THE CHICAGO FORECLOSURE BLOG

Be Greedy When Others Are Fearful

One of my favorite investment philosophies comes from the great Warren Buffet that states “Be fearful when others are greedy and greedy when others are fearful”.  This may sound very basic but has been a strategy that I have followed for many years of investing. Warren Buffetts statement is very similiar to the statement made by Sun Tzu in the Art of War, that states when the enemy attacks; retreat and when the enemy retreats; attack.

Most beginner real estate investors buy when the market is red hot and when the news gets bad, they jump out of the market. The same holds true with stocks and almost any investment. House prices go up and house prices go down.  Once the amateur investors start retreating (selling off their real estate below market value), the seasoned investors follow Sun Tzu’s advice and attack.

Today, we are in one of the best buying markets. Banks and investors are fearful. Smart investors are greedy. There are spectacular deals available. We can get into markets unatainable in previous years. Remember Dupage foreclosures two years ago? Neither do I. They didn’t exsist. Prices were too high and as a result I did not buy in these markets.

Today, our accounting department reported Chase Real Estate had 62 foreclosure units pending in the month of January. Markets are getting better, the savvy investors are buying. Are you going to buy when the markets are hot or when the markets are cold? The best deals are to be had NOW!