Regardless of who you are, there are several real estate lessons that can be learned on the fly. Real estate is all around us. In fact, it is almost impossible to ignore. Thus, investors should take a second and listen to what the market is saying. You may be surprised what you hear. Here are seven real estate lessons I learned on the fly:
1. Local Market Temperature
Just by walking around the community you’ll overhear plenty of local gossip, whether you want to or not. When the housing market is heating up and confidence is back, you’ll hear about real estate a lot. You’ll hear others talking about buying and selling, investing in and flipping homes. This can be one of the best barometers of the local marketplace. If you are patient, you may receive a first hand account of how the market is treating others.
2. Easily Sold
While some real estate agents and investors might find it incredibly encouraging, it can be scary how easily many are sold. Some of the tales you’ll overhear are almost cringe-worthy and will make real experts want to jump in and shake some amateur athletes by the shoulders to wake them up. Keep doing good business, keep offering good real estate deals, but be encouraged that your next deal might not be that far off or hard to nail down.
3. We Might Have Short Memory Spans
Even though the U.S. housing market has been rebounding quickly, experts have been pleased and comforted by the fact that so much of the activity has been supported by cash sales and large down payments. However, not only are home equity loans coming back, but so are other types of more exotic mortgage. It sounds like adjustable-rate mortgage loans are being embraced again, and some can’t fathom that rates would ever go up on them.
No, there is nothing wrong with adjustable-rate home loans or reverse mortgages. Sometimes it may even make sense to take a 10% rate depending on the scenario. However, rates are absolutely going to go up, and go up significantly and alternative loans should be used with caution.
4. Consistency Creates Results
The housing sector requires consistent actions over time. The same can be said about those investing in real estate. Don’t let one particular scenario determine your outlook. Keep at it and you will be rewarded accordingly.
5. Knowledge Spurs Fast Results
Real estate is largely dependent on the time you spend. Therefore, it is important you spend your time wisely. Investing in a strong real estate education can make sure you focus your attention on the money making aspects of your business. Knowledge is power. The more you know, the more efficient you will be in this industry.
6. Rest
Rest is just as important as action. While it is all too easy to work around the clock, take some time out for yourself. You can’t complete a successful transaction without being at the top of your game.
7. Network
The idea of networking scares a lot of people. However, simply communicating with people you meet and friends will introduce you to many things you didn’t already know. Make an effort to meet new people that can contribute to your business.
