Where is the big money being made in real estate right now? High interest rates and persistent inflation have slowed down many aspects of the real estate world, but those very same factors have also created a gigantic opportunity too!
Biggest Opportunity in Real Estate
So what is the biggest opportunity in real estate right now? Flipping safe, affordable houses! This opportunity is not new to us. We’ve been talking about it and watched it develop over many years. As inflation has drastically raised the cost of everything and mortgage rates sit at 20-year highs, it has priced a huge percentage of potential home buyers out of the market. And while many of those people are forced to rent, what they really want is to own a home! But home builders can’t solve this problem because the inflated costs of land, labor, and lumber prevent them from providing safe, affordable housing.
So when you can offer a safe affordable house for sale, you have incredible demand and essentially no competition. And voila, there is the biggest opportunity in real estate right now! It’s making us, and the people we mentor, a fortune because we know how to find these deals, get them on the market correctly, as well as navigate around the challenges of FHA and other affordable housing buyers.
Capitalize on this BIG Opportunity
Here are a few tips to help you capitalize on this opportunity:
- Avoid War Zones: Extremely high crime areas are not safe and will not have the demand you need. This may mean that you have to target properties that are further away from a metro area. Affordable home buyers are willing to drive an extra 30 minutes for their safety, and so should you!
- Manufactured Homes will Work: While a stick-built home is more desirable, manufactured homes on their own land can make you a ton of money, too. We have very helpful video on this topic called Mobile Home Flipping Formula that is required watching if you ever plan to embark on flipping a manufactured or mobile home.
- Avoid Small Houses: The largest pool of buyers want at least 3 bedrooms and 2 bathrooms. So long as you have about 1,200 sq ft, even if you’re missing a bedroom or bathroom, you can remodel the house to get to that 3 bedroom, 2 bathroom benchmark. But that brings us to number four.
- Rehab is Optional: As long as you’re starting with a 3 bedroom, 2 bath, don’t feel obligated to rehab. There are essentially no other options for affordable home buyers right now, and beggars can’t be choosy. So, you can get away with not rehabbing and still selling for top dollar.
No Rehab Success Stories
For example, one of our apprentices, Tony from MN, got a deal under contract in mid-May for $50,000, and within 2 weeks had a buyer locked in at $95,000. He closed in under 3 weeks and made over $39,000 without doing any rehab work at all! Another of our apprentices, Jeff, in NJ, put a property under contract in February that didn’t require any rehab, it just needed new smoke detectors. He had to be patient in giving the seller time to get moved, and he also had to deal with delays from a couple closing attorneys, but after 2 months, he made over $24,000 without doing any work to the property! These weren’t updated houses, they were just in decent livable condition, and there’s hardly anything on the market to compete.
Now you may be wondering, how is it that the people we mentor have thrived in good times and bad, year in and year out, regardless of the circumstances? The answer is: We shift our focus to the needs of the marketplace and provide exactly what buyers are looking for. And right now, our focus is on safe, affordable housing, and it should be yours too.
Every Successful Real Estate Investor Has a Mentor
If you want to get in on this opportunity too, apply to our Apprentice Program, where Phil, Devin, myself, and the rest of our team will mentor, coach, and guide you to tremendous success. Apply to our Apprentice Program here: Freedom Mentor Apprentice Program.
If you have questions for us, text FREEDOM to 305-315-8030 or post a comment below.
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