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From inflation to interest rate hikes to low inventory and elevated prices, today’s market can give some real estate investors pause. Industry volatility can set off emotional reactions in investors who haven’t fortified themselves against the ups and downs of the market. Navigating these fluctuations takes knowledge, patience, peer support, and the right set of tools to keep cash flow under control and your head above water.
We spoke with three investing experts about their strategies for building and maintaining a successful real estate investing business—regardless of the challenges the market might present. Here are their best tips.
Rely On Your Real Estate Fundamentals
It’s true that some things just never go out of style. For Liz Faircloth, co-founder of The Real Estate InvestHER and real estate investment firm DeRosa Group, it all comes back to fundamentals.
“There are fundamentals that will never go out of date, no matter what’s happening in the economy,” she says. “You need to buy from a motivated seller. If they’re not motivated, you’re going to pay top dollar. I don’t think that ever goes out of style. Regardless of the economy, if it’s a buyer’s market or a seller’s market, the fundamentals of investing always are true. There’s always opportunity, but I think this market needs patience.”
Being patient requires that investors leave their emotions out of the deal. “This is another great piece of advice a mentor gave me years ago and that I tell my students regularly,” says Matt Faircloth, who co-founded DeRosa Group alongside wife Liz and who teaches new investors how to navigate the market. “You’ve got to leave your emotions out of it. Real estate can drum up emotions because the prices and stakes can be very high. I’ve seen people lose emotional control in real estate. The best…