The driving force of the market is the consumer. I won't dismiss your friend's comment entirely, but the jobs picture is improving. That doesn't portend a collapse of real estate.
There is substantial investor activity and it woke up the moribund Florida market last winter. IT IS NOT investors like your friend who did that, not unless he is an investor overseas. China and Canada investors began pouring into the market because their domestic markets are said to be on bubbles. (That means the markets where they are at will be softening up soon.) Ahead of them were investors from South America and Central America who wanted to place their investment dollars in solid real estate markets. Investor participation does make a percentage of the market volatile. That's actually good news for the first-time home buyers who are missing out on the ultra-low mortgage rates and the lower prices. They might get a shot if those foreign investors pull out to chase the next big thing.
Here in Colorado, there are sellers who were landlords who are placing property on the market. When that supply runs out (and there is still no significant building going on), prices can head higher. That means opportunity for sellers who have been thinking about a larger home or retirement.
In a world that is equipped with mobile devices and Internet, it is alarming how rumors get traction and before you know it, fortunes have been made or lost.
You want to survive in real estate? Don't just listen to your friend. Do your own research.
Then, your RE dream has a business plan? Do you want to be specialized in investment properties? Is it commercial? multi unit family? single family, tear down, build new one and sell?
There are many fields in real estate business, some agent do anything, some are specialist about certain field and location. For example in Manhattan, being specialist for condo rental of skyscrapers is one option, some specialist for hotels, in Beverly Hills luxury real estate may be an option.
Also real estate has cycles, in USA, about every 7-8-10 years. Now the prices are really that high, time to give break from investing??? In normal market annually about 500,000 properties are distressed. When it crashed the number was 2.7 million. now dropped to 1.7 million, plus hidden properties. Yes prices are getting higher, in some location maybe it's time to give a break and watch, but in some locations more properties are coming to the market, maybe some banks will release more properties to the market, some properties don't need short sale anymore, so inventory may be will increase in short run, and then may adjust prices, at least maybe no crazy bid wars. FED said they will keep interest rate low until summer 2015. And if we take the date as 2007 jan +8 years = 2015 probably another year for real estate market go down. 2 years later, I believe market will be better than today.
Meanwhile investor means individuals relatively in small scales, investors as companies buying serious big bulk (hundreds of properties at a time or with billions at a time), there are many foreign investment companies, last year foreigners invested 82 billion dollars in US, this year, it seems like this number will be bigger. So, people who were not thinking of selling maybe they will sell when they see the prices are going up.
Also please remember about 77million baby boomers. some of them living in cold north states and waiting to be able to sell their home to move south states, statistics say big numbers. How many of the actually will do, or can do, I don't know, but all these factors will dramatically effect the near future of the real estate market.
So, as summary, first get your license, and 2nd, find a right real estate company to work for. Generally big companies have more education and sources, especially important for new agents. It's better to talk few companies and compare what they offer. It's critical which company you are work in. 3rd step, make a decision which field you want to specialized or be general agent? You can always change your mind, but starting somewhere, talking agents that already successful and learn from their experience, what is the real deal. Make a written min 5 year business plan, you need real life education, marketing, network, client database, .... it's more detailed that you think now. But please keep excitement high, because it's great business, it's not that easy, but not that difficult either. Just think that for babies it's impossible to walk, when they learn once, watch them how they run :-)) where you want to be won't be over night, be realistic, it takes about 1-2 years. but every day, you will have progress. Keep successful people around you. good luck for you. I'm working in Beverly Hills, Coldwell Banker, our branch sold 1.7 billion dolar worth real estate last year, number 1 in the world, if you want more info ,
310 428 6573
I think the "friend" is trying to inject some reality in to the situation. RE can be very fulfilling, rewarding and exhausting at various times. There is extreme high's and low's in the business because the market changes frequently and potential sellers and buyers follow suite.
Regarding the industry, you will come in to contact with folks who want to discourage your progress and those who will openly support your efforts. Over time and through experience you will be able to decipher the difference and make your own path through the maze. If you stay in the business long enough you will learn your strengths and weaknesses through the multiple challenges of buying and selling RE in today's market.
Good luck to you and I wish you all the best!
There will always be a market good bad or indifferent. You just need to be the center of the hour glass and get it going both ways. That's how wealthy guys like your Dad's friends get wealthy. That's how I and many ohers keep making money in RE,
In 3 words............................JUST DO IT!!!
The fact of the matter is the real estate market is cyclical and destined to ups and downs. So you father's friend isn't providing you with earth shaking new information. As long as people will continue to need housing, there will be opportunities in real estate sales.
You are not crazy.....and as long as you remain committed and are not afraid of putting in the time, success will be yours. Regardless of RE trends.
Good luck and don't look back.
Not to worry. You can make good money in real estate no matter if the market is going up or down. When you get your license, please contact me and maybe one of these times we can get together for lunch and discuss some ideas.
Broker Lic. 01707173
please email or call me as I would have to write a couple of books on this subject after 25 years in the business. It is impossible for me to answer you in such brief format in Trulia. Please drop me an email and we can set up a time to go over some of your concerns.
I look forward to chatting with you sometime.
Benik Hovsepian, M.B.A.
Top ranking in Google, Yahoo, Bing & MSN Worldwide
Real Estate Services Since 1988
Are you SCARED?
Are you capable of making up your own mind or do you need to have others whispering into your ear?
"My people perish because of lack of vision," is a quote from a book that has stood the test of time.
What is your vision?
What is this 'Real Estate Dream' to which you refer?
Carlos, as a real estate professional you have decided to become a small business owner. It will be your business! If it succeeds...it will be because of you. If it fails...there's no place to hide.
What exactly is your real estate business plan? A business plan, not school, is the first step in defining your business.
When you have no plan, the whispers and murmurs of others will derail your success.
As Ron stated, it simply does not matter which direction the market goes, folks will still be sleeping under roofs covering the house they own or rent. Your business plan will reveal how you intend to help all 300 million + people solve their housing needs.
You HAVE reason to be SCARED.
The reason, however, has nothing to do with the real estate market.
It time for you to gird yourself with courage and call a few seasoned real estaet pros. Buy the coffee and cheese danish at Panera Bread and share your business plan...you know, that idea that crossed your brain before you plunked down the money to pay for your real school. Have these pros shed some light, from their experience, regarding the size of your market, and the difficulties you will need to overcome and the hazards to avoid. The business you are choosing to enter has unimaginable ways to succeed. Each and every way was preceeded by someone who saw what others did not.
"Without a vision my people perish."
With a vision, people are able to place one step before the other, ignore the roaring lion and stay steadfast with their commitment to enter that vision.
If you think 'dream smasher' is the guru to success......this is the kind of person you want to be.....buy him a coffee and cheese danish....and press forward with...."How shall I start?" You very best best is to walk in the light of YOUR vision and with the integrity to face your fears and prevail over them.
You will be in the company of many, many, many other real estate professionals who have done exactly that, often without realizing they have done so.
Best of success to you Carlos.
"your dad's wealthy friend" -- ask him if he has a job for you.
so your dad's friend is investing but he expect the market to go down???
"...without taking safety precautions" -- like what?? does he want you to hire a bodyguard???
what are your alternatives???
if real estate doesn't work out or if it turns out you don't like it, move on to plan "b"
Welcome to Real Estate, one of the most challenging and rewarding professions.
Don't worry about the markets. Get the education you need to prosper in any market. As the late, great Jim Rohn once said, "We cannot control the wind, but we can control the set of our sail."
Keystone Realty USA
Well you took the test and you have your license, there is no reason to not to begin training in the field. The housing market is a lot like the stock market, it has ups and downs and right now we are up! Your Father's friend has an opinion, but so does everyone! One thing we all know, is that no one knows the future, and there are many who would dis-agree, even some top respected economists.
It does help to have a part time job while you get started to earn a bit of income while you're getting your business started.
Congratulations on taking steps to joining a great profession. You should partner with an experienced person and work your tail off for several years under their tutelage.
The market, will go up, then down, then up, then down... you can make money either way! Isn;t that fantastic!