Real Estate Insight

Secrets for Timing The Real Estate Market

Beating the Market by Timing Home Buying and Selling

There are 33 American billionaires that made their fortune from real estate. All of them collectively agree that nobody can precisely time any real estate market, not even them. So if these 33 people (whose combined net worth made from real estate totals over $80 billion dollars) admit that they can’t time the market, how can you? But before you give up on your dreams of becoming a real estate tycoon, there are valuable principles and practices used by each of these 33 real estate billionaires and most professional investors. Their secrets, mostly unknown to amateur investors, can be learned. They will all be revealed in this first and following educaltional series. This series will teach you the secrets, and mistakes, of the real estate billionaires to help increase your chances of not having to rely on social security for your retirement.

The Secret of Timing Real Estate Markets

Adopt the same techniques of those that have built fortunes in real estate. For starters, they follow this creed: First, Buy low and sell high and second, There’s never a bad time to buy, there’s only bad times to sell. If you incorporate this creed, you’ll begin to understand what all successful real estate investors have learned. It’s okay to buy high, as long as you sell higher. In fact, looking back at any time in history, the price of real estate at that given point in time was “high” at that time. I remember when my parents bought their first home in 1960. It was $50,000. It was, at that time, an obscene amount of money to spend on a house. That home today is worth over $1.5 million dollars. My point is that at the time my parents bought that home, the price of real estate was high. Did it matter that they paid a “high” price for that home? In hind sight, the answer is easy. In fact, it would have been a mistake to not have bought that home. Of course hind sight is always 20/20, but one fact remains. Real estate will ALWAYS appreciate in value over time. Yes, there will be peaks and valleys, but over time, it will always appreciate in value.

All successful real estate investors know that real estate is a long term investment. Sure, you can make money quickly in real estate. But the quick path is also filled with high risk, sleepless nights and will need a little luck. These types of investors are called flippers. They know that the higher the risk, the higher the reward. Investors looking to make the quick dollar better have deep pockets and an iron clad stomach. Flipping real estate is not for the faint of heart. One wrong decision can cost you everything.

So what’s the secret?

So what is “The Secret” to timing real estate markets? The secret is you don’t have to time markets to build wealth in real estate. All you really need is time. If you can adopt the discipline of patience and combine it with time, you have moved a huge step closer to financial independence. It is that simple. Mind you, I didn’t say easy. There’s a distinct difference between simple and easy. The next in this series will get into the nitty gritty and teach you to how to become a professional real estate investor.

Until then, happy home hunting!

Elliot Lau