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Recession Proof Real Estate Investing

Worried about future of the current real estate market? I'm not suprised if you watch much news. But don't worry, that's a good thing and I'll explain why.

It makes sense since most people in the media industry have little or no knowledge about the economy or investing. And the "experts" invited on for interviews tend to lean toward the same negativity that peaks viewer interest and validates the "spin" of the given topic. That's the way the media operates and it's OK, because it just creates more opportunity for you and I. 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. Does that sound familiar? That article was published nearly half a century ago! Has real estate gone up in value in Las Vegas in the last 50 years? You bet, and not just a little! Now does that mean real estate will always be going up. Obviously not, but that is what makes this type of media coverage so valuable.

  1. It creates fear that scares off a lot of people from investing (creating more opportunity).
  2. It eliminates aggressive speculative investments (as we saw rampant everywhere, but even more so in areas like Florida, California and Las Vegas).
  3. It makes people question the value of their properties (creating more flexible sellers).

Here is something to consider: do you know any ultra successful real estate investor that is afraid of flat or declining 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. It actually creates more opportunites faster than any other economic climate.

As an example, just as real estate is cyclical, so are the amount of buyers and sellers in a given market. Weíre not just buying properties and hoping that they will appreciate or go up in value. Thatís not investing, thatís speculating! Your completely dependent on future growth that is entirely out of your control. Thatís a conventional mindset and will not work in flat or declining real estate markets especially in the short term.

Like any business, you need to make well calculated decisions. In real estate, that includes making creative, risk free offers and setting up your exits appropriately for the specific investing circumstances. There are better and more creative real estate strategies for down and soft markets like wholesaling/flipping, assignments, lease options, foreclosures, short sales, wholesaling and "subject to" investing. But even when doing rehabs or fixer uppers (which are not typically 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 times. This is why faster, lower risk, more creative real estate investing strategies are better to use during market declines.

The point is market conditions should not determine whether or not you make money; itís 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!

To your success,
The Creative Real Estate Team
Maximizing Profits from Today's Real Estate Trends

For our in-depth real estate investing system with all the specific
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