold properties offer options to buy a property for next to nothing. Sellers are offering incentives such as paying closing costs to lure buyers in.
4. Buy and Hold is an Option-property generally appreciated over time. When you’re able to purchase in a slow market and hold on to the property, the long term benefits may exceed the short term benefits of flipping. There is always an option to lease a property to cover some costs before selling.
5. Have an Exit Strategy- Have a selling strategy developed before you even start the process of purchasing. Hiring an experienced Realtor® to help you sell when it’s time will assist you in getting your property sold faster and for more return.