Considering the turmoil in the market, you may be tempted to back off, or stay away from investing in real estate. That’s understandable. Even some seasoned real estate investors have made that choice. Interest rates are up, housing sales are down, many properties are still overvalued – you name it, there’s a lot of doom and gloom in the news out there.
However, let me tell you… the news that real estate investing is dead or dying is “greatly exaggerated.”
In reality, real estate is FABULOUS!
My team and I are still investing in real estate today. In fact, we’ve stepped up our game!
The greatest transfer of wealth takes place in recessionary times. Particularly when real estate (and businesses) can be bought at “garage sale prices” — and even pennies on the dollar in many cases — this is the right time to invest.
With a strategic tactical plan that fits the current economy, the knowledge of how to choose the right properties and put together deals, and the right team with experience on your side, you can make a higher return on your money today than you can anywhere else. You can invest in today’s real estate market and make excellent profits by taking appropriate advantage of the current situation.
While it’s trickier to find a great transaction opportunity in an up market, it’s easier to sell and achieve a higher profit. In the opposite market, a downturn, it’s easier to find a great transaction opportunity at a low price, but it’s harder to sell. The great news is that in either case, the profit margins are significant.
History tells us that the further housing prices drop, the higher they could rebound in the future.
The fact is real estate investing doesn’t have a clear cut set of rules that you can follow to guarantee success. You need to do your due diligence in the market and develop a sense for locating the best investment opportunities.
Unfortunately many would-be buyers lack the credit to get a mortgage today. Home values are sinking and the market is flooded with properties for sale in every neighborhood.
Today, more than ever, we need strong credit and more money for larger down payments -we need partners or a team to provide that. Investors routinely use other people’s money (OPM), other people’s credit (OPC) and even other people’s time (OPT). I’m an advocate of these tactics and of investing teams. Your chance of success is greatly increased.
I get asked a lot about how to find a credit partner or get other people’s money, or time, to start with. My response is always — ask. There are people that have pristine credit, money and/or time to invest.
Traditionally buying real estate has been 10-20% (sometimes 30%) down and good credit. So, you’re going to have to have it. Ask. Get in the conversations. We do it all the time. It’s not odd for us to ask people in our group, “What’s your credit score?” We actually talk out loud about a lot of things that most people don’t.
These economic times have resulted in people having lost a fortune in the stock market. Now a lot of money is moving to real estate, gas and oil, private equity, and buying businesses (a lot of businesses are at garage sale prices as well).
What’s unique about this economy is that there are extraordinary values out there. You can pick up so many assets for pennies on the dollar. But, don’t do it without a team. You absolutely need a team to help and support you.
My team and I want to help you figure out how to make your money and get into the real estate strategies we’re talking about.
First, realize that there’s no “secret” to investing successfully, but you do need ability, and ability comes through education and experience. So the first question is, do you know enough to minimize risks and maximize profits in any given economy?
Look at how real estate has performed as an investment over the long haul. It has outperformed the stock market over time. Cycles in real estate are normal. While most of us haven’t seen this particular performance in our lifetimes, history repeats itself, and downturns are followed by upturns, every time!
If you can hold on to an investment property, you’ll be so far ahead of the game, you will one day look back with glee that you saw the potential and capitalized on it. Home ownership will continue to be the great “American Dream” and homes will always have value.
We teach real estate investing. We have an 8-week 90 minute webinar series. We have 2 ½ day workshops. We have tours in different parts of the country, where we take you out on a bus and show you how to buy. We have a very comprehensive real estate education program at Live Out Loud. Check it out the entire program here or call us at 888-262-2402 for individual plans!
>P.S. Talk out loud with me by posting a comment below and get in the conversation starting now.