The Secret to Successful Real Estate Investing is...Time.

[AJ Wong]

There is more lost by indecision than bad decision, is an old adage that applies to real estate investment like a white picket fence. 

Property don't lie but people do is another one. 

Perspective is often the element that differentiates investment potential, but time, with its ebb and flow towards evolution and progress is the element that fruits our labor.

Without the initial leap, there is no potential return on investment. As most seasoned investors will confess, the longer the asset under management the more opportunity for profitability is created. 

I've never heard anyone that owns property for an extended period, let's say a decade or more, show me a truly strong losing investment. 

There are examples of those that got 'left holding the bag' like at peak bubble in 2007-2008, but even those property owners (less than 15 years later) are likely in the green today.

The point is, present day conditions for investing are not optimal. Rates are high, competition is high, however there is always a deal and always a way to mitigate risk or enter into favorable terms. Analytically, few deals make exceptional economic sense with today's terms and conditions. Functionally, in many areas you can still purchase a home for near or below the cost of renting and often convert usage to maximize or return a positive cash flowing property. 

Sure, the numbers might not be optimal initially, however if properties can break even or profit at the moment, as the leverage is paid, lending conditions improve and market activity expectedly accelerates, time inevitably improves the risk reward ratio. 

A good indicator of the future is the past. Past generations of investors also had difficult periods of investing. Do you think there were any successful purchases during the very high interest rates of the 1980's?

My parents bought a home in the late 1980's. Maybe they overpaid? It was a 5/3 home in South Florida for $180k cash. Fast forward 30 years, the house is essentially the same, yielded hundreds of thousands in income and today is worth $750k+ with little to no significant improvements in the past 20 years. 

How many times has your jaw dropped, discovering how much a boomer or their parents bought that Oceanfront property for so many years ago? It's ignorant to imagine a future where the next generations don't have the same sentiment towards today's real estate investors. 

In my personal experiences, there were always plenty of reasons not to invest, but my most crucial mistakes were actually exiting those investments too early. 

Today's environment requires more preparation and greater insight to improve the odds, but you're always ahead of the game..when time is on your side. 

Cheers. 

[Nathan Gesner]