The Informed Investor's Resource
Frenzy and FearTwo of an Investor's Worst Enemies©2009 Bob Sharpe
When real estate values are . rising fast, many people see their friends making a lot of money. They watch. They think about it. They talk about it. In the meantime, values go up another 25%. As they watch the frenzy, the finally bite the bullet and invest. And they don't make any money. They waited too long. Frenzy and greed always create large waves of demand. The demand drives the prices up to unrealistic heights. When people can't afford the investments any more, the demand plummets and property values begin to drop. When the values drop below their buying price, they get concerned. Then they panic. They sell and lose money. Panic sales always lose money. They bought high and sold low - just the opposite of what they should be doing. The solution? Don't buy in a frenzy, and don't sell in panic. Learn about Real Estate Cycles and Trends. Buy as much as you can when inexperienced investors are unloading their properties in panic.
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It happens in the Stock Market. It happens in
Real Estate. It's human nature, and it controls the
way many people invest their money. Here's how it
works:
The
$1,000,000
Strategy
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Buy your own house.
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Purchase an investment house.
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Buy several more investment properties as you are able.
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After about 10 years sell your houses and purchase an apartment complex.
Where to Find the Money to Invest
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Your savings account.
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Your home equity.
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Cut back on unnecessary expenditures and save the money. Use the Calculators.
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Start a part-time home business.
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Upgrade your IRA to purchase Real Estate.
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Disclaimer Real Estate has historically been the safest and most profitable vehicle for investment. However, there is no such thing as investment without risk, even in Real Estate. All numbers and estimations given by us – electronically, orally or in print – are based on the information that was given to us by real estate developers and by our research of investment publications, trade publications and other expert business sources. We can use historical precedent and current market conditions and trends to project future expectations. However, no projection is ever a guarantee of future profitability. We strongly recommend investors to carefully inspect the available properties and to do their own research before investing. It is always advisable to consult a licensed professional before purchasing property. Also, in order to know the tax benefits a particular property will bring, the investor should consult a professional tax advisor who specializes in working with Real Estate investors. |