“It is clear the future holds great opportunities. It also holds pitfalls. The trick will be to avoid the pitfalls, seize the opportunities, and get back home by six o’clock.” – Woody Allen.
If only it were that simple.
Tough times do create some great opportunities for the savvy real estate investor. The trick is not to get eaten in the feeding frenzy. Some things to think about:
Picky = profitable – with so many good deals out there, you can afford to be picky. Set your criteria and stick to it. Walk away from the deals that don’t meet it.
Use OPM (Other People’s Money) – When financing is challenging, it’s time to go private.
Multiple choice – when failure is not an option, you need backup plans to mitigate risk.
Smart risks – make sure the risks you do take are smart ones – and if you’re not smart enough to figure it out, you better have some smart friends, partners or advisors.
Do the due – diligence, that is. The work you put in on the front end of a deal will make sure you don’t wind up looking like the back end of a horse.