Article - Investing in todays economy
October 2010
We’re being inundated by increasingly negative economic news that has more and more people
circling their financial wagons and hoping that they’ll live to see tomorrow. In the midst of a sea of negativity
lies a hidden nugget of truth: It really is possible to successfully invest during one of the worst financial
catastrophes in history.
These secrets are like the nose on your face. They’re so painfully obvious that they’re easy to
overlook. It just takes a little common sense to think things through and get your head on straight and you can
turn one of the biggest financial disasters in history into the best opportunity to create real sustainable wealth
for yourself and your family that will stand the test of time.
#1 – The talking heads are all talk, so take what they have to say with a grain of salt. Keep in
mind that the average “real estate expert” you see on many of the news networks isn’t an expert at investing; their
expertise lies in reporting. What this means to you is that they live in a world where “news” is what has already
happened. The hot new trend they’re talking about has usually already happened and they won’t likely know when the
real estate market has bottomed out until prices have risen by 10% and the market is off to the races. Unless you
want to watch prices race to the top – from the sidelines – ignore their timely tips.
#2 – Do Your Homework – Many of the available properties could make you wealthy under the right
set of circumstances. Make sure the numbers you’re being quoted add up. It’s not unusual for people with a
financial stake in a real estate investment to fudge numbers to put a nice shine on a really dull property.
#3 – Don’t Forget marketing – Marketing efforts are one of the first corners to be cut when the
market goes south. Unfortunately, this is the time when you need to redouble your efforts in attracting motivated
buyers and sellers. Rip a page from the playbook of your favorite successful retailer. When times get tough do they
quit trying to get you through the door – or do they do everything but tackle you and drag you inside for a quick
look around.
#4 – Check Your Emotions at the Door – Whether you’re a brand-new investor with a dream of real
estate investing riches or a seasoned, time-tested real estate investing veteran, a desire to get your hands on a
specific property can at times seem overwhelming. Remember solid investing strategies and number crunching is the
key to successful real estate investing. If the numbers don’t add up or you can’t find a way to wind up in the
black at the end of the month, don’t be ready to walk away.
#5 – Have an Exit Strategy – When you decided on a real estate investment you may have had a
solid investing plan that would make you money at every stage of the game. If after making the purchase conditions
change – or you discover that you’ve overlooked a critical variable that is a game changer – be ready and willing
to admit your mistake and move on. Don’t stick with a bad investment through thick and thin just because you want
to save face.
Real estate investing can be like a drive on a lonely country road. At times it can be a series
of ups and downs that can make your head spin. However, by using your head and employing common-sense real estate
investing techniques, you can ensure that even in today’s market you can make money and establish yourself as an
investor that can routinely pull victory from the jaws of defeat.
Source: Charrissa Cawley
Dy Associates is an Oakland Real Estate company specializing in commercial, home and
investment property in the Oakland and East Bay Area. We provide real estate services including buyer agent,
seller agent, short sales, commercial and investment aquisitions, loan facilitation, hard money lending, proerty
management. Articles are provided as information only. We do not provide legal or general investment
advice.
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