We’ve all heard the rumors of a housing crash heading our way. People discuss how property is over-valued or how interest rates are going to sky rocket. There are some compelling statistics out there that have everyone on high alert, worried there are risking the health of their finances if they stay in the real estate market.
It is usually blind fear rather than thorough education that drives this sort of momentum. Before we know it, there is an increased amount of property on the market because property owners hoping to cash in before things go south. But is that a good idea?
It is definitely safe to fold your hand and walk away. We have all heard the stories of how financial ruin took down the once successful investor. But what if there was another way? What if there was a way to use a down market to your advantage as a real estate investor?
This advice is for those of us with the gumption and expertise to persevere. Because it is times like this when the deals are sweet and the opportunity for growth is all around. Down markets are a real estate investor’s gold mine.
When property owners start to spook, they tend to start listing. This begins to create a supply and demand issue in the marketplace. Supply goes up and prices go down. For the real estate investor, this is the prime opportunity to scoop up these amazing deals. You can weather the market by renting the property out and once the storm passes, you will have a strong portfolio with plenty of equity to boot.
Does it get much sweeter than that?
If luck is being prepared for opportunity than this is our time to shine. Watching the market is obviously very important in our line of work but understanding it is even more so. A confident real estate investor uses their understanding and resources to leverage themselves in the riskiest of times in order to secure a solid foundation of success in the future.