Middle Class Millionaires

Most people in real estate like to think of themselves as visionaries. We tend to have positive expectations and believe that good things will happen. We are optimistic by our very nature. These personality attributes are what make us entrepreneurs and are the foundation for much of our wealth development. However, in a time of economic uncertainty and significant market restraint, we need to rein in those propensities a little in order to continue to make profits in our chosen business.

Real Estate is a business where there are always profit opportunities available. For many people, their focus is so narrow or their niche is so limited that they severely restrict their ability to look for, understand and capitalize on the numerous opportunities that abound. That’s the most important reason that you need a comprehensive education and approach to the business. Today there are profit potentials out there, but you need to approach the market a little differently than you did during the time when inflation and unbridled appreciation made investment easy and overcame bad decisions regarding purchases. You know the ones I’m talking about, the deals that, if the truth be told, were only saved by unusual or extreme upward market pressures.

Today, you must have a business basis for your decisions. The assumptions that should be used now are radically different than they were a year ago. Today you must analyze with more conservative income increase, more aggressive expense accelerations and more realistic occupancy expectations. Despite this different (seemingly negative) perspective, many great deals remain in the market. I don’t believe they are where the gurus are hyping right now. Sure the predatory concept of supposedly taking advantage of someone else’s hard luck and pending foreclosure seems on the face to be accurate, but with current governmental intrusion and more planned into the mortgage marketplace, this is for the most part unfounded. In many cases, if you buy out someone else’s position in an overpriced and overleveraged property, you are only buying their problem. (I strongly advise against buying other people’s problems; particularly when there are so many legitimately good deals available.)

To find the diamonds in today’s rubble, analyze harder than you ever have before. Rather than focusing on how much money you are going to make, put a fine tip on your pencil and focus on not doing deals where you can lose money. Only buy when you know you will make money, not just when you think you’ll make money. With this more conservative approach to analysis and acquisition, you will buy better properties, maintain profitability today and when the tides turn again (as they surly will), you will be sitting on properties that will then be exceptional money makers. So, for now, count more on your skills to analyze and buy right and less on the market to mask buying mistakes and you will do great. It’s a good time to be in the business. Good luck and let us know how we can help. For those of you who are not currently members of Middle Class Millionaires, there will be no better time to join than now. I guarantee it. The best investment you will ever make will be in the education you need to make your real estate activities profitable. To make money like the pros, you need to know what they know. Here’s your chance. Come aboard.