As a real estate investor (or someone who wants to be a real estate investor) …
Are you watching the right metrics?
I never, ever, watch the news on TV. I also don’t read the newspaper. I also don’t go to news websites.
Call me crazy. I’m in the real estate business – how on earth do I stay on top of the necessary economic information that I need to help advise my clients in their real estate endeavors?
I’m realistic, but I HATE the doom and gloom goal of the media. It makes me sick to my stomach. Personally, I like positive, life affirming thoughts coming into my mind and seen through my eyes. Not “pie in the sky” stuff, but positive thoughts and realistic actions.
So – here’s how I find my sources – I look for sources that report facts – and support those facts with historical movement, other facts, etc. I watch for sources that do not take a statistic and turn it into an “end of the world” journalistic fiasco.
To that end, I do read a blog by Joshua Brown. He’s incredible. He knows his stuff. He also doesn’t try to sell headlines.
Interestingly enough, the media has been reporting how terrible the job market is (why yes, there are a lot of people out of work right now) and how it’s just not meeting expectations (creating the feeling that nothing is happening, making people think it’s getting even worse – almost a self-fulfilling prophecy).
Hum. Joshua Brown shared something on his blog today that made me see it in a different (and realistic) light:
Synopsis: He points to the TREND, not the complaints of details within the trend. The trend is that we are seeing signs of a generally strengthening labor market.
This is GOOD.
A stronger labor market means two things for real estate investors:
1. Tenants! Right now, households have become multi-generational. People who have lost their homes to short-sales and foreclosures haven’t had the funds to rent, so they’ve been living with other family members. A strengthening labor market means more people have work, more people will be heading back into rentals.
2. Buyers! That means that investors who are looking to roll over their properties (for example, upgrading from single-family homes to multi-family) should see a much better buyer market moving out of the shadows. More jobs means more people qualify to buy – and at today’s crazy low interest rates, people can qualify for more home on lower incomes.
Have you thought of up-grading your investment holdings?
Selling the single-family homes (that buyers are buying) and turning around and buying a duplex, tri-plex or four-plex? It’s a crazy win-win situation for you.
Call Chuck now to start the upgrade process. 208-819-2964. Take a look at these multi-family options that are available right now. There are some fantastic opportunities.
Not an investor yet? Why not?
Low down payments, crazy low interest rates and distressed sellers makes this THE time to buy.
If you ever wanted to know when the bottom of the market is, it’s NOW.