Different Country, same drill

 I have been investing and educating investors in New Zealand for several years. Recently I have been "sent to Memphis" to procure stock for our clients overseas.  As i spend some time here it is obvious that real estate is real estate.

Once you learn the fundamentals the main thing to plug in is market specific knowledge.

I am amazed at how transportable my NZ experience is here.

I guess it shouldn't be surprising, people are people right?

The 101 of successful investing for me is to understand that all property markets are driven by 2 things and 2 things only:

1.  FEAR.

I have purchased many homes in the last 8 weeks from people afraid of the disaster that real estate is in their mind. I might think they are crazy but aren't we all.

Last week for example I had a packet of 6 homes offered to me through a trusted supplier at $150K, closing in 2 weeks.

The next day another supplier offered me the same packet for the same money, nothing strange so far.

However the second supplier, who knew I could close quickly went to the seller and said what was the price if we closed in 4 days.  Seller lowered the price to 135K.  FIFTEEN GRAND off the price for a weeks delay?

This meant she didn't have to deal with the next months rent collection and she was terrified of having to do that!!

To me this was unbelievable.  To my buyer it was great news!!

Now don't go round making people afraid but understand that people will make irrational decisions out of fear.

It's like Kay said in Men In Black:

"People are dumb, panicky dangerous animals and you know it. Everything they've ever "known" has been proven to be wrong. A thousand years ago everybody knew as a fact, that the earth was the center of the universe. Five hundred years ago, everybody knew that the Earth was flat, and fifteen minutes ago, you knew that humans were alone on it. 

Imagine what you'll know tomorrow.

Tomorrow let's talk about greed :-)

'Later, Dean