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Will 2024 House Prices Crash By 50 Percent?

by blogger1
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on Wednesday, 20 December 2023
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Will the bubble burst in 2024, and send house prices crashing by 50 percent or more?


According to one economist, the ‘everything bubble’ is about to pop. Leading to the deepest depression we’ve ever lived through.


If that happens, what will continue to make real estate stand out as an attractive investment? What’s the best way to take advantage of the dip, without having to wait and hope that the Fed cuts interest rates?


The Everything Bubble

Economist Harry Dent predicts the worst depression of our lifetimes coming in 2024. This time it will be deeper and longer. With asset prices falling across the board.


He forecasts that stock prices will fall by around 90%, and crypto by close to 100%.


Additionally, in contrast to 2008, when he says property prices fell by around 30%, this time he says they will fall by 50%. For those that experienced 50-70% property price declines in the last financial crisis, this one would see them far even lower.


The primary reason for this is being blamed on 100% artificial inflation since the wake of 2008.


Real Estate Is Still The Most Attractive Investment

While trading prices may temporarily stumble, at least real estate offers a tangible asset. One that can bounce back. As well as being able to produce strong cash flow streams, regardless of paper valuations.


We could see a lot more demand for real estate in a period like this. As savvy investors are going to need a flow to preserve their capital, more income sources, and want to buy when prices are low.


The Best Investment Strategy

If you also anticipate a hard correction, or just aren’t sure about the direction of the economy in 2024 and beyond, then wholesaling real estate seems to be the best strategy.


It enables you to be in, out, and paid before prices change.


With Best Transaction Funding you can also take advantage of rock bottom interest rate deals right now. No need to wait in hope of the Fed cutting rates in the run up to the November election.


What’s your forecast for house prices in 2024? How will you navigate the market successfully?

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Big Money Managers Have A $100T Problem

by blogger1
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on Tuesday, 24 October 2023
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According to Boston Consulting Group and Bloomberg, big fund managers are struggling. As this $100T space faces a revolution, where will the capital go, and how can real estate investors position themselves to benefit?


The Big Issue

The massive asset management industry appears to be facing a major inflection point.


Coverage of the issue reveals concerns that many large financial firms may face extinction in the near future. Their investor customers have been increasingly demanding cheaper, and more passive investment strategies.


At the same time, money managers face the challenge of trying to make more money in a bear market, which has already seen some lose money for 20 quarters in a row.


Reportedly 90% of the additional revenues these firms have enjoyed over the past 18 years is from the rising bull market, instead of attracting new capital from clients.


In the past six years investors have yanked $600B from these fund managers. With Blackrock seeing $13B in withdrawals in the past three months alone.


For Real Estate Wholesalers

As a real estate wholesaler, how can you benefit from this shift in available capital, and avoid repeating the mistakes these dying firms have made.


Don’t Count On Appreciation Alone


Even as a real estate wholesaler and flipper it can be tempting to sometimes make offers based upon a fast rising market. Whereas savvy investors are always looking to build in an equity cushion with their offers, just in case the market shifts mid transaction.


Sell To Those Providing Passive Income Investments


It seems that passive income investments are increasingly trending in demand. Consider how you can wholesale in volume and create a pipeline to those serving the end retail investors in this space.


Maintain Sustainable Margins


Profit margins that are too thin are frequently the cause of businesses failing. It can also be harder to raise pricing later. Be sure you are operating on strong margins in the beginning, with room to offer deals, and still make a profit.


Serve Those Fearing A Bear Market


Whether you believe it is a bear market or there is a new recession looming isn’t nearly as important as what end buyers and their clients think.


If that fear is driving their decisions and where they put their capital, be sure you are catering to them.


This may include altering the price ranges and property types you are targeting, as well as geographic areas.


Be sure to check out our 1% interest rate deals on loans over $600k, and scale your business this season.

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