Fall-my favorite time of year. I don’t know why it strikes me so strongly. I think maybe it is from boyhood memories of growing up in the South. The autumn temperature drop was accompanied with an acute degrading of moisture content in the air. This was a very welcomed change. Along with the Fall change came the preperation for hunting season, a ritual that I still participate in though I live in a different place and time.
As I paid my dues in the forest this year, my mind wandered to the disciplines involved in this endeavor known as big game hunting. Remarkably they are very applicable to many things in life. One of which is real estate investing.
So as my “Tribute to the hunt” (and my nod to the myriad of southern license plates affixed to an army of camoflaged 4×4’s) here are 3 principles that both successful hunters and real estate investors have in common:
Preparing to spend several days in the mountains of Colorado can not be pulled off without a little forsight. What will the weather be like? What is the best altitude for the type of game we are after this time of year? How far will we be from a good water source? You wouldn’t go into the hunt without adequately addressing these and a hundred other issues. As one begins the process of looking for investment real estate purchases many thing have to be considered. What EXACTLY is the economic tempo of a given real estate market? I don’t mean what is the media spewing, I mean what are the most current sales records conveying? Has the time-line of sales been studied for a specific neighborhood with seasonal adjustments made? There are factors at hand that are best spoken to by professional real estate brokers who live, eat and breath a specific market. They are excellent sources of information when it comes to preparing for investment purchases.
Without a plan for Elk hunting in the mountains around Pagosa Springs, you will be just as effective sitting on the couch at LaTazza. (O.K. lame comparison. I happen to be writing this from there, it was the first thing that came into my mind.) To successfully get into harvest range of game you can’t just have a plan, you have to have plan A through F.- Virtually an alphabet soup of back-up plans. In real estate investing having the proper plan to fit your desires is essential. What type of financing works best? Should you finance locally or elsewhere? What is you exit strategy should things change for you? As a real estate professional, these are the kind of questions that I field on a daily basis. It pays to have someone help you plan strategically for your real estate investments. Someone who can help you hatch a plan that is specific to you and your desires.
Wait for daylight, wait for the wind to change, wait for the rain to stop, wait for the right animal, wait for the right shot. The opportunities for increasing patience in the world of hunting are endless. Without the proper patience failure is in-evadable. It is no different with real estate purchases. Speaking from experience, ( and not a pleasant one) lacking patience will hurt you. It hurts in your wallet, it hurts in your intellect, emotions and spirit. Being patient also means having “patient” money. This is advice that you won’t get from all mortgage or real estate professionals. What I mean is if you are not buying with cash, are you able to hold the note for a long enough period of time? Banking on the “maybe” is a tough gamble in this line of business. Make sure you can withstand the weather if the winds change. I have spent too many hours this year consoling sellers who are “just trying to get out” because they were not allowed the luxury of patience due to a squeeze in the budget after their real estate purchases.
I have a few men that I owe much to in the realm of hunting wisdom and knowledge. I could have never been as successful without their input and guidance. How did they get so good? Experience. Real estate investing is no different. We are experiencing a fantastic time to buy investment property in Pagosa Springs right now. Go for it. Just remember the basic disciplines. If you are new to the investing world, enlist the guidance of a real estate professional that you can trust. Then one day you can pass on the wisdom and learned disciplines to someone else.