Baron Rothschild, of the famous banking dynasty, said the best time to buy was when there is blood in the streets. In other words — when everyone is selling, it’s a great time to buy! This would seem to be very reasonable advice, yet few people follow it. People generally are more comfortable doing what everyone else they know is doing.

Buy Low Sell High??

We have all heard this timeless saying, however most people Buy HIGH and Sell LOW! Do you know anyone who bought into the stock market in 2000-2001 when they saw all their friends already making money? There was lots of proof at that point that you could make money in stocks, yet investors who stepped in at that point saw prices fall quickly. When things got bad and everyone was selling they figured they should sell also and many people lost as much as 90% of their investments. They bought at the wrong time and then sold at the wrong time.

Buy When Everyone Is Selling!

The laws of supply and demand say that when there is an abundance of supply that prices must come down. If you are selling now be aware that you are entering an arena of fierce competition — you have very little advantage in a negotiation. But if you have the stomach to be a buyer, then your reality is much different right now. There is an abundance of property to view, and you have the ability to negotiate price, or terms of purchase or financing or both!

OPPORTUNITY KNOCKS!

Intelligent investors will recognize this market for what it really is — a buying opportunity! Most people will follow the crowd and try to sell during the worst time to sell, but others with guts will profit. More millionaires were made during the great depression than at any other time in history to that point, in spite of the suffering of the majority of people. To make an emotional decision to sell right now along with everyone else is a mistake! The market will rebound. This must be a fact. The following are population and median home prices since 1900:

YearPopulation Home Price

1900 75 Million $4,300

1950 150 Million $14,300

2000 225 Million $139,500

Most rational people would agree that the population in the USA will continue to grow, and that this increase in supply combined with inflation will push home prices over the long term in the same direction they have been going for the past 100 years — UP!!

The Time To Act is NOW!

You have likely been given equity by the market over the past few years — you should consider using it, whether or not you have other funds to invest. We help investors every day reposition their equity in their properties so they can grow their assets, while keeping their monthly payments manageable. YOU may have the ability to invest in undervalued real estate without impacting your current monthly budget!

Most people think if they rent a property and they have a negative cash-flow that it is a bad investment. Many of these same people fail to recognize that stocks, mutual funds, and retirement accounts are also negative cash-flow investments. Real Estate is unique in that it provides the ability to leverage that negative cash flow to earn appreciation on a much larger asset while giving you tax breaks along the way!

www.BridgeCapitalLending.com