Friday, January 19, 2024
For thousands of years, people headed from “here” to “there” relied on information from scouts. Checking for ambushes, spotting water sources, avoiding terrain challenges, in terms of critical roles these runners played, the list goes on. While the landscape we navigate today is quite different, we still move into unknowns, and it’s still wise to have a scout. Particularly when investing in real estate.
We’re not saying that you shouldn’t be on the lookout yourself. And it’s amazing what a second pair of eyes can do. Have you ever looked through a cabinet to find something, couldn’t find it, and then sent someone else to check, and they spotted it right away? My son jokes with his sister that if she brings a house to his attention, he will buy it. In the past, every investment property they have purchased was brought to his attention by his sister. He kept a close eye on the market, and she happened to spot what he wasn’t looking for. Or what he had yet to consider.
Who is your real estate scout?
You may have heard the catchphrase, “Always be on the lookout” for an investment. You might be surprised at the value of always being on the lookout. Here’s why!
There are Opportunities in Every Market!
Quality real estate opportunities abound in every market! When the market is excellent, people are excited and are out in droves looking for a bargain. When the market is in a downturn, most buyers are cautious. They take time to move on an investment because they believe waiting for an apparent bargain is best. Higher interest rates discourage many and abort the plans of even more. As a result, there are often more opportunities in a down market; they just may not look as clear-cut. In these markets, you aren’t necessarily looking for a bargain; you’re focused on the right property at the right price and terms. In many cases, the profit comes with time as the market goes back up.
Find Loyal People!
When you partner with the right people, they will keep an objective eye out as opportunities show up. Your Dream Team may be people who have partnered with you in the past, or they may be people who have an interest in real estate and want to work with you. This could be your REALTOR®, financial advisor, mortgage broker, or family, to name a few. Having a dedicated and trustworthy team is paramount. And don’t fixate on the quantity of people helping you – it’s all about quality here. These should be people who know your investment strategies and the portfolio you are looking for. Depend on the people who have your best interests at heart.
Scouts will bring forward all kinds of opportunities, whether you are interested in them or not. When an opportunity appears, it’s up to you to decide whether it will fit your investment strategy or portfolio. Sometimes, the ones we gloss over end up more in line with our goals than we realized. When a scout brings them to your attention, you at least have the chance to examine them. Otherwise, you have blinders on and are missing out or need to learn more.
“Always be looking” is more than just a catchphrase; it’s a way of life for successful real estate investors. It means being prepared to spot opportunities, whether they’re right in front of you or brought to your attention by others. You’d be amazed at how many options there are at a given time and how quickly the gems can show up when you least expect them!