What is up everybody today we’re going to be investigating why houses aren’t selling in the market today and what you can do about it as a real estate investor, it’s extremely important to understand what moves you need to make so your houses sell, especially if you’re a flipper. And if you’re a wholesaler, you need to know exactly who you’re selling those deals to. So if you’re worried about houses not selling right now, you need to stay tuned and watch this video.
By the end of this video, you’re going to gain a deep understanding of how the real estate market trends affect you, as a real estate investor, learn about the various factors that are affecting real estate right now discover how to navigate these difficult times when houses aren’t selling. And I’m gonna give you a special example of how I had a house that wasn’t selling and what I did. And actually a previous video of me taking the house shown you the flip before I flipped it. And then when I did flip it and when I sold it.
So let’s dive right in what the heck is going on in the real estate market right now? What’s the current status? Well, what’s going on everybody is that the prices have been inflated due to the pandemic, what’s happened over the last few years. And people literally cannot afford their mortgages, the mortgages on the homes, they’ve more than doubled what they were over the last two years, I just sold the house in West Valley, here, it’s a half a million dollar home that we sold, it’s 2000 square feet, nothing crazy. It’s like a middle class starter home and the mortgage for most people is going to be around like 3000 to $3,500 a month, who the heck can afford something like that, that’s nuts. If my mortgage on my home that I bought like five years ago was like $1,200 for the same house that we sold, and I bought it for like 297.
So now almost the exact same house, it’s in a little bit different of an area, the mortgage payments like double, triple. And it’s not like salaries have increased a ton. So that’s what’s making it really hard for houses to sell right now as people just can’t afford them. So you really got to focus on what type of housing you’re going to target as a flipper or as a wholesaler, these high high level high income homes, that the mortgages are super expensive, those are going to be harder to move than middle class homes, because what’s going on is people who can’t afford those higher level homes or those higher priced homes, they’re just having to readjust their expectation. So maybe they were looking to buy a five bedroom, three bath, you know, for a million dollars or 750,000 in Utah, right. But now, you can’t get that home in most areas for that price.
So you need to readjust your expectations. So that’s what a lot of people are doing is either biting the bullet and they’re buying a home that they really can’t afford in the hopes that they can refinance out of it later, or they’re just buying what they can afford, and they’re going to a smaller home. But that’s why houses aren’t selling as quick right now. And what you can do about it as a real estate investor is you can target homes that are going to have a greater chance of people being able to qualify and buy them. So we’re talking homes that are three twos, we’re talking about homes that are in the middle income range of what earners are able to afford. So for example, if you’re a high level flipper, if you’re just always targeting the high income, those might be more difficult to flip in, because like the pool of people that can afford them is a lot lower. Okay. So that’s basically what’s happening right now.
And my suggestion is if to flippers to wholesalers is to focus on those medium to middle class homes that are always going to be moving just because people need a place to move. But you know, if you’re going to focus on those high flips, those ones that cost a lot of money to get into, it’s probably going to take a lot longer to sell. Okay, so what other factors are affecting the real estate market other than interest rates? Well, inflation that has a lot to do with interest rates, but it’s just getting more expensive to live so people aren’t able to afford such a high mortgage. So people are just waiting, they’re hanging around, they’re hoping the market will retract. And to be honest, I have no idea I’ve watched a lot I’ve talked to a lot of people, no one really knows what’s going to happen with interest rates. But again, the way to overcome this is as an investor, I target the homes that are in more of an affordable range for buyers. So you’re not just sitting around with a house that’s, you know, you’re paying interest on as as a hard money lender as you’re paying that hard money lender fee and as you’re flipping it.
So actually I have an example of a property that we bought before the market shift happened before interest rates went up and we were planning on making like 80 to $100,000 on this flip and because back in before the interest rates went up, you could pretty much just take a house and do a light rehab you didn’t have to go too crazy on it. And that’s exactly what we did is we just did a little light rehab We weren’t planning on going crazy on this flip and then the interest rates went up then there were less houses on the market and in order for your house to sell to be above all the other ones you really had to make it look really nice. So I have this video I want you to check it out.
This is a house that we were planning on flipping and not doing that great of a honestly I don’t want to say that great of a job but not putting in that much effort into making it super nice. But because we didn’t put in that much effort it didn’t sell so what we had to do is we had to buy it we had to refinance out of it and rent it out until we could sell it again. In the summer so check out this video I want you to look at it you can kind of do a quick dive of what happened on when we bought it what we’re planning on doing and then I have some pictures that I want to show you of what the house looked like when we sold it we just sold it recently Thankfully we’re able to make some money on it even though the market did shift a lot in Utah and I’ll be honest everybody we lost some money on on the flip because it took forever for us to buy it and then resell it you know we had it for like over a year so we had some some hard money costs but luckily when we sold it we got some money out of it which is nice but check out this video and see what we did and check out these after Pics.
So what’s up everybody inside this house that we’re flipping I’m about to give you the scoop. So we got this deal from a flipper that was kind of tired of flipping. I think he might have ran out of money who knows what happened but he was flipping it already as you can see from the floors, they look pretty nice. They painted the fireplace the brick but basically we’re coming in here as we’re finishing the flip out so I’m going to show you what we’re going to do and what we’re not going to do and we’ll see how it goes I’m not who knows if it’ll work. I mean I think it worked out we did our numbers and we know we there’s enough to spread but I’m not a fortune teller. We’ll see what happens in the market but we got to keep going keep going strong everybody. So first, check out the walls right here. We got to paint them nothing too crazy about these walls. The windows are old they’re double paned but can do a really good job and clean them up. Alright, nothing crazy with the windows.
Put some molding on the bottom. That needs to be done. Fireplace is fine. It’s been painted as you can see the screen door and then older but like we’re just going to clean it we’re not going to put a brand new door in there so paint paint side network you guys can see we’re probably going to do fix this you know put a more modern light fixture on here. Kitchen and you get to the kitchen guys. The there were already granite countertops in this house that was getting flipped and the cat the cabinets look decent. I’m not the biggest fan of these handles but maybe we’ll change the handles but other than that there’s a small kitchen but it will do it will do just fine door put a new door on this thing and if you Hector you want to follow me outside the house had a lot the grass was about this high. So we got a bid for like $800 to cut the grass from some jabroni and we said we’re not paying $800 To cut grass. So what we did guys is one of our our guests or project managers said I’ll freakin knock it out and he knocked down a couple hours got a mower and mowed this whole thing down now looks decent.
It’s not perfect but it’s better than it was but yeah guys I’m in right now with the way things are who are going to try and rock you they’re going to put you over to try to put you over the coals and rock you and charge you more than you really should to do stuff but you just got to say no and just do it yourself. Sometimes I know that’s not always the coolest thing or what you want to hear but sometimes people charge too much. So coming down here guys. We have a bathroom that needs to be finished. But it’s the drywall is already done in there and the tub is new originally put a vanity and a toilet and finish the floors. Nothing too crazy with that. Coming in here you’ll see that the flooring needs to be done. Obviously we need to paint these are older door Cars that aren’t going to fit we’re gonna have to put in new doors or paint them most likely put new doors back in the in these two bedrooms and then nothing crazy.
You just need to clean it put carpet paint. Okay, same with this one carpet paint, clean the windows. So as you can see so far you know it’s not going to be some astronomical on the flip. It’s just, you know, finish finish the bathroom carpet paint. Clean this up really nice. One thing that is going to cost us a lot is the master. But hey guys, one thing I’ll tell you right now one thing that I do enjoy is when people leave stuff behind, they left some DVDs. I might take one and watch one a night with my wife who knows, but the sellers they always leave stuff so so this is the master obviously we’re going to paint carpet pro change the doors in here. The master bathroom needs quite an overhaul. You’re gonna have to change the floor Be careful there you don’t want to fall through the floor. The floor is a little soft, and it’s got some weak so I’m telling you some crazy tile. Yeah, so this this used to be the style back in the day but they got some blue, nasty tile. We’re probably gonna open that shower up real nice. But yeah, Master needs to be worked on. So let’s head downstairs. That’s the upstairs for you guys. So the the downstairs needs quite a bit of work and which we’re doing right now.
We won’t bother you in here. So we got some work going on. So come check this out Hector. So this bathroom so by the way guys, it’s a five bedroom, three bath come on in here. This bathroom floor needs to be done needs to be vana needs to be done. They did leave the washer dryer, which we do try to sell on KSL or Craigslist or wherever you’re at we tried to sell on Facebook marketplace made a couple 100 bucks. This the utility room water heater was new. Pretty cool. And it’s just you know, the normal utility room storage room. So right here. Here’s the bit one of the bedrooms down here. That’s getting fixed up. And I don’t know what kind of style people have back in the day with green carpet. I don’t ever know why green carpet was ever a thing. But this room is pretty nice and that this the drywall on here is fine. It just needs to be painted, new flooring. Same with here. We’ve gotten the drywall put in here. As you can see it’s all been drywall the top drywall which seems to be textured and painted new flooring, paint the brick on the fireplace. It’s a nice big room.
So and by the way, it used to have all this paneling. So Shane, our guy did a really good job of getting rid of the paneling and putting drywall up again. As you can see, like, like I said, it’s the paneling, trash. So guys, this is the house, I meant this, it ain’t nothing sexy, you get a piece of trash house or a house that needs a lot of work. You flip it and you sell it. And that’s how you make your money. So I hope checking out was a cool experience for you to see the house that we bought. And then the shift happened and what we had to do to wait until we sold it and we did end up fixing it up and selling it. But what all a lot of you are probably wondering, you’re probably like, well, Nate, you’ve kind of said houses aren’t selling, you’re saying you gave us some good tips like of what to target. But what what’s the projection? What do you think’s going to happen? What I think’s going to happen is I think it’s going to remain stagnant and slow for a while and then interest rates will drop. That’s what I believe. But the thing is, as a wholesaler, all you have to do is you have to find the buyers who are still buying that need to put their money somewhere because they don’t want to just sitting in the bank they want to put into assets and you have to find the properties they want.
That’s why we do what’s called payneless wholesaling, because it’s not about just shooting a shotgun approach and trying to do random deals and not know where you’re looking for No, you want to connect with the top buyers that are still buying and doing a lot of deals and you want to go find those those buyers deals. That’s what you want to do. And then you will always have business. I don’t care if the economy tanks people will always need to buy real estate they’re going to want to invest in assets and you as a wholesaler will always have a job because your job is to find good deals is to solve people’s problems. So if you’re wondering WoW is wholesaling the right gig for me right now of course it is actually there’s more opportunities when the market is down just because you know more people need to sell their homes and they’re not able to sell them on the market when the market was hot. That was kind of hard for wholesalers because it’s hard to find a deal but now you need to work with the buyers you need to find good deals and that you’ll be able to get it done.