This is the KEY to success in this market or any market for that matter. Read on.
We at The Gilliard Group pride ourselves on the use of systematic real estate investing. It is through proper investment strategy and systemization that The Firm has achieved its success and expansion.
First, determine your strategy, and then systematize it.
Strategy
Let me start of by saying this is not a “bad” market. Markets i.e. real estate, stocks or commodities typically trend in one of two ways…up or down. We are currently experiencing a “down” market in multiple assets classes (the stock market and real estate) at the same time. Again, markets are not inherently good or evil they simply react to supply and demand, available credit etc. Upward or downward trending markets present SIGNIFICANT investment opportunity if you employ the appropriate investment strategy for that type of market. In fact, some of the greatest fortunes have been amassed in markets like our current one.
Our Firm believes strongly that there are always big opportunities no matter the market conditions. Take today’s “Doom and Gloom” market for example; every time I meet someone new, the question of “what do you do?” comes up. I tell them I am in real estate, and a look of sorrow comes over their face and they say “geez, sorry to hear that”. I always chuckle to myself before I explain how our Firm invests in real estate because I realize this person is making an assumption…you cannot make money in real estate in a “down” market?
Most have written off real estate as a good investment because property values are falling. Several years ago when the market was “good” it was beneficial to be a seller because it was a sellers market and prices were appreciating. Now that prices are falling, we see it as an opportunity to buy properties at a steep discount. In a buyers market like the one we are in now, the buyers set the terms of the transactions. Therefore in order to take advantage of these market conditions one must become a buyer or work with buyers. Market changes simply call for a change in investment strategy. A famous man (read Warren Buffet) once said “Be greedy when others are fearful and fearful when others are greedy.”
If you don’t personally have the resources to purchase and hold properties; then find an investor that is doing so, and work with them. You can find these investors at the local Real Estate Investment Associations (REIA) or by looking through the public records to see who has purchased multiple houses in the last six months.
I could write a whole article about approaching these investors and developing a working relationship with them but just realize that their time is valuable and that you should bring some kind of value to them if you expect them to pay close attention to what you have to say. Speaking of value, let’s talk about something that will set you apart from every other investor.
Systemization
Finding the right investment strategy is only one part of the puzzle to utilizing systematic real estate investing. Just as important as realizing the appropriate strategy is systematizing it. You must observe your strategy from a process-perspective, not only to automate the revenue stream in the long term, but to identify and eliminate problems in the short term. Whether you are a solo investor or you have a team of people you work with, a step-by-step approach allows you to focus on a specific area of the process, then identify problems and correct them.
By forcing yourself to evaluate the investment strategies from a process-perspective, you will be able to verify the necessity of each part of the process. This eliminates wasted time and money (particularly important in today’s market). Apply the process-perspective to your business and you will not only be building a long term and sustainable business with the systems to ensure it efficiency but you will improve short term profitability as well.
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