I've never seen anything quite like this in my lifetime. The conditions for flipping houses is more perfect than I could have ever imagined was even possible. Several factors, combined together, have created the ultimate perfect storm and best time to flip houses and the following video proves it. So if ever you had any interest in the business of flipping houses, to quote the famous treasure salver, Mel Fisher, "Today is the day!"
It is currently the best time in the past 40 years to be flipping houses. Real estate investors are absolutely knocking it out of the park right now, including myself, and the people I mentor. I have been so busy doing deals, that I haven't even had time to put a blog up in over a month. I want to share why the current market conditions make it the best time to flip houses.
Reason 1: Fewer Properties on the Market
They have only been recording inventory levels for about 40 years, but this year is the lowest yet. There are fewer properties on the market now than there's probably ever been in your lifetime. If you were to put a property on the market, it will sell faster and easier then ever before.
Every property that I have sold in the past few months has been a multiple offer situation. I always try to purposely create a multiple offer situation, but it is happening even when I think I listed the property too high. And it's not just happening to me, it's happening to my apprentices all across the country. We are at the lowest housing inventory level in recorded history.
Reason 2: Highest Consumer Confidence in History
People are buying confidently because they think the economy is doing great. Fannie Mae has a Home Buying Sentiment Index and it just hit its highest point ever. If you disagree and think we are in a real estate bubble, I have a video called, "Are We in a Real Estate Bubble?" You can check that video out if you want to learn more about my thoughts on the subject.
People are feeling confident right now. The stock market is booming which is causing a lot of confidence in buying. This is very helpful in the real estate market, because purchasing real estate is a huge decision for people. We are currently experiencing the highest consumer confidence rating in recorded history, so buyers are feeling confident enough to purchase real estate.
If you are concerned that low inventory and high consumer confidence makes it a bad time to buy because we might be at the top of the market, then I suggest you watch another great video called, "Does Buying Real Estate at the Top of the Market Ever Make Any Sense? " The two videos I have suggested in this blog are some of my favorite videos that I have created and contain some amazing wisdom.
Reason 3: Incredibly Low Interest Rates
There are currently some incredibly low interest rates, but they are supposed to be rising soon. At a federal level, interest rates are starting to creep back up. The actual interest rates for mortgages haven't started creeping up just yet, but they probably will soon because of the basic laws of economics. Bank will not continue to borrow money at a higher price without raising their interest rates as well.
This means that homes are still incredibly affordable, even though prices are going up. People are still buying but since the rates are rising, they have to make a decision right now.
Reason 4: Summer
June, July, and August, are the busiest buying and selling times of the year. The kids are out of school and parents are making buying and selling decisions. Any real estate agent will tell you that they do a lot of deals in the summer. That makes now the perfect time to buy and have time to pickup some inventory before summer hits.
Get Started Now
These four reasons combined are what makes NOW the best time to flip houses in the past 40 years. If you have been considering becoming a real estate investor, now is the time to get started. Just do not pay too much for a house and hope that an above market offer will bail you out. I wrote an entire book called, Real Estate Investing Gone Bad, so you can learn lessons on what not to do. These lessons apply even when it is the best time to flip houses, even when all the conditions are perfect.
The market is currently booming, so even beginners are picking up deals and making a profit. If you team up with a mentor you will have someone behind you that is a real estate investing expert. This can be really helpful if you are brand new to the real estate world. If you want to learn more about working with me and my team directly check out our apprentice program.
I hope you are able to participate in this house flipping bonanza that is going on right now. I hope you take advantage of this market, because things won't be this good for much longer.