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Rate stoopid high
Subject Expert
You missed the buying in cash part huh?
If you can get at a lower price absolutely. But it seems the house buying fever doesn’t care about high rates.
You guys don’t even read the question. He/she is a cash buyer.
That’s my plan, but not yet. I think it will look more attractive in 2024. The trend is down or flat with higher unemployment expected. The opportunity won’t be leveraging debt this time it will be cash is king, creative financing, pooling investor money. Above 6% a lot of people are willing to act as a bank. That’s what I see in other countries with rates as high as 15%. It might be the worst time in history to buy a house with financing. Prices are high and interest is average, but seems high because houses are still expensive. Really we need to see higher unemployment before I’ll be interested. I also don’t believe the narrative around rate cuts this year. I think interest will go higher than expected to cool inflation..
Subject Expert
I don’t think house prices have come down in concert with the interest rates increasing. But it may very much depend on your area.
Mentor
Buying in cash is not capital efficient. The interest rate is only a problem if the monthly cash flow can’t cover expenses. While I know first hand that higher rates have made it harder to find cash flowing properties, it’s times like these that separate the pretenders and the real investors.
Cash buyers don’t really care about being capital efficient lol look at jay z and beyonce
Start making below market offers on properties that you like. It will take a few months and sifting through several properties before you find the right investment property
👆this could work too. A lot of these houses need 20% down plus a deep discount to break even on cash flow. Start offering what they are worth to you, ignoring sale price. Sure 95% will get rejected, but that’s still 1 in 20 accepted. No one cares what the agents think of the offers. They are a proxy.
No