Everyone says buying your first house makes you feel like an adult. What no one mentions is that selling it turns you right back into a child. I think depending on when you sell summer 2005 or now 2011, this is very true?
What have been some of your experinces that reflect this statement?
As an investor we can never time the market perfectly to get in at the low end, unless you have a magic ball or truly believe in what all the real estate gurus predict. But one thing you can do is decide when it’s comfortable enough for yourself to invest. If the numbers make sense, then tune out the negative media noise and invest.
Fear is what drives the market but if you crunch the numbers and your positive cash flow and it makes sense than what are you waiting for, start acquiring. As long as you follow proper investing fundamentals and position yourself with known risk tolerance.
As I said before, picking the right property is one thing, managing is another and where things can go wrong and break you financially!
Investing in Sacramento Real Estate looks better each day.
The investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage. A down market in Sacramento is a good thing for investors, buy now not later!
Real estate has always been a long-term investment period. There are some who can flip a house quickly but the margins a small and these people have well-developed teams. Some who flip a house spend so much time, they could have bought and rented it out and received income. Others buy and make mistakes that increase their costs.
Don’t take this approach, invest to hold, get income now and sale later. For the average investor or first timer you need to take a different approach. When the real estate market bounces back, you want to be in a holding position by then, before the crowds come. Just like in the stark market, buy low and sale high, well those fundamentals pertain her also. Take your time and get to know the area and crunch the numbers to make sure you know what your income and profit will be, the numbers don’t lie.
What do instincts mean in real estate investing?
When you are in business and you have a intuitive feeling inside you thats telling you something, please listen to it, especially in real estate. Investing in real estate can be a roller coaster ride and you have to have the knowledge, stamina and stomach for it in the up and down markets. Always listen to your own instincts if you have analyzed all the information. Don’t always look at what the situation is at the moment but look at what it will be later, and that my friends is what makes you a champion in real estate investing.
Champions have to have two things in any business, skill and will but they must have more will than skill to make there investment decisions succeed and to never quit.
Smooth Sailing Realty & Property Management, Inc
What are you biggest complaints with a Real Estate Property Management Company?
How about to start:
1. Not ansering or returning calls in a timely manner.
2. Monthy charges on your statement you unaware of.
3. Not having a say in who moves in your place.
This is not the Summer of June 2005, its 2010! And the only people who are investing in Sacramento are the seasoned and experienced investors with some first timers who done their homework. This means, now is the time to be securing a real estate portfolio and holding it for a 5-7 year investment.
Prices at these levels make sense because they cash flow. Rents are stable and this allows them to be leased out quckly which in turn adds to the positive return annually. Dont wait for the crowds like the ones in 2005 to make you feel it’s time to invest. As I always said, buying the right property is one thing, managing it correctly can make it a succesfull investment or a loss.
Do yo think this is in Sacramento its the market is positioned for invesors to be in a buy/hold strategy?
In the Summer of 2005 I was liquidating a big percentage of my Real Estate holdings in Sacramento and preparing for a new real estate venture in Texas when the market corrected itself. As the market in June of 2005 started to get crazy and bidding wars were never ending, I was all pretty much cashed out of the market. In November of 2005 all the gurus of real estate investing started to realize that, that summer was the peak in the market and things were heading for a cooling off trend. At this same point, the Sacramento Bee interview me for my take on the market. My feedback to them was the market was heading for a double digit correction downwards. I simply said there were to many “players” in the market and when everyone claims to be an “expert in investing”, thats when its better to steer from the crowds.
I was giving this advice to my freinds but in June 2005 to everyone I new that was in the market but most people were to caught up in the market and simply wrote it off as not accurate advice or sound enough. Nevertheless, I felt the market was gonna drop in the 20-25% or more and as I was being interviewed. Even as was stating this in my interview, I was steered to maybe offer a lower percent correction to be conservative and thats what was printed.
My point is this, when you are in business and you have a intuitive feeling inside you thats telling you something, please listen to it, especially in real estate. Investing in real estate can be a roller coaster ride and you have to have the knowledge, stamina and stomach for it in the up and down markets. Always listen to your own instincts if you have analyzed all the information. Don’t always look at what the situation is at the moment but look at what it will be later, and that my friends is what makes you a champion in real estate investing or in any business. Champions have to have two things in any business to make it, “skill and will” but they must have more will than skill to make there investment decisions succeed and to never quit. Had I listen to all the crowd and dismissed my instincts back then, my situation would be alot different now. Trust your instincts because in the end it’s you versus the market.
Smooth Sailing Realty and Property Management
8801 Folsom Blvd. Suite #120
Sacramento, CA 95826
(Near Watt Ave./Highway 50)