In a boom market, investors seem to be able to make money by throwing darts at a board, but how does one do well in a down market. There are many ways to do well in a down market, but this is the best way that we have found to do well in any market condition. We “rotate” our investment styles to match the economic conditions of the time.
We use three investment strategies in rotation. First, we invest in real estate, both fix-n-flip and rental. These tend to do very well in stronger and flat markets. Second, we lend do commercial entities, but these investments also do well in those stronger and flat markets. Our third area, the area which we have become known for, is investing in nonperforming real estate loans. When markets are down, loan defaults rise creating opportunities to purchase delinquent real estate loans at a discount below the values of the underlying assets. This third area is where we perform better the worse the real estate markets get.
By mastering these three areas of real estate-related investments, an investor can successfully build reasonably steady returns regardless of the strength of the market.
The classes in the membership section of the Institute’s site, www.nilre.com, gives investors a strong start on mastering these three areas of real estate-related investment.