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The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

Technical Analysis

Veteran international investor John Corey offers his latest thoughts

Real estate investing is not a trader’s world. While some people focus on  short-term deals, it is pretty rare. Unlike the stock market where you can be in and out in a second, the trading of a property is a challenge. Each home or commercial building is unique. There is not a deep pool of buyers and sellers all ready to transact in seconds. The process is slow. Moreover, the friction (legal, tax and other costs per trade) is high.

So, as much as we love debating the ‘market’ and the broader trends, little of that matters to the profitability of a transaction. How you negotiate, the motivation of the two sides, the availability of finance and the condition of the property drives what is possible.

Creativity helps
Creativity is the art of seeing what others miss. To recognise what is legally and financially possible. Knowledge is power because you can think of more alternatives. That said we are not talking about magic.

Acquire knowledge through focused study and live practice. The more creative the proposed offer, the more you need to bring the other side around to what you are suggesting. Moreover, it would help if you got their lawyer or tax advisor on board with what you are proposing.

If you do not know how to get a deal over the line, consider recruiting someone to join your team. Pick someone whose knowledge, skills and resources tip the scales in your direction. They can join your team on a case by case basis.

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