Win By Understanding The Real Estate Market Today
October 8th, 2008 by admin
Worried about the future of the current real estate market? For the investors who understand how the market is today, it is a great time to make money in real estate.
Real estate is cyclical and always has been. There was a large national article published that stated Las Vegas real estate had completely capped out and there was no place for it to go but down. Ironically, that article was published nearly half a century ago! Has real estate gone up in value in Las Vegas in the last 50 years? Absolutely and more than just a little! Now does that mean real estate is going to keep going up like it has the last few years? Don’t plan on it, however I’ll explain the benefit of this type of media coverage and how it is invaluable.
- This creates fear preventing more people from investing but that only provides more opportunity for you.
- It eliminates aggressive scam investments (as we saw rampant with builders in Florida and Las Vegas the last few years).
- People beome more flexible in selling their property because this makes them question it’s value.
This is something to think about: I don’t know any successful real estate investors who are afraid of flat or falling house prices? Quite to the contrary, knowledgeable investors understand when markets are flat or down it just weeds out beginning investors, makes people panic and means more opportunity.
What’s important to understand is just as real estate is cyclical, so are the amount of buyers and sellers in a given market.
We’re not just buying properties and hoping that they will appreciate or go up in value. That’s not investing, that’s speculating! Future growth which you’ll depend on is almost entirely out of your control. In the short term, that kind of conventional thinking will not work in a declining or a flat real estate market. Like any business, you need to make well calculated decisions. The real estate market today must include setting up your exits correctly and making risk free, creative offers that fit your specific investing circumstances.
There are also better creative real estate strategies for down and soft markets like wholesaling, flipping/assignments, lease options, foreclosures, short sales, and “subject to” investing. But even when doing rehabs or fixer uppers (which are not usually recommended in down markets) there are still good ways to make a good profit with the right system and proper planning, such as factoring in depreciation and extended selling possibilities.
This is why faster, lower risk, more creative real estate investing strategies like wholesaling houses are better to use during market declines. The point is market conditions should not determine whether or not you make money; it’s how you approach it and what is appropriate for the circumstances. When you structure risk free deals and make calculated decisions, the real estate market conditions will never be a determining factor of whether you are successful!
