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2010-12-16 21:48:51

Hit the Ground Runnin’ in 2011

What will the real estate market look like in 2011?

And how can you position yourself to benefit from the New Normal?

You know, there will be millions made and lost in the next 12 months.  The question is on what side of this equation will you find yourself?

Who knows where the real estate market will go?  Not even the most knowledgeable, most well-educated economists, financial experts, politicians or real estate gurus have a clue. They’re all confused; as evidenced by the conflicting articles and reports that come out daily in the Wall Street Journal, MSNBC, and the rest of the media outlets (liberal and conservative alike) proving that wearing a $5,000 suit doesn’t necessarily mean that you know what you’re talking about.  Even Jim Kramer, the Host of Mad Money, put his mouth in gear before his brain was engaged when he called the “absolute bottom” of the real estate market a year ago. I believe it was a Wednesday.  He’s still wiping egg off his face. 

So would it surprise you if I told you that I don’t have a clue either?  Or how about if I told you that I know exactly what will happen?  Would you believe me then?

Like when I said a year ago that the HVCC would crash and burn, or that financing for investors would become easier, or that Bristol Palin would be a finalist in Dancing With the Stars…  Okay, that last one, I just made up, but the other two are true.

By predicting what I think is going to happen only becomes valuable to you if it helps you to make a decision today that will yield you some financial benefit by the end of 2011.  That things will change in 2011 is no great secret or revelation; that they will change for the benefit of real estate investors like me and you is a fact.

Here’s how:

  1. A marked increase in supply, as in a TON of new listings of REO’s and Short Sales causing a serious downward pressure of listing and selling prices.  This has become the White House’s NEW number one priority.  “Kill the Mill” = get rid of the dead inventory as fast as possible.
  2. A serious influx of cash available from lenders and private party investors.  Where else can you get better than a 10% return on your money than in real estate these days?  It’s a no-brainer.
  3. Superior financing for real estate investors and homeowners alike from conventional lenders such as Wells Fargo, JP Morgan, Bank of America and various wholesale lenders.  It’s already started.
  4. More flexibility on the part of the lenders holding non-performing assets.  Just check out the increase in failed escrows and the discounted sales prices when they finally close.
  5. Less competition in the marketplace from tapped out wannabe investors.  Most of these guys have already left the table, or will shortly be exiting bruised and battered.

Here’s how you can take advantage of the present situation.

As usual, the natural laws of the game of success never change.  If you know me at all, you should know the following by heart. 
 

First, here are the basics:

  1. Decide what you want to do. Nobody can do this for you.
  2. Choose a target market.  Make it small, convenient and learn it thoroughly; better than anyone else.
  3. Load your GPS (Goal, Plan, Systems)

Goal  =  your destination: whether a number of houses, monthly income or net worth

Plan  =  this is how you’ll get there: buy and sell (bird dog, flip/wholesale or retail) or buy and hold (rentals)

Systems =  your daily measurable actions: (look at houses, talk to agents, make offers)

Remember, the two most important assets that you posses as a human being are your time and your focus.  Time because there’s only so much of it (and what you lose you can never make up) and focus because whatever you place it on will expand; whether your waistline or bank account. 

For those of you already in the business, focus on two things:  1) continuously find new ways of dissecting your local MLS and submit offers daily and 2) cut back on your overhead immediately. 

Review anything costing you money on a monthly basis from fixed to variable expenses and cut out any non-essentials. Make every dollar matter.

Identify dead weight on your team, such as, agents, contractors, lenders, escrow officers, mentors; anybody and everybody who’s not doing their job and kick them to the curb at once!  Basically streamline your processes and focus on your bottom line. 

Don’t be frivolous with anything this year; your time, your focus, your money, or your trust.  Ask for proof and evidence in everything you do. Do your homework.  Watch out for pretenders. There are a lot of them in this marketplace right now and more are coming. 

Regardless of all obstacles your mind can imagine, believe in your personal abilities to successfully take advantage of this once-in-a-lifetime opportunity.  The evidence for your success is all around you.  You’re on the precipice of financial independence.  Choose to participate.  Do not take “no” for an answer.

The bottom line is I have complete faith that this real estate market has begun to turn in our favor.  I’m extremely optimistic about the future of real estate in 2011 and beyond.

I believe 2011 is a crucial year for real estate.  It’s basically the first inning of the World Series of Real Estate for this coming decade.  So step up to the plate and knock one out of the park…  I dare ya!

And hey – who loves ya, baby?

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