Build Wealth in Any Market

You've heard it said before,"The only constant is change."And when markets change, that change creates opportunities. Here are just a few examples:

♦ When prices appreciate fast, you can "fix and flip" for quick profits.

♦ Appreciating prices also give you the tax-free benefit of cash-out refinances.

♦ Falling interest rates (even with stable prices) reward you with a refinance that lowers your monthly payments and increases your cash flows.

♦ Depressed markets provide you with an abundance of foreclosures, motivated sellers, and bargain-priced properties.

♦ High rates of inflation drive up market interest rates and cut down short-term demand. That's the perfect time to look for seller financing, lease options, and low-interest-rate mortgages that you can take over (assume) from the sellers.

♦ High rates of inflation also reduce the number of newly constructed houses because builders must pay higher construction costs and higher interest rates. Fewer housing starts clearly signals an excellent time to buy. A slowdown in new housing always foreshadows a jump in prices as growing demand outpaces new supply. (California perfectly illustrates this point—albeit low housing starts in California are now being caused by tight land-use controls, environmental protection, and restrictive growth management policies.)

These moneymaking examples merely touch upon the multitude of strategies you will discover throughout this book, but they illustrate one central message that I have advocated throughout my career and in all of my writings:

Q. When's the best time for you to invest in real estate?

But don't jump to the wrong conclusion. By saying "invest today," I don't mean that you can never go wrong. Rather, I mean that there's never a wrong time to invest if you choose the right strategy. And that's what I'm going to show you.

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