Cycles of the Real Estate Investing Market and Why NOW is the Time to Buy!

Cycles Graph

I ran across this interesting graph. We have all probably been through a cycle or two either in real estate or life in general.

Remember when you thought you were the brightest person in the world and that you could do no wrong?  That part of the cycle?  The beginning phase was great where you went from Optimism to Euphoria – you thought you were in Nirvana.  We’ve all been at there at some point.

Then we get to the Thrill phase of the cycle.  It’s when most novice investors or speculators first get into the real estate investing business. This phase of the cycle provides the last great push of the escalation of prices, but by far is the most dangerous part of the cycle.

At that phase of the cycle, the market cannot sustain the prices because there are less and less buyers that can enter the market.  So what happens?  People get nervous and start selling.  Which drives down the prices even faster because people are trying to get out of the market.  This then creates more competition for the sellers.

Right after the peak high into Euphoria, the Anxiety starts the downward slide to Despondence.  The downward slide seems like it will go on forever.  Take a look at the chart and see if you have felt these emotions too.

Now when you are the in the worst place and it seems that you will never come back again, it is also your greatest point of opportunity.  But sometimes you are so down that you fail to see that the opportunity is right in front of you.  This is when you need to remember that it’s a repeating cycle.

This is where you need to separate yourself from your emotions and step back and look at the situation logically.  Notice what it says in the box at the bottom of the curve, Highest Potential For Earning.

YES, it’s at the lowest point where you have the greatest opportunity to become wealthy.  That sounds counter-intuitive.  Look back through history and you will find its true.  Look at J. Paul Getty and Howard Hughes!

We are now somewhere between the Despondence and Depression phase.  The housing prices are cheap, the sellers are having a hard time selling and there is very little competition trying to buy.

This gives you as a creative real estate investor a huge advantage to be able to buy or control property with little or no money.  You could hold and manage the property for long-term gain or wholesale it to another investor or sell it and carry the paper which creates a study cash flow.

The potential is tremendous!

To learn more about getting started and how you can succeed as a real estate investor today Click Here For My FREE Video Series.  NOW is the Time to BUY!

 

 

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