Success in Today’s Market Comes Down to Real Estate Investing Fundamentals

Many of us sense that now is a time full of opportunity for a property investor. Despite the media coverage of dramatic housing market collapses, financial crisis and more, there are many indicators that make many of us feel like the challenges of today are actually creating a very positive climate for money making.

It’s a little more difficult to find financing, you have to work hard to find good properties to buy for under their market value, and you can’t be certain the property value will increase this year – BUT – there are great deals out there, interest rates are at all time lows and there are a lot less people looking for property to compete with! In other words, there are a lot of good reasons to be actively looking for rental property right now!

In fact, R. Donahue Peebles believes we’re witnessing a point in time where we’re “going to see the wealthy get wealthier, at the expense of the average person who doesn’t recognize a buyer’s market” (p.43).

As a multi-millionaire real estate investor, developer, entrepreneur and author of The Peebles Path to Real Estate Wealth, Peebles can make such bold and strong statements. He made tons of money in the last down market – buying properties nobody else wanted, and either redeveloping them or just holding on until the market strength returned. He understands the fundamentals of real estate investing – and his applications of the fundamentals in the past made him millions.

In market conditions like we have today, it’s critical to understand fundamentals like:

Market indicators of strength, stability and future expansion potential,
The indicators that really matter (population growth, job growth, income stability or growth, growing and diversified industries supporting an area),
What area features attract people, and will continue to attract people (like beautiful areas with waterfront or mountain views, good school systems, strong tourism and good quality of life),
And, that the valuation of a property when you buy it is critical to your success. You make your money on the way into a deal and to do that you need to understand what a property is valued at and how you can create more value.

Real estate, purchased in areas with good fundamentals, will always go back up in value.

It really does come back to location, location, location when you’re buying real estate in a market like we have today. Buy in an area that people are going to always want to live in. And then, buy the property under market value and for it’s cash flow. It’s a pretty darn near guaranteed formula for success.

Quote Source: Peebles, R. Donahue. The Peebles Path to Real Estate Wealth. John Wiley & Sons, Inc., 2008.

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