A good real estate investor knows where to look for the best deals. In this episode of The WealthBuilders Podcast, investors and coaches Karen Conrad and Frank Pulley unpack some of the best real estate opportunities right now. You will get a status update on potential cash cows with new builds, commercial and vacation properties.

Key Points:

  • The real estate market is projected to soften over the next few months, but it’s not going to be like it was 10 or 15 years ago where there was a huge downturn in property values. There is still too much demand. 
  • It is important to develop real estate knowledge to help you make good deals because even in soft, decreasing markets, deals can be made.
  • Philippians 4:6 says, “Do not be anxious about anything, but in every situation, by prayer and petition, with thanksgiving, present your requests to God.”
  • New construction has eaten up about 22% of new builds, which has become competition for existing single-family homes.  Housing starts are projected to fall even further in 2023. 
  • Mortgage rates are above an estimated 7 %. We have some demand, but we also have some weakened demand because people have been priced out of the market since they can’t afford the mortgage payments at a higher rate. This will affect first-time, especially first-generation, prospective home buyers.
  • Competition between new and existing, already built homes may provide some opportunities for investors, like lower construction costs, more incentives, upgrades on carpets, tile bathrooms, etc. 
  • Rental markets and rental rates have continued to rise. Low employment, unemployment, and wage increases, make qualified renters abundant. 
  • Zillow estimates a maximum price reduction of around 14%. Click here for more Zillow housing market projections.
  • The vacation rental market is supposed to reach 107 billion by 2028. People traveling along with slightly dipping real estate prices and slowing sales are making it easier to buy properties.
  • People who have invested in the stock market who have experienced a pullback in stocks and bonds encourage investors to get returns elsewhere.  Real estate has become a viable option.
  • Foreclosure increases have allowed some to have a few extra properties on the market which could potentially become good investments. 
  • Experienced real estate investors can find great opportunities with mixed use buildings. These are safer investments because they allow you to diversify your investment across multiple types of properties. Demands for office, storage and warehouse spaces are also creating investment opportunities. 
  • Triple net leases are also viable options for investors and will allow you to charge tenants the rent, insurance, property taxes, and common area maintenance costs. 

For more, listen to the corresponding episode of The WealthBuilders Podcast here.  Frank Pulley will be one of the speakers at The 2023 WealthBuilders Conference. He will teach you the formulas that will help you strategically invest in any real estate market climate. Click here to register for our WealthBuilders conference.