More millionaires are made during bad economic times than good ones. And if you learn these principles, you'll be able to change your real estate investing career. It may even turn you around completely, in to a highly successful investor.
We all know that the entire real estate market in the US crashed a few years ago, that's old news. But all the economic signs are there that the real estate market has another substantial down turn coming in the next few months. Already, there are more houses on the market than comparable months last year, along with lower sales prices. Why is it happening? Well, that's a long story, but in short, increased taxes and government intervention along with public fear has taken a bad situation to worse.
But here is the good news...during every major economic down turn, more millionaires are made than in any other economic time.
It has been proven time and time again. So what's the secret? Well in short, you need to do the opposite of what everyone else is doing.
Let us give you an example. With the stock market crash a few years ago, what happened? All the smart investors saw the market tanking, and got out. Then the general public realized that their stocks had taken a major hit, and decided to sell out. The point is, they were too late, and turned their unrealized losses in to hard losses after the market bottomed out.
So the point is, when a market bottoms out, that is the time to buy, not to sell. In the real estate market, the next few months will be the best possible time for you to buy in and make huge amounts of money. The market will come back, and when it does, our properties will have appreciated considerably, and you'll be able to make a handsome profit.
Just remember the number one rule of real estate investing, buying at a discount. Even with a deflated market, don't pay market price. Get it for less, and you will just be strengthening your position for the next couple of years. We like to acquire properties for no more than about 75% of their market value. Find motivated sellers, and you will be able to arrange this type of discount on a property. Be patient, wait for the deals, look at properties that have been on the market a long time, because the more time a property sits on the market, the more likely the seller will be willing to take a lesser price. If you see a property hit the market that is already under-valued, jump on it immediately.
Trust us, we have done our share of real estate deals, even when the market was good, and once we learned this principle, we have always made money. Now is the time to go shopping and increase your real estate portfolio. Also, consider getting a real estate license, as it can help to drive down the costs of buying your investment properties.
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