‘Tis the season to be jolly… about great real estate deals!
In the real estate industry, the holidays are considered a “slower” time due to lower inventory and buyer activity. Buyers would rather be at home spreading holiday cheer than packing up and preparing for a move. Can you blame them?
While the market isn’t quite as busy, that doesn’t need to slow you down as an investor. In fact, there are several benefits of investing in real estate around the holidays. Here are our top 5 reasons the holidays are a great time to invest:
1. Less Competition
The holidays are a time of year where many professionals take a step back from work to spend time with loved ones. Around 52% of Americans are planning on traveling in December of 2021. Of these travelers, many are eager to see family overseas as travel restrictions from the pandemic are being lifted.
For an investor, this just means that the list of leads you put together using PropStream will be more open for you to connect with! Competitors are more likely to travel or take time off of work during the holiday season, leaving you to make those connections with eager sellers in their absence.
2. Sellers May Be Urgently Trying to Sell
Most homeowners will do everything in their power to avoid selling in the winter, much less around the holidays.
Between the lack of inventory, colder weather, and holiday responsibilities, sellers usually prefer to wait until spring or summer, especially since they feel there will be more buyers available at this time.
However, during this time, there are still homeowners who need to sell quickly. Homeowners may need to sell quickly if they’re facing an unexpected circumstance, such as…
- Potential foreclosures
- Sudden changes in family situations
- Changes in finances
These motivations give investors a little bit of leverage when it comes to negotiating a deal on the property.
Our platform has 120+ filters and 19 Quick Lists that help you find homeowners who are motivated to sell around the holidays.
A few of our popular Quick Lists options are…
- Pre-foreclosure
- Liens
- Pre-probate
- Bankruptcy
Once you’ve found these motivated sellers, perform a skip trace to get their phone numbers and emails. From there, send a postcard, email, or give them a call!
3. Short-Term Rentals for Prime Traveling Seasons
You may be unable to list your short-term buy and hold property in time for November and December holidays, however, spring break is just around the corner!
In 2021, about 57% of Americans planned to travel for spring break. In 2022, that number is expected to be even higher! Travel in 2022 is expected to generate around $2 trillion in revenue in the United States.
With this increase in spring break travel, the slower season is the perfect time to find a property to fix up, furnish, and list just in time for spring and summer.
4. Potential for Lower Interest Rates
While the interest rate will depend on personal factors like credit score, down payment, and lender of choice, the economy also plays a role.
Mortgage rates have been historically low (around 2-3% for 30-year and 15-year fixed mortgages) for several months as a result of COVID-19. Although market heat caused rumors that the interest rates would shoot back up, the appearance of the Omicron variant may delay the rise.
While rates may temporarily stay low to reflect the rising number of COVID-19 cases in the United States, there is no promise for how long they’ll stay low. So, if you’re interested in purchasing a property, you may find it best to take advantage of these lower interest rates around the 2021 holiday season!
5. Creative Contracts with Buyers
Explore creative contract options with a legal professional to help close your deal sooner during the holiday season. Consider things like:
- Cash Sales- A cash sale is when real estate is sold for cash only. No loans are taken out in this transaction allowing the buyer to make quicker decisions with fewer complexities.
- Terms under finance (seller finance)- In a conventional mortgage, a buyer will borrow from a financial institution. Seller financing enables the seller to loan the mortgage amount to the buyer and is also known as a “purchase-money mortgage.”
- Subject-to- Subject-to is a creative financing option that offers more flexibility in financing compared to a conventional loan from a financial institution. With subject-to, you’re essentially taking the deed of a property without signing mortgages to anyone else. Keep in mind, subject-to can be complex and the user should have extensive knowledge in lending before pursuing this type of financing.
Interested in learning more about creative contracts? Many courses are readily available on the web from our talented partners who promote PropStream. Find one that suits your needs on either Google, YouTube, or both!
How Will You Make the Most Out of the Holiday Season?
‘Tis the season to celebrate but it’s also the time to score some great deals on investment properties!
If you factor the slower market into your real estate investing business plan, you may be able to buy some holiday real estate with a lower interest rate.
Ready to start finding motivated sellers? Sign up for our 7-day free trial today to get started!
