When to Invest in Sarasota Real Estate - Summer 2018

This is an excellent question given the historic peaks and valleys of Florida’s real estate markets. People often suggest buying “at the next downturn” but we consider that a flawed strategy. The Chinese philosopher Sun Tzu believed a military victory lies in the first step one takes, and so it is with real estate investing, too. The first step should be to establish a sound strategy. Identify your goals and then discuss those goals with experienced, successful investors or advisors to determine whether they appear reasonable. Keep in mind that “flipping” real estate should not be a goal; flipping is not a strategy, it’s gambling. Generally speaking, positive yield from real estate is attained on a long-term basis. Real property is not a liquid asset and shouldn’t be treated as such. Occasionally investment goals can be met on a relatively short-term horizon, but that shouldn’t be counted on when evaluating a property. I always recommend the basics – income, location and functionality. Not every commercial property is a “good” investment but if it produces an income then the investment is at a minimum covered. Location is king and quality locations are always in demand; they appreciate the fastest, lease up the quickest and are the last to be hurt in a downturn. If you have questions regarding your real estate strategy or investment goals, please call us. We’d be happy to discuss them with you.