I remember when I first got into the real estate business in 1996, my broker and I were discussing real estate investing. He told me that people sit, waiting for that one great deal, and in the meantime they miss out on the good deals. Because of their inactivity they may never end up buying anything.
He has been in real estate for over 50 years and has been investing in commercial, residential and mobile home parks.
We hear it everyday, is the market going down? Have we hit rock bottom? Has the market started heading back up? Does anyone really know for sure? Hindsight is always 20/20. We do know that prices are at early 2000 levels. But, what does it all really mean anyway? Do all these questions just paralyze us into doing nothing, not making a decision to buy or to sell? The reality is that no one really has the answers to any of these questions. We are all attempting to make an educated guess based on a market in which none of us have ever experienced.
I started buying rentals in 1996 and continued buying in 2005. I have bought in different types of markets, as I have kept my eyes and ears open and been able to scoop up some good deals.
But, often in real estate investing, when everyone else is buying, it's a good time to sell.
And, when everyone is selling, it's a good time to buy.
Investors getting into the market, thinking they are going to make a killing are usually the ones that lose their shirts. Investors that are a bit more realistic, with the thought that they can make a comfortable profit, are often able to do just that... make a handsome profit.
What are your goals in buying? Are you hoping to flip a property today? Are you going to hold it for a period of time and use it as a rental? These are all factors that must be considered.
Do your homework first. If the numbers don't work on paper, they aren't going to work at all. Don't fall in love with an adorable house that you think would make a great rental because it's brand new and beautiful. It may turn out to be a terrible rental property. Rental houses aren't always gorgeous. Very often they are clean, small and affordable. See what the demand in your market is. Be smart and research first.
And remember in real estate investing, Pigs Get Fat and Hogs Get Slaughtered.
This article is authored by
Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate
Brevard County Real Estate & Investing
I also buy, sell, rent, own and manage Investment Property.
that for you
Hi Sandy
Excellent insight for buying real estate in today's market. Now is time to buy.
Good luck and success.
Lou Ludwig
Sandy, Great advise for even a seasoned investor that thinks he or she knows everything...
:: nodding in agreement ::
You got it Sandy. In investing it's like Tina sang: "What's love got to do with it?"
Must make sense!
Sandy, you have the experience and the knowledge to always tell it like it is! I enjoyed your post today!
Sandy,
I know what you mean. So many good deals are gone and the great ones never happen.
Ann
Sandy, the title of your post says it all. Great post Ooompa!
Hi Lou, Now is a great time to buy.
Hi Paul, I think that people thinking they know everything are people that can wind up in trouble.
Hi Candice, The song is great...has nothing to do with love, does it?
Hi Miss Mary, Thanks, you are oh, so kind. Glad you enjoyed the post.
Ann, Lots of buyers are snapping up the good deals while others are waiting for the great deals.
Hi TOTO, Yes, the title does say it all.
Sandy, you sound like a sage old investor! Of course you are not old just savvy, and your broker gave you invaluable advice! I love your title and that really says it all!
Sandy - excellent advice and analogy! So many would be investors want to make a fortune all at once rather than make a reasonable profit over time.
Sandy,
There have been a couple of really great ones here...
Cash buyers tend to get them.
Ann
Great advice as usual Sandy. If it doesnt work on paper its not going to work in the real world either. Good flips are getting few and far between in our area but great rental properties are in abundance.