Baltimore Foreclosure Investing and Economic Cycles

In real estate, the worst of times for most people are often the best of times for real estate investors. Smart real estate investors buy in bad times, because they see days ahead that they know are going to be strong and will give them the best return on their investment. In this article I explain how to spot and profit from economic cycles.

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Real estate runs in cycles of anywhere from seven to 10 years. Buying low and selling high is one of the oldest axioms for financial success. Many real estate investors have built their fortunes by starting their businesses when times were very, very bad. When times are bad, it?s easier to get financing, and it?s easier to get people to work with you on your terms, instead of theirs.

One thing I can tell you for sure is things are going to be always about the same. It?s just the cycles and length of cycles that they go through. Yes, times are rougher and tougher. Things are more competitive. The business environment is very competitive. And for some real estate operations, it?s very, very competitive to the point that they?ll be out of business in two to three years. In some major metropolitan areas, office space is way overbuilt, with a huge product of 15 years? supply on hand.

But in the same area, moderate-rent residential real estate is in short supply. In some areas, single-family homes are in short supply. There are some areas of the country where demand has never been greater for such units. People want to live in nice, well-maintained properties. They want to live in decent neighborhoods, where they can raise their children, have their families, and enjoy their lives.

Don?t forget riches can be generated in good times and bad times, by following your plan and your timetable. Remember, real estate always comes back. It has after every downturn in history. You can count on it.

So prepare your timetable to reflect the rise and fall in real estate values. You need to understand your network of lenders, the people who have the money. This is important to building wealth in real estate.

Paul Wells has been investing in foreclosures full-time for more than 5 years. For more foreclosure investing secrets like the one in this article, subscribe to Paul’s Free Foreclosure Investing course here: http://www.FreeForeclosureInvesting.com

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