Real Estate Investing For Dummies - “It is the market stupid”
I had to break out this week and hit you with a real estate investing for dummies post! OK, those who know me know I do not talk this way but, hey, it is a line that catches the attention. They say you have to illustrated absurdity by being absurd and I wasn't getting a warm fuzzy that my kinder gentler post last week, It Is The Market “Silly”, didn't get the point across strongly enough! The truth is Real estate investing is all about the market. So why is it that this is rarely talked about?
To answer this I go back to something my Dad always taught me. “Follow the money trail and you will find the answer to everything”. People talking about real estate investing are ultimately trying to sell you something. Many are trying to sell you real estate in their own back yards and therefor they focus on just the property itself so they can close the deal.
Others are trying to sell you books and tapes and they just want you to buy books and tapes and they need to overcome their number one objection that many people have which is “I cannot do that where I live” or “That does not work here in my back Yard”. I admit it, years ago I fell prey to the infomercials selling me on the fact you can do these techniques in any location in the world and if you believe otherwise you are simply making excuses and therefore should stop the excuses and just do it. After many years I realized they needed me to believe this because if I did not they would not sell me their products.
The truth is you can do most any real estate investing technique in any market if you are diligent and you go out and make it happen BUT does it make for a best or even good investment? At the end of the day your best investments are the investments that are in the best real estate investing location. For years we have heard that real estate is all about Location, Location, Location and yet most people forget this when they invest - why is this?
I believe it is because they do not know exactly what the best location is. They believe they are choosey when it comes to picking purchases that are not located next to a nuclear power plant or next to the 6 lane traffic roads. These are important of course for a family looking to buy a home for their family. For a real estate investor the best location means “The Best Market” that produces the best long term sustainable cash flow and growth.
OK, I see a need for ANOTHER post here. Let’s call it Technical and Fundamental Analyses of Real Estate Investing, just to keep things light. So watch for this Blog post coming up next.
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