e an annualized return of 3%. Well, I hate to tell you this, but it was the same location and we made drastically different returns on our money.

Was the reason I did so well because I studied and analyzed the market and knew prices would substantially increase, or was I just lucky?

In reality – it was probably a combination of both. You need to do your research, but it certainly helps to have luck on your sid

We have all heard the saying – “The three most important things in real estate are location, location, location.”

Now there is no doubt that location is very important in real estate. But, over time, locations can change. What was once a great location may have deteriorated. The investor should realize that many of the variables involved in making money in real estate can be changed or altered. You can upgrade a home, lower the selling price, give a buyer incentives, etc. But it is not that easy to change or alter a location. Locations can and do change over time. But it is very difficult to alter a location over the short term.

Well, sorry to burst your bubble. I will now tell you the most important thing in real estate (that is assuming you want to make money).

TIMING!

The real estate market is noted to have many cycles of boom and bust. While it is true that real estate generally will go up 5% annually over the long term, there are generally short term periods of substantial price increases followed usually by shorter term and less volatile periods of price decreases. Then there are often extended periods of flat to small increases. The key is to know when to buy and sell in the cycle.

Obviously, you want to buy during the flat period just prior to the next uptick. Determining this exact time can be difficult. But if you study long enough you can spot the signs.

Let me give you an example of good timing. I bought a parcel of land in 2004 for $45,000. The man I bought it from paid $28,000 for it back in 1986. In 2006, the land was appraised at $105,000. Now leverage aside, I made an annualized return of over 50%, while he made an annualized return of 3%. Well, I hate to tell you this, but it was the same location and we made drastically different returns on our money.

Was the reason I did so well because I studied and analyzed the market and knew prices would substantially increase, or was I just lucky?

In reality – it was probably a combination of both. You need to do your research, but it certainly helps to have luck on your sid

ome, lower the selling price, give a buyer incentives, etc. But it is not that easy to change or alter a location. Locations can and do change over time. But it is very difficult to alter a location over the short term.

Well, sorry to burst your bubble. I will now tell you the most important thing in real estate (that is assuming you want to make money).

TIMING!

The real estate market is noted to have many cycles of boom and bust. While it is true that real estate generally will go up 5% annually over the long term, there are generally short term periods of substantial price increases followed usually by shorter term and less volatile periods of price decreases. Then there are often extended periods of flat to small increases. The key is to know when to buy and sell in the cycle.

Obviously, you want to buy during the flat period just prior to the next uptick. Determining this exact time can be difficult. But if you study long enough you can spot the signs.

Let me give you an example of good timing. I bought a parcel of land in 2004 for $45,000. The man I bought it from paid $28,000 for it back in 1986. In 2006, the land was appraised at $105,000. Now leverage aside, I made an annualized return of over 50%, while he made an annualized return of 3%. Well, I hate to tell you this, but it was the same location and we made drastically different returns on our money.

Was the reason I did so well because I studied and analyzed the market and knew prices would substantially increase, or was I just lucky?

In reality – it was probably a combination of both. You need to do your research, but it certainly helps to have luck on your sid

many cycles of boom and bust. While it is true that real estate generally will go up 5% annually over the long term, there are generally short term periods of substantial price increases followed usually by shorter term and less volatile periods of price decreases. Then there are often extended periods of flat to small increases. The key is to know when to buy and sell in the cycle.

Obviously, you want to buy during the flat period just prior to the next uptick. Determining this exact time can be difficult. But if you study long enough you can spot the signs.

Let me give you an example of good timing. I bought a parcel of land in 2004 for $45,000. The man I bought it from paid $28,000 for it back in 1986. In 2006, the land was appraised at $105,000. Now leverage aside, I made an annualized return of over 50%, while he made an annualized return of 3%. Well, I hate to tell you this, but it was the same location and we made drastically different returns on our money.

Was the reason I did so well because I studied and analyzed the market and knew prices would substantially increase, or was I just lucky?

In reality – it was probably a combination of both. You need to do your research, but it certainly helps to have luck on your sid

g the flat period just prior to the next uptick. Determining this exact time can be difficult. But if you study long enough you can spot the signs.

Let me give you an example of good timing. I bought a parcel of land in 2004 for $45,000. The man I bought it from paid $28,000 for it back in 1986. In 2006, the land was appraised at $105,000. Now leverage aside, I made an annualized return of over 50%, while he made an annualized return of 3%. Well, I hate to tell you this, but it was the same location and we made drastically different returns on our money.

Was the reason I did so well because I studied and analyzed the market and knew prices would substantially increase, or was I just lucky?

In reality – it was probably a combination of both. You need to do your research, but it certainly helps to have luck on your sid

e an annualized return of 3%. Well, I hate to tell you this, but it was the same location and we made drastically different returns on our money.

Was the reason I did so well because I studied and analyzed the market and knew prices would substantially increase, or was I just lucky?

In reality – it was probably a combination of both. You need to do your research, but it certainly helps to have luck on your side.

So remember, the old adage is true – “timing is everything.”