I recently attended an international conference on investing. Big deal, great folks from all around the world, all sharing their expertise, systems and philosophy. Why did I, a mere mortgage body, attend this event? Well for starters, I feel we all need different perspectives whatever the 'market' we trade. Here are a few thoughts I gleaned you might find useful in your practice:
1. Trade Prices: Given everyone wants a low rate and a low price. Price is what makes the 'trade'. However, prices in real estate are not the be-all. But ask yourself: when did price NOT make a difference? Only to someone for whom price was not an issue...not the majority of us living on real budgets in a finite income world. Price points are very big emotional boundaries for folks. I know how much that extra 5K may cause an application to be declined. We have come accustomed to stretching in real estate and now is the time to conserve, live within our means...get a little leaner. I am finding my clients appreciate my strategies for buying lower and not being 'sold' up.
2. Know Thyself: Successful investors know when to push the button and when to take a very long walk.
3. Ignore the Talking Heads: But watch your market, your sector, your turf. The 'news' is probably rigged anyway (how would we know) so it's best to do your own due diligence. Did anyone get rich watching Cramer? the guy said Bear Stearn was safe as houses less than 48 hours before it tanked. Folks are particularly wary now about the predictions we heard only months ago that the recession would be sharp and short...yea right. I bought into some of those 'trend sellers' myself. Yikes, we were predicting rates would go UP this year but hey that was actually before certain truths started coming out.
4. Timing is Everything: From how long you hold any investment to exactly when you sell...any market is driven on the wings of time. We try to take profits when things are high but in real estate we don't always have that choice. Our job takes us across the state and we either have to sell or become landlords... neither choice is fun when you need your money to support a move. Accept not all is within your control and accept your limits.
5. Pick a Method: What kinds of strategies, over time, might work better for your personality, temperament and stage of life? Is it best to borrow $50K to fix up your home in one fell swoop or do the projects one room at a time with your ongoing resources? The answer is different for each person. And if gold is your bag, grab some miner stock. Land works for some. Others like rentals...do what you love and know. As they say in New Zealand: "Whatever starts your tractor!"
6. Celebrate Your Wins: It's a pretty great time to be investing in real estate. Share the love. Study your correct assumptions and remember the trigger points. Learn to trust you gut.
7. Study your Losses: Otherwise how will you improve your game, tighten your reflexes and come out boxing the next round? Traders go over their charts, relive their decisions, keep rigorous notes on what strategy worked and what didn't. If you want to win, you need to know your weaknesses as well as you know your strengths.
OH, and what about that 'Rate Forecast"?-- they actually went down since my last prediction....fancy that!
(Thanks to Bill, Vadym, Pascal, Kaimu and others for sharing their pearls at the Cara Trading Conference 2009) For more inspiration: www.caracommunity.com
Happy Spring! Loannetter
510-MB-24707-50145 An approved Conventional, FHA/VA/USRDA and Reverse Mortgage Broker
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