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Recession Proof Real Estate In a Year of Major Volatility is Anything Recession-proof?

Real estate investing CAN be recession-proof, believe it or not.  When choosing the right property, you need to take every detail into account.  Ask yourself these questions first… Why are you buying this? Do I expect passive income, retirement income, flip income, first home, second home, and at any point can the property be rented?  […]

Real estate investing CAN be recession-proof, believe it or not.  When choosing the right property, you need to take every detail into account.  Ask yourself these questions first… Why are you buying this? Do I expect passive income, retirement income, flip income, first home, second home, and at any point can the property be rented?  If the property has the ability to be rented easily at an affordable monthly rate and you are in the positive after all mortgages, insurance and taxes are paid, then you may pass GO.  (I mention this because situations change and there could be a time where you are unable to sell it, but the property would do fantastic as a rental)  Does the property need repairs and how much in repairs?  Have the major systems been replaced recently, such as the roof, furnace, and windows?  If the amount of repairs are minimal and all you need are some carpet, paint, and cosmetics, then this paves a positive path for you regardless of the reason you are purchasing.

What about the purchase price? Of course, that is the most important piece to all of this! Are you buying in the height of the market and paying a high premium, or are you buying on a downswing of the market?  To be honest what it really means is that when you buy real estate in a seller’s market and are paying a higher price than in a down market, you need to be mindful of why you are purchasing it and when you plan to sell the property.  If you plan on holding this property for some time and are going to rent it, remember your mortgage balance will be paid down through the rent you charge.  If you are planning to live in the home and sell in 5 or 10 years, you will need to sell it in a market identical to when you purchased it, if you bought it at a premium price, this is why timing is everything.  Keep in mind there are opportunities in every market, you just need to find them!  I have heard this saying over the years, and it does resonate with anything you invest in…. Buy Low, Sell High or Buy High, Sell High, simple concept right?

How is real estate recession-proof?

You need to be aware of your financial position with any purchase in real estate and always prepare for a market swing, if you do this you CAN create a recession-proof real estate. Yes, there will always be a fluctuation in the value, but if the property can be rented, you are still in the positive.  As you rent the property over several years and your mortgage balance is paid down, you will also have equity in the property.  If you purchased the property to live in or as a rental and you updated the property with your own money or the money you made as profit that will help gain equity in the property when you sell it at a later date.  If you purchase the property in a dip in the market and the value doubles when you sell in the right market, you again are in the positive.  It is all about how you purchase the property, that you make an educated decision and have a professional alongside you to guide you through the process.   Even in an upswing, you can make money in real estate.  Full disclosure you can make mistakes and lose money in a down market, which should not happen.  I will be honest and say it is not for everyone, and HGTV makes it look super easy!

At the end of the day always make decisions with your eyes wide open, educate yourself, choose your position wisely, and await the positive outcome!

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teamwork

Teamwork

Common misconceptions about real estate teams, “I will just get shuffled off to someone else and won’t get that one on one attention.” Wrong! Regardless of the service you are seeking whether it’s an accountant, attorney, doctor or real estate team, in almost all cases there is a team behind that professional or in our […]

Common misconceptions about real estate teams, “I will just get shuffled off to someone else and won’t get that one on one attention.” Wrong!

Regardless of the service you are seeking whether it’s an accountant, attorney, doctor or real estate team, in almost all cases there is a team behind that professional or in our case professionals!

Just because we are a team doesn’t mean we are too busy for you, it just means we are able to serve you even better! We want to leverage our time efficiently so our focus can expand for our clients!

As independent agents but functioning as a team we want to focus on what matters the most; getting you that DREAM house and/or getting you the most money along with the best terms for that home you want to sell! Each agent may have their own role but you are never shuffled to someone else. We value you, your feelings, your hard earned money and your sanity!

How do we leverage our time so that we function as True Professionals ready to hunt, capture and close your next real estate transaction?

This is a behind the scenes look of a very basic team setup.

Buyer’s Agent
The role of a buyer’s agent is just that; in most cases they solely work with clients just on the purchasing side of a real estate transaction. The relationship you build with your buyer’s agent is very important! They are here for you 24/7 as your confidential, in-disposable, experienced, ethical and loyal representative.

What you don’t tell them, can weigh in on whether you get that home of your dreams or not! They are like stealth agents, they will find out if you are cheating on them or opening up lines of credit to buy those amazing lipstick red, front end loading washer and dryers!
They are highly trained in every aspect of a home purchase.

Starting with connecting you to one of our amazing local lenders to ensure you are pre-approved and understand your financial obligations.

Guiding you through the home search process and giving their highest professional opinion of comparable homes in the area. As well as giving their opinion of the condition and any updates or repairs the home may need.

Preparing the best offer with you and making sure you understand all terms and the process.

Walking you through the inspection process and again connecting you with a local home inspector that is ASHI certified.

Working with all parties involved to figure out a solution for any issues that may arise or repairs that may be needed from an inspection or appraisal.

Ensuring your mortgage commitment date is met, title search is complete and free of any liens.

Communicating with all parties involved throughout the entire transaction.

Lastly, the buyer’s agent role is to make sure the home is delivered to you in the same condition as the first time you fell in love with it and most importantly are on time for settlement!

There are many hurdles that can arise throughout any transaction outside of the ones listed above. It takes years of experience to know how to work through them, not panic and have them resolved in a timely manner. Buyer’s agents are ready, willing and able to stand up for you and your best interest! We are here to make sense of every step you take and to make sure you make a smart investment.

Your Buyer’s Agent is just as excited as you are to start that new chapter of your life in your new home! They want you to remember them for their commitment to you, their hard work and this milestone you just accomplished!

Listing Agents
We make it LOOK so easy!

While there are many steps involved in selling a home, one thing it’s not, is easy! Listing agents deal with every aspect of just selling a home while in some cases you also may see them wearing the Buyer’s Agent hat at times.

Your sanity is important to us! Our sanity is important to us and that’s why we have a highly effective assistant that keeps us on point every day! The difference is we have 16 plus years of experience that can’t be cloned or even taught. This is all for your benefit.

Outside of our aggressive marketing, buyers flocking to your door, retrieving feedback and sorting through multiple offers, there are many ways a perfectly solid agreement can fall apart. Especially if you have to sell a home in order to buy your next home!

There are so many moving parts in real estate beyond the creative marketing ideas and services that we offer exclusively to our clients. I could go on and on but this article would turn into a book. Everything is customized therefore meeting with a client in their home, in person, is really the most efficient way to start a real estate relationship off on the right track!

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