Barbara Corcoran Explains How to Make Money Investing in Real Estate

by: Brian.Brady on October 09, 2007 22:44:07 Leave a comment »

Barbara Corcoran, was on CNBC this morning in a panel discussion about the future of real estate.

Ms. Corcoran's advise was something we've heard her say before:

1- She buys in up and coming areas around her hometown of New York- stick to your knitting

2- She buys with 20% down- prudent use of leverage

3- She makes money when she buys right- getting the right price

4- She holds for five years and "makes a lot of money when she sells"- real estate is a mid to long term investment.

5- During times of confusion, great opportunities pop up- Barbara mentioned that the owners who wouldn't return her calls and e-mails last month are doing it today.

Ms. Corcoran was challenged by the young interviewer, "Can you really do that, today?". Barbara simple replied, "Yes. When there is confusion, there is opportunity".

CNBC reporters can never seem to get their arms around the concept of buying low and selling high in real estate; they seem to think it has to be more confusing.

Ms Corcoran went on the explain that the market has shifted downwards and sellers need to readjust their prices to meet buyers' expectations.

Challenged again, Ms Corcoran explained that sellers do not set the market, buyers do. While there may be unrealistic sellers, with "million dollar lighting systems" who feel they can justify the prices, they will hold out. Sellers with real selling reasons, expanding families, relocation, etc., will be selling and buyers will set that market.

Pretty boring and tired old stuff, huh? It works.

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