Slow market conditions can be scary times when it comes to real estate.
Market cycles always change.
Don Campbell writes about this in his book “Secrets of the Canadian Real Estate Cycle”
“The general populace doesn’t tend to buy or sell their property and banks aren’t very interested in making real estate loans.”
When the economy takes a sharp downturn, it can be feast or famine for the real estate investor.
The pros of the situation include less competition and not as many multiple offers for a property. There are more foreclosures, lower-priced real estate, and a larger scope for bargaining.
On the negative side, financial institutions tighten their belts and it is harder to obtain a loan on real estate, especially for rental property or other real estate investments that aren’t the buyer’s primary residence.
That is why it is important to learn how to buy real estate without having to get a new loan. Leaner times bring layoffs and bankruptcies, which can mean less qualified renters.
- It is harder in slow economic times to sell a flipped house or other investment property, much less make a good profit. Also, prices may depreciate and go down below market value very quickly in such a market.
- It is more important than ever to have the reputation as a real estate expert during a slow market. Your clients and potential clients will look to you for advice and a solution to their real estate problems.
- During economically troubled times, it is a good idea to focus as much as possible on a niche market. Choose one where you have the most expertise and knowledge.
Paul Martin spoke at our PPREIG event Wednesday April 27th and was commenting on the market in Regina and Saskatoon.
- He told us that January 15, 2016 was the low in our market and we are heading back up.
- Saskatoon is a ways behinds us. For full details of his talk – if you are a member you can access the recording on our website. I feel this knowledge alone is worth the price of membership.
No matter how bad the real estate market may appear, there will always be opportunities for the astute property investor with a strong drive for success to discover great investment possibilities.
In a smaller and more concentrated market it will be much easier for you to find these opportunities, than if your efforts were spread over a larger range.
- Personal motivation will play a large part in the long-term survival of your career as a property investor, especially during an extended recession in the market.
- The biggest factor in staying motivated is not to focus on fearful thoughts.
If you constantly entertain thoughts of failure or go over the worst case scenario in your mind, you will paralyze your success.
Focusing on the downturn in the economy will rob the time you could spend on creating new creative strategies and new marketing angles for your property investment career.
- Don’t listen to the news with all the stories of how bad the economy is doing and how badly the real estate market is suffering.
- Instead, spend the time listening to encouraging motivational speakers, or in the company of successful, enthusiastic people.
There are many ways to buy real estate as an investment with little of your own cash or credit.
You will learn:
- How to get deals with no money down
- How to structure JV partnerships
- How you can use RRSP’s and TSFA’s to purchase real estate
- How to create WIN-WIN partnerships
- And so much more!
Don’t let lack of money be your excuse for not investing in Real Estate!” – Edna Keep
Reach out to me and learn today how to “find the money!”