We all are familiar with the person who needs to buy "whatever" at a discounted price, but doesn't act. When when the price goes up, he/she begins the "I coulda....I woulda...I shoulda..." refrain. Things are miserable because he missed the "golden opportunity" to buy at rock bottom prices.
But how many of us are intelligent enough or savy enough to get what we want at rock bottom prices? Too many factors impact pricing and especially the price of real estate. You may follow interest rates, but do you follow the bond market, and the stock market? And what impact does the bond market and the stock market have on the price of real estate?
In my experience, I have had potential investors tell me they wanted to buy "a good property"...and I ask, "what is a good property?"...The standard answer is ..."I need a property with a positive cash flow"...and then I ask, "is that on paper or is it actual?"
There is a big difference here. The potential buyer wants the money in hand, month after month. The greater gain may be on paper through capital appreciation by inflation and plus the tax advantages.
I ask the buyer if he/she has an investment philosophy....and I have rarely received a satisfactory answer. I begin to explain philosophies of investmen; A properties, B properties, C properties; university properties, active adult communties, snowbird rental properties; Section 8 properties...areas of town, concentrating properties all in one area, or throughout town ...and the big question, who will manage the properties...?
What is the point of all of this? For the investor willing to dig a little deeper, willing to do some elbow grease, willing to have a bit of patience on short sales, or purchase bank owned properties, this is the Tucson time now which will be "woulda, coulda, shoulda" in another six months to a year.
With a well thought out investment philosophy utilizing 1031 Tax Deferred Exchanges, doing the homework necessary, and understanding the potential of leveraging, combined with today's lower interest rates and low prices, the time is now. The key to the puzzle is an excellent Realtor and a desire to suceed.
Coulda, Woulda, Shoulda, are a dime a dozen and in three years a lot of people will be crooning that tune.
Resources:
http://en.wikipedia.org/wiki/Internal_Revenue_Code_section_1031
http://www.realtor.org/library/library/fg408
This was posted to my web blog this morning at http://www.terrybishop.com
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