INVESTORS WILL BUY FOR LONG-TERM POTENTIAL
INVESTORS WILL POOL RESOURCES
In 2023, I predict the residential real estate market will continue to slow down. Home values will decline slightly as consumer buying power decreases. Investors who considered selling off inventory or doing cash-out refinancing will go back into a hold position for the first half of the year or be more open to creative deal structuring involving seller financing. Private investors will continue to buy but spread their risk by pooling resources with other investors and outlaying higher amounts of cash to offset interest expense and improve their equity positions. Multifamily properties and apartments will become a more attractive asset class due to continued housing shortages and fewer first-time homebuyers. This demand will lead to more rent increases to drive better returns.
Although we can’t predict when the market trend will adjust, we have a history of real estate market cycles to learn from. Each market cycle has different repercussions for buying, selling, developing, renovating, holding, and refinancing. Real estate markets may still be heading into a recession, but savvy investors will be able to find properties with good returns and long-term potential. As the economy strengthens, these investments will become more desirable, allowing investors to build wealth and diversify their portfolios. It is time to start a plan to execute more creative finance deals.
Regardless of the cycle, there are still deals to be found! The hunt is on.
SAVVY INVESTORS WILL BE ABLE TO FIND PROPERTIES WITH GOOD RETURNS AND LONG-TERM POTENTIAL.
PRIVATE INVESTORS WILL CONTINUE TO BUY BUT SPREAD THEIR RISK BY POOLING RESOURCES.
Andrea Hardaway President and Founding Partner of First Property Management Author of Property Management Freedom Read Andrea’s Book
Gita Faust Author of Residential Property Management for Landlords: QuickBooks Desktop Read Gita’s Book Connect with Gita on LinkedIn
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