I am constantly talking to all too many investors who are worried about what the real estate market is going to do in the near future. Any savvy real estate investor should know that market conditions only affect a certain part of real estate investing business, but not all areas. I talk to inexperienced investors almost every day who believe the real estate market is going to slow down and prices are also going to also go down. This may be true in some areas.
Having personally lived through several economic cycles over my 40+ years in the real estate investing business I have experienced several market changes where some markets went up in price, and some markets the prices went down. Today’s podcast is about how to read the real estate market and every economic cycle to be sure you make money in any economic cycle. How some parts of real estate investing are affected, and why other parts are not affected by market conditions and economic cycles.
When the real estate market prices go up and up, you can make money retailing properties, but you need to be aware, when house prices continually go up, fewer people can qualify to buy a house to live in. When this happens those people, who are unable to buy, they usually become renters.
When the market prices go down the intelligent investor knows that if they plan to sell the properties they buy at a retail price, may not work as well as planned to make as much money as the investor thought they were going to make when they bought the property.