The last 6 months have been a bit of a whirlwind. The real estate market has collapsed, MLS systems around the country have reached record highs, we have absolutely entered a Buyers Market...and the outlook is only getting worse. We are in an election year. Rumors of recession abound. What yet is left to come?
From my perspective...the BEST is yet to come! If we look at a chart of the market cycles, we are at the bottom of the cycle. You know what that means! Now is the time to buy! Now is the time that investors should be entering the market. Now is when investors should be taking action. Now is where the profits are waiting to be reaped! Now is what we call the Millionaire Maker Phase!
What fascinates me most is that in my travels to investment clubs around the country, attendance is at an all time low. In fact, if I look at my local group as a sampling, in August of 2006 we were at our peak attendance. That was also the time that the Real Estate Market was at its peak. More homes were being built, rehabbed, wholesaled, and ultimately sold than any time in the past 10 years. Yet this was also when Real Estate values and prices were at their peak, and it was more difficult than ever to find real deals. This is when investors should have been at their most conservative point. Yet this was when most folks were going crazy buying everything they could put under contract. (You will notice I did not call them 'investors')
In contrast, today is the ideal time for us to look at the most successful investor in any of our lifetimes as a model, Warren Buffet, now the richest man in the world. If we look at Mr. Buffet as an example, we as investors would know that Now is the Time to Buy! The bottom line is, when does Buffet buy?...When the market is at the bottom! In the marketplace today, when everything is at the bottom, most folks are selling! Your job as an investor is to take advantage of these fire sales and sniff out the most amazing deals of your life!
Gone are the days of lease options and subject to deals. The equity has been sapped out of most of those deals. It is time to refocus on the old school style of buy and hold investing. Think of yourself as the Warren Buffet of Real Estate Investing...what should you do? Buy low and sell high. Well, the market has created the perfect storm for buying low...can you perform on the rest of the equation and hold while property values rebound and appreciate so you can sell high? This is the time where millionaires are made in this business. The question is...will you be one of them?
