Timothy Reynold’s Blog

When the market is down you need to approach things a little differently. You do not want to have to confine yourself to buying rentals you have resources for. Many real estate markets now have several properties with little or no equity. You will not be able to sell much higher than what the area brings. This is why you need to purchase at a larger discount to make a decent profit when you are doing this traditionally. . . This is where other avenues in the real estate arena come into play.

Creative investors will begin by researching on prices in the different arenas. Then, they search through house listings with the words must sell, needs work or very motivated. It is partly because of this that some people who are flipping houses are doing so well. in the end, you have to weigh your profits against the risk spent getting the property successfully wholesaled. Such is the reason strategies like wholesaling are better for down markets.