Just because the sun is out, doesn’t mean the real estate market is all rosy.
Could it be that we can see and feel that Summer is almost here! Yes, finally.
That’s right we made it through one of the more brutal and unpredictable North American winters we have seen in awhile. So that must mean that the world is all sunshine and sparkles, right? Well of course not. But isn’t it interesting how a shift of perspective (i.e. warm sunshine vs cold blowing snow and wind) can lift our spirits and actually change how we feel about how our life, wealth and health are progressing. In the dead of winter it takes a lot more work to motivate, to feel great and frankly for some to get out of bed in the morning (OH NO! not another snow storm!!). But when the sun starts to feel warm, there always seems to be an extra positive jump in most people’s steps.
This is also very true for real estate investors. Often times investors can get caught up in external influences. External influences that we can mostly predict, yet don’t prepare for and by not preparing we allow them to have a profound affect on how we view the real estate market. Some may see headline after headline about bubbles, interest rates, job losses and start to begin feeling more than just a little concerned about moving forward and building our portfolio (I would call this the snow-storm effect). Then the following month we will see a string of positive stories and headlines which will change our view 18o degrees, making things all rosy and positive again (the warm sunshine effect). And just like the weather in Canada, these changes occur much too frequently.
Combat & WIN Against The Weather
Strategic investors know that creating and riding an emotional roller coaster with it’s frequent ups and downs will inevitably lead to one of two results. 1. An investor frozen in fear looking for the next ‘sign’ before they take action OR 2. The building of a portfolio that has zero resiliency and will continually under-perform. These emotional roller coasters, if not combated, inevitably forcing non-strategic investors to sell at exactly the wrong time, and buy when it is time to just sit and wait.
Throughout, this blog as well as the discussion forum at www.myREINspace.com you will discover the strategies we’ve used to help dismantle these roller coasters over the last 22 years. You will see just how, by avoiding the roller coasters, that the average investor puts themselves on, leads to a calm, boring and business-like approach that is the absolute, proven key to creating above average long-term results with your real estate.
Being strategic means NOT being affected by the ‘economic weather reports.’ We study the long-term economics, we ignore the day-to-day fluctuations and we strategically understand how the monthly ups and downs of real estate values really do not play a role in our plan. The headlines and the monthly announcements (and subsequent media frenzy) work very well for the average investor, it gives them something to fret about (and keeps them average).
However, what we know to be true is: ‘There is no bad weather, just bad clothing choices.’ The Strategic investor has analyzed and stocked up on exactly what ‘clothes’ will be needed to enjoy any type of economic weather. So as the economic winds change, a quick calm adjustment is all it takes for the strategic investor.
Throughout this blog, at our Workshops and on our research websites you will discover some of the ‘clothes’ you’ll want to stock up on and the weather to be prepared. That way you, too, will come out ahead no matter what the economic temperature.
To stay on top of real estate “weather reports”, follow me on Twitter: @DonRCampbell and on Facebook at: https://www.facebook.com/thereinman