The title of this post is something I heard a few times over the years. It didn’t make a lot of sense then but sure does now.
Reminds me of something Warren Buffett would say. One of his most famous & recently well used quotes is “to be cautious when others are greedy, and greedy when others are cautious.”
Less face it, right now, a lot of people are cautious. Even with the 20-50% price drops, and more and more bank owned deals hitting the market, some buyers continue to wait on the sidelines. I am not saying that is a bad thing, but sooner or later, things are going to change.
When you look at some of the most successful real estate investors, the decisions they make in the down times, not the up times, are what set them apart from the crowd. Most of time, it is their decision to move forward a particular purchase of a property or stock.
Along those same lines comes this video from the Today show.
“Most of the biggest real estate fortunes were not made in good times, but in bad times like this” Barbara Corcoran reminds us in this talk with NBC.
But, no one should just run out and buy because prices are low. There are several important factors to keep in mind.
In the 4-minute interview, Corcoran quips on the basics and the essentials of foreclosure investing,
- “Everyone who loses their shirt loses it somewhere else.”
- “Every big shark started small.”
- “The house on the corner sets the tone for the block.”
She also lends some personal perspective to rent rolls, the cost of losing a tenant, and finding a good business partner.
I have talked about many times on this site, the banks are anxious to sell their foreclosed homes and that makes this an ideal time for shrewd real estate investors.
If you’re new to the game, watch the video and take good notes.
When it comes down to it, those who buy & invest in Big Bear property over the next few years will be looking pretty smart in 5-10 years.