Recession Proof Real
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.
- It creates fear that scares off a lot of people from investing (creating more opportunity).
- It eliminates aggressive speculative investments (as
we saw rampant everywhere, but even more so in areas like
Florida, California and Las Vegas).
- 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
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