A real estate investor's perspective on how dramatically the market has shifted in recent years and why focusing on off-market deals and key relationships is more critical than ever.
What I love about real estate is that everything changes all the time. It's never the same, and what I'm sharing with you today might not even be relevant in two days. But I want to explain what I'm experiencing right now in the market and how my real estate approach has evolved.
The Market Transformation
When I started in real estate three and a half years ago, we were living in completely different times. Interest rates were significantly lower, and the market was absolutely hot. There were tons of transactions - many people selling, even more people buying, and sales happening everywhere.
Fast forward to today, and the landscape has completely changed. There are markets where sales are barely happening. The inventory has been very low for about a year and a half, and now it's extremely low. While we all knew interest rates were going up, I don't think anyone expected the inventory to drop this dramatically.
The Death of On-Market Investing
Here's what's really striking: on-market real estate investing, which I absolutely loved even just a year ago, has almost become non-existent for investors like us. Everything that hits the market is selling higher than asking price, and it's incredibly difficult to compete with all the homebuyers out there.
From what I'm seeing, there simply aren't many distressed properties on the market right now. People are trying to sell at prices that are extremely higher than what I can realistically offer. It's not necessarily bad because I still have off-market deals, but it's definitely a significant shift.
The Silver Lining: Off-Market Opportunities
There are still people who can't sell on the traditional market - properties that won't pass inspection for FHA loans or even conventional loans because of their condition. These sellers can't deal with conventional buyers, and that's where our opportunity lies.
This is why I'm doubling down on off-market deals, and I suggest you do the same. While off-market has always been important for investors, right now it's pretty much the only viable path forward.
Building the Right Relationships
When I meet with new realtors now, one of my first questions is about their ability to source off-market deals. In the past, I could work with realtors who were excellent at on-market transactions. Today, I simply can't afford to work with someone who only focuses on MLS listings.
The numbers tell the story: open up Zillow and check how many properties are for sale in your metro area. In mine, there's not much available. When you filter out everything that's not residential, you're left with maybe a couple hundred properties - compared to the couple thousand we used to see.
The Bottom Line
These are very interesting times in real estate. My advice? Focus intensely on building relationships with people who can create off-market opportunities - whether that's realtors, wholesalers, or other industry professionals. Choose partners who can benefit you long-term with off-market deals.
Right now, this isn't just important - it's the highest priority. The market has spoken, and off-market deals are where the real opportunities exist for investors willing to adapt to these new realities."