Real Estate Timing Report
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Real estate timing for maximum profits
What I Learned From the "San Diego
Real Estate Crash of 1990"
Market
corrections are inevitable. Here’s
how
to weather the storm . . . and even prosper.
“One never knows, when he boldly enters the investment arena and puts his hard-earned capital at the mercy of the market forces – all in hopes of creating a better life for himself -- what tricks of fortune may eventually unfold. Every day creates a new set of circumstances; and around the next corner may be a turn of events that change everything.”
-- Robert M. Campbell, 1996
Be clear about this: real estate has been the best long-term investment for accumulating wealth for the average American. All huge fortunes were either started or expanded with real estate. Had you bought good quality real estate three or four decades ago, you would not be concerned with your financial future today. It is one asset that has kept up with inflation and has steadily appreciated.
But it’s not quite that simple.
Real estate is not always an easy game. There are significant risks and dangers along the way. Real estate moves in cycles: prices rise and prices fall. Most of us have little difficulty when times are good. It’s when times are bad that we get tested.
Subscribing to the belief that “only a fool has to learn everything from his own mistakes,” here are some observations and lessons for your consideration. They are the result of the “1990 San Diego Real Estate Crash” and will likely apply to all future “market corrections” as well.
1. Every 7-10 years there is a period of excessive speculation that results in a severe panic or depression where borrowers are at great disadvantage and the man with cash stands like a tower of strength.
2.
Market extremes do not last. No
ladder is high enough to reach the sky. While
“new eras” come and go – and while many incorrectly believe that
government controls can now prevent economic downturns – the old laws of
supply and demand still rule.
3.
When the storm comes, misunderstandings are so easy and so natural.
Ruinous lawsuits are commonplace, whether they are justified or not.
4.
It’s good to be an optimist, but always be prepared for the worst.
5.
People borrow money in good times and pay it back in bad times.
This is just the opposite of what you should do.
6.
People ignore small problems that soon become big problems that later
become impossible problems. Foreclosures
flourish because people stick their head in the sand and say: “Maybe it will
go away.” Usually it doesn’t.
7.
The general public is as blind to recognizing the bottom of a recession
as they are in recognizing the top of a boom.
While there is no ladder that reaches to Heaven, neither does any ladder
reaches all the way to Hell. While
the “doomsday” prophets may have their day . . . the U.S. economy is
resilient and eventually comes back stronger than ever.
Does
this mean you should shy away from buying a home -- or an investment property
--because of what you might lose? Of
course not. The world is full of risks. After all, taking chances – the
right chances -- is what getting ahead in life is all about.
The
intelligent real estate owner -- however – instead of not taking risks, learns
how to minimize his risks.
The long-term trend for real estate favors higher prices.
The trouble with trends –
however – is they go one direction for a period of time . . . and then stop
and go another direction for a time.
While
you can’t avoid market corrections, you can be
prepared for them. The “Vital Sign” indicators in
the Real Estate Timing Report
were developed to help you anticipate these
market changes . . . so you can profit from them . . . and not be blind-sided by
them.
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Buying or selling some San Diego real estate in the next 3-6 months? CLICK HERE to learn how you can find out what the “Vital Sign” indicators are saying whether prices are likely to rise . . . or fall?