The one constant in this market right now is that things are constantly changing. You have to be aware of what’s going on in the news as it largely can affect the real estate market. Being able to change your exit strategies can help you adjust to shifts in the market, but you really have to be smart in a changing market.
Let’s be honest. Newer investors who only have one primary exit strategy, who don’t have many financial resources, and don’t have the experience or network to power through a changing market will have a tough time. These are typically the first investors you see disappear when the market takes a downturn. They weren’t prepared and are fearful of losing money.
With personal experience or at least a network of experienced investors like a mastermind, you’re going to be better equipped to handle the changes. You’ll know to stop doing big rehabs and to start wholesaling more. You’ll be more careful on your buying strategies so that you’re minimizing your risks.
If financing tightens up, you need to already have an established history to show your experience and you need to have those relationships built, and ideally already a lending history with multiple sources. This will help tremendously.
As it becomes easier to purchase a property at a steep discount, consider building up your rental portfolio. Understand though, that renters might not be as long-term or reliable if there’s a struggling economy. Prepare for that and budget for vacancies.
Staying ahead of the game will allow you to thrive in this market and truly help out those who are struggling. Be smart with your investments and lean on your network if you need to.
