5 Reasons Investors Should Buy at the End of the Year

After a busy year of fix/flip buying and selling you may be ready to take a little break by the end of the year, but there’s no better time in some respects to get some fresh properties under your belt so you can start off the New Year with a great portfolio of projects. Putting aside that summer is typically the ‘hot’ season to buy real estate; families are growing, renting and moving in the winter months too, in particular in the spring as the markets start to bounce back to life along with the spring flowers. This makes the end of the year when the markets are slow and the prices are lower a GREAT time to get some deals that will be ready to sell right when the spring selling peak tips off.

Here’s our rundown of the top 5 reasons that make buying at the end of the year a slam dunk for investors.

1. Tax savings which preserve your take home returns from projects earlier in the year.

If you close by December 31, you can deduct mortgage interest, property taxes, points on your loan and interest costs. These deductions are significant for small business investors, especially in the early years of your fix/flip business when every project revenue return counts to help you keep going to the next deal. The less taxes you’re paying – the more money you’re keeping!

2. If they’re on the market now- they’re MOTIVATED to sell fast and negotiate

Many sellers want to enjoy tax savings on the next home they purchase by getting out of their current home now. They may accept lower bids in order to meet Uncle Sam’s deadlines. However, if you’re in a strong seller’s market, you’ll want to be conservative and heed advice from real estate professionals in the area.

3. Less competition – fewer bidding wars

Unlike the spring and summer when both buyers and sellers are rampant in the market- the winter months, particularly throughout Dec since the holidays are a distraction, means even investors will be a lighter presence in the market- making it easier to swoop in and find some great deals.

4. Contractors have more time

In the busy renovation months of the year your regular contractor may be slammed and short staffed – but during this time of the year they will likely have time on the books and even be willing to give you a little break on labor costs since you can guarantee them a certain number of months of renovation work. This makes now a win-win time period to staff up new projects with your favorite contractors. 

5. Holiday sales make some renovation supplies cheaper

While most typical ‘holiday’ sales will really only apply to gifts and perhaps appliances you’ll be surprised at how many home stores like Lowes and Home Depot put other items on sale like sinks, faucets, light fixtures, carpeting and more during the holiday season. This makes now the prime time to get your renovation supplies at bargain prices – leaving more revenue for you!

So tis’ the season to GET BUSY investors and get out there and take advantage of this prime season to get your new portfolio of projects underway. Make it a great New Year and start now!

For questions or help getting private money loans to fund your residential real estate investments contact one of our loan officers now at 949-244-1090 or use our Contact Form online.

Cheers to your successful holiday season!