The new massive, freezing Polar Vortex is not only hitting real estate investors in the north with bitter cold, but also hitting them in the wallet and bottom line to act as a powerful reminder of the benefits of wholesaling houses and staying diversified.
Freezing weather brings a lot greater risk to real estate investors than most realize. Severe weather on this level causes all types of issues with homes, especially when temperatures get abnormally low and heavy snow falls.
This can range from the annoyance of higher than average utility bills for landlords to lawsuits from tenants and neighbors getting hurt to major property damage between bursting pipes to overworked heaters and even roof leaks or outright collapses.
If this doesn't sound like bad enough news for buy and hold investors with rentals, imagine the financial devastation for those that just put everything on the line in a rehab. Even for those surprised with minor repairs it can result in years of lost cash flow. For those not prepared and without significant reserve funds it can easily mean financial ruin for decades.
Those in the pit of this storm and these circumstances right now may find that wholesaling houses is their only hope of bouncing back financially. For those barely making it through it's a big wakeup call of the reasons so many others prefer wholesaling houses and never ทาวน์เฮ้าส์มือสอง want to hold them. Those already wholesaling are probably very glad of their choice of strategy.
Wholesaling houses means being able to get in, out and paid with no risks of holding. Some may hold properties for several days in between flipping, but others focus on taking pre-orders, double closings and even flipping real estate contracts to virtually eliminate risk.
Of course even wholesalers can be impacted by severe weather, and that doesn't just mean cold either. Tornadoes, hurricanes, tsunamis and other disasters can impact lending and hold up deals as well as have end buyers putting deals on ice till things thaw out. They may not lose financially, but no one wants a pause in business or income.
This is why savvy wholesalers always stay diversified. Invest in the north, invest in the warmer south, head west, and mix up the price ranges, types and neighborhoods you are wholesaling houses in to ensure maximum protection from any potential downside and to guarantee business continuity under any worst case scenario.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น