Buying Real Estate in Today’s Market

Does the word opportunity mean anything to you? If it does then this current real estate market provides a multitude of opportunities. I know, everyone is talking about how bad the market is, how difficult it is to make a profit Luxury Properties For Sale In Los Angeles etc, etc, etc. The reality is that real estate investing is a long-term investment, not a short-term investment. With this in mind consider how many good deals there are out there just waiting for an astute buyer to act.
Many professional investors will tell you buying low and selling high is what you want to do. The challenge is picking the low point in the market for your purchases and then picking the high point in the market when you want to sell. Even the most talented of investors with all the resources possible couldn’t do this consistently. So what is the answer? The answer is to purchase when you have the opportunity to purchase the right deal.
Buying the right deal is the key to success. Sure, it’s great to get it at the absolutely lowest possible price, but what if you wait too long and miss the deal all together? Buy the deal when you have the chance because your numbers will all have been done on the price you can buy at and as such it will either be a deal at that price or it won’t. Many times investors miss golden opportunities because they wait for a lower price point that never eventuates. Doing deals makes money, not waiting to do deals.
If you are doing deals in the low end of the price range and you are looking to do multiple deals then you can use the dollar cost averaging method used by many stock buyers. Dollar cost averaging is where you buy stock, or in this case real estate, on a regular basis and average out the cost of your purchases over the entire portfolio. Let’s say that you can buy stock in company A today at $5.00. So you buy 100 shares for $500.00. Next month you buy another $500.00 dollars worth of shares, but this time they are $4.80 per share and you would have bought 104 shares. Next month you buy another $500.00 worth of shares at $4.40 per share, so you get 113 shares. Over the three months you have bought 317 shares at a total cost of $1,500.00 which is an average of $4.73 per share. You make a profit if you can sell at a price higher than $4.73 per share, even though you bought some of them at $5.00.
The exact same principal applies to real estate investing, especially at the very low end of the market where prices are very cheap. If you are buying multiple properties then buy them as you find them provided they meet your investment guidelines. You see, all markets are in constant motion and as such opportunities change with the movements of the markets. The only way you can make a profit from a shifting real estate market is to be in the game. Waiting for the exact right time may mean you stay out of the market all together and there is no gain available to you by being out of the market.
Given that real estate is a long term investment I would be looking for quality properties that meet all my buying criteria and then acting. Quality property will always pay dividends if bought for the right reasons in the right way and held long enough for the market to deliver a return. Today’s market is chaotic and looking very bad, but it will not last of that I am very confident. Economies the size of the USA do not languish for too long. It Bilateral Real Estate will bounce back over time and when it does it will be the people who acted today that reap the most rewards. Being a contrarian is known to be a good thing when it comes to investing. Doing the opposite of what everyone else is doing. The challenge is having the character to do the opposite of the what the masses are doing. Picking good deals is not hard, especially in this market, the challenge is having the intestinal fortitude to do them!

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