Perfect Timing -- The Key To Real Estate Success

Perfect Timing -- The Key To Real Estate Success by Luke Cameron

The real estate industry is similar to other forms of investment like stocks, bonds and mutual funds. However, they have certain aspects that greatly differ like night and day.

First, most investments can readily be bought or sold at the current market price. With real estate, buying and selling properties may take a longer period of time. In all investments, you should wait for a perfect time to buy and sell. You have to wait for a high point whenever you sell, and you have to chance upon a low point to be able to buy a stock or a property at a much lower price. Again, the difference is in the time span. In the stock market, the stocks can change hands easily, within a day or two, or probably even a month. Real property takes a much longer time before it could change hands. It may take a lot of months before an investor can be satisfied with his profits.

Another difference between real estate and other forms of investment is that real property is always unique while stocks remain the same across different companies.

In real estate, timing is very important. It does not matter whether you are buying or selling. You have to be able to catch a perfect opportunity to close all your deals.

There are a lot of ways to improve your timing. One method is to acquire property at very low prices. You can find these bargains through foreclosures or properties that are in dire need of a considerable amount of repair.

You can also find good deals by reading local newspapers and real estate websites. Take a closer look at Notice of Default listings and schedules of auctions. If you are patient enough in scouring the papers and the web for bargain prices, you may even come across foreclosures that costs from 25% to 35% lower than the current market value.

Another great real property investment strategy is to find sellers who are leaving the area. However, there is a slight chance of a turnaround. This happened in several neighborhoods in Manhattan, such as the Lower East Side. Before, it was a depressed area, and now, the properties within the vicinity sell at a premium price. You should always research on the area for possible industry boom or market shifts. Always think long term.

If you are able to do a small amount of repairs, you might like to buy a property for a lower price and just invest some time, money and energy into repairing some damages and restore the property into good condition. With a little makeover, you can increase the value of the property by 10%.

These strategies will be easily executed if you have a working capital. It doesn't mean that you need to have a huge amount of money on hand or in the bank. You must be able to have access to money, either by keeping your credit rating at a more than satisfactory level and by having a lender who would be able to work with you and assist you in financing your projects.

The real estate industry is not an easy game to play. You will need to invest money, time, knowledge and patience. You will need to know theories and strategies and apply them when the time is right. You just don't buy a property when its price is low without checking the market first and you certainly don't sell a property when you absolutely have not looked at the other options available for you. All things are to be undertaken in perfect time. That includes real estate investing.

About the Author
Luke Cameron is owner of Real Estate Cubby. - an online magazine offering news, tips and articles on real estate related topics. His website can be found at: http://www.realestatecubby.com and http://www.homesviews.com

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