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 acquisitions, loan facilitation, hard money lending, financing assistance property management. Articles are provided as information only. We do not provide legal or general investment advice.