'That's really bad advice': A real estate investor who owns over 1,000 units and retired at age 36 explains why 'zero-money-down' strategies like wholesaling will no longer work for investors in 2023
— where investors make a profit by being the middleman in a real estate transaction — have wildly exploded in popularity."No money into it, just trying to wholesale, flip, and get creative financing and all that kind of stuff — I think with where the markets are at now, it's definitely softening and turning a corner," he explained."You can't just bootstrap something and own something without putting a lot of money into it and expect it to have these huge gains.
In the past, macroeconomic tailwinds like low interest rates and easy money meant that investors were able to find success through bootstrapping. According to Allred, investors were able to make money simply by being in the game and having any exposure to real estate.financing costs skyrocketing Allred, who defines himself as a"cash flow investor," believes that higher interest rates combined with borrowing over 90% can make it almost impossible for investors to receive positive cash flow on their properties.
"If you buy a property and the market goes down and you haven't put a lot of money into it, then it's very easy to become upside down in your equity position. And it goes from being an asset to a liability real quick," he explained.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Architect of law to cancel student debt says legality of Biden's relief 'could hardly be clearer'An architect of the law Biden is using to cancel student debt reiterates that it 'could hardly be clearer' that the loan forgiveness is legal
Read more »
Millennials in a midlife crisis will spend and divorce less, value experiences more than Gen X, boomersMillions of millennials could soon enter a midlife crisis. But they're going to spend and divorce less — and value experiences more — than prior generations.
Read more »
How Susan Wojcicki's tenure at YouTube improved creators' experienceI was an early YouTube creator. Here's how CEO Susan Wojcicki improved the site in 10 years, helping me make money and even find a community of close friends.
Read more »
TikTok owner ByteDance launches new app Lemon8, pays creators to postTikTok owner ByteDance has quietly launched a new app, Lemon8, in the US and UK, and is paying creators to post
Read more »
Walmart says own-brand sales growing amid economic uncertaintyWalmart execs say own-brand sales are growing as customers cut spending, and suggest that other brands could put their prices down to compete
Read more »
Meet Bill Gates' family: Daughters Phoebe, Jennifer; son RoryMeet Bill Gates' family: From his well-connected parents to a horseback-riding med student and a fashionable Stanford undergrad
Read more »