You cannot make blanket statements like this:
"The problem at this time is, buyers are scarce. There are too many houses on the market for sale. The economic laws of supply and demand states that, prices would need to fall for excess inventory to be absorbed."
a few questions:
1) Does everybody in America who wants a house already own one?
-NO! There is a HUGE market of 1st time buyers out there; those who have been cleaning up their debt to up their credit score, those who have been saving for the downpayment, those who have had recent life changes and need to downsize or upsize. Either way, new home construction most often leaves these people who are just entering home ownership unable to afford the new "McMansions".
2) How does one reach this niche market segment?
Existing houses bought at a discount (we already covered the 'other ' R.E. market) marketed to
pre-approved 1st time buyers saves time and effort. People who have gone through one of the many 1st time buyer programs are the target. You'll meet many who qualify for a mortgage but not necessarily a huge amount (low earners. single parent, etc.) Keep those prospects for a quick lease-to-own deal you get wholesale from another investor. You may get lucky and get into a bidding war by pre-approved 1st timers.
3) Aren't interest rates going up?
Yeah, but that will only rush those who haven't acted yet to quickly do so. Refinancing is still going on despite rates rising, and the world still turns round & round.
It's not always about flipping - buy & sell strategies. There's also a market of renters; those who will never be able to or don't want to own a home. Plus a few markets to tap into guaranteed monthly rental income (NOT Section 8!!)
WHen people ask what I do I say:
collect checks &
