Finance  »  Real Estate

Investors Dont Ride the Real Estate Market Wave

Date Added : August 11, 2010 | Views : 355

 There is a pervasive misconception about real estate investment: ride the



rising market and avoid the sinking one, and you are sure to be a successful



investor.  While that is not entirely false, it is certainly misleading. 



Yes, you can make money in real estate by timing your investments and



sales with the valleys and peaks (respectively) of the market conditions. 



With this paradigm, anybody can make money in a rising economy, but



the successful investors are the ones who know how to sustain their



business during the toughest economic times.




      Instead



of waiting for the perfect moment in market-time to strike, the successful



investor will scour the deflated market for good deals.  That is



the trick: invest in good individual deals, not in a rising market. 



You might think, “Even a great deal will yield only a relatively small



profit in a bad economy, so why not just wait for a huge profit at the



right time?”.  Well, in theory, you would be right.  It



is harder to make money when people aren’t spending money on what



you have to offer.  And yes, selling at a market peak is the smartest



and most lucrative way to profit.  However, most investors have



no clue what the market is going to do and when.  They may listen



to what the experts tell them, but the experts have demonstrated recently



that nobody can really manage all of the parameters well enough to reliably



predict such a complex market.





      The



point is, clearly, investing at the right time is better than investing



at the wrong time.  But putting all your eggs in the market timing



basket is incredibly risky, because we don’t have a reliable sense



of what will happen ten minutes in the future, let alone ten years. 



Instead, search your prospective real estate investments property by



property, deal by deal.  Pay attention to the current market conditions



(as they will regulate how you make your money), but don’t become



stagnant in difficult times or overly excited in prosperous times. 



The key is to slowly but surely accumulate good deals and capitalize



when you find them.  People will always need homes, even when the



community or country as a whole is suffering.  And everyone wants



the best deal they can find.  Why not simply find it first and



then provide it for them?
 





Tell us what you think. 



We would love to know.
J 

InvestmentPropertyMadeEasy.com




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Article By: Jay Redding


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