Lesson For Investors From Private Money Loans Colorado
Welcome to Real Estate Investing Today brought to you by Private Money Loans Colorado
. My name is Ryan Wright and I am so happy that you joined me. Today I want to talk to you about some things that I have noticed from Texas hard money lenders and some of that thing as we look at the market place and some of the things that are happening in the Texas. I think it is important to realize; pricing the property how important that is.
When you are pricing the property many investors that are selling the property, when they fix it up and they got the property back on the market and they are working on reselling that property, they get a little too excited about the repairs they have done to the property. And I think that any time you spend time or a month doing the repairs on the property yourself or managing the repairs and seeing what is done and the colors and picking the tile up you kind of think that your home is the nicest home.
It may be but we all see the world through rose colored lenses. Visiting with Texas hard money lenders I think that they will tell you that are true as well that many people fall in love with their property and it is important that you do not. So as you are looking at a property you may have established what you think you are going to sell the property for when you started the project. But when it comes time to put it back on the market you have got to reassess the value of the property all over again.
And I think it is important that you get an objective approach, have some body else do not do yourself, get a couple of people to give you opinions of value because value is going to change. It may get better. It may get a whole lot worse. It may get better because you did more to the property, repairs you did increase the value or markets are on rise. It really depends not just on the state or the city but it also depends on the micro area so the area within the area.
It could be ones that does well and another that goes poorly depending upon the condition of the market place. But I think in visiting with Texas hard money lenders some other things are going to be important for you, is to realize and make your price reduction. Now lots of people may agree with your price reductions on the value and they say every month we are going to reduce price by $5000. We will adjust the price by 3% or 2% or whatever the case may be that is the wrong approach in this market place.
The right approach in this market place is every two weeks to every month to reassess the value so you want objective approach and you want to look at actives, you want to look at solds and you want to look at under contracts and looking at that you want to make a price reduction. I visited with the borrower and investor that was doing a loan and they have price of the property, they went, took advice, looked at actives and solds and under contract and rather than dropping the property by $5000 that would be normal they dropped the property by $15000. And the reason that is important, they obviously want to make money and they want to do the best they can and every thing else like that, however, you do not want to chase the market because you will never win.
And by chasing the market what I am talking about is, if they will reduce the price by $5000 then what would have happened is the next month they have to reduce the price by $5000 and the next month they will reduce the price by $5000 but they will be chasing the markets. Always reduce the price slower than how the market was dropping. So if that is the case you have to make a drastic reduction. They have done that. They know they are getting tons of showings and they are going to be seeing an offer I think pretty shortly on that. They have just barely done this. But at chasing the market you need to be ahead of the market not behind it and you got to be the best looking property at the lowest price and those are properties that are going to sell. So you want to reassess it on a regular basis. A property is rather than just doing incremental price drops based upon some factors that really have no value in this type of a market place and we visit with lenders in Texas and talked with other hard money lenders I think it is important to realize this that you do not want to chase the market you want to be ahead of it. You want to look for properties that are in the right demographic price range where you are going to have the most probabilities of buying. So I hope these tips will help; some thing we have learnt in visiting with Private Money Loans Colorado. I hope they can help you in valuing your property whether you are in Texas or whether you are anywhere else in United States the principles remain the same.
I appreciate your reading. This is Real Estate Investing Today brought to you by Private Money Loans Colorado. Happy Investing with Private Money Loans Colorado
by: Do Hard Money
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