Real estate investing could be summed up as "location, location, location," but just as important is the timing, timing, timing! Timing is especially important in real estate investing because: 1.
Transactions can take a long time, which requires planning and foresight.
2.
All real estate, in all markets, are unique, with dynamic and quickly changing forces.
Because buying or selling real estate is a complex and time consuming process, you need to start it off as soon as possible.
While you're waiting for all of the pieces to fall in place, the market can change, leaving you with missed opportunities for higher profits.
You need to be able to plan ahead and see future valleys and peaks in the real estate pricing to know when to start buying and when to start selling.
Fixer upper properties can always earn you a good profit.
That's because basic repairs and maintenance can increase a property's value by over 10%.
If you can do the repairs yourself, that's almost entirely profit.
You can also research foreclosure auctions and houses that are on their way to defaulting.
If you can strike on a good property quickly, you'll get it for less.
And if you get the timing just right with your research, you can find a neighborhood on its way to reinvigoration and see huge future price increases.
Local governments can also offer incentives for such areas as they have an interest in seeing it improve as well.
But to be able to perfect that timing and take advantage of the above real estate investing ideas, you need to have capital on hand.
This means you always need to have financing at hand.
That doesn't have to be huge sums of money in your savings account, that means solid credit, approved financing from banks and knowing the options and limits for loans that you could receive.
When other markets suffer, smart real estate investing can always make a profit.
You just need to do all of your research and perfect the art of timing, timing, timing!