INVESTMENT STRATEGY
VOLATILITY
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3 Things to Remember in a Volatile Market PATIENCE, CONSIDERING NEW MARKETS, AND STAYING OPEN TO NEW STRATEGIES ARE KEY.
by Rob Fuller
eal estate investing has always felt a little risky to people on
you don’t have a solidly defined buy box, spend some time today and get there. Once you have a defined system and you know it’s profitable, follow it! If you have a defined system, when you see deals come across your desk that aren’t good and don’t fit, throw them out and move to the next deal. Too many people fall in love with bad deals. Be patient and wait for the right ones. They exist in every market. You just might have to work a bit harder to find them. 2. DON’T BE AFRAID OF SECONDARY AND TERTIARY MARKETS Primary markets are great for long-term strategy. The pool tends to be large, the number of available deals in the market is huge, and the path is often well-defined. Lots of people in the market are doing what you’re doing and having success. Somehow the primary market feels less risky and safer. In contrast, secondary markets seem a little risky. The houses are often cheaper, but there aren’t as
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the outside of the industry. Even occasional industry insiders get in over their heads or invest in a market that doesn’t meet projections. The reality is, however, real estate investing is one of the best ways to create and grow wealth. So why is everyone so nervous about the market, and what can you do to insulate yourself and your business from market volatility? Here are three things to keep in mind. 1. BE PATIENT Every market has deals that are money makers, but there are not always deals available that meet your “buy box” (i.e., your criteria for purchase). Don’t fall for the idea that making less money today is good for your business. The math needs to work. Whether you use spreadsheets or software or analysts, don’t forget that bad news does not get better with time. If you would reject a deal in an amazing market, don’t try to convince yourself to accept it in a bad market. Trust your analysis, your investing thesis, your predetermined parameters, and your buy box. If
many of them. There are fewer potential buyers in the market,
42 | think realty magazine :: september - october 2022
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