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!