Right now here in SWFL we are in a buyers market. The market shot up like crazy during 2004 and 2005 and now in most areas in South West Florida, we have had a correction. A lot of real estate people here have been panicking, still sticking to their same ideas and business practices they did during the hot years. These people are having a real hard time right now. People that bought pre-construction with the promises and hopes of a huge payday just are not seeing this at all. So what to do? Why am I writing this other than to bum people out?
I have sold ten houses via wholesaling in the last 3 weeks in this market! Now, I have been fulltime wholesaling for only about 8-10 months now but in the 2 years prior I spent a lot of time and money creating a huge database of investors. So now when I get a new property in, I send the info out via email to over 7,000 investors. Real investors know that in a down market is the time to pick up real estate. Warren Buffet said it best when he said “Be fearful when others are greedy and greedy when others are fearful”. So what do you do if you are an investor and in a down market?
1) Don’t panic. If you got in over your head when the market was hot, don’t get consumed trying to sell your real estate at market value, concentrate on covering as much of your negative cashflow as possible and make more money.
2) Market to the people that are hurting. I constantly market to realtors and mortgage brokers telling them what I do and why they want to work with me.
3) Don’t stop marketing! I have increased my marketing ten fold in this down market and it is paying off in two ways, one, my competition is not marketing as much as they are not making as much money and two, when people see you market a lot in a down market, they want to know what you are doing to be successful.
OK, I will get off my soap box now, like they say in the movie Rounders “Play the players, not the cards”, you have to change with the terrain, if your market is down, outsmart it and your competition!