those 2-4% interest rates are there for the taking. Creative financing could become very popular with investors that know how to take advantage of the shifting market and want to accumulate long-term rentals that cash flow. Another trend that may evolve is the rise of “green” or energy- efficient homes. As oil prices continue to increase and utility rates rise, people are searching for ways to cut costs. Many builders have already started constructing new homes with these features, but it has been mostly on the high-end market. As demand increases, it would not be surprising to see these “green” homes move into lower-tier markets in the near future. Builders may have a great opportunity to actually increase demand as it slows
to historically normal levels—and increase profits. Another potential trend involves landlords. Statistics show us that historically the life of a landlord is between 3-5 years. They get tired of managing their tenants or their property manager, and they leave the business. Many just sell and get out, and others 1031 exchange them into apartments, etc. As recent rental investors approach that 3–5-year mark, another opportunity will arise for investors who desire access to more rentals. There will be opportunities to use creative financing to increase portfolios by acquiring the properties of these burned-out landlords. Hedge funds too are learning the challenges of management, and some will be unloading their properties in
the near future. This should present other investors with opportunities to purchase packages of rentals. As an investor, it is important to stay ahead of the curve and be aware of the latest trends as markets change. Investors who do so will be able to position themselves to take advantage of new opportunities. Real estate investing is a dynamic field, and those who are able to adapt and change with the times are usually the most successful. •
Greg Slaughter has been investing in single-family homes since 1999. He entered the industry full time in 2002 when he retired from McDonald’s Corp.
after 19 years. Since then, Greg has been involved with more than 1,000 real estate transactions, doing a lot of flips and creative finance deals. He also currently self-manages his portfolio of rentals in multiple states.
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