VIEWS: 7 PAGES: 3 CATEGORY: Strategy POSTED ON: 11/20/2012
Most real estate investors have a misconception that the best time to invest and sell real estate properties is based on market conditions. They think it's best to purchase properties in a sinking market and sell them in a rising market.
Real Estate Investing - Stop Relying On Market Conditions By: Curt Cloyd – Director Personal Wealth Academy, LLC Real Estate Investing - Stop Relying On Market Conditions By: Curt Cloyd – Director Personal Wealth Academy, LLC Most real estate investors have a misconception that the best time to invest and sell real estate properties is based on market conditions. They think it's best to purchase properties in a sinking market and sell them in a rising market. While this investing philosophy does work for a lot of people, it's not one of the most effective, long-term things to do because there's no guarantee that the future will turn out exactly the way you expect it to. In fact, there's a great article on this subject at InvestmentPropertyMadeEasy.com. Many experts have reported that the markets are likely to go up. But it hasn't been the case. In fact, the real estate market is sinking contrary to what the experts have had to say. So here's the thing - Never rely on the market conditions or on what the experts. Use your own intuition and start working on acquiring and reselling properties even in a down economy. Here are the advantages of regular investing even in a down economy... 1. Properties are cheaper Purchasing properties are always cheaper in a down economy. With some effective negotiation, you can close deals for an incredibly low price. This is something that you cannot do in a rising market. 2. Construction costs are low If you're into fix and flips, you'll find that the construction costs are often quite low in a down economy. Repairing a property costs a lot less and you'll be able to make a massive profit on the same deal (if the market were to rise) 3. You generate regular cash flow Since you're constantly purchasing properties and reselling them for small profits when the economy is down, your business generates regular cash flow which is required to build up your cash reserves. By building up your cash reserves, you'll have the money to invest in the right place at the right time and net massive profits. But if you only invest in real estate during a rising market, you won't be able to build up your cash reserves in time. If you're interested in learning how to generate regular cash flow even when the economy is down through your real estate investments, I encourage you to check out the following page - Click here (http://taxsalephd.com/page1.php ) Here are the disadvantages of regular investing even in a down economy... 1. Profit margins are low Since you are selling properties in a down economy, the demand is always low. As a result, you'll have to slash the asking price of your properties thereby reducing your profit margins. 2. Some properties may not be sold You may not be able to resell some of the properties you acquired in a down market. In such cases, it's always better to hold on the property until the market rises and sell it at the right time. Or if you're in a financial crunch, sell it for as much as you can in order to cut your loss. As you can see, regular investing in a down economy is much more beneficial in the long run and it's one of the best things you can do to achieve significant success in your real estate investing career.
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