Window Closing - A good thing.

Today's blog is an opinion-based piece primarily based on company field trials and observations.


The window is closing.


The metaphoric window aforementioned is in reference to investor opportunity in the residential 'flip' market.

Rather recently, ROMO Group and it's realtor partners have noticed a significant decline in available deals that fit the residential 'flip' model. In other words, the amount of distressed residential properties have become so insignificant, that it's no longer a viable opportunity for serious real estate investors and deal making entrepreneurs. This occurrence had already been felt in larger urban areas and on the country's coasts. But now, the tide has washed it's way into the hardest hit areas of the recession.

Is this a bad thing?

Absolutely not. This means that the country is finally rounding the turn into economic growth and stabilization. It means that less homeowners are underwater on their mortgages, and property prices are on the rise for the long-term. It means that more businesses will be looking to expand, thus hiring more employees.

Real estate is very much a cyclical business. In it's simplest terms, you buy when it's low and you sell when it's high. Timing can be a tricky thing - as seen in the last market fiasco.

However, there will be a frothing period at the top of this newly forming bubble (selling period), followed by a steep decline in real estate value and economic prosperity (buying period). If you look at history, I believe you could reasonably anticipate this cycle to run for 10-15 years. If the past is the greatest indicator of the future, real estate explosion and implosion seems to run in 10-15 year increments (i.e. the late 1970's, the late 1980's, and the mid-2000's). In other words, I believe that we are in store for a 10-15 year economic climb. This is great for everyone.

In order to prosper in business and in life, one must adapt to their surroundings. I am now seeking opportunities in commercial real estate development and retail planning, while continuing to build our rental portfolio. I think this strategic move will only benefit myself, my family and ultimately ROMO Group in the future.

It's really just a game, isn't it? Making money is a game - how well you do depends on how well you play it.

I'll end this write up with a quote: "The definition of insanity is doing the same thing over and over and expecting different results" - Einstein

Till next time ~

Rocky Moore