There is no question that the economy is changing in some pretty notable ways . This is certainly having a trickledown effect into many industries and markets . We have already noticed and felt those changes in our lifestyles and wallets .
Fortunately , one lender and fund operator is getting out ahead of it all to help both passive and active investors strengthen their portfolios and businesses . So , what ’ s happening in the markets ? What ’ s going on with real estate ? Where are the most experienced and tuned in investors putting their capital ? What are the best properties to fix and flip now ? Let ’ s find out …
What ’ s the Deal With The Economy ?
You don ’ t need another clickbait tabloid headline to figure out things are changing . No matter how wealthy you are , if you are watching your money and what ’ s going on in your own city , then there are some pretty obvious trends happening . You don ’ t even have to wait another quarter for the official data to be compiled and published .
Of course , what may be more important for investors is knowing where things are going . If you only invest based on yesterday ’ s news , you ’ ll always be behind the peaks and troughs . So , how do you get that info ? Experience and better data .
Meet Todd Pigott
Todd Pigott heads up the ZINC group of companies . He was previously the President of one of the largest interiors and exterior property maintenance companies in California , employing a team of over 400 people . He made the wise decision to sell that company to a private equity firm in 2006 .
For the past 16 years since , he has devoted himself to his passion for the private equity space . In fact , he started four companies under the ZINC umbrella . Todd has personally been involved in over $ 1B worth of transactions and $ 100M in direct real estate flips .
At ZINC , he oversees millions of dollars in private money loans , with a loss ratio of under 1 / 8th of a percent .
It ’ s pretty obvious Todd Pigott has some pretty deep and extensive experience . We jumped at the chance to get his take on what ’ s happening .
In our exclusive interview , Todd tells us that to start with , he doesn ’ t get his intel from watching the news . He does pull data directly from the GSA , and federal level , and invests thousands of
dollars in high-quality , accurate metrics and statistics , long before they reach tabloids and news channels . He reviews a lot of spreads and static pools and portfolio performance trends to chart and evaluate market movements .
In summary , what ’ s his take on the real estate market ? In a nutshell , he says “ The market is solid – for now , but changing rapidly .”
What ’ s Changing ?
Just because there is underlying strength , doesn ’ t mean that things aren ’ t shifting and changing .
Todd says that it is obvious the market is slowing from euphoria . It isn ’ t clear how anyone could flat out deny this and expect to hold onto their credibility today , but some others out there still seem to be trying it .
Rather than being a bad thing , Todd says that this moderating is a good thing . You just have to look at it in context . We were at record appreciation over a 40year period and record low interest rates over the same period , and candidly that is unsustainable , says Pigott . Our current protectory is back to normalization .
Yes , DOM , prices , and overall mortgage applications are slowing . Yet , the housing market is strong , even “ exceptionally healthy .” Remember that in a normal and healthy market , properties spend six months on the market , not six days . Or six hours . It may even take another year and a half to reach that supply and demand balance again .
Like other veterans of this space , Todd is happy this balance is improving . He says that it is removing the speculators and newbies from our space , not a bad thing . It will leave the people who should be in the market , still in the game . Those who are adding real value to properties , not just speculative investing .
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