The world is changing. The economy, and various investment markets are changing much faster than many realize. That’s true of real estate too.
With this in mind, these are the must make moves for investors right now…
1. Get The Right Managers & Advisors On The Job
It’s just common sense that this is not the time to be gambling your money with managers and advisors that haven’t been through these changes before. No matter how much money they’ve raised, or how much they spend on TV ads.
What matters is experience. Most importantly, that they’ve managed to not lose investors’ money during periods like this in the past.
2. Stop Overpaying
It is well beyond the time to stop overpaying in this market. That applies to all asset classes from crypto to stocks and real estate. Some have been very publicly far overpaying for assets. It’s only a matter of time before they get stuck, and find themselves unable to sell what they’ve got, and slip into insolvency.
3. Price in The Adjustment
Just because you shouldn’t be overpaying, doesn’t mean that you should stop acquiring new investments. Most need to restructure. Sell what has peaked, and get into something with more potential and security.
Savvy investors are simply pricing in the adjustment. Not only the correction percentage being predicted, but the overcorrection that notoriously comes with that. This is the safe place to invest. Which still gives you optionality to exit now, or hold until things bounce back.
4. Look For The Opportunities
It is times like these which really bring the best wealth creation opportunities.
Look for the distress, where help can be provided. Great examples of this are builders who get stuck and need to cash out developments, and aging owners who don’t want to ride out the next trough and rise.
5. Make Your Money When You Buy
Do not speculate in this phase of the market. Lock in your profits when you buy.
This may be through the price you pay for an asset, with great negotiation. Or it may be acquiring already performing assets, like multifamily rental buildings.
Be sure the profits and performance are there. Not just what you hope you can rent for in the future. Be sure tenants in the local market can afford any rent increases, and will want to live there at that price point.
6. Buy What You Can Control
One of the greatest advantages of investing in real estate is that it is something you can actually control the value and performance of. Even in any phase of the market.
Value add opportunities bring the chance to improve asset value with additions and remodeling, better marketing and branding, or operational efficiency.
This is an extremely important time to be diversified. You can’t wait until the data comes out in the news three months after the fact to choose where to put your money. You’ve got to be ahead of the curve. You’ve got to balance your holdings and income for reliable finances.