When Is The Best Time To Make Money?
© 2007 Alexander Michaels
Article # 1487
"When is the best time to make money? "
"When everybody is running scared and confused and you are not."
Alexander Michaels
Creating great wealth requires focused thinking and application of energy.
Retaining great wealth requires careful planning and the confidence that you deserve to be wealthy.
When the market is hot and prices are going up almost on a monthly basis many more people are attracted to the real estate investment business. You are almost guaranteed to make a profit or at least recover your investment even if you buy carelessly. This is because generally there will be somebody else ready to buy your property if you wait just a little. If you bought a property for $200,000 thinking that it was worth $230,000, and then found out that it would cost you $20,000 to rehab, $10,000 in interest payments, $2,000 in utility costs and maybe $8,000 in closing costs to sell, you now find that you are at least $10,000 in the hole. You have gone from making money to losing money.
When You Need Creativity:
I used to see this happen all the time. So what would you do? Well, if the market was hot all you would have to do is wait a few months and the price would rise enough for you to make a profit. In fact someone might even be willing to pay you slightly more than the property was worth because they would be confident that it would quickly exceed their current purchase price. However, when the market is very slow and prices are stagnant or falling, you can’t rely on easy market driven appreciation anymore. At this point true creativity becomes really important.
Principles That Never Change:
There are certain principles for creating wealth that apply in virtually any market environment, but apply especially when there is a down market. That is because when the market is down all the temporary speculators no longer believe they can make money easily and fizzle out, and those with vision and tenacity are able to grab amazing opportunities that were simply not available when the market was hot. To create and retain great wealth in this market you must make sure that you know what you are doing.
This is where knowledge of your market and the niche your are focused on comes in. This would be a challenge to many but it would be exciting for the investors and wealth builders that are looking to push their game to the next level. If like many investors you know that you are capable of achieving more but do not know exactly how to do it, then this is the time to start researching and really becoming an expert in your field.
Simple Rules For Making Money:
The more you research the more you will discover that there are people quietly reaping great profits while everyone is screaming and complaining. These people are no more clever than you or anybody else but they do have something that most people don’t have; they understand that the market changes and they know how to apply different techniques to different markets. In the end the rules are very simple for them. As long as they are buying for less than they can sell for in a reasonably short time they are happy. And as long as the property they buy can pay for itself whilst they are waiting for the price to go back up, they are happy.
So the key to success in any market is learning the fundamental wealth creation principles that apply to all markets and then focusing on the particular ones that apply to the current market. This way success in wealth creation is almost guaranteed.
Copyright © 2007 by Alexander Michaels
Alexander Michaels is an author or self-development and wealth creation books and courses. He is the author of Secretes Of Self Mastery, Broke to Millionaire In 90 Days and From Fear To Courage.
To see more of his articles and books visit: http://www.selfdevelopment.org or http://www.broketomillionairein90days.com.
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