I remember when I first got into the real estate business in 1996, my broker and I were discussing real estate investing. He told me that people sit, waiting for that one great deal, and in the meantime they miss out on the good deals. Because of their inactivity they may never end up buying anything.
He has been in real estate for over 50 years and has been investing in commercial, residential and mobile home parks.
We hear it everyday, is the market going down? Have we hit rock bottom? Has the market started heading back up? Does anyone really know for sure? Hindsight is always 20/20. We do know that prices are at early 2000 levels. But, what does it all really mean anyway? Do all these questions just paralyze us into doing nothing, not making a decision to buy or to sell? The reality is that no one really has the answers to any of these questions. We are all attempting to make an educated guess based on a market in which none of us have ever experienced.
I started buying rentals in 1996 and continued buying in 2005. I have bought in different types of markets, as I have kept my eyes and ears open and been able to scoop up some good deals.
But, often in real estate investing, when everyone else is buying, it’s a good time to sell.
And, when everyone is selling, it’s a good time to buy.
Investors getting into the market, thinking they are going to make a killing are usually the ones that lose their shirts. Investors that are a bit more realistic, with the thought that they can make a comfortable profit, are often able to do just that… make a handsome profit.
What are your goals in buying? Are you hoping to flip a property today? Are you going to hold it for a period of time and use it as a rental? These are all factors that must be considered.
Do your homework first. If the numbers don’t work on paper, they aren’t going to work at all. Don’t fall in love with an adorable house that you think would make a great rental because it’s brand new and beautiful. It may turn out to be a terrible rental property. Rental houses aren’t always gorgeous. Very often they are clean, small and affordable. See what the demand in your market is. Be smart and research first.
And remember in real estate investing, Pigs Get Fat and Hogs Get Slaughtered.
This article is authored by
I also buy, sell, rent, own and manage Investment Property.