It seems that more and more, people are asking me what I think the state of the real estate market is and what investor’s need to do to remain secure and succeed.
I’ll start with what I’ve watched happen over the past 18 months and then how it is affecting our real estate investment business.
In 2005, record market appreciation was rampant, investors and speculators alike were making money. Financing was easy and the horizon looked bright.
2006 brought new challenges as previous ‘hot’ pockets began to cool down, the balance began to level and demand slowed rapidly in certain cities and regions.
At this same time however, other areas of the country began to realize record breaking appreciation.
2007 emerged as the tipping point. Liquidity in the markets changed, lending got a lot more stringent and many investors found themselves wondering about the next move.
2008 was incredible for the saavy real estate investor. CASH BECAME KING (always really is though) although financing (for those of you that use anything other than Private Money) is still available. Don’t be fooled into putting all of your eggs in one basket when it comes to your exit strategy. If you plan to buy, fix and sell – be prepared to hold and become the bank. Learn creative marketing, sales and leasing strategies.
Plan for these market realities going in and you’ll be just fine.
The Bottom Line: Buy right (i.e. really cheap), manage your investment well and you will realize ENORMOUS profits.
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