Yep, I know that months ago I was explaining why stagnant markets and foreclosure markets were good for investors. Now here I am to tell you that rising markets are good for investors! As I point out again and again, real estate investors who follow my business model will thrive in any market – and here’s why today’s rebound will help us rise to ever greater profits!

• Rising home values increase lender confidence in doing more mortgage loans.
  It’s true that lenders have significantly tightened their requirements – and that’s a good thing to eliminate the toxic loans that ruined so many people financially. But a rising market helps more people qualify for mortgages because lenders are more confident of the long-term value of appraisals. Lenders are also less worried about being caught underwater with properties worth less than the loan value, as happened when real estate housing values tanked in 2007-2009.

• Interest rates and home values are expected to rise, prompting buyers to close now.
  “Expected to rise” is the operative phrase. Don’t base your strategy on what you think will really happen. All that matters for flipping is what your buyers think. Flipping and wholesaling are a short-term business!

• Inventories are no longer over-supplied.
  With the foreclosure backlog is long-since cleared, the reduced supply is putting the ball in the seller’s court, meaning fewer price concessions and faster closings.

• Former homeowners are emerging from foreclosure and credit issues to buy again.
  Two years of a good financial record allow a buyer to emerge from the cloud of having a past foreclosure and/or bankruptcy. Now wiser and more stable financially, people who were foreclosed want to own a home again.

Your strategy is based on how this news affects buyer decisions today, not in one, five or ten years. Many expert projections turn out to be wrong – but that doesn’t matter for flipping or wholesaling because you are selling today’s project houses in the next few weeks. What the buyers believe and use to make a buying decision is what matters to you!

The key to real estate investing as I do it and teach it is that this business is about short-term market strategy. Real estate market trends are certainly important, and you should keep up with current economic and market direction. Homebuyers have more reasons to buy now than they have had in years – so turn real estate market trends into today’s profit!

What economic trend in the news do you think is behind many homebuyer decisions today?

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