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