Investing in this real estate market is for the brave. Books will be written about those of us that invested in the real estate recession of 2008 - 2011. You must be truly prepared to make it through this market; If you blink you lose. You must have research well done and all your documents in order. When I talk to people about investing in real estate now, the reaction I usually get is "Are you crazy?". Real estate investing in today's market conditions may seem like an impossibility, an action that only those who have lost a sense of the thinking faculties would even consider. I do not blame them, especially when there are so many "professional opinions" out there scaring everyone about how horrible the situation is.
Continuing talking about how "horrible" is not going to make the situation better. As we continue to talk about how bad the situation is, we focus on the bad and discard the good. Our attention has been on the bad, how bad the situation is, if mortgage rates are up or down, new construction data, etc. I am not saying that this information has no value for us as investor, but it should not be all we use to gage our investment decisions. There is data that does not make it to the national data bank, local data that is missed. We need to look beyond the data offered by the news media and focus on the good; the opportunity. You will find what you are looking for.
Regardless of the conditions of the real estate market in your area, there are still some important rules to follow, especially when you consider that the last few years have seen an economic recession which has led to a housing crash and a complete change in the mortgage industry. We should not ignore the current situation, the rules of the game has in fact changed. Only those who can see beyond the bad news, will succeed.
The current market is not one for quick flips, as we saw in the early part of the 2000's. If you are going to invest in this market, you must analyze how long can you wait to see your return on your investment. You must consider a potential valuation loss and higher vacancy rates (for those considering in renting their properties) in your financial calculations to determine beforehand if you can sustain the long run. Today's environment requires new strategies; new vision.
It may seem idiotic to buy a house in a depressed market, however as I have mentioned in many occasions "gains in investing are made in the purchase, not in the sale". If you can position your real estate portfolio now at bottom prices and sustain the ride, you are bound for real estate wealth.
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