Making Money In Real Estate
Well I have mentioned it so I will expand it on it. New construction speculation, all of you probably know that is the hottest game in Real Estate right now. Here is why. You buy a property (get it under contract) it can take a year or longer to build (especially large condo projects) and they selling each unit (home) for more than the previous.
You have built in comps (comparable sales) when you close and if you are in a good market the property could be up 20% or more easily. This is one of my favorite strategies, and has worked great for the last five years. But the party is over, here in San Diego, because too many people are doing it.
Now, 10% of building is dumped on the Market right upon completion. This creates competition among sellers. This is why you must think outside the box. Following what is working for everyone leads to the greater fool theory.
At some point you need to take a look at areas that are not being touched and find out why. It may be obvious or there may be subtle signs of stagnation. You may find no answer at all, these are the areas that merit further investigation.
You also want to find out where the speculators are going next, try to stay one step behind in part of your campaign. In other areas of your investing don’t be afraid to get into un-chartered territories.
I hope this has been helpful. Check my next article entitles “Thinking Outside the Box”.
Feel free to contact me if you have any questions.
Glenn Wilbor is President and owner of California Equities, a nationwide Wholesale Mortgage Company that has had a presence in the downtown San Diego area for more than a decade.
Glenn and his company specialize in residential and commercial mortgage finance, real estate and development and have been instrumental in influencing the look of the San Diego skyline. For more information about California Equities, refinancing with Glenn or employment opportunities, please visit http://www.CaliforniaEquities.com or contact Glenn at glenn@californiaequities.com
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