The Real Estate Expert: Bottom Fishing

Big fish are at the bottom right?

I hear of that these days. Speculators seem to be diligently searching for the bottom of the market. I deal in real estate, but many markets are performing similarly these days so the same applies.

First, is a bottom bad? Not necessarily. It creates a great environment for the purchase of undervalued assets. I know, I know, I'm an optimist! However, the truth is, a lot of folks have made fortunes by purchasing assets at just the right time.

Next, is seeking the absolute bottom the best strategy? Possibly not either. By the time the bottom actually hits much of the quality product has been picked off by other buyers. Therefore, one strategy is to intentionally seek out the "pre-bottom". Hmm, sounds easy right? Likely not. However, if timed right, you may see a short-term decline but over a longer term the high quality asset tends to survive better in all market conditions.

Remember, this analysis is part science and part artform. There are moderate amounts of fact that support instinctual assumptions to gauge the peaks and valleys. Also remember perfection is not the goal. The odds are against you, but a skilled analysis will get you close enough for successful investing.