Really? I’m going to build a house on that lot?
I’m gonna do it. The real estate market demands it. The methods I learned 4 years ago for rehabbing houses isn’t working NOW. I’ve seen what’s happening in California, and those that do what I’m about to do are tripling their profits, earning a minimum of $100,000, and tell me it’s easier than rehabbing real estate. OK everyone, it’s time to watch as I adapt in my real estate investing career. I’m officially graduating from “Rehabber” to “Builder”. The market demands it.
Every time I’ve been scared, whether I was unemployed, a new entrepreneur, or thinking a project is too big for me, I look at the numbers. I chuckle now as I think of when I started as a new entrepreneur, getting that scared feeling – you know that feeling where panic sets in? All I had to do to calm myself down was to look at my 6 months of savings to allow myself not to worry.
I’m no different now. I learned one way of real estate investing for maximum profits, and that was rehabbing properties where there were the largest profit spreads. When I looked outside of my own area to rehab properties, I easily quashed my fears because the profit spreads had so much room, whatever fear I felt dissipated.
Now that the market is changing, I’m getting that panicky feeling again…Sure, I can look at the numbers, sure I know this market will be this way for my exit strategy, of course I know I can do it, but still, there’s that part of me that freezes with fear.
I have to make some big changes in my thinking. I have to work with numbers that may have more zero’s than I’m used to. And guess what? You are watching me…that’s scary.
As you know the market has changed. Pent up demand is flowing into nice houses. People have been waiting for the market to bottom, and well, it’s bottomed and at a time where interest rates have never been lower. It doesn’t take an MBA to know that this is the best time to buy real estate. But guess what? There’s no housing inventory. People can’t find the house they want, in the neighborhood they want with the price they want. So what do you do? CREATE THE INVENTORY!
Through my research, I’ve learned A LOT about the new build opportunities and have assembled quite a team that is ready to go. It’s amazing that I’ve found lenders ready to loan me money, and it’s true, that this hypermarket will be a solid play for at least 12 months almost all over the country. But there are some areas, such as Southern and Northern California, Austin, and even more that I believe have a longer term projection. Not only do these areas have pent up demand, they have increased economic positioning – more jobs, movement to the area, better quality of life.
I held a Tele-Class on “Making Dollars from Dirt – 3 Simple Strategies to graduate from Rehabber to Builder” If you missed it, Click Here to get access for this awesome class on the differences and the benefits for stepping up your game. This is a pre-cursor to my next event – this is NOT A FIELD TRIP, but a Mastermind Intensive dive into the strategies that are REALLY making money now and how to leverage this change in the market to beef up your wallet.
I would love to see you in Austin in June, but if you can’t make it, watch these posts as I will chronicle my experiences as a builder.