Monday, August 27, 2012

Getting Back in the Game

I recently published a new story about being prepared to take advantage of real estate deals at the end of the year. You can read it here:

While it's great to snag a year-end bargain, you still need to be sure that the property will rapidly flow cash for the investment to make sense. Alternately, you need to be sure that you have the financial depth to wait out a slow period. I like buying rental properties at the beach, and the seasonal aspect of the business is ever present in planning for a purchase. The HOA fees, taxes, insurance and basic utilities must be paid whether there's anyone in the rental unit or not. These expenses can add up quickly and turn what you thought was a bargain into a white elephant.

This may or may not be a factor in the area where you want to invest. The main thing is that you need to do your research, know what you're getting into, and be prepared for the worst. If the worst happens, then you know you can ride it out. And if the outcome is good or better, that will take care of itself.

Donald Trump said it best:

"There are a lot of ups and downs, but you can ride them out if you’re prepared for them.
Learning to expect problems saved me from a lot of wasted energy, and it will save you from unexpected surprises. It’s like Wall Street, it’s like life. The ups and downs are inevitable, so simply try to be prepared from them.

Sometimes I’ll ask myself why I want to take on some new, big challenge. A substantial loss is always a possibility. Can I handle it if it doesn’t go well? Will I be asking myself later, Why did I ever do that? What was I thinking? I’m actually a very cautious person, which is different from being a pessimistic person. Call it positive thinking with a lot of reality checks."

Have a great day, everyone!

Thursday, August 2, 2012

Why Timing and Preparation Matter

I recently published an article about opportunity meeting preparation; here’s a link if you missed it:

As the end of summer approaches, I start getting excited. I know that my favorite real estate market will soon be flooded with deals, and I am prepared to act on the opportunity.

Market gurus tell novice investors that they should not try to time the markets. They would rather have you throw money at the market, hold your breath, and hope for the best. And I listened and followed this advice for years. After all, they knew best, didn’t they?

But after months of simply taking my beleaguered brokerage statements out of the mailbox and stuffing them in the shredder without opening them, I decided to change my victim mentality and take control.  I decided to get into real estate investment.

Do not for a moment think that real estate investment doesn’t have risk. Real estate prices go up and down – anyone with a pulse knows that. Whether you’re buying a stock, futures contract, or a piece of real estate, you must buy it right, sell it right, have an emergency exit strategy in case you’re wrong, and remove the emotion. With preparation – education, planning and experience - you can time the real estate market to make intelligent buy and sell decisions.

I like buying and selling down at the beach because I have found a profitable niche, plus I am able to time the markets.  If you would like to learn more about finding the right niche, please send me a direct message at

When it comes to market timing, real estate at the beach or other seasonal locales offers some unique opportunities to find deals. During the peak season, all the tourists are enjoying the beach, golf and great seafood restaurants, truly being seduced by the charms of the location. These tourists are the perfect suckers for time share developers. But the seasoned investor knows that while peak season may be a great time for research and investigation (maybe with a bit of vacation thrown in for good measure), it can be a poor time to try to find a real deal on real estate.

The savvy investor knows that once the peak season is over, the sellers will start dumping inventory on the market at a time when the novice buyers are going away. This investor also knows that the end of the year presents great opportunities for bargains from those sellers – often banks – that absolutely must get rid of a property before the end of the year. 

For new investors who want to get into real estate, the most important thing to do right now is to get educated and get prepared. If an investor wants to start a checkbook self-directed IRA, he needs to get it set up now so he can take advantage of the deals when they happen.  There are many options for SDIRA setups. I can help steer you through the maze.

Have a great day, everyone!