With the touch of a velvet glove…

We are in one of the most interesting real estate markets I’ve ever seen. And I’ve seen a few, professionally thirty years worth of markets, personally, fifty. Markets like this make and break people. Now is the time to choose who you are. Annie Duke, the World Poker Champion says there are people who play to win and those who play to last. Those who are willing to take the risks, win big. Those who don’t will last longer but probably won’t hit a large jackpot, but they’ll be there in the end. I don’t think either way is wrong. It really depends on what your stomach for risk is. From that point you decide how to play the game.

In my mind, Joe Montana was one of the greatest quarterbacks to ever play the game. Joe had a funky drop, a squirrelly passing motion and looked like three blind mice in the pocket. He won four Super Bowls and walked away with three Super Bowl MVP’s. Why? Because he saw something on the field that other guys just didn’t see. Juli Inkster is one of the most prolific golfers in the LPGA. I’ve seen her play over several decades. She has a gift. She sees something the other golfers don’t see. She’s won two LPGA Championships, the Nabisco twice and is in the LPGA hall of fame. She sees something that other golfers don’t. Tony Gwynn was one of the greatest hitters baseball has ever known. He saw the ball differently than other guys. I’ve heard baseball players who are in “the zone” describe the baseball as looking like a big grapefruit with seams when there were on a streak. Greatness is hard work for sure, but it’s also vision. Without the vision, you’re just working very hard. We need to teach ourselves to see the grapefruits and drive them out of the park.

So how does this apply to the market? If we want to play, we have to be a visionary. We have to see something that the other folks don’t. And we have to have the stomach to make the move. It’s hard work putting the ball in play in this market, but the rewards are there for the taking. The adjustment we’ve seen is anywhere from 25% to 60% depending on where we’re looking. It’s important to not overbid in this market. Know the neighborhoods, know what you think is going to happen in that neighborhood. Not what every one else is doing, but what YOU think is going to happen. Is there a new Walmart going in at the end of the subdivision? That’s a great sign because they do all the demographics. Is Starbucks coming in or going out? How about McDonald’s? All of these big corporations do a ton of market research and really some of your homework for you. If they’re building, they see something. Look for it. Is retail going in or out? Did Home Depot just close down the anchor store in the local retail center? Move on. You want a neighborhood at the end of decline and heading towards an upswing, not one heading into decline. Then ask yourself, does the property fit in with your investment strategy? Then drill down in the neighborhood. Know which floor plan is preferred. Know which school is preferred. Did the local high school just get a new principal who is a bit of a dolt? Look for test scores to tumble and know that your resale value may be affected. Then buy in the black and stay in the black. Never over leverage. Be conservative, not cheap. My most successful clients are the ones who do their homework, do the math and don’t sweat the small stuff.

Valerie Crowell, Real Estate Consultant
Alco Properties
To contact Valerie send an email to women_buildingwealth@yahoo.com with “Valerie” in the subject line