The Past is Gone

When I dove into this business seriously a little over three years ago, I wondered how much time I had.  Will the opportunity last and for how long?  Since then, I've learned the more experience and exposure I get to the market, the more deals I see.  What I thought of as a good deal a couple years ago, I routinely pass on now, because there is almost always a better deal around the corner.

So many are beginning to say deals are drying up.  I think that means deals based on last year's buying criteria.  Now we might have to spend a bit more to buy, and face more competition to buy, but we can typically rent for more and even sell for more and faster in many markets.  If not today, the signs are pointing that way.

Talk to the ones that have been doing real estate for decades.  They'll tell you that you can make money in any market.  In the past few years we've gotten used to a bad market that told us we have to buy for dirt cheap to make money.  That's not always the case, today.  For example, is it worth it to pay more for a great location?  Absolutely.  Especially, for long term buy and hold.

We do need to work with the market we are given, and be willing to change as the market changes.  This may be the year to rethink strategies.

Last week I was talking to a guy who has been an Apple fan boy before we knew what a fan boy was.  He's loved and evangelized for the company since the 1990's.  Last July, I told him I was buying Apple stock in the mid $300's and I thought it was fundamentally under priced.  He kind of agreed, but said it was too expensive at the same time.  Huh?

Fast forward to last weekend.  He sent me an article about Apple hitting $600 a share.  He never bought any.  I didn't even have to say anything.  He said, "You know Jon, my problem is that I remember when Apple was $15 a share and I can't bring myself to pay today's prices."  Ah ha!  We can let the same thing happen to us when we become anchored in the past. 

The past is gone and we have today to act based on today's reality.  Reality changes.  Apple netted over a billion dollars a week last quarter.  The bottom of the real estate market appears to be in the rear view mirror.  Plan and act accordingly.