Worried about the future of the current real estate market? For investors who understand what is happening, this is actually a great time to make money investing.
Real estate is cyclical and always has been. There was a large national article published that stated Las Vegas real estate had completely capped out and there was no place for it to go but down. Ironically, that article was published nearly half a century ago! Has real estate gone up in value in Las Vegas in the last 50 years? You bet, and not just a little! Now does that mean real estate is going to keep going up like it has the last few years? Don't plan on it, however I'll explain the benefit of this type of media coverage and how it is invaluable.
It creates fear that scares off a lot of people from investing (creating more opportunity).
It eliminates aggressive scam investments (as we saw rampant with builders in Florida and Las Vegas the last few years).
It makes people question the value of their properties (creating more flexible sellers).
Here is something to consider: do you know any ultra successful real estate investor that is afraid of flat or declining house prices? Quite to the contrary, knowledgeable investors understand when markets are flat or down it just weeds out beginning investors, makes people panic and means more opportunity.
What's important to understand is just as real estate is cyclical, so are the amount of buyers and sellers in a given market.
We’re not just buying properties and hoping that they will appreciate or go up in value. That’s not investing, that’s speculating!Your completely dependent on future growth that is entirely out of your control. That’s a conventional mindset and will not work in flat or declining real estate markets especially in the short term. Like any business, you need to make well calculated decisions. In real estate, that includes making creative, risk free offers and setting up your exits appropriately for the specific investing circumstances.
There are also better creative real estate strategies for down and soft markets like wholesaling, flipping/assignments, lease options, foreclosures, short sales, and "subject to" investing. But even when doing rehabs or fixer uppers (which are not usually recommended in down markets) there are still good ways to make a good profit with the right system and proper planning, such as factoring in depreciation and extended selling possibilities.
This is why faster, lower risk, more creative real estate investing strategies like flipping housesare better to use during market declines. The point is market conditions should not determine whether or not you make money; it’s how you approach it and what is appropriate for the circumstances. When you structure risk free deals and make calculated decisions, the real estate market conditions will never be a determining factor of whether you are successful!
