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!

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