You know that right now you must make the strongest offer possible in order to “win” properties in the DC area.

….But timing has a lot to do with your strongest offer.

There is a great article in the Washington Post today that details some of the old tricks we had to use in 2005 when we wanted to win our chosen property.

You can find the full article at http://www.washingtonpost.com/realestate/hot-housing-markets-revive-techniques-that-marked-the-bubble-of-a-decade-ago/2013/04/10/8565827c-a078-11e2-9c03-6952ff305f35_story.html

We just talked about highest and best requests a few days ago, and the WP article touches on the low ball listing tactic that usually comes with those competitive auction style scenarios.

I might also remind you that the last time we used those tactics was back in 2005-2006 – just before we had massive issues with our real estate pricing across the country.

Be careful out there – and don’t let emotions get in the way of a good business plan.

Let me know if there is anything I can do to help your business,

John Peterson

I had an interesting conversation a few days ago that ended with this comment:

“Share my story with the other members, and let’s hope they don’t make the same mistake I did when I got started.”

I hung up the phone a few days ago and was reminded of something….

Our WREIA members are an amazing group of people.

This long-time WREIA member read our post a few days ago and gave me a call at the office. He wanted to share his story with me, and pass some of the details on to you.

This member “finally got serious” about real estate and had spent a little more than a decade accumulating a decent net worth of a little over $3 Million dollars. He was definitely the “millionaire next door”.  You never would have known his net worth by the car he drove or his modest background.  He was never flashy, and never heard bragging about his business success.

But, he lost nearly all of his net worth over the last few years mostly to some bad advice when he was first getting started.  The attorney he used when he got started as a real estate investor was a great real estate transaction attorney – but he knew next to nothing about asset protection.

My friend went on to tell me exactly how he could have kept the majority of his net worth in tact.  He could have structured his entire business just a little differently, and most of his losses could have been avoided.

Knowing how to find, fix and flip a house is important.  But it doesn’t matter how much you make if you leave yourself and your assets exposed to lawsuits.  Just one bad mistake can take down your entire net worth, and leave you penny-less trying to defend yourself.

After spending so much time and working so hard, losing so much is a terrible story. But the conversation really hit home with his final point:  It put an enormous amount of pressure on his family.

That is why I am passionate about our topic at WREIA this month.  Helping you avoid future problems and keeping you in business is something I am passionate about.  You have heard us say it frequently at WREIA – sometimes not doing a deal can be the best decision of your year.

There have been a few times in the history of WREIA when I really wanted everyone to hear our guest speaker.  Next Monday, April 15th 2013 is one of those months when I wish I could reach out and invite everyone in the DC area personally who has anything to do with   real estate investing.

Keeping what you accumulate is just as difficult and important these days as earning it.  And that is why we will be discussing Asset Protection and Tax Reduction next Monday at WREIA.

We have an amazing membership at WREIA.

Come out on Monday night, increase your knowledge and network with a fantastic community of DC area investors.

Let me know if there is anything I can do to help your business.

John Peterson

The market here in the DC area is heating up again, and I am starting to see people make mistakes.  They are paying too much for properties and not leaving enough room to make a profit.

Edwin Land, the guy who invested the Polaroid camera, described a mistake best when he said : ‘A mistake is a future benefit, the full value of which is yet to be realized.”

How can paying too much provide a future benefit?  Because when the project is finished –  now you have learned something.  Many people walk away from their first real estate “deal” and say “I’m never gonna do that again.”

How quickly the tide has changed.  18 months ago, talking about real estate made people uneasy.  Fast forward to the spring of 2013, and you would think we have a real estate gold rush going on.

But let me show you something…..

This is a chart I pulled from Trulia.com showing prices in the Rockville, MD area over the last 10 years.

Notice that every spring – even in a recession –  we have upward price bumps?  Spring is a great time to sell property – but not the best time to be buying.

Have some patience – and don’t start making mistakes.  We may be out of the lowest point when it comes to prices – but don’t go making mistakes by being to eager to get in the game.

This is a terrific business to be in if you treat it like a business.  You also need to surround yourself with good people that will help you avoid mistakes.  Many times, avoiding mistakes and not doing a deal can be as important to your career as hitting the occasional home run.  I suggest you stay disciplined and also come out and join us at WREIA on Monday.

Keeping what you accumulate is just as difficult and important these days as earning it.  And that is why we will be discussing Asset Protection and Tax Reduction next Monday at WREIA.

Let me know if there is anything I can do to help your business here in the DC area,

John Peterson

If you have been making offers in the DC area lately, you will want to read this…..

We just posted a few comments on Highest and Best offers over on ProfitableProperty.com.

Click Here and we will magically take you across the Interweb for the full article.

Enjoy!