Our Real Estate Investing Plan for 2023
TL;DR - We plan on seeking out motivated sellers who are open to creative deals.
It's no secret that real estate investing is a great way to build long-term wealth.
In fact, many people consider it to be one of the best investments out there.
However, in today's market...
Buying property can be more difficult than ever before.
To build your portfolio, you'll have to be a creative investor.
Here's how we plan to do just that in 2023.
Our Real Estate Investing Plan for 2023
Clinging to Early 2022
Interest rates have doubled since early 2022.
Yet many home sellers are clinging to the idea that they can get early 2022 home prices for their properties.
This makes it harder to invest in real estate, as sellers are often asking for more than what their property is worth.
Which puts real estate investors in a difficult situation.
We can't pay the prices sellers want, but we also don't want to overpay for properties.
That’s why to be a successful investor in today's market, you'll need to think outside the box and find creative ways to get the best deals.
To jumpstart your creativity, here’s our plan for investing in 2023.
Getting Creative
Our investing strategy for Undoor has always been focused on cash flow.
Because cash flow is what enables you to build your passive income up and buy more properties.
But with home sellers asking for inflated prices, we’re shifting/adding to our acquisition strategy.
The Situation
Properties are sitting on the market longer because investors can’t afford these crazy prices.
And the longer a property sits on the market, the more likely that its price will drop.
With price drops come motivated sellers.
So we’re focused on finding motivated sellers who are more likely to accept creative offers.
Unlike the past few years, we don't have to extend offers in minutes and compete with 20 other investors.
Which makes it easier to find these motivated sellers.
Our Strategy
We’re looking for properties with significant price drops or those that have been sitting on the market for a long time.
The owners of these properties may be willing to take less than market value just to unload their property and move on.
That being said, it will probably take another 3-6 months before the market adjusts and prices potentially start to fall.
So we’re focusing on creative finance deals in the meantime.
We’re looking for sellers who want or need to sell and have lots of equity in the property.
This allows us to approach a deal differently than a traditional loan and transaction.
Instead of paying the mortgage to a bank, we would pay the seller. The seller essentially becomes the bank.
This allows for more flexible terms.
For example…
In these situations, we could get what the seller wants easier. All while having them carry the loan at a lower than conventional rate, which would result in a cash-flowing deal.
For sellers that don't own a property outright...
We could structure deals where we:
Get a loan for 50% of the purchase price from a non-qualified mortgage lender
Get a loan from the seller for 40% of the purchase price
Only come in with 10% down
Ultimately making it cash flow.
This is called a 50-40-10 structure.
It’s a different kind of transaction and search. But Zillow allows us to create a search filter that includes words like “seller finance” or “seller carry”.
Which means we can easily narrow down our searches to find these deals.
By taking the time to find and negotiate these deals, we can get more cash-flowing properties in our portfolio.
Which will lead to building long-term wealth and give us an advantage over other real estate investors in 2023.
What To Look For
We’re looking for gray-haired investors who are looking to retire and need to liquidate their investments.
People who have a lot of equity in their homes due to life events such as death, divorce, or displacement from work.
These properties can be great deals if structured properly.
Don't wait for home prices or rates to come down --- because that could take a very long time.
Instead, get creative.
Learn how to find motivated sellers and talk with people.
In the recent past, real estate deals were quick. They didn't require any sales or relationship-building.
Take this opportunity to develop your sales and relationship skills.
If you do, you'll come out ahead over all the investors that are waiting for the "right time" to invest.
It's always a great time to invest, so get after it!
Happy Hunting!
How We Can Help You
We’re excited to see what 2023 has in store!
We’ve got big plans for Undoor and our investments.
On a personal level, I’m looking forward to continuing to work on my golf game and becoming medication-free!
I also plan on taking more vacations with the family.
So here’s to a healthy, safe, and fun year ahead!
With dedication, hard work, consistency, and a little luck — anything is possible. Let’s make 2023 even better than 2022!
Happy Hunting!
