Be Prepared To Take The Risk

The millionaires are being made again. As the Florida real estate market decline stops to a grinding halt faster than the Tampa Bay Rays losing ways, those day traders of the dom com boom and those pre-construction “flippers” have given way to the real investors. Those who are buying now in a frenzy will be the true kings of real estate investing in the next few years!

Back in 2005, it seemed like anyone could make a quick buck in the fast appreciating real estate market! Who thought it would end? Although my clients made millions during the boom, I certainly had my share of short term losses with some of my clients. I gave some advise to valued clients to buy while markets were booming. Most of my investment clients were wanting to put minimum monies down ($5,000 was common), buy pre-construction, wait the 10-12 months for construction completion, and then sell at $80,000 to $100,000 profits per home without having to make many, if any payments on those SUB-PRIME LOANS! The good times rolled! It really was “easy money” if you got in at the right time. Words like “can’t miss” and “sure thing” flowed from the mouths of Realtors and lenders alike. I almost purchased three homes for my children because I was fearful they would never be able to afford to purchase a home of their own when the grew up! Visions of New York flashed through my head! Like some of my investors, the Arcuri family took their lumps when the bubble popped! But my confidence in a rebound remains very, very high!

POP the market went first quarter of 2006! Soon it will be the first quarter of 2009!

Those who liquidated and took the loss shortly after the bubble broke were the ones who took the minimal loss. Those who held on too long, have to wait awhile to bounce back. And bounce back we will. Despite the bitter taste, educated investors continue to invest. Those who don’t have the stones for real estate need to stick with their “real” jobs of wrestling or playing ball or working for “the man”. The ones who don’t want to be taking chairs to the head and flying around the world like a gypsy when they are in their 40’s will give real estate another look. True investors know that you win most of the time in real estate, but once in a while you lose! Over the life of your portfolio, you WIN BIG IN REAL ESTATE!

To those “bad deals” that the investor has not sold, the unintended landlord that is making up the shortage in the payment from the tenant, I say hold on! History has told us that TIME will turn a lame real estate investment into a goldmine. TIME. Since Tampa Bay was saturated with investors and much of the sales activity in 2004, 2005 and 2006 was investors speculating on fast returns, Tampa is poised for a quicker than normal bounce back as opposed to other areas of the country and even the state. Once that over-supply of homes equals out to the demand, Tampa will again lead the state back! Only Lakeland in my opinion will have a faster bounce than Tampa.

The good times will be back soon! Where will you be? You can look back in 5 years and say “Damn, I should have invested in 2008 when the market bottomed out” or you can say “I’m so thankful I purchased in that down market. My wife is so happy with her new Bentley”……… it’s your call. I can only lead the horses to the watering hole, you have to drink the Cool-Aid!