Letter to a Discouraged Buyer
A gentleman I’ve been working with for over a year has finally decided to call it quits. He started with a fiery vision, to slowly build real estate wealth, to start with something small and grow it into something big and leveraged. He was being advised by a seasoned real estate investor. So what happened? Enter the Significant Other, who didn’t like the neighborhoods where the humble, affordable homes were located. Plus, they both were attracted to the fun of the downtown nightlife, and all the snazzy condos there.
We all have people in our lives who influence us, and we all face temptations which do not really benefit us in the long run. "Josh" was facing what we all have to battle in some way, shape or form. I just hate to see his dreams die.
I wrote him this letter this morning, hoping he might remember the passion and excitement of his original dream.
Hi Josh, I totally understand what you're feeling. Many buyers are frustrated because for the past year, they've been "chasing the market" as it ascended in price. Interest rates have risen too. To be very direct with you: it's always felt to me like your heart has been tempted by downtown, and a really nice, luxurious condo. But as you know, a huge percentage of these have major lending issues, and many are cash-only now.
On the other hand, it feels like the long-term investor in you has been looking for something very different, something which will start you in the real estate game and propel you forward to future financial growth and success. This choice is the opposite of owning a pretty condo. However, the people who have successfully used real estate as one of their investment strategies start with a simple, perhaps humble home, and grow it and leverage it into something bigger and better down the road.
Bottom line is, you will always need shelter. You can either pay somebody else for housing, and as their tenant you can help them grow their wealth, or you can hop in and get a mortgage and start building and growing your own wealth. The timing is totally up to you.
I will take you off the MLS search. But I do suggest that perhaps you have a brief chat with somebody like Robert, who does own a lot of real estate, and who has an honest grip of the ups and downs of different choices. He's a straight shooter, and can give you some fresh insight.
Please let me know how I can best help you, whether that's now or 5 years from now. You and I don't control the market, the interest rates, what homes costs, or what other competing buyers are willing to pay for them, etc. You can only do what's best for you, and for your future.
Barb
© 2013 Barb Fischer San Diego La Mesa
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