Do you wonder why some people seem to do well financially?
I don't mean just in their business, but with their investments. They seem to do well whether the market’s up or down or going sideways.
Why is that?
Well for one, I don't know many people who do that well on a consistent basis in the stock market or on Wall Street.
But what I do know is there's a lot of people who do well in real estate, regardless of what the market’s doing.
In fact, people who do well in real estate do best when the market is down.
Back in 2008-2012 during the financial and housing crash, the savvy people went into the marketplace and bought a lot of real estate assets on sale. Majorly on sale.
Since then, the market has come back up in most of the country, with price valuations matching or exceeding what they were pre-downturn.
So how do we know what to do?
Well, we don't have a magic crystal ball, but we do have a way to keep our finger on the pulse of the markets.
With the network that I have, I get to speak to a lot of other people who are actually boots on the ground with operations in different locales.
I don't just depend upon the media. Oftentimes, that market research is lagging, and data that’s a few weeks old can keep you from making decisions.
I need to know what's been happening on the street.
I don't typically recommend investing in the volatile markets, but I watch the volatile markets to see what's happening, so I can get ahead of the market.
“Boring markets” like real estate give you the opportunity to predict long term cash flow, to build wealth and equity, because they don’t fluctuate dramatically like the stock market.
Even in the most severe collapses, there’s enough time to recognize you need to make a move. Real estate gives you the opportunity to get out.
If you’re positioned with a network and you have access to capital liquidity, it's easy to go back into those markets when they’re down.
When they’re going up, it's a good time to ride the markets and adjust your assets accordingly.
After some assets are high enough, it may be time to take some chips off the table and reallocate a little bit.
That's what good investors do.
They never stay static; they use their network to gain understanding of what the market’s doing, and to access deals no matter where the market’s at.
The key is relationship capital.
Trying to do everything yourself is impossible. But by cultivating connections to people who know what they're doing, you'll be putting yourself on a path to succeed.
Know who you need to know.