Be Ready to Cash in With the Next Real Estate Upswing
I bought my first home in California in 1987. It was a two bedroom condo and it cost $105,000. California was entering a real estate boom and over the next 4 years the value of my property increased to nearly $200,000. During that time there was a lot of buying and selling going on. People all over SO CAL were flipping properties for a quick profit. Then, practically overnight, the real estate market took a nose dive. People who bought at the top of the market found themselves “upside down” with loan commitments that were higher than the new lower value of their properties. This is classic. Very few people get into a rising market early – but the ones who do are the smart ones. Then there are those of us who wait and wait and then buy. Too often we end up buying high and then riding the market in the wrong direction. We’ve all watched the same thing happening over the last few years all over the country. I have been on both ends of this deal and I can tell you that it stinks to be in the losing position.
So here’s my point about why I think it’s best to get a real estate license now, during the downturn rather than waiting. With each sale and purchase a real estate salesperson is making a commission. Those who were already had their real estate license when the market began to climb a few years ago were in the best position to reap big commissions over the longest period. Those who jumped in at the end missed out on the majority of the opportunity. Every one of them would tell you they wished they’d gotten into the market sooner.
If you’ve ever thought that a real estate career was something that might appeal to you this is the time to go for it because when this market finishes it’s “correction” it’s going to turn around and start going the other way. That’s a historical fact. When it hits bottom, people will be buying again. It doesn’t matter that prices will be lower than they were last year or two years ago. The fact is that they will be buying and with each purchase someone is getting a commission and that person could be you. But only if you’re ready.
I know this goes against the way we “feel” but if we wait until things look better we will have missed our best chance. Sometimes we need to move against the current and this is one of those times.
This time, make sure you are in a position to profit from an active rising market. Get your real estate license now because in 6 months to a year from now if you haven’t done it, you’ll have missed another opportunity.
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About The Author: David Goldstein is an owner and founding partner of Colibri Real Estate, LLC. Since 1996 the companies under this banner have offered online real estate licensing and insurance licensing courses as well as online real estate exam prep and insurance exam prep.
