Your Property Market’s Direction – Why You Almost Shouldn’t Care
Tuesday, May 22nd, 2007There are times when businesses fail. For instance, there might be a drought and a farmer might lose the entire crop. A scientist may come up with cheaper and environmentally friendly fuel alternatives that are brought to market, embraced globally, and put gas companies out of business. Things that are uncontrollable take place all the time.
That’s the promise of real estate as well. But, even in bad times, a properly structured real estate investment business can prosper. Some times, better real estate deals are struck when times are tough. That’s when you need to keep your eyes open. And of course, real estate will thrive when times are good too provided your investment business is set on the right course. But how to achieve that?
There is a really special quality to real estate that makes it fool proof, repeatable, and an ever expanding market. I’m sure that some of these reasons are evident, and some that are not. Let’s take a look at this for a moment. The truth of the matter is, there will always be troubled sellers or troubled buyers. Think about that for a second. You will always be in position to help someone. In good times, troubled buyers will be willing to agree to your terms. In bad times, troubled sellers will agree.
But, you can’t look at it as if you are taking advantage of people. You need to operate with integrity at all times. Real estate can make or break people. You can be the conduit that keeps peoples’ lives together when life gets a little tough for them to handle. You can also be the means by which you improve people’s lives and put smiles on their faces. Perhaps you’re having difficulty wrapping your brain around this concept. So, I’ll try to explain it a little more and see how serving people in this manner can set you up for life.
Divorce
The leading cause to divorce is financial struggle. When times get tough, stocks plummet, businesses fold, people lose their jobs, and divorce rates rise. It’s a sad fact of economies, but people are more likely to strike out on their own rather than struggle in a sinking ship.
The major concern in most divorces is the house. Who is going to get it? Sometimes, the couple can decide on a person. But, that’s rare. Normally, the couple on the path to divorce is so embattled with one another, the last thing on their minds is selling the property to rake in huge profits. At this point, the house is a sore spot of contention, and often they will sell it for what they owe. That’s where you come into the deal. You are only trying to help.
A couple who is divorcing doesn’t want details to drag on forever. You find the buyer and you work out the deal. The couple sells. You profit. But most of all, you’ve helped them get on with their lives.
Job Relocation
A sign of good times is when a person gets relocated. They most likely are going to a place they will like much better. They’ve most likely put in for the work transfer and finally, their wish was granted. Life is good. There’s only one thing holding them down.
They have to do something with their existing property and simultaneously purchase a new one in the city they’re moving to – often within just a few short weeks. There are several options. They could rent it out, but that’s a struggle when you live hundreds or thousands of miles away. Most likely, the best option is to sell. But, time is of the essence.
In the cases listed above, you might have a troubled seller. A troubled seller is a person who just wants to get rid of the property. A person facing foreclosure is another troubled seller you can help by saving their credit. You sell the home before the owner is removed from the premises and the bank takes over. You also save the owner’s credit because foreclosure won’t show up on their credit report. These are all cases where you come into the deal. Your business is there to help.Â
But, there are also troubled buyers. They normally come when times are good because they feel secure. Couples want homes. Businesses are booming and they may need to branch out into bigger properties. Whatever the reason, there are still deals to be made.
First Time Buyers
Young couples who have just got married have great ideas for their future. They might want kids. They might be setting things up for their retirement funds already. This is where you come into the deal. You are there to help.
For example, in your thriving investment business you may have a contract on a property with a large equity position. It’s very viable for you and – rather than sell it retail and carry the property until it is sold, you turn the property over via a simultaneous closing or assignment of contract to the new couple who literally walks into equity in their first home. It’s like watching them have their first child. The reward to you comes not just from the deposit you made to your bank account, and having guaranteed a ‘quick flip’. It’s also in the fact that you were able to help someone realize their dreams.
The world, economies, and all types of businesses and market environments will always have its share of ups and downs. There will be times when people won’t even know how they are going to be able to make it. But with real estate – regardless of whether a market is climbing, dropping, or remaining flat – a properly positioned investment business, run by an entrepreneur who has a strategic vision and solid plan, will always prosper regardless of whether times are ‘bad’, and as a wonderful side benefit, will play a big roll in the lives of everyone it touches.Â
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