Now that the "Big Three" have spoken, and have announced 
their detailed plans for the future, we as active real 
estate investors must also be realistic and announce our 
plans as well.  
 
Yes, the market has changed and we must adapt accordingly. 
Things aren't going to be the way they used to be. We must 
be prepared to embrace change, be on guard for new 
opportunities, be flexible, and be ready to act swiftly. 
 
Listed below are five points to consider when confronting a 
changing real estate market. 
 
1. Develop a plan - Put it in writing, set goals, 
establish timelines and review it quarterly.  
 
2. Know your market - Choose an area to "farm". Become 
an expert on housing price trends, including houses sold, 
days on market, current houses for sale and rental market 
data. Become familiar with municipal codes in reference to 
licensing, registering rental property and inspections. 
 
3. Find, Fix, Rent & Refinance - The old way was find, 
fix & flip. The alternative now is to find, fix - rent and 
refinance. You must be brutally honest with yourself 
regarding financing availability, rehab skills and time 
commitments. Since you will be holding the property as a 
rental, you must enhance your property management skills 
through attending seminars, buying books & tapes and 
networking.  
 
4. Research financing options - Interest rates are 
low, however, a 30 year fixed rate may not be the best for 
you. Look at 5 and 7 year ARMs; Interest only loans, option 
ARMS, etc. One technique is to have the seller buy down 
your interest rate to a lower monthly payment and increased 
cash flow. It is crucial during these times that every 
property have a positive cash flow.  
 
5. Be Flexible- Probably one of the most important 
points to consider is flexibility. Things change; people 
get married, divorced, get sick, change jobs or move. 
Granted, real estate is not a very liquid asset, however, 
if you buy right, fix it right, and refinance it right, you 
will be in a far better position when change comes about.  
 
 
Good Investing,  
 
Ron Watcke, President  
Real Estate Investors Association of Oakland