The news is full of doubt and angst BUT the debt ceiling and economic talks ACTUALLY give property investors another edge! According to the National Association of Realtors, 1 in 6 realtors state that they have had deals fall apart last month. This number is up from 1 in 25 just a month ago.
With hard lending standards, debt ceiling talks, low liquidity, more and more real estate deals are falling apart. Contracts are written and unable to get closed. This is dreadful to the buyer and of course to all the real estate related professionals helping them out.
The investors who have cash (48% of all closings today are cash) win big time. When a seller or a bank owned property owner sees a cash buyer the odds of closing are increased dramatically giving more and more favorability to the cash investor. (Cash investors make up one third of all closings in the U.S)
As the world’s leading investor (Warren Buffet) himself says “be greedy when others are fearful”. Today’s debt conversations lend great opportunity for the real estate investor because the “would be home buyers” are uncertain and want to wait and see what happens. They want to wait until they are no longer fearful. As YOU are no longer fearful, neither is EVERYONE ELSE. Hence opportunities begin to diminish. This gives the educated investor a massive edge in today’s fearful times.
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