Residential real estate investing is a business activity that has polished and declined in popularity dramatically over the last few years. Ironically, there always seem to be a lot of people jumping on board with investments like stock, gold, and real estate when the market’s going up, and jumping OFF the wagon and pursuing other activities once the market’s collapsing.
In a way that’s human nature, but it also means a lot of real estate investors are leaving money on the table. By understanding the dynamics of your residential real estate investment marketplace, and acting in disapproval to the rest of the market, you can often make more money, as long as you also stick to the real estate investing fundamentals.
Real estate investing, whether you’re buying residential or commercial property, is not a get-rich-quick situation. Sure you can make some fast cash flipping houses, if that’s your bag, but that is a full time business activity, not a passive, long term investment.
The word “investment” suggests that you are committed to the activity for the long haul. Often, that’s just what it takes to make money in real estate. You may also Click here at this link and get more information about the residential real estate investing.
So, while the pundits are crying about the residential real estate market fall, and the speculators are wondering if this is the bottom, let us return to the fundamentals of residential real estate investing, and learn how to make money investing in real estate for the long term, in good markets, as well as bad.
A Return To The Fundamentals of Residential Real Estate Investing
When real estate is going up, investing in real estate can seem easy. All ships rise with a rising tide, and even if you’ve bought a deal with no fairness and no cash flow, you can still make money if you’re in the right place at the right time.
Any residential real estate investing deal that stands up under the scrutiny of this fundamentals-oriented lens, should keep your real estate portfolio and your pocketbook healthy, whether the residential real estate investing market goes up, down or sideways.
However, if you can use the real estate market trends to give you a boost, that’s fair, too. The key is not to rely on any one “strategy” to try to give you outsized gains. Be realistic with your expectations and stick to the fundamentals. Buy property you can afford and plan to stay invested for the long haul.