<br>

The term 'panic buying' has been thrown around quite a bit during the COVID-19 housing boom. Housing inventory is at record lows, and housing demand is at record highs. Economics 101 tells us that this is the recipe for a pricing shock -- according to data compiled by S&P CoreLogic Case-Shiller US National Home Price Index, home prices in the United States have increased 12% from March 2020 through February 2021. This unprecedented spike in home prices is driven by record low interest rates and a rapid shift to a work-from-home economy that demands more rooms, more space.

<br>

We have all heard stories of listings on the [MLS](https://www.offermarket.us/real-estate-glossary/multiple-listing-service) receiving dozens of offers, above asking price, sight unseen with no contingencies and going into contract in just a few days. We have also heard countless frustrated homebuyers lamenting about the fact that if they want to buy a house, they are going to be forced into a bidding war for a house that they would not have even considered purchasing pre-pandemic. 

<br>

In other words: buyers are over-paying for undesirable inventory.

<br>

This is panic buying. Panic buying is irrational and dangerously value destructive. This simple guide is your resource to help you avoid panic buying.

<br>

In our Medium post, [Wholesale Real Estate: The World Of Real Estate You Probably Know Nothing About (But You Should)](https://dwshorowitz-offermarket.medium.com/wholesale-real-estate-the-world-of-real-estate-you-probably-know-nothing-about-but-you-should-b544c6ad69b5), we introduce an important source of housing inventory that most "retail" home buyers don't know about.

<br>

[Wholesale real estate](https://www.offermarket.us/real-estate-glossary/wholesale-properties) is a house where the owner (seller) is under contract with a wholesaler (initial buyer) who is selling the contract to another buyer (end buyer). Most of the time, end buyers of wholesale real estate are professional real estate investors (i.e. fix and flip and rental property investors). 

<br>

Additional reading: [Wholesale Real Estate 101](https://www.offermarket.us/guides/wholesale-real-estate-101)

<br>

## Where to find off-market housing inventory

<br>

### 1. OfferMarket

<br>

OfferMarket is a marketplace for wholesale real estate. There are hundreds of off-market deals that you can browse on our platform and buy with ease, without an agent.

<br>

**Join the pros and subscribe to OfferMarket deal flow:**

<br>


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<br>
<br>

## 2. Facebook Investor Groups

<br>

There are countless Facebook Groups dedicated to wholesale and off-market real estate, many of which are local. Join these groups for a steady flow of off-market deals. While you're at it, join our Facebook Group: [Real Estate Marketplace: Wholesale, For Sale By Owner](https://www.facebook.com/groups/326051528838367).

<br>

## 3. Network with local wholesalers

<br>

There are probably several reputable wholesalers operating in your local market. You can find them through local Facebook Groups, Google search, and your local [REIA](https://www.offermarket.us/real-estate-glossary/reia). Get on their [Buyer's List](https://www.offermarket.us/real-estate-glossary/buyers-list).

<br>

## 4. Be A Contrarian, Buy Like A Value Investor

<br>

Warren Buffett famously said "be fearful when others are greedy, and greedy when others are fearful". While housing prices have increased tremendously over the course of the pandemic, real estate is hyper local and certain markets have not experienced anywhere near as steep a rise in home prices. This is especially true of urban markets. While everyone is chasing suburban listings, smarter buyers are looking for opportunities in the areas buyers are fleeing.

<br> 

## Summary

<br>

Fight the FOMO (fear of missing out) and use the suggestions in this guide to buy smarter.

<br>

There's more to learn at OfferMarket. Feel free to [reach out](https://www.offermarket.us/contact) if you have any questions!

<br>

The current housing market is arguably out of control. A major supply and demand imbalance has catapulted prices to record levels. If you want to buy a house in this market, these are the things you should know. 

How to avoid panic buying in the current housing market - OfferMarket

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How To Avoid Panic Buying In The Current Housing Market

Directory of licensed architects and professional engineers (PE) in Baltimore.

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Licensed Architects & Professional Engineers Baltimore | OfferMarket Directory

Licensed Architects and Professional Engineers Baltimore

<br>

## Does It Make Sense To Sell Your Rental Property?

<br>

Being a landlord does not always make sense from a financial and quality of life perspective. Whether you stumbled into rental property ownership accidentally, or you have collected a portfolio of rental properties intentionally, there comes a time when every rental property owner asks themselves if the headaches and financial returns are worth it. 

<br>

If you are having second thoughts about owning your rental property, we want to make sure you know about OfferMarket. 

<br>

OfferMarket is a rental property investment platform. We and our network of qualified investors would love to provide you with [competitive offers](https://www.offermarket.us/sell) for your unwanted property. Requesting an offer for your rental property is free and comes with no risk and no obligation.

<br>

## Financial Perspective

<br>

At the end of the day, owning one or more rental properties is a business. Your rental income is revenue. Your tenants are your customers. Your real property is an asset. Your mortgage and deferred maintenance are liabilities. The best way to judge the performance of your rental property business is to look at two things: 

<br>

1. the free cash flow that it generates
2. the equity you have in your property

<br>

## Free Cash Flow

<br>

Free cash flow is the cash your rental property generates after subtracting your mortgage principal, interest, taxes, insurance ([PITI](https://offermarket.us/real-estate-glossary/piti)), property management, and your reserve for maintenance. If you self-manage the property, we recommend factoring in your time at the same rate that you would otherwise pay to a property management company. This is typically 5% to 10% of monthly rent and 25% to 50% of first month's rent for new tenant leasing.

<br>

If your rental property is generating negative free cash flow (i.e. you are losing money on a monthly or annual basis), then the property is likely not worth owning or one or more actions need to be taken to correct the situation. 

<br>

- Raise rent
- Fill vacancies
- Refinance into a lower rate to reduce your interest payments

<br>

It is possible neither of the above is feasible. Perhaps the property has major [deferred maintenance](https://offermarket.us/real-estate-glossary/deferred-maintenance) that needs to be addressed in order to fill vacancies or raise rent.

<br>

When you look at your annual free cash flow plus your equity appreciation divided by your equity in the property, you will get a clear sense of how your investment is performing relative to other investments. Most notably, relative to passive investments that do not take up your time.

<br>

**For example:** if your property is generating $5,000 per year in free cash flow and your property is worth $5,000 more compared to last year, and you have  $100,000 of equity in your property, then your return is 10%. Compare that to the S&P 500's 10 year annualized return of 13.4%. Looking at it this way makes it difficult to justify owning and managing a rental property from a financial perspective.

<br>

## Quality Of Life Perspective

<br>

Rental properties are not just financial investments, they are time investments. As we covered above, they are a business and they do not perform well with absentee owners. That's why we recommend factoring in the cost of your time if you self-manage your property. Even if you use a property management company, you're still ultimately responsible for managing your rental property. Finding a great property management company can be easier said than done, and a low percentage of property management companies perform to a satisfactory level.

<br>

If you're retired and you want something to keep you busy, owning and managing rental properties might fit in great with your lifestyle. If you're retired and you want to travel or reduce stress, owning rental properties might not be an ideal situation.

<br>

If you own one or more rental properties and you are worried about leaving your loved ones with an unwanted responsibility when you pass on, it might make sense to cash in on your rental investment.

<br>

## Most common reasons to sell your rental property

<br>

Drawing on the above concepts and adding one final point to the list, here are the reasons why landlords get tired of owning a rental property:

<br>

1. Financial returns are inadequate
2. Quality of life is negatively affected
3. Political and economic factors

<br>

To this final point, we can look to the #rentstrike movement brought on by the major economic shock caused by the COVID-19 pandemic. Landlords, especially "mom and pop landlords" are getting squeezed by a moratorium on evictions, and a growing resentment towards landlords.

<br>

## Next Step: Get Competitive Offers

<br>

If you are tired of being a landlord, you are not alone. Either you know for sure you want to sell your rental property or you are still trying to figure it out.

<br>

Regardless of which camp you are in, you can [request offers](https://offermarket.us/sell) with no obligation. We would love to buy your rental property.

<br>


Tired of being a landlord? It has never been easier to sell your rental property for a competitive price. Get risk free offers from OfferMarket.

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Tired of Being a Landlord? Sell Your Rental Property

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket also provides DSCR rental loans, bridge loans, hard money, fix & flip, rehab, ground up construction loans.

Rental Loans

How to schedule a draw request

Get a quote for a fix and flip construction loan from OfferMarket Capital

More about draw requests

<br>

Funds from construction loans (commonly referred to as "fix and flip" and "bridge" loans) are disbursed to the borrower via draw request. A draw request typically involves a submission of invoices and receipts of work performed and materials purchased associated with work that has been completed per the scope of work (SOW) or budget that is submitted to your lender. 

<br>

## How to schedule a draw request

<br>

The borrower or the general contractor representing the borrower will then schedule a draw inspection with the lender. An inspector representing the lender will visit the job site and confirm the work completed and materials on site so the lender can reimburse based on the inspected progress.

<br>

## Get a quote for a fix and flip construction loan from OfferMarket Capital

<br>

OfferMarket Capital is our private lending platform. We are on a mission to help you grow your real estate investing business by providing you with the most competitive, transparent and simple private lending experience. Our products include no doc fix and flip and DSCR rental loans. **[Get your quote today!](https://www.offermarket.us/capital)**

<br>

## More about draw requests

<br>

[What is the draw request process for OfferMarket Capital construction loans?](https://www.offermarket.us/frequently-asked-questions/what-is-the-draw-request-process-for-offermarket-capital-construction-loans)


*Quote takes 1 minute, no credit pull

*1 quote from 40+ carriers

*New listings daily

What is a draw request?

* Takes 2 minutes, no credit pull

How to schedule a draw request

Get a quote for a fix and flip construction loan from OfferMarket Capital

More about draw requests

* Takes 2 minutes, no credit pull