A Proactive vs Reactive Real Estate Investor
I am always trying to remind everyone I come across that panicking never has solved any problems. There is not one time someone can say we panicked, did nothing & we solved our most eminent problem. The key to winning in just about every setting is being proactive rather than reactive. Playing basketball I remember feeling like sometimes we focus so much on what the other the team is doing and neglect doing what we do well. Worrying about everything the other team was going to do instead of focusing on executing what we wanted to do. That lesson was very valuable being in real estate and speaking to several daily one thing that sets the winners apart is their vision. Their ability to attack instead of wait around and react. A proactive investor is one who knows a problem will occur but shifts in order to deal with said problem. A reactive real estate investor deals with problems as they occur, which we know in most cases is a receipt for disaster.
Many economists will tell you every housing market has a cycle, recovery, expansion, hyper supply, recession. A proactive investor understands what shifts, and decisions need to be made with their real estate investments to minimize exposure and maximize opportunity. Sometimes that means selling a piece of property that allows you to be more liquid to take advantage of opportunities in markets where you have a chance to buy at a distressed price. A reactive investor is waiting to see what is going on in the market sometimes takes a huge loss, panic selling.
Everyday sellers need to be thinking proactive as well, with looming uncertainty and job stability being questioned be proactive. That may mean calling your mortgage lender and having a plan in place. That could also be deciding to sell your home and rent to protect credit and have available capital. Reactive sellers get stuck, get behind, and end up having to sell at a discount just to avoid any more stress.