Article - Thrive in a struggling economy

October 2010

A constant drum-beat of on-again, off-again economic data may leave you feeling confused about your prospects for financial success, but there is hope – and attainable hope lies not in placing your trust in politicians and government programs – but in reaching deep inside yourself for the fuel you need to propel yourself towards the success you seek.

Recognizing that challenging economic times require a different kind of thinking and a commitment to doing everything necessary to succeed is only the first step. The next step, getting up off the couch and implementing your plan is probably the biggest obstacle standing in the way of true success.

It is undeniably easier to maintain the status quo and do nothing, resting on your laurels and accepting the notion that times are tough and it’s better to conserve your creative energy for another day. This mindset is crippling to the attainment of your real estate investing dreams because – by doing nothing – you can receive nothing from what could otherwise be a very promising and rewarding real estate investing career. The nation’s economic data may look particularly grim, but your personal economy can be a very different story. Some of the most successful people of the 20th Century were able to capitalize on investing opportunities during the darkest moments of the Great Depression, a time when one in four Americans were unemployed and the social safety net had more holes in it than a block of Swiss cheese.

How did they do it?

It wasn’t dumb luck, it wasn’t secret information, it wasn’t a conspiracy. It was simple, common sense.

These entrepreneurs saw once in a lifetime investing opportunity, they zigged when everybody else zagged, and they took advantage of those opportunities regardless of what the naysayers and other pundits said.

They simply analyzed their investing options and made well-planned investments when the market prices were low, held those investments – and waited for the market to come roaring back to life. They realized something that many investors either overlooked, forgot, or never knew: investing is a cyclical endeavor. Markets rise and fall, but over time, they always rise in the long run. The secret is to buy when prices are low and sell when prices are high. Real estate investing success can come to you in the same way, but only if you act now. Prices are low – very low – and sellers are motivated to unload properties regardless of the potential losses that they could incur. The need for money is a powerful motivator. To enable you to make the most of the opportunities presented by today’s real estate market, there are a few simple things you can do today:

• Get your personal finances in order – In many cases some of the best real estate opportunities come to those who are able to act at the drop of a hat. If your personal finances, particularly your credit, are in tip-top shape, you’ll be better-positioned to obtain the financing you need when you need it.
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• Be aware of market conditions – Regardless of whether your investing goals lie within your local neighborhood or halfway across the country, it’s critical that you understand market rental rates, property values, and every necessary step in putting together a winning real estate offer. Familiarize yourself with this process and you’ll be able to reap untold financial rewards.
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• Have multiple financing and exit strategies – Traditional financing sources, hard money lenders, and private money are just a few of the capital sources in which you can tap for real estate investing money. By having multiple sources from which you can obtain money you’ll always have a never-ending source of money to fund your property acquisitions. Knowing exactly what you’ll do regardless of whether the market rises, falls, or remains the same is equally important, because by working these details out in advance you can ensure that your real estate investments
  will always be profitable.

While the economy may be struggling, this is the best time for you to spring into action and seize the real estate investing opportunity. Tremendous wealth is being created by thousands of investors.

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.