Too many people are talking about the housing market going into another correction. The last market correction created a lot of havoc for lots of people but even if the market goes down it will come back. If you’re in it for the long haul you’ll be ok. If the housing market crashes again it’s not going to hamper the knowledgeable investors.
Since Larry structured his deals creatively, he could have reduced his rents and still kept his properties. When you’re doing seller financing it’s the only constant, everything else can be adjusted. None of the institutional requirements apply.
When housing prices go up they eventually have to go down, but we’re not at that point yet. When you are dealing with sellers, you don’t have the same problems and issues you have when dealing with a bank. The investors that are buying income properties to hold over a long period of time aren’t going to be as affected by changes in the market.
Remember, every income property is a business unto itself. If it doesn’t pay for itself when you do the numbers accurately, you do not want that property. Price isn’t as important as getting terms that allow the property to pay for itself.
Too many people do things that later on they wish they hadn’t done. Learn about the key things to remember if you want to be a successful investor. You’re never going to be successful as a real estate investor going to real estate meetings. You have to get in the streets and have conversations. Be smart and get yourself a good mentor, they aren’t going to be teaching forever.