Buying low and selling high is the best way to make money in real estate. If that’s the case, why can’t you do it anymore? The market is at an all-time high right now.
The smart money got in a long time ago and rode the market up, as less and less sophisticated investors got Fear of Missing Out (FOMO) and jumped on the bandwagon. A lot of the smart money got out, by selling to the newcomers at inflated prices.
A lot more of the smart money is gathering cash to get ready for the bargains to come, when the market corrects and the newbies who bought at the top panic sell or get foreclosed on.
Right now, the best you can hope for is to buy high and pray the market stays where it is until you can get out. Realistically, you’ll be buying high and selling low, like most amateur investors.
Many investors, gurus, and real estate cheerleaders want you to believe that “this time is different.” That real estate will keep going up forever.
Because The Fed. Because Millennials. Because Student Debt. Because Excuses. Because Other People.
Last I checked, we still lived in a free-market, capitalist society, where the business cycle still exists. If the business cycle still exists, then so does the real estate cycle.
That cycle is on its last legs. Next comes the correction.
So, when I said that you can’t make money buying low and selling high, I didn’t mean forever. You’ll be able to do it again, but you’ll need to understand…
- Market cycles
- How to get deals from brokers
- How to raise money from investors
- How to build trust with lenders
- Establishing relationships before the crash
All of that? Easier said than done, I know. You can’t just pick up the phone or send a blind email, the way that the gurus tell you to do.
I teach the art of getting brokers, investors, and bankers onto your team in Multifamily Launchpad. Good advice for whatever stage of the cycle the market is in, at fraction of the price that the gurus charge you for bad advice.
Multifamily Launchpad opens again in September — keep an eye on your email. The waitlist link will be coming soon!