What is the right thing to do in this changing market?
In the last 90 days, here at Next Bridge Funding, we have seen our deal flow increase dramatically. However, traditional lending is starting to tighten, and as rates continue to rise, lending terms will only continue to be restricted. So what happens next to us as Real Estate Investors?
- Secure capital: Make sure you have ample capital on the sidelines to invest as the market changes. You can use your funds or money from a bank or private lender. Capital is the oxygen to successful real estate investing, particularly in a changing market.
- Don’t chase deals: This is always tough for us as real estate investors. We always want to look at and close deals. But now is no time to chase or force a situation to work. If a deal doesn’t make sense, move on. No matter the market conditions, there are always more opportunities, so don’t get caught up on those that aren’t a good fit.
- Ask questions: Ask people in your sphere of influence what they see in the market. Investigate what they have done in past markets as they changed. Smart people ask questions and take that information in to better themselves. It’s a sign of intelligence, not ignorance.
- Look for new opportunities: We real estate investors want to make money regardless of the market. Each market creates new challenges and opportunities. Study the market, and look at which neighborhoods have the best qualities for investment by looking at areas with high population density, are developing, and have all basic amenities nearby. Find these new challenges and see how to increase your knowledge as an investor and build your bank account.
- Build Relationships: I love building relationships with new people. Instead of dealing with a challenging problem alone, it is often best to seek a mentor, lawyer, or friend who knows what to do. Too often, it isn’t what you know; it’s who you know that can make the difference. The more robust your relationships, the more valuable an investor you are. If you are struggling, start networking and connecting with people who can help you learn more about this business and grow your referral business.
By paying attention to current trends, consumer spending habits, mortgage rates, and the unemployment rate, you can plan for the future and prepare for upcoming investing opportunities. Remember, there are always opportunities in every market. It’s our job to fund them and capitalize on them.
To learn more about how asset-based lending can enhance your real estate investing, visit nextbridgefunding.com or call 248.729.1898