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Its almost like the tide coming in.
He finds it amazing how quickly the market can swing just because people see the time as better.
He said hes noticed a housing market reset pattern that occurs in real estate every eight to 12 years.
One of the signs that any market is about to reset is related to the percentage of mortgage delinquencies.
This is the highest since the second quarter of 2020, he continued.
Eventually, when that happens, thats also a sign that a correction is coming, he added.
When property values remain out of reach for those families for too long, he said its not sustainable.
you’re able to also extrapolate these signs to a more micro level.
Be Patient
Ultimately, Heller recommended investors practice patience.
Long-term investors like me wait for these resets.
Will you flip them?
I always assess three different things: What is the cash-on-cash return?
What does the cashflow look like relative to the down payment that Im going to put on the property?
What is theexpected appreciation valuefor that particular area?
And then extrapolate that out over a relevant timeframe, lets just say 10 years.
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