John, What will your investments be worth in five years from now? Waitaminute … five years? Who wants to wait that long? We all do. Because that’s the real question real estate investors should be asking. Not “Can we 2X this property in 2 years”, which is what many of us have been asking. It is what we’ve been accustomed to, but that’s not today’s reality. Do you look at today’s interest rates and low loan-to-value ratios as “No thank you, I’ll wait until conditions stabilize”? If you do, thank you, and join the crowd, especially if you’re a buyer! Now hopefully fewer
How do you approach someone in a networking environment? We know that real estate investing is a team sport, so we need to get out there and meet people, but what’s the most effective way to do that. I’ve been taught to introduce myself, ask them questions, look interested. That’s fine, but two people are talking already – do I just step in and interrupt? Stand by and listen? Or only seek out individuals standing alone? If you’re at a conference for real estate, there’s a lobby, and people are talking in the lobby, they want to meet people – you.
Do any of the red-hot markets look scary to you today? As investors we have to keep our crystal balls shiny because projecting into the future is required. What trends and events will affect our investment, both local and national. Which sources of data are reliable. And what metrics should we be tracking. Markets like Phoenix, Las Vegas, and Tampa have clearly been red-hot but may be poised for changes. Zillow says some of these cities saw the biggest shares of price cuts for single family homes over the last three months, and days on market, a key indicator of buyers’ willingness to pay
These are not times of extreme distress, despite what you might be reading. An interest rate pop of 200 basis points does not mean we’re having an economic meltdown, a real estate crisis, or anything like that. Maybe that’s right around the corner but it’s not here today. Instead, today is when to push sellers for price reductions and to hunt harder for lower rate loans. Put your offers in, let someone else over-pay or wait for the seller to come down to your price. It seems like valuations should be coming down in reaction to the hit that higher
What seduced me into real estate investing was simply the adventurous opportunities but what kept me interested early on and still today is the people I associate with. Nowhere else do you find people with such positive attitudes, ready to help with no expectation of anything in return. Once I became connected with networking groups, the people I met gave their time to share experiences, caution me about risks, answer my latest how-to questions, and suggest new directions for me. I learn more from them than I do from the training I take. Other investors hardly ever see us as