Preparing for Change

As a real estate investor, you should prepare yourself for the natural changes which are bound to come. Property values are fluid, so the fair market price keeps adjusting. As a wise investor you should look ahead and with reasonable clarity have a strong opinion as to what is happening in the market place. I am not suggesting that you give low ball offers but I also do not believe that an above market place offer is good for most investors either. Look at the market place as an hourglass. It is a large one but you want sand in both portions when you purchase because you need the sand to keep sifting through when you remodel and have your property apprised because if the sand is out of your side, you will lose money in the short term on a property you’ve overpaid for or one you purchased close to a market crash.

            You also need to prepare yourself for how people will view you differently. It may seem odd but financial institutions will treat you differently as you begin to grow and prove you are a wise investor. They begin to as your advice secretely of course and the process of getting your financing seems to go smoother and quicker.

People in industries and some other entrepreneurs will begin to approach you with offers. They will have unbelievable opportunities for you to advance your cause with.

It is nice to have agents and brokers looking out to aide you in finding your subject properties, but their will be wholesalers that will contact you. These are individuals that search the area looking for a property that they can place under contract and then seek other investors to purchase the property by transferring their contract to them. People have made a lot of money using these unlicensed, uninsured, unregulated individuals; but some have lost a good deal using them also.

            Be careful that you do not allow the other changes change you or the method you use in selecting your properties. Your reputation will proceed you and it will aide or harm you according to how you treat others. It may be simple to take advantage of someone when they are down but there is karma and it come around quite unexpectedly. You should rely on your skill as someone who recognizes the potential of a property and the skill of your team to make your profit not on your being able to take undue advantage of an individual who has hit a rough patch in life. It is not hard to calculate the fair market value of a property and adjust it by applying market trend information.  

Note: Images on this blog site are from a free source or taken by the author. No image or group of photos is intended to represent the people the author serves. The author does not care about Race (that is a politically correct term that he does not like because we are all of the same Race, the Human Race. He prefers the term ethnicity, color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status.) He is a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662. He’s a member of the CRMLS and The East Valley Association of Realtors located in the Inland Empire region of Southern California.