Rising interest rates have stopped many would-be homebuyers from making offers, forcing them back into renting instead of sending in over-asking bids. Now, home equity and flipping profits are starting to see a lag, as mortgage applications significantly slow down, showings become far less crowded, and price cuts become the new norm. Are we at the beginning of a real estate recession, and if so, how can we best prepare to still profit during the downturn?
James Dainard, master flipper, investor, and “On The Market” guest, has had to readjust almost every way he analyzes real estate deals. He’s managed to cash in some serious flipping profits over the past two years but understands that this year will be different. He shares exactly how smaller landlords, real estate investors, flippers, and wholesalers can “pad their profits” so they don’t get burnt on their next real estate deal.
Join BiggerPockets for FREE 👇
Listen to The “On The Market” Podcast Wherever You Listen to Podcasts:
Apple Podcasts: https://podcasts.apple.com/us/podcast/on-the-market/id1615086704
Join the Future of Real Estate Investing with Fundrise:
Mortgage Applications Decrease in Latest MBA Weekly Survey:
Nearly 1 in 5 Sellers is Dropping Their Price:
Subscribe to ProjectRE with James Dainard:
Connect with Dave and Our Panel of Guests:
Dave Meyer: https://www.biggerpockets.com/users/davem27?utm_source=youtube&utm_medium=description&utm_campaign=none
Henry Washington: https://www.biggerpockets.com/users/henryw22?utm_source=youtube&utm_medium=description&utm_campaign=none
James Dainard: https://www.biggerpockets.com/users/heaton?utm_source=youtube&utm_medium=description&utm_campaign=none
Jamil Damji: https://www.biggerpockets.com/users/jdamji?utm_source=youtube&utm_medium=description&utm_campaign=none
Kathy Fettke: https://www.biggerpockets.com/users/kfettke?utm_source=youtube&utm_medium=description&utm_campaign=none
Follow Dave and Our Guests on Instagram:
Dave: @thedatadeli or https://www.instagram.com/thedatadeli/
Henry: @thehenrywashington or https://www.instagram.com/thehenrywashington/
James: @jdainflips or https://www.instagram.com/jdainflips/
Jamil: @jdamji or https://www.instagram.com/jdamji/
Kathy: @kathyfettke or https://www.instagram.com/kathyfettke/
BiggerPockets: @biggerpockets or https://www.instagram.com/biggerpockets/
Show notes at: https://www.biggerpockets.com/blog/on-the-market-13?utm_source=youtube&utm_medium=description&utm_campaign=none
00:37 Between the Headlines
03:01 Market Forces: Demand vs. Supply
05:40 Market Forces: Price Cuts vs. Selling Over Asking
12:11 Housing Market Fear
13:43 Due Diligence: What is a Good Deal in 2022?
28:56 Cash Flow and The 1% Rule
33:58 Has Flipping Flopped in 2022?
49:29 Start Padding Your Profits
51:06 Crowd Source: It’s Time to Trade Up