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Why this is a great time of year to buy

December 31, 2011

I like buying properties this time of year for several reasons. The timing works well. Typically we are bidding on REO properties so initial bids that are made in mid December and January might result in you getting the keys in Feb or March. My last bank purchase took 2.5 months after all the title clearing and red tape. I think some banks try to dump their inventory prior to year end. Common sense would tell them to be open to lower offers this time of year and avoid maintaining vacant properties during the winter. However, they are banks and common sense is not always apparent with most of them.

Another reason I like to buy this time of year is there is less competition. All the fair weather flippers and investors seem to take the holidays off. This only leaves the die hards and there is less ‘dumb money’ floating around. “Dumb money” is what I call the new investors bidding way too much on properties. They seem to bid more during the fair weather months and much less during the holidays.

There is also less competition for the good contractors. Many more contractors are available and hungry this time of year.  I bet labor is at least 10-20% cheaper this time of year. Some of the materials are cheaper, but not all of them. It makes sense AC units are cheaper in January.

I have found that getting a place rented out this time of year is not that difficult either. The Dallas winter is typically not that bad and the ground is not covered in snow like it might be in the North or Midwest. There are people looking to move after the holidays and things really pick up in March and April. This is good timing for a purchase in the middle of winter.

From → Buying

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