Gilbert Arizona - Real Estate Market
If you're looking at homes for sale in Gilbert AZ trying to find the best deals, you might want to read this...
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So, what do I mean by short and long timeframe.
Well, short time frame would be to own the house for less than 3 to 4 months (no more than 6 months). This would be the case if you want to flip the house.
Long timeframe would be anything over 6 months, although I don't really see why someone would buy a house and own it for less than 2 years unless they want to flip it or if it's a second home which can be used for a 1031 exchange.
So when is a good time to buy?
My answer will always be NOW. It doesn't matter
as long as you buy the property correctly.
Now I have to say this with tongue in cheek because I'm a realtor, but I don't say it because I'm a realtor, but rather because I'm a
real estate investor.
Now there are better times to buy for specific strategies, such as buy and hold. That would be when the market is down and there are no more buyers around. By looking at market activity, I would want to guess that
January of 2008 was the bottom of the market, at least for Gilbert AZ. You see starting February, we started seeing multiple counteroffers in most properties.
Now there are two things that need to happen to confirm the bottom of the market.
- Banks must show that they have raised enough capital to make it through the foreclosure tsunami that's coming out between now and Jul/Aug
The volume of transactions must remain steady and above 240 homes per month (in Gilbert AZ)
If that's the case, then we'll know for sure in July or August whether or not January was the bottom of the market. By then, it'll be 7 or 8 months after it happened. This happens in the stock market everyday and it's the reason why 90% of the people who invest in it lose money.
It is absolutely possible to
make money in real estate regardless of the market. I know of many investors who made money in 2006, 2007 and are currently investing in today's market.
What's the secret?
There's no secret, there's education. You see most investor's, like most people, don't have a strategy or a method to follow to buy properties. Just like anything else
90% of people fail at real estate investing because they don't know better or they are just doing what they learned at a seminar 5 years ago. The real estate market is dynamic and what used to work 2 or 3 years ago, doesn't work today.
It's amazing how people won't spend $10K or $20K on their education, yet they go out and invest their money and lose twice as much. It happened to me, I lost
over $100,000 in real estate investing. Did I learn my lesson or what?......People, listen to this - "ignorance has a price!!!"
Moving on....
Even if you bought a property in 2005, you can still count on your property appreciating. There are no guarantees in life, but overall properties have an average of 6% appreciation over time. Will it take 5 or 7 years? Maybe less, maybe longer.
There were many new millionaires created in 2004-2005. If you were not ready for the real estate boom, you missed your chance of becoming wealthy forever. The next real estate market boom is going to come..... and
if you're not ready, educated, and well funded, you'll miss your next chance again!!
If you could buy a property for 60 cents on the dollar in this market, do you think you can make money?
Maybe you don't have money to invest right now, but if you had knowledge and knew that with $20K
you can make $40K or more in real estate, do you think you can find someone who'll give you $40K and split profits with them (they put the money, you put the knowledge and/or time).
If you can't think of anyone who will give you $20K to invest, you're just not educated. Every good real estate investor uses other people's money to invest, and I'm not talking about bank loans, or hard money lenders. I'm talking about raising private money to invest. (I'm not saying that if you don't raise private money you're not a good investor, I'm just saying....)
There's only one way you're going to be able to buy a property for less.
You have to find a motivated seller before other buyer's do.
Learn how you can beat out other buyer's to Hot New Listings in Gilbert AZ... Click Here
Also, I'm looking for apprentices who want to learn real estate investing.
Only the very SERIOUS need apply.
Click here to learn more about How to invest in the same market the mega rich make billions
Our next blog, I will go more in detail about how to beat out other buyer's to the best deals out there....
This is an excellent article and I couldn't agree more that now is the time to invest in real estate, more than any other time because there are deals to be had.
I would take a look at new homes and new build property that is about to become stock. Because the market is slow, it's a great time to make a cheeky offer.
What's to lose?
Cheers,
Stu
www.offplanpropertyexchange.com