The real estate market is constantly moving, fluctuating up and down with the progression of time. Some real estate investors chase what is known as fast money. This means that they see every purchase they make as the deal that will propel them to riches. Yet, most of these investors never do reach those riches. Instead, there are usually exhausted and anxious, constantly chasing that next deal. According to Gordon Tang, it is more important to practice the art of patience.
Gordon Tang on How Real Estate Investments Work
The art of patience is all about moving away from emotions and focusing instead on fundamentals. This makes investment not just more profitable but also more enjoyable. Any true and good real estate investor knows that you will not start seeing the fruits of your labor until you have been investing for at least 3 years. You have to be prepared for this timeline, and you must be committed to achieving long-term wealth in a slow but steady manner.
If the market is average, it will take around three years before I purchased property becomes sufficiently more valuable than what it was bought for. Sure, if the market is hot, this profit will be there much quicker. However, it is better to be cautious and expect to have to wait for three years. This is the time during which you can build an investment foundation. You need to base it on following through on what you say, building relationships, and developing strategies and systems. Use that time to really understand a real investment works, thereby avoiding becoming drawn in by emotions.
The reality is that hype sells. It is all too easy to be caught up in that, and to forget the flip side of hype which is fear. Because so many investors still focus on the hot deal, hype and fear are emotions that are often used to manipulate investors into making decisions before they are ready. This is particularly true for those who look at international real estate investments, as they often have to make do with information they find online and through networking relationships rather than actually seeing the properties. Unfortunately, the information found online in particular focuses firstly on the hype, telling people that it is a fantastic development and a huge opportunity, and secondly on the fear, telling people that they will never have a chance to invest in this again.
It might be true that one of the international real estate investments was actually a very fair pitch. However, you should be able to find that out with reasonable is by taking some time to do independent research. Yes, that takes time. But, as has already been established, you must take time if you want to be successful. If that means missing out on the deal, then be aware of the fact that another one will come along sooner or later. And when it does, you will have already done a lot of research and you will have the developments of the other deal to determine whether or not a truly is a good investment.