Keep an eye on car sales to help inform your real estate decisions when you borrow from a hard money lender.
Real estate investors are savvy when it comes to the housing market, but when they’re ready to borrow from an Arizona hard money lenderthey will pay attention to the bigger picture to make important decisions about their portfolio.
There are two large financial indicators of the economy because they are the two biggest purchases most people will make: cars and houses. So how do car sales inform real estate investors of the strength of the real estate market?
When car sales change drastically, it can be a foreshadowing of a bigger economic upturn or downturn. Recently, car sales for the big brands like Toyota and Honda have dropped drastically. If consumers aren’t making large purchases like cars, the real estate trends will tend to follow, and vice versa.
As the economy trends that direction, consumers will become wary of other big purchases like homes and real estate investments. Why is that?
We all remember the big real estate bubble that burst in 2008 and buyers and sellers are anxiously awaiting another large sway in the market. Though we may see something similar, we won’t see a burst to that extent anytime soon.
That being said, some owners are wanting to sell their homes before that tide does turn. That means we may see an influx of homes on the market after the new year. That’s the time for real estate investors to get their hands-on homes to fix and flip, or to buy and hold.
If you have any questions about how to use a Arizona hard money lenderlike Level 4 Funding to help you make a purchase for your real estate investment portfolio, reach out to us to find out what we can offer.
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22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
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About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.