A Genius Idea: Buy Low, Sell High - Revised for RIGHT NOW!

I originally wrote the first part of this blog exactly a year ago, without any references to 90s rap. There's been a complete shift in Calgary's real estate market since then, and I've greatly improved my ability to relate unrelateable things. I am still committed to beating the 'buy low, sell high horse' until everyone that reads my blog is complaining: Mo Money Mo Problems...

During the infamous 'boom' years of 2006-2007 I discovered that, instead of putting my newly acquired kinesiology degree to use, I could make twice as much money doing easy temp work for oil companies.

The first company that hired me was a small office, only about 15 employees; all of them dynamic and knowledgable, all of them raking in big time money. The Vice President, Dean, took an interest in me because he was quick witted and sarcastic and found I shared this trait. One day, I was stuffing receipts from companies they recently sold off into storage boxes. Dean was bored and sauntered over to my desk, 'Wanna know what we really do here?'

'I do!' hoping it was James Bond like espionage.

'We buy low and sell high.'

'Oh, ok.' We've all heard this simple piece of advice before so I went back to work stuffing bills in boxes. 'You don't get it. We buy low and sell high on an epic scale. Right now, the market is good so our office is small. We've sold off almost all of our assets at an enormous profit. We're going to buy back half of the companies we sold in a few years at a third of what we sold them for, hang on to them until the market goes up, then sell them again. When the market is good the only thing you should have is money in your pocket to get back in when it inevitably goes back down.'

Brilliant advice. That company has weathered the recession and remains enormously profitable and influential.

When my mandate there concluded, I moved one to another company that was losing money like Allen Iverson at the club. Yes, losing money during the oil boom. So, in their wisdom, they decided to purchase another oil company that was also losing money. They bought something of low value at the highest price. Their logic was 'If we can turn both companies around quick enough, and the price of oil stays at a record high long enough, we'll make decent money.'

That company no longer exists...

This past week I talked to two people who call themselves real estate investors. They were hot to trot a year ago, throwing money around in real estate like Diddy at da club. This was when Calgary's market lacked supply, vacancy rates were minuscule, and good homes sold in hours, not months. Now, they've decided to 'wait and see what happens with the market'. Like Puff Daddy putting his money back in his baggy pants, sitting in the corner, texting Mase.

Now is not the time to text Mase! Someone told me this week 'I'm waiting for the market to bottom out'. When do we know a market has bottomed out? The day after it starts going up. Markets are not like Mase's career. Markets survive disastrous times. Markets recover. One unforeseen jump in the price of oil and our market will be hotter than Feels So Good in 1997.

Let me break it down for those who are not fans of 90s rap: NOW is buy low time!!

Smart investors, the ones who sold off their investments a year ago, are getting back into the market right now like Notorious on a cheese burger.

If you want to be a serious real estate investor with Mo Money and Less Problems, call me. Now is the time to act.

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Foat and Associates

Foat and Associates

CENTURY 21 Summit Realty
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