It was about 5pm on Christmas day, when I was preparing my elk roast, that I received a work call. The listing agent said something to the degree of, “I’m busy cutting up potatoes here, but I just sent over our counter-offer.” And just like that, I signed, and for the 2nd year in a row, I went under contract on an excellent deal here in Denver over the holidays.
In a seller’s market like Denver, saturated with investors, seasonality can play a massive role in finding a great deal. Once Thanksgiving rolls around, many folks have too much going on to be doing extra-curricular activities like looking for real estate. Not to mention, who wants to move in the winter? Because of these factors and some others, you will experience far less competition in finding a great deal between October and February here in Denver.
On the opposite side of things, you are going to have far more buyers competing over your listing if you are to list between the months of March and August. This makes buying a flip deal in the winter months all that much more important as a typical cosmetic flip will take 3-5 months to complete. This means that if you close on your flip deal sometime between November and February, you should be coming on the market at the perfect time on the other end of your rehab.
I believe many investors understand this truth already, however, it’s easier understood than acted upon. With less inventory, but more motivation among sellers, it takes getting on the phone to figure out exactly where that motivation may lie. It takes digging into the details to figure out what’s missing or what creative angle other buyers may not be seeing. This type of thing is a grind, and just like waking up an hour early to read or exercise, most are unwilling to make the immediate sacrifice.
“If you live like no one else, later you will live like no one else.” -Dave Ramsey
So instead of spending your money on expensive ski vacations and trips to Hawaii, grind it out when it makes sense! Plan some time off when you can grab your tent and head for the beautiful mountains that we get to call our backyard.