No Comments

UNICORNS – Quick tips to build your real estate portfolio

Have you ever seen a unicorn? Often when chatting with folks about real estate investments it’s not uncommon for some to mention that they are waiting for the “right deal” or a “steal.”

Have you ever seen a unicorn? Often when chatting with folks about real estate investments it’s not uncommon for some to mention that they are waiting for the “right deal” or a “steal.”
My question to them is “what does this unicorn look like to you?” Conversations often circle around how’s the market? Is now a good time to buy? When’s the bubble going to burst? Should I sit on the sidelines until there’s better reports on the economy? These are probably the most common questions people ask me in reference to real estate. The answers to all are in my view the following rhetorical question. Would you agree that over the long term, real estate yields the greatest return on investment with the lowest risk relative to other investment strategies like stocks? Most if not all of those with whom I’ve had this discussion will answer in the affirmative. And generally it’s a no brainer.
Having said that I get it. I get why some may have trepidations towards buying, selling or leasing. Spikes and dips in the energy sector, the uncertainty surrounding election results, media scares and a weak dollar can have an impact on a persons short term view. Perceptions of over saturation of certain products – for example residential condos – can also influence a persons decisions in the short term.
So how does one find clarity? Plainly, for many successful investors taking a long view has served them well. Employing a macro over micro view has been their guiding light and the right play that keeps them actively in the game. Its the reason why many major real estate corporations are successful. Holding, building equity and generating passive income requires taking a long view. Some may have the expertise or financial means to take the high risks on the odd flip, but some would argue that this strategy creates annual income – sometimes excellent returns – but it isn’t necessarily the safest path to wealth. Which outcome are you most attracted to and which actions are you most comfortable with?
If you’re in a position to make an investment, but sitting on the fence and passing up on reasonable opportunities because of a micro view then you may very well be doing yourself a disservice. Some people sit on the fence for years before making a decision. In fact I’ve had countless conversations with different people who repeat over and over that they are thinking about buying something, but never make the commitment. While those people watch the game, the serious investors are on the field.
One last point for you to ponder before going about your day. Serious investors aren’t always looking for grand slams or a steal. They are looking to get engaged because they know it’s in their best interest. They’re looking to get into the game for reasonable outcomes. People at various levels of the income spectrum can find opportunities within their means. It doesn’t just have to be the big boys. Just like the successful companies and individual investors out there the expectation for reasonable outcomes should guide decision making. Waiting to spot that elusive unicorn deal -whatever you perceive that to be- is quite likely going to guarantee that months and years go by while your money sits in a savings account making nominal interest. Others will be making much higher returns. If you’re in a position to consider making a move, what are you going to do now?
Until next time.
– Mitch Gauzas –

Comments (0)