I'm going to talk about some strategies that are worst case only. Remember that real estate is nothing more than a product. If you're good at a business and know how to thoroughly research a product and its market, you can sell toasters or you can sell a house. It's all the same.
Of course, not too many people rent toasters and toasters don't appreciate, and that's why real estate is such an easy business for so many people to jump into. That's also why there are so many catastrophic failures. It's too easy to make money in real estate if the market is going hot, even if the investor does everything wrong. They have forgotten (or never knew) the fundamentals of business.
One of the fundamentals of business is to look for a way to create
more value in what you're selling. Remember if you're renting a property, lease optioning it, doing a rent to own, or straight out selling--regardless of what you're doing, you're selling something. And, if no one is buying (or renting), ask yourself why? Is there a way to add more value by making it more desirable for the buyer/renter?
Some ideas might include changing the property--adding additional features that no one else has or making more favorable terms for a potential buyer.
One more comment on the people who say the end is coming for real estate. In a lot of cases, the doomsayers who happen to have money as well, are people who've gotten lucky. They're now afraid that they can never recreate that wealth, and so they're just plain afraid of everything. They realize, at some level, they had nothing to do with the wealth they've gotten, and so they're afraid they will lose it.
Having strong business skills means you have the ability to look at any market in any climate and figure out what to do next without panicking.
Tip #3: Keep your eyes on the real goal.
No matter what type of business or investments you have, you need to have fundamental skills. That's what Strategy #2 was all about.
Face it, I'm a CPA and Tax Strategist. For me, one of the biggest benefits of investing in real estate is all the great tax loopholes that you get. And, you'll get those loopholes no matter what happens with the market. Of course, I don't want you to do anything just for the write-offs. You have to make money, too. At least in the long run.
Are you sure you're getting all the tax loopholes for your investments? How about your business structures? Are they set up correctly, and are you operating them in the best way possible?
And, probably the biggest problem facing real estate investors, are you accounting for your real estate correctly? If you don't do the accounting right, you're going to miss the tax write offs.
Remember, you can make money in real estate regardless of which way the market goes. The key is to have good business skills first.
Today's lesson is a bit long but I believed it does not bored you. I guess you are now understand that the important to have the knowledge before you begin your property investment journey. This is to minimize the risk of investing money. To further enhanced your knowledge, I have an intensive 2 Days Live Workshop which I do believe you should attend in order to bring your knowledge into another level. The workshop is presented by Renesial Leong, Asia's Queen of Property. She is being recognized throughout Asia with her 80 properties around the world and 20 years of experience. She was just a normal person like us before becoming a successful property investor. Do email me to declare your interest to know more about the details of this workshop.