“Pressing upward and onward.” This phrase was repeatedly drilled into my head by my training instructors at Lackland Air Force Base during basic training. To this day, I am not sure what it really means, outside of it being a transitory phrase (which is the main reason I chose it for the title of this post).
You see, for several years now I have worked with entrepreneurs and business owners of varying shapes and sizes, helping them start, grow and troubleshoot their businesses. One of the clientele’s that I have focused on has been real estate investors and professionals. It might seem a little odd at the outset that this market would fall into my gunsight, but life is funny sometimes.
To digress, I must admit to availing myself to this market for over the past 2.5 years for ulterior motives; an undying interest in real estate as a wealth building vehicle. In fact, I bought my first investment property at the ripe age of 21 and several other deals followed closely behind. I sold these properties in early 2006 and looked to jump into the Metro Detroit real estate investing pool and, just when I was qued up to go off the high-dive, blood started to appear in the water.
This might not have been particularly alarming, aside from the fact that I am an almost obsessive student of economics and markets and sensed that the opportunity might not quite be where I thought it was. Property values were falling, foreclosures started to creep up and, ever so slightly, the market started to crumble. With these indicators staring me in the eye, I had little choice but to focus on consulting, press “pause” on direct real estate investment and let the real estate market in Metro Detroit begin its free fall.
Fast forward to late 2007. Foreclosures in Metro Detroit are skyrocketing. Real estate prices are 50%-65% less then late 2005/early 2006 levels. The market is completely decimated. And, it is because of this that, over the past seven months, I have jumped in with both hands and begun scooping up real estate deals that were only a dream three years ago.
I am convinced that, as an entrepreneur and investor, there is no better opportunity to buy income producing assets at substantial discounts to intrinsic value then Metro Detroit real estate.
You are probably asking: “How in the world is this relevant to his previous blog subject matter?” My answer to you is simply: “Everything.”
Undoubtedly, you must realize that every business and aspect of our economy is affected by globalization. In Metro Detroit, tremendous opportunities to invest in bargain real estate have come largely because of global economic conditions. The “Big 3″ auto companies that are based here (GM, Ford, Chrysler) have been ravaged by global competition and the weakening in these companies has directly (along with several other key factors) caused the job losses and population declines that have driven real estate prices to record lows and caused the price discrepancies that make investors giddy.
In addition, utilizing outsourcing and globalization are imperative to the long term success and viability of any scalable business; whether related to real estate or not. My bottom line is this: if you can’t think globally, you are going to get trounced. Real estate investors that don’t put this into practice will fall victim at some point in time just like other businesses.
“What’s the point of all of this?” you ask.
Here it is: future posts are going to highlight my activities in real estate investing and the techniques that I am using, leveraging global business connections combined with both cutting edge and time-tested marketing strategies and other methods and techniques to grab as many houses as I can, as well as help other real estate investors reach their income property goals.
Radical change is a MUST if you are going to be successful in your investing or business over the long term. If you can’t get next the concept of change as a constant in your life, the world is going to pass you by at warp speed. Opportunities exist where you want to see them; all you have to do is reach out your hand and grab one.