Everyone including me want to precisely time every market. The truth is nobody in history has done it consistently. Yes is is true to get lucky once in awhile, however the fact is most will miss the greatest moves of a trend change while waiting for "confirmation" that it is safe to go back into the water.
Entrepreneurs are different.
We thrive on challenge, risk and reward. It is in our blood to analyze as much data we can get our hands on, make the best educated guess, and go for it.
Whether it be in stocks, futures, options, collectibles, business, and yes real estate too.
My fellow readers may recall my BOLD prediction on this BLOG site of the turn in the stock market in mid march. Those who acted did quite well. Maybe it was dumb luck, (Ive been called worse sometimes..haha), or maybe it was a good inscint call from 15 years of trading experience. Either way...it was a call, not an inability to ACT.
Now I am posed with this dilemma.
Buy real estate NOW or wait?
Well it is true that we are starting to see the passing of most of the sub-prime market meltdown, and it is true that we are seeing some alt-A paper being foreclosed on, however I am looking at one major item;
psychological sentiment.
It is soooooo negative now and yet, prices are starting to stabilize. Please understand that every market is different, however the huge drops in rapid fashion are pretty much gone. Yes I do hear the pundits yelling..."what about the foreclosures and short sales!", and to that I do agree, however I am saying that the MAJORITY of the markets are not in free-fall anymore despite the negative gloom and doom and end of the world speeches.
What does that mean?
Well in my early trading career, we were taught when all news is bad and a stock does not go down....it is bullish....buy it.
Same is true in ALL markets.....the simple fact is when everything is saying negative things about an asset yet that asset does not fall in price, the simple fact is the selling pressure is exhausted and CANT go lower because there are no more sellers! Looking at the flip-side of this happens in bubble-manias when everyone is saying buy buy buy, however there are no buyers left...thus buyers exhaustion occurs.
So this is the dilemma.
Better to be early or wait?
Well it is true that anything can happen, and nobody knows for sure, however based on the above references, the true entrepreneur should consider buying real estate now. Keep in mind that the largest percentage of a bullish move and gain occur very rapidly before it gets reported in the news and media! For those of you following the cash flow models....risk vs. reward has never been this favorable....maybe in history!
So could I be wrong?
Sure anything is possible.....kids might stop eating peanut butter and jelly, the Buffalo Bills might win a Super Bowl, and yes I could be wrong...however if you really look at the data vs. the mass psychology it points to a very favorable time to get some cash flow property!
DJB Realty, LLC is a boutique firm that caters to entrepreneurs who look to enhance their portfolio's with cash flow investment real estate and business opportunities. David J. Britton, broker/owner is the founder of DJB Realty, LLC and is headquartered in Tampa Bay, FL. Interested entrepreneurs can visit our website at www.djbrealty.com or email dave@djbrealty.com. Direct call available at 813-469-9120.
Have a great day!