If you follow my blog, you probably have noticed that things have slowed down over the past few weeks. With the exception of finalizing the sales of both The Escher House and The Pine House, we haven’t been doing much in terms of buying or selling properties…
There’s a couple (good) reasons for this…
First and foremost, with the tax credit expiring at the end of last month, we are quite confident that the numbers of buyers for all residential real estate has diminished. This means two things:
- From a purchase standpoint, there is going to be less competition for bank-owned (REO) properties. This means that we expect to see increased inventory and lower prices for houses we want to buy over the next several weeks/months. Therefore, we want to hold off a bit before putting in offers, to give prices a chance to dip; and
- From a selling standpoint, there are fewer buyers out there to buy our rehabbed properties, so we’re in no hurry to get any properties renovated and back on the market.
All that said, we plan to start buying again come June, and will hopefully have those properties back on the market in the August time-frame. While there probably still won’t be a lot of buyers out there come the end of the summer, I imagine there will be more than there is now.
So, for the next couple weeks, we’re in a holding pattern with respect to buying properties.
The second reason for the slowdown is that my wife and I have been working on a couple other business projects (some real estate related and some not), so our attention has been split between rehabbing and other ventures. Stay tuned, as we’ll be announcing a new venture in a couple weeks that all my readers will hopefully find very useful in their investing endeavors!