About Real Estate Investing in Houston
A Note About Investing in Today’s Tumultuous Real Estate Market…
The market has been on a roller coaster ride for the last several years and the Houston RENC has been making every effort to keep it’s membership up to date on the latest trends and what strategies to use and not to use in today’s market.
The truth is you can make money in any stage of the real estate market cycle. You just need to know what strategy to use and how to apply it.
Many investors are scared to get into investing when the market is down because they don’t see other’s making money as easily as they had in the past. Well it’s true that it’s not as easy to make money in a down market and that’s why it’s so important to educate yourselves so you know not only how to make money but more importantly, how not to lose money. Any experienced investor will tell you that preserving capital is job #1.
Charlie Munger: “Rule #1 – Don’t Lose Money. Rule #2 – Never Forget Rule #1”
The great thing about a down market is it’s a great time to bargain hunt. In fact down markets is where you see the greatest transfer of wealth. When people reach the “point of capitulation” they are willing to do incredible things to give away their property to get rid of the problem. We want to help you capitalize on that opportunity and give you the tools to become a successful investor no matter what stage of the cycle the market is in.
In an up market, it feels like everyone is making money. Sometimes investors will overpay for a deal in a good market
Be aware that mistakes made in up markets usually get revealed in down markets. The key is to never let your guard down…. even in good markets. That takes self control and perspective and an understanding that markets are cyclical – what goes up must come down and vice versa. Follow your buy box and never stray from the Maximum Allowable Offer Formula (MAO) and know what offer to make based on the repairs, where we are in the market cycle and always protect your downside.
“Weak investors, pick up bad habits, in good markets, that bankrupt them in bad markets.” ~ Shenoah Grove
Club Disclaimer: Your personal level of success in attaining the results from using our information and strategies discussed at our events totally depends upon your own individual circumstances, the effort you devote to your own financial success, the ideas and techniques used, your finances, the various strategies that your financial, legal, and other advisors may have suggested that you implement, your knowledge, and various other skills. Since these factors differ among each individual, we cannot guarantee your success or income level, nor are we responsible for any of your actions.
Code of Conduct Policy: While Networking with others at the Club is encouraged, we strongly recommend you perform your due diligence prior to entering into any real estate agreement. For more information, please refer to our Club Members Code of Conduct Policy
