I happened to stumble across a blog yesterday that was addressing all the great deals that were on the market. While I too tend to talk about all of the deals on the market, I forget, as we all seem to do that an appealing deal for one person, might be a money pit for the next person.
Sure, there are a lot of foreclosures on the market, and there are a lot of houses with equity on the market right now, but they don't automatically constitute a deal. The truth is that only YOU can determine if a deal is the right one for you. And the only way that you can be sure is to have a set of criteria that you use to evaluate each deal, that is tied directly to a goal that is defined in a business plan. So you see, all those deals out there might not actually be good deals for what you are trying to accomplish.
Make sure you didn't miss the part about having a set of criteria that you use to evaluate each deal. I completely enjoy the academic exercise of figuring out business systems and criteria. When you are done with the exercise, you are left with a keen sense of what it will take to keep moving forward at a sustained rate...and don't get me going about the sustainability of business plans...that is a whole topic in and of itself.
Alright folk, that's about all for now...Take care and happy investing.
Robert D. Cass
http://www.LocalRealEstateDeals.com
Showing posts with label deals. Show all posts
Showing posts with label deals. Show all posts
Wednesday, July 29, 2009
Monday, July 27, 2009
Italian Cooking for Real Estate Invesors
I am just beginning to appreciate the subtleties of my heritage and how it applies to real estate and real estate investing.
As I was making tomato sauce for dinner this evening, it occurred to me that real estate is going through the same process that makes the best tomato sauce...reduction is the key word here.
I remember how amazed I was the first time I made my sauce from scratch, particularly, how much water is really in each tomato. It used to baffle me as to why my Nana would have to cook all day to make tomato sauce for all of the dishes she was cooking. The longer that you simmer your sauce, the richer the flavor and the more the flavors combine to give a full, rich taste.
The real estate market is doing the same thing right now. The market is simmering and has been simmering for some time. Too much heat ruins things...the key is to manage the heat and keep it at just the right temperature. The problem is that the real estate market was so hot for so long that it burned out. The same thing will happen to your sauce if you don't manage the heat...it will eventually burn.
Ok, this simmering effect has had its effect on the real estate population as well. While reduction in cooking removes all of the unnecessary water, the simmering in our industry has removed a lot of unnecessary middle men. What we are left with are the parts that make a rich flavorful, (wait we are talking about real estate)...what we are left with are the real estate professionals that are focused and driven to provide the best service in the market. The end result is a richer, more robust real and meaningful estate experience.
So while this may be a tough time for a lot of people, what we are going to end up with is a much better, cleaner, more efficient industry than before this happened. This simmering is a natural process that tends to bring out the best of the best...and YOU are one of the best.
Congratulations...Healthy Investing!
Rob
http://www.LocalRealEstateDeals.com
As I was making tomato sauce for dinner this evening, it occurred to me that real estate is going through the same process that makes the best tomato sauce...reduction is the key word here.
I remember how amazed I was the first time I made my sauce from scratch, particularly, how much water is really in each tomato. It used to baffle me as to why my Nana would have to cook all day to make tomato sauce for all of the dishes she was cooking. The longer that you simmer your sauce, the richer the flavor and the more the flavors combine to give a full, rich taste.
The real estate market is doing the same thing right now. The market is simmering and has been simmering for some time. Too much heat ruins things...the key is to manage the heat and keep it at just the right temperature. The problem is that the real estate market was so hot for so long that it burned out. The same thing will happen to your sauce if you don't manage the heat...it will eventually burn.
Ok, this simmering effect has had its effect on the real estate population as well. While reduction in cooking removes all of the unnecessary water, the simmering in our industry has removed a lot of unnecessary middle men. What we are left with are the parts that make a rich flavorful, (wait we are talking about real estate)...what we are left with are the real estate professionals that are focused and driven to provide the best service in the market. The end result is a richer, more robust real and meaningful estate experience.
So while this may be a tough time for a lot of people, what we are going to end up with is a much better, cleaner, more efficient industry than before this happened. This simmering is a natural process that tends to bring out the best of the best...and YOU are one of the best.
Congratulations...Healthy Investing!
Rob
http://www.LocalRealEstateDeals.com
Thursday, July 23, 2009
Real Estate Compost Pile
Ever since we began talking about the "green edition" of our magazine, my son has been urging us to become a "greener" family. Considering he is in the third grade, this is an impressive and reasonable request.
We have taken up the greener lifestyle and I must say that it suits me well. One of my favorite green things to do is to contribute to our compost pile in the backyard. Last night as I was contributing the latest kitchen scraps to the pile I noticed that the pile was "cooking." Yep, it was about 132 degrees. HOT! or as they say in compost terminology, it was "cooking!"
That got me to thinking that the real estate industry is not so different; especially real estate investing. There are a lot of "scraps" left on the market right now and it is up to the real estate investment community to make things good again. Well, these are the properties that nobody can afford, or that need fixing up, or are just sitting around on the market. This is not good for a stumbling economy. What we need to do is to turn this "refuse" into fertile soil that we will allow us to rebuild the garden of our industry.
With my compost pile out back, I have been contributing for months, putting my lawn clippings in there along with kitchen scraps, and finally last night it began to cook. The same thing is going to happen in our real estate community. We just have to keep the faith and keep practicing fundamentally good transactions. In that way, we will be contributing to the come back of our industry.
The real estate investment community will inevitably begin heating up again, or "cooking" very slowly, but then it will turn into the hot market that it was and give off returns that will help spur the economy as well. These times that we are facing are only temporary and while we may not see it on a daily basis, the universe is already at work putting together the elements to the next great real estate boom.
Hang in there and take the good with the bad. Real estate investing is cyclical, just like any other natural occurrence.
Think of http://www.LocalRealEstateDeals.com like your real estate compost pile, throw in your deal listings and look for new ones. Together we will turn the tide around.
Rob
We have taken up the greener lifestyle and I must say that it suits me well. One of my favorite green things to do is to contribute to our compost pile in the backyard. Last night as I was contributing the latest kitchen scraps to the pile I noticed that the pile was "cooking." Yep, it was about 132 degrees. HOT! or as they say in compost terminology, it was "cooking!"
That got me to thinking that the real estate industry is not so different; especially real estate investing. There are a lot of "scraps" left on the market right now and it is up to the real estate investment community to make things good again. Well, these are the properties that nobody can afford, or that need fixing up, or are just sitting around on the market. This is not good for a stumbling economy. What we need to do is to turn this "refuse" into fertile soil that we will allow us to rebuild the garden of our industry.
With my compost pile out back, I have been contributing for months, putting my lawn clippings in there along with kitchen scraps, and finally last night it began to cook. The same thing is going to happen in our real estate community. We just have to keep the faith and keep practicing fundamentally good transactions. In that way, we will be contributing to the come back of our industry.
The real estate investment community will inevitably begin heating up again, or "cooking" very slowly, but then it will turn into the hot market that it was and give off returns that will help spur the economy as well. These times that we are facing are only temporary and while we may not see it on a daily basis, the universe is already at work putting together the elements to the next great real estate boom.
Hang in there and take the good with the bad. Real estate investing is cyclical, just like any other natural occurrence.
Think of http://www.LocalRealEstateDeals.com like your real estate compost pile, throw in your deal listings and look for new ones. Together we will turn the tide around.
Rob
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