A recent article in the Atlanta Journal-Constitution notes that foreclosures in Atlanta have doubled in the last year, and that across the U.S., foreclosures are up 42% year over year! To most people, it makes sense that if real estate prices are headed lower, you have to get out NOW! And that getting into the market now would be suicide. And this illustrates why so many investors struggle to many money investing in the long-term. They are constantly reacting (incorrectly) to what the market does. For many, their lack of knowledge means that they only know one strategy. So they apply it blindly, hoping things will turn out. We’ve seen this in unprecedented fashion with all the flippers out there, buying properties at a high price on the basis they believe someone will come along and buy it even higher (the Greater Fool Theory). As I’ve been warning for the past few years, you CANNOT invest solely on the basis of appreciation — which, unfortunately is what so many investors have done. The market is now showing why I preach this message. If all you’ve invested for is appreciation, you have to hope prices go up. If they don’t, you’re in trouble. I believe in the next 5 years, there are going to be absolutely incredible buying and investing opportunities in U.S. real estate. There are going to be so many foreclosures, that the inventory of available deals will be spectacular. However, you still need to know what you’re doing to reduce your risk and lock in profits when you buy. A very good friend of mine, Dean Edelson, who is one of my guest speakers at MasterWealth, is one of the top specialists in a specific niche of pre-foreclosure investing. Dean agrees that the opportunities ahead are simply amazing. As an investor, it’s important to recognize that the biggest opportunities as an investor are when the market is highly volatile and turbulent. Whether it’s going up or down, you can make money. Of course, if you don’t have the knowledge and tools to understand HOW to invest in each market, you can also get your head handed to you. It’s exciting for me knowing that many of my students are entering what’s going to be a bonanza for educated, smart U.S. investors who know how to make money when there’s so much fear in the marketplace. And as for Canada, I don’t see the same problems coming north of the border to any degree that the U.S. market will experience. Many markets across the country have cooled, and some are seeing flat prices. However, don’t expect markets to drop like they will in many areas of the U.S. It simply won’t happen, because the fundamentals in Canada are much better than in the U.S. So strap in and make sure you learn and understand WHAT strategy to use in the market you’re in! It doesn’t matter where you are . . . there’s money to be made! 2007 is going to be an emotional year for many people in real estate. The only question is, will YOUR emotion be FEAR of what you are losing, or EXCITEMENT at all the money you make?]]>