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The Great Wealth Migration: How To Benefit From It

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on Thursday, 29 June 2023 BestTransactionFunding

Bloomberg has just mapped out a recent $100B shift in wealth in the US. Where is the money leaving and going to? How can you make sure you are a beneficiary rather than a loser in this transition?


Wealth Is On The Move

According to a new map from Bloomberg News, $100B in wealth has already shifted. Mostly to the south. Much of it out of California, and the Northeast, and even mid-east coast.


Some has gone to parts of central Texas. Though Arizona has been a significant recipient too. With Florida appearing to be the biggest winner. Though, with wealth actually leaving the Miami and South Florida or Orlando areas in favor of more northern parts of the state.


More Wealth Migration Is Coming

There are many factors which are highly likely to keep on moving wealth.


This includes continuing to compound the reasons people and businesses are fleeing, with higher taxes, and unfriendly environments for businesses.


More Fed interest rate hikes are expected this year, which will compound inflation and force more to move out of lack of affordability.


Predictions that inflation will fall by 2% by 2024 are likely just playing smoke and mirrors with the data. Even if it comes down 2%, but real inflation has risen by 30% or more recently, that isn’t near enough of a cut to make a difference for most consumers, workers, and property owners.


The Real Wealth Shift To Care About

The real wealth migration that should be on our minds is that between individuals and corporations, or other entities.


We are probably about to see one of the most significant of these shifts in our lifetimes. The richer are getting much richer, much faster. The middle class and below are going to be bled dry fast.


As a real estate investor you want to make sure you are on the receiving end of this wealth. There are several ways to position for this.


Which includes operating in the states and areas where the money is moving to. When the money moves it, that means big bumps in house prices, local spending, rents, and more. You can target the movers themselves too. Helping them from where they are trying to move out of.


You can invest ahead of this to find the deals, and wholesale them for more.

Tags: homeowners, wealth, wholesale, real estate investors
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Majority Of Millennials Regret Buying Homes During The Pandemic

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on Thursday, 15 July 2021 BestTransactionFunding

 

Almost 65% of millennials now regret their home purchases according to a new Bankrate survey.


This may be a shame for all of those who got caught up in the home buying frenzy of the past year. Yet, it also signals some new opportunities for real estate investors as well.


Homebuyer Remorse Grips Millennials

According to the data the majority of millennials now regret buying homes.


Some of the top reasons they are giving for this distress include:


  • Additional homeowner expenses like maintenance costs

  • Buying a home that is too big or too small

  • Home mortgage payments and rates too high

  • Buying in a bad location

  • Overpaying for their homes

It seems millions just jumped into the market on a whim, without really thinking the decision through, doing a budget, analyzing what was important in a home, or educating themselves about the market.


How Wholesalers Can Help Out

In many scenarios these homes have quickly become a burden for homeowners. It’s now just a big payment each month. One that prevents them from enjoying the life and freedom they really want. It’s stressful. For a lot of homeowners it may be unsustainable.


As a real estate investor you can help them out. Even if they bought at the peak of the market in the past year, soaring inflation and frenzied competition means those properties could easily have 20% more equity in them now. For some, that is enough money to make a decent profit on wholesaling them.


All many of these owners probably want is enough money out to go move into a nice rental.


Some won’t act in time, and unexpected maintenance, repair and property tax bills will bankrupt them. That can turn into nonperforming loan notes and REOs. Both of which can be buying opportunities for investors.


Wholesaling To Landlords

Equipped with this information and facing a changing market, investors may want to expand or change up who they are reselling properties to.


Many retail buyers are getting priced out of the market. It is true that interest rates are low. Yet, recent data shows that it will now take South Florida homebuyers 17 years just to save up a 10% down payment. That’s 34 years to save a 20% down payment. That could certainly lead to a decline in homeownership.


While many rehabbers have been sitting on the sidelines during the pandemic according to ATTOM Data, and will continue to due to hyperinflation of construction materials, other types of buyers are scaling up.


Buy to rent landlords are growing as fast as they can with cheap money, and in anticipation of a new wave of renters coming to the market. These end buyers may have lower profit expectations, and are likely to be bulk or repeat buyers too.

Tags: real estate investors, investors, mortgage, wholesalers, landlords, homeowners, rehabbers
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