If you follow the news, it’s likely that you’ve become concerned about
the state of today’s Real
Estate market. And it’s no wonder. Just open up the real estate
section of any paper, and you’ll see nothing but negative headlines.
To prove my point, here are some recent headlines: “Foreclosure Crisis
Continues,” “Home Prices Tumble,” “Real Estate Woes Won’t End Soon.” I could go
on.
I’m not saying that these headlines and articles provide false
information. For the most part, their statements are true. But what I am saying
is that you should not be using this information to make your personal investing
decisions.
You must ask yourself: Am I investing in a market? Or am I investing in
a DEAL? If the deal is right and your exit strategy is clear, then the market
conditions become much less relevant.
I’ve taken 13 of famous Real Estate quotes and listed them below.
Then, I’ve translated it into practical advice for real estate investors
like you. Let’s get going…
Quote #1
“Look at market fluctuations as your friend rather than your enemy;
profit from folly rather than participate in it.”
REI Translation: Today’s market fluctuations are your friend because they’ve scared
off your competition–other investors. They’re also your friend because the
fluctuations have created a flood of motivated sellers. And as any savvy
investor knows, buying from motivated sellers is
the only way to make it in this business.
Quote #2
“Only when the tide goes out do you discover who’s been swimming naked.”
REI Translation: Keep plenty of tools (investing
techniques) in your tool belt so that you can adapt to a changing market.
What worked best in 2008 doesn’t work best in today’s market. Today, we’re
seeing first hand that those with only one investing strategy are taking a
beating.
Quote #3
“Our favorite holding period is forever.”
REI Translation: To build true long-term wealth, you must buy and hold real
estate.
Quote #4
“Risk comes from not knowing what you’re doing.”
REI Translation: Those who don’t know how to properly analyse, enter, and
exit real estate transactions think today’s market is risky. Those who
fully understand the intricacies of creative real estate investing continue
to participate and profit.
Quote #5
“I will tell you how to become rich. Close the doors. Be fearful when
others are greedy. Be greedy when others are fearful.”
REI Translation: Now’s the time to buy. In real estate and in life, it’s almost
always best to act opposite to the herd.
Quote #6
“Wide diversification is only
required when investors do not understand what they are doing.”
REI Translation: Naive people are putting their money into stocks, bonds, and
savings accounts right now. Smart people continue to invest in real estate, and
they’re picking up more bargains than ever.
Quote #7
“Never count on making a good sale. Have the purchase price be so
attractive that even a mediocre sale gives good results.”
REI Translation: If you’re concerned that you cannot sell for full value, then buy
lower – at about 60% of value – and sell lower – at about 90% of
value.
Quote #8
“We will reject interesting opportunities rather than over-leverage our
balance sheet.”
REI Translation: Sometimes the best real estate deals are the ones you don’t make.
Quote #9
“It’s far better to buy a wonderful company at a fair price than a fair
company at a wonderful price.”
REI Translation: If you’re going to hold a property long term, it’s far better to buy
a wonderful house at a fair price than a dump at a bargain.
Quote #10
“A public-opinion poll is no substitute for thought.”
REI Translation: Most Indians think that now is a risky time to get into real
estate investing. Do they know more than you? Most likely not. Only a handful
of Indians know the specific techniques for profiting in today’s market. And
that’s because they read articles like this, they buy REI courses, they attend
their local REI
meetings, etc.
Most Indians get their “investing tips” from the daily paper. There
couldn’t be a worse source. Do you think journalists know how to wholesale
houses, do short sales, take over a loan Subject To, etc.? I think not.
Quote #11
“The most important quality for an investor is temperament, not
intellect… You need a temperament that neither derives great pleasure from
being with the crowd or against the crowd.”
REI Translation: Don’t worry what the masses are doing. Follow the advice of
successful real estate investors, and use their techniques to
profit in today’s market.
Quote #12
“You ought to be able to explain why you’re taking the job you’re
taking, why you’re making the investment you’re making, or whatever it may be.
And if it can’t stand applying pencil to paper, you’d better think it through
some more. And if you can’t write an intelligent answer to those questions,
don’t do it.”
REI Translation: Every deal must work on paper before it will ever work in real
life.
Quote #13
“I really like my life. I’ve arranged my life so that I can do what I
want.”
REI Translation: Remember, that’s what real estate investing is all about. Arranging
your life so that you can do what you want to do when you want to do it
