Updated: Mar 23
Defaults are on the rise over the last 4 months.
This appears widespread, across almost all sectors including commercial mortgage loans, residential home loans, and even multifamily mortgages. Based on statistics, there are about 20-30% more foreclosures and short sales now than last year. Analysts predict this will grow as the year progresses.
Defaults on auto loans and consumer credit card debts have also hit a new high, signaling many mortgage borrowers are barely hanging on. With more likely to fall late on their home loans and who will need to sell their homes.
So, how do you prepare to capitalize on this moment as an investor?
Have Money Ready
There are going to be a lot more distressed properties and motivated sellers to buy from soon. Don’t get caught short, and beat out to the best deals because you aren’t ready to move fast with your offers and closings. Find a good lender and pool your capital together now. Get your POF (Proof Of Funds) from your lender, and be ready to make fast cash offers.
Have A Strong Team
Those with the strongest teams will win. Find the best talent, and when you’ve got them, don’t let them go.
Get familiar with working in a remote environment if you haven’t already. Ask around for referrals if you can. Platforms like Upwork and Fiverr are still good with their customer support and have pretty good talent to choose from. Have a good real estate agent on your team, an appraiser, inspector, lender and title company on your team. Perhaps get your real estate license to add additional revenue to your bottom line.
Have Your Marketing In Advance
You should have your marketing prepared and materials created weeks in advance to avoid rushing out bad stuff. You can update your marketing strategy to be new, fresh and differentiated from your competition.
Focus On Giving Solutions
It’s all about finding deals and funding. Focus on opportunities, and solving the problem and needs. This applies to both your sellers and end buyers. Focus on what’s most important to them!
If you follow these recommendations, you should be ready to go and an enjoy a successful 2023 and 2024.