As a third-party originator (TPO), understanding and formulating real estate investing strategies isn’t in your immediate job description. However, the ability to point clients in the right investment direction can help you forge profitable business relationships while enhancing your bottom line.
With a new year comes new, green-eared investors eager to make their mark in the real estate market. For many real estate investing beginners, understanding the best times to buy, sell, build, and rent can be challenging. Luckily, we’re here to help you help them!
In this article, we’ll discuss the best times of year for clients to invest in different types of real estate investment markets, including:
With a new year comes new, green-eared investors eager to make their mark in the real estate market. For many real estate investing beginners, understanding the best times to buy, sell, build, and rent can be challenging. Luckily, we’re here to help you help them!
In this article, we’ll discuss the best times of year for clients to invest in different types of real estate investment markets, including:
- Fix and flip markets
- New construction markets
- Long-term rental markets
Let’s dive in.
The Best Time Of Year for Clients to Invest
Fix and Flip Market
The perfectly-timed purchase and sale of a fix and flip investment is one way to maximize profits and separate yourself from the competition. Let’s look at the best times of year to buy and sell fix and flip properties and why:
Best Time of Year to Buy
At a Glance
If your client is developing a fix and flip real estate investment strategy, encourage them to look into local markets throughout the winter months, specifically December through February. During this time, real estate markets slow, with many buyers, sellers, and investors pausing to enjoy the holiday seasons (or just stay warm).
The winter season is the perfect time to take advantage of low competition and seek out motivated sellers. There are many cases where sellers keep their homes on the market throughout the winter due to financial pressures. This, coupled with the lack of buyers on the market during winter, can encourage sellers to accept lower offers.
- Best Time to Buy: Winter
- Why?
-
- Less competition
- Motivated sellers
- Discounted properties
If your client is developing a fix and flip real estate investment strategy, encourage them to look into local markets throughout the winter months, specifically December through February. During this time, real estate markets slow, with many buyers, sellers, and investors pausing to enjoy the holiday seasons (or just stay warm).
The winter season is the perfect time to take advantage of low competition and seek out motivated sellers. There are many cases where sellers keep their homes on the market throughout the winter due to financial pressures. This, coupled with the lack of buyers on the market during winter, can encourage sellers to accept lower offers.
Best Time of Year to Sell
At a Glance
- Best Time to Sell: Spring
- Why?
-
- Market demand
- Aesthetic appeal
- Shorter hold times
Between March and April is the best time to bring a fix and flip investment to market. As the climate warms, markets heat up with homebuyers looking to relocate before the summer. Marketing is vital to your client’s real estate investing strategy, and springtime provides the sunlight and natural aesthetics necessary to enhance a property’s curb appeal or provide the perfect lighting for online listing photos. The increased demand and seasonal aesthetics translate to shorter holding times, faster sales, and higher ROIs.
New Build Market
Although there are different real estate investment markets, timing plays a recurring and pivotal role in investment success. The new build market is no exception. Fortunately, with the U.S. housing inventory short 4.5 million homes, state and local governments are turning to investors to meet consumer demands for new build homes.
With the new build market bullish, let’s look at the best seasons to buy and sell new build properties and why:
With the new build market bullish, let’s look at the best seasons to buy and sell new build properties and why:
Best Time of Year to Buy
At a Glance
- Best Time to Buy: Late Winter / Early Spring
- Why?
-
- Discounts & promotional sales
- Ample construction time
- Building weather
From a real estate investment strategy and investor’s perspective, the best time to purchase land for a new build project is late winter through early spring (December – March). Like motivated winter sellers, developers may feel the financial strains of a stagnant winter and offer specialty discounts or promotional deals to builders during this time. These incentives can include price reductions or better financing terms.
From a builder’s perspective, buying early in the year gives them enough time–and nice weather–to complete projects on time and avoid weather delays or other time constraints.
From a builder’s perspective, buying early in the year gives them enough time–and nice weather–to complete projects on time and avoid weather delays or other time constraints.
Best Time of Year to Sell
At a Glance
- Best Time to Sell: Spring / Summer
- Why?
-
- Market demand
- Aesthetic appeal
- Quicker sales at premium prices
The best time to sell new builds is when the real estate markets are at their hottest (along with the weather) between May and July. The markets are bustling and the idea of being the first to own and live in a property attracts new homebuyers. The lush outdoor landscape, warming sun, and blooming plant life enhance curb appeal and marketability, leading to quicker sales at premium prices.
Long-Term Rentals
Investing in real estate rentals can be a fruitful endeavor with the right timing and rental real estate investing strategy. However, rentals and tenants bring additional considerations–leasing contracts. Purchases and rental timing must match up with leases.
With that in mind, let’s look at the best times to invest and market long-term rentals:
With that in mind, let’s look at the best times to invest and market long-term rentals:
Best Time of Year to Buy
At a Glance
- Best Time to Buy: Fall / Winter
- Why?
-
- Less competition
- Negotiating leverage
- Motivated sellers
Between Fall and Winter (September – February) is the best time to buy rental units. With less competition in the market, rental investors gain leverage in negotiations with motivated sellers looking to finalize deals before the end of the year. This can equate to below-market purchase prices and favorable terms while providing investors time to renovate or reposition units before selling season. This sets a rental investor’s real estate investing strategy up for long-term success.
Best Time of Year to Sell
At a Glance
- Best Time to Sell: Spring / Summer
- Why?
-
- Buyers’ market
- Lower vacancies
- Higher-income potential
Conversely, the best time to lease rental properties is between April and August. These months provide a surge in tenant activity by students, young professionals, and families looking to find housing during the warmer seasons or before school starts. With a highly saturated buyers’ market, landlords (investors) gain leverage and can command higher rents than in slower colder seasons. This culmination translates to typically higher income streams and lower vacancies for investors.
Financing a Successful Investment with a Strong Real Estate Investing Strategy
While there are different types of real estate investing strategies and markets for your clients to enter into, speed, timing, and adaptability all play a pivotal role in their investment success. Providing clients with flexible, accessible, and reliable financing will help them throughout their real estate pipeline–buying, building, renovating, selling, or renting.
Roc Capital continues to provide TPOs and their investors with game-changing financing packages that provide the speed, flexibility, and capital necessary to outpace the competition. Whether your clients are developing a short-term real estate investment strategy or investing in real estate rentals, our team of industry experts has you covered.
We provide:
Roc Capital continues to provide TPOs and their investors with game-changing financing packages that provide the speed, flexibility, and capital necessary to outpace the competition. Whether your clients are developing a short-term real estate investment strategy or investing in real estate rentals, our team of industry experts has you covered.
We provide:
- Fix and Flip Loans
- Ground Up Financing
- Stabilized Bridge Loans
- Single Property Rental and Rental Portfolio Loan Options
Additionally, Roc’s White Label Table Funding program is the golden egg for private lenders looking to elevate and scale their mortgage business by building brand credibility and attracting valuable investment opportunities.
If you’re ready to help your clients enhance their real estate investing strategies and grow your business, speak with a Roc Capital specialist today. CLICK HERE to schedule a FREE consultation.
If you’re ready to help your clients enhance their real estate investing strategies and grow your business, speak with a Roc Capital specialist today. CLICK HERE to schedule a FREE consultation.
