When I first started investing in real estate, I thought if you buy a property right, then you can never lose money. WRONG!


It's always a good time to buy and sell real estate but how you buy and sell real estate depends on the market. When I first started 5 years ago, I couldn't figure out how my competition was making money on properties they're overpaying for. At least the formula I was given showed my competition was overpaying for these properties. Little did I know that the formula I was given was based on a different market.


When I did rent to own when the market became extra-hot 3 years ago, I couldn't figure out why I was getting deadbeat tenants no matter how hard I tried. I was not alone. My fellow real estate investors were having a hard time and it was hard to collect substantial downpayments and even harder to collect rents.


Today, I now know why.


It was the market.


The market affects everyone...beginning and experienced investors alike. If Donald Trump can be affected by the market (he became bankrupt back in 1986 when the market changed)...you can never ignore it. In fact, you should not fight the market. You should invest according to it.


I've realized there's a right strategy and a wrong strategy in every market in any country.


Depending on the market, you can overpay for a property and still make money. On the other hand, there's a stage in the market such that you need to buy a property at a bigger discount than what everyone are willing to pay. Otherwise, you will lose money. There's a stage of the market that is ideal for selling as many properties as you can and there's a stage in the market in which you should buy as many properties as you can as if there's no tomorrow.


There's a right market to be buying apartment buildings and commercial properties and there's a right market to be buying houses and condos. I wish I can turn the hands of time and invest in real estate differently based on what I know now. I would have been richer and I would have invested with less risks and less headaches.

Watch this space for part 2 where I reveal the 4 stages or 4 phases of the real estate market.

Trace Trajano  www.ThinkRichQuick.com