Real Estate Investing Explained: These are the 5 WORST things you could do if the real estate market drops in price…enjoy! Add me on Instagram/Snapchat: GPStephan
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I think we all know that, AT SOME POINT IN THE FUTURE - whenever that may be, the real estate market will inevitably drop in price. The fact remains prices won’t always continue going upward, all the time. Given that, it’s what you do in these times where the market DOESN’T increase in price that really matters the most.
The first, and BIGGEST mistake people can make if the market drops is to panic and make emotionally-driven decisions. This is, by FAR, the worst thing you could possibly do. The reality is that accurately timing the market is nearly impossible - even the BEST people won’t be able to predict when the markets will drop, how long they’ll drop, or when they’ll recover. I personally believe, and many studies have confirmed, that the best investment strategy out there is to simply buy on long term fundamentals, stick with it, and hold long term.
The second mistake people make is to over-leverage and go in too heavy on an investment they cannot afford, especially if it’s a volatile investment. I think it goes without saying: don’t over extend yourself if you cannot afford to weather the storm. Anytime you’re investing in real estate, MAKE SURE YOU CAN AFFORD IT. This means that the property doesn’t consume all of your income. It means you already have a safety fund in place in the event you need it. It means that you’re able to buy the property and still save/invest a portion of your income.
The third mistake people make is buying purely for the short term. Some may disagree with me on this, but I think there’s a big difference between investing and speculating - if you’re buying something with the intention of selling in a year because it’ll be worth more, I’d say that’s a little more akin to speculation. The longer you own real estate for, the more likely you are to come out ahead.
The fourth mistake people make is play it too safe. These are the people who have been saying “Real estate is a bubble” since 2013. These are the people who said the stock market is over valued since 2014. These are the people who typically just never invest because they’re constantly waiting for things to drop…oddly enough, those same people never invested at the bottom of the market because they were convinced it was going to drop further. And they’ll wait a lifetime for that opportunity, meanwhile their cash simply loses purchasing power to inflation every year.
The fifth mistake you can make is not to have enough cash on hand to take advantage of deals that come up. One of the biggest advantages I’ve had in my investing career is that I’ve always saved as much money as I could. I’d save, save save…and when I found a deal, I’d buy it. I’d then go right back to saving…and when another deal would come up, I’d buy it. I didn’t care about market timing, I didn’t care what prices would be a year from now…I simply saw a good deal, I knew I could add value, I knew it would make money, I knew I could comfortably afford it, and that was that. Having cash on hand has allowed me invest in properties that have, combined, made me over a million dollars in profit.
The moral of this entire video is really just to make sure: buy on fundamentals. Buy a deal that still makes money in a worst case scenario. Don’t over extend yourself, and make sure you keep some cash to cover anything unexpected. Don’t worry about short term real estate prices, buy on a long term outlook. And don’t bother trying to time the market…just wait until you find the right deal and go for it.
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Get $50 OFF + FREE Coaching Call FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c
I think we all know that, AT SOME POINT IN THE FUTURE - whenever that may be, the real estate market will inevitably drop in price. The fact remains prices won’t always continue going upward, all the time. Given that, it’s what you do in these times where the market DOESN’T increase in price that really matters the most.
The first, and BIGGEST mistake people can make if the market drops is to panic and make emotionally-driven decisions. This is, by FAR, the worst thing you could possibly do. The reality is that accurately timing the market is nearly impossible - even the BEST people won’t be able to predict when the markets will drop, how long they’ll drop, or when they’ll recover. I personally believe, and many studies have confirmed, that the best investment strategy out there is to simply buy on long term fundamentals, stick with it, and hold long term.
The second mistake people make is to over-leverage and go in too heavy on an investment they cannot afford, especially if it’s a volatile investment. I think it goes without saying: don’t over extend yourself if you cannot afford to weather the storm. Anytime you’re investing in real estate, MAKE SURE YOU CAN AFFORD IT. This means that the property doesn’t consume all of your income. It means you already have a safety fund in place in the event you need it. It means that you’re able to buy the property and still save/invest a portion of your income.
The third mistake people make is buying purely for the short term. Some may disagree with me on this, but I think there’s a big difference between investing and speculating - if you’re buying something with the intention of selling in a year because it’ll be worth more, I’d say that’s a little more akin to speculation. The longer you own real estate for, the more likely you are to come out ahead.
The fourth mistake people make is play it too safe. These are the people who have been saying “Real estate is a bubble” since 2013. These are the people who said the stock market is over valued since 2014. These are the people who typically just never invest because they’re constantly waiting for things to drop…oddly enough, those same people never invested at the bottom of the market because they were convinced it was going to drop further. And they’ll wait a lifetime for that opportunity, meanwhile their cash simply loses purchasing power to inflation every year.
The fifth mistake you can make is not to have enough cash on hand to take advantage of deals that come up. One of the biggest advantages I’ve had in my investing career is that I’ve always saved as much money as I could. I’d save, save save…and when I found a deal, I’d buy it. I’d then go right back to saving…and when another deal would come up, I’d buy it. I didn’t care about market timing, I didn’t care what prices would be a year from now…I simply saw a good deal, I knew I could add value, I knew it would make money, I knew I could comfortably afford it, and that was that. Having cash on hand has allowed me invest in properties that have, combined, made me over a million dollars in profit.
The moral of this entire video is really just to make sure: buy on fundamentals. Buy a deal that still makes money in a worst case scenario. Don’t over extend yourself, and make sure you keep some cash to cover anything unexpected. Don’t worry about short term real estate prices, buy on a long term outlook. And don’t bother trying to time the market…just wait until you find the right deal and go for it.
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
Name Ferhan Abdulhamid Ahmed
TNX GOOD
watched this in oct 2021, such a funny prediction in the end, don’t do this anymore
Me watching this during covid when the market is at all time highs 😂
Is it a sell or buy market today Graham.its julyb29 2020
The frugal living you were talking about all along and that I always agreed will come to the rescue.
Those brand name products in the closet won’t be much of a help for those who live paycheck to paycheck.
It’s a good time for most people to rethink about their lifestyles.
Savings and smart investments are what helps, not the unnecessary material things.
Hopefully all of us will come out of this without having to lose anything.
Nice. Ty
People that where loosing there properties actually kept their homes after a modification. Keep your home California
"hodl" hmmmmm
Graham, where did you get that shirt?
🖐️👍
HODL
lol I just realized you trained me to instantly smash that like button just by hearing your voice. kinda creepy. but i'll continue to do so. thanks for the great vids man. Looking forward to my first property.
This is so useful, thanks!
Dude, I know quite a few people that said they weren't going to buy a home between 2011 and 2018 and now they are buying. I'm like WTF you could have bought that home you just bought with the 20 percent cash you just put down. LOL
Did you see coming in 2008
GRAHAM I NEED ADVICE! LA ISNT TOO FAR FROM ME TO MEET UP
Graham, quick question. Where do you see the real estate market? Is there like a chart that shows the current situation of the market?
Love your videos! Bout to buy a house near a college and gonna rent the rooms.
Time in the market > Timing the market
Comment
The worst thing you can do is forgetting to hit the like button.
oh boy i want the market to crash so i can buy more apartments at a cheap price….
Should we really be taking advice from someone who cant even spell HOLD? Dislike! Unsub!
I think the “buy, hold, wait” mentality depends on the asset class ur in; I think that’s gone on too long with the artificially low interest rates that’s helped prop up asset prices a lot higher and too many complacent people and $ managers out there on cruise control very ETF and FANG heavy. Welcome back to Volatility
Realistate and rental prices in my town are inflated due to the high income levels of the area. This is due to the high level of oil activity in the area. I really don't feel like I can make money off of this inflated market in which I live .especially for a first time realistate investment.
Well placed ads.))) Right when you're about to say something important, the ad. comes up. I like that, it keeps the viewer intrigued.