Philly Area, PA · Member since 2008 · 297 posts · 27 votes
Hello everyone I have a question for the guys and gals who have been in the REI game for a long time. People are suggesting that this is probably one of the best markets to invest in now because of the housing situations.
My question for the longtime investor is how much did your investing strategies change because of the market. I know this is a fantastic time to invest, but I feel when you buy right regardless of the economy a deal is a deal.
For example I know that this is a great time to buy and hold. When the market picks up and people begin to buy houses a lot more then its time to sell.
Ok my dear I have 3 years experience in real estate field. I suggest you that first you see the development area related to your invest. Like UDA (Urban Development Authority) comes under in it. And clearance of land documentation. I suggest you that investment in real estate is very beneficial and profitable.
Let me clarify for a moment, I know that this is a great time to invest. I'm asking people who have been in the game a long time how REI has changed over the years for them.
For example 15 years ago where investors going crazy over sub2 deals, etc.
The real estate market is cyclical like all asset markets. In the 24 years I have been doing this pundits have proclaimed the end of the financial world at least 7 times counting the current one.
The current market is a buying opportunity much like existed in the early 1980's (just before I got in), 1987/88, 1991-93, and right around the turn of the millennium. In all of them, including this current one, cash rules. That is why in 2006 I was recommending to my newsletter subscribers and Field Guide members to start reducing debt and building cash reserves and sources of private money.
Those with ready access to cash are buying at huge discounts. The people who don't have to rely on "creative financing" are the ones getting the best deals. This will continue well into late 2010 or early 2011.
How things have changed...
Well, in 1984 when I started you really could assume an existing loan without lender approval in the vast majority of cases. Things were pretty simple and straightforward. Investors were typically sensible about what they bought and the debt they were carrying.
About that time is when the guru-market erupted with Robert Allen and the various me-too-gurus.
Since that time, there have been basically two real estate investing worlds. The one driven by the gurus where the investors "go crazy" over the method, tool or trick of the moment; and the real investors who basically continue to do business they way they always have. I am in the second camp.
To be perfectly honest and blunt, the biggest change over the last 24 years has been the number of new investors who tend to enter the market at or near the peak and buy from those of us who bought at the valley of the cycle.