How to Start Investing in Real Estate Successfully
Intro
Investing in real estate can appear daunting at first glance. However, it presents manifold opportunities for astute individuals willing to navigate its intricacies. Starting in this arena requires more than capital; it needs an understanding of the market, strategies, and risks involved.
This guide aims to provide the foundational knowledge necessary for anyone aspiring to make their mark in real estate. The focus will be on various investment approaches, property assessment, financing methods, and the critical importance of thorough market research. By elucidating these aspects, readers will be better equipped to embark on their investing journeys.
Real estate investment is not merely about buying property. It encompasses the analysis of potential acquisitions, an awareness of financing options, and an understanding of how different market dynamics come into play.
"In real estate, you make your money when you buy, not when you sell. Knowledge and timing are key."
By grasping these essential elements, investors can enhance their chances of success and minimize potential risks.
As we delve deeper into the world of real estate investing, let us first examine the inspiration derived from architectural styles, which can inform property selection and investment decisions.
Understanding Real Estate Investment
Investing in real estate is a multifaceted endeavor that intertwines financial insight, strategic planning, and market awareness. The importance of this topic cannot be overstated. Understanding the principles of real estate investment lays the foundation for informed decision-making. Moreover, the benefits include the potential for substantial financial returns, portfolio diversification, and tax advantages. For anyone considering entering this asset class, comprehension of real estate investment is crucial to navigate the complexities of property ownership and management.
Defining Real Estate Investment
Real estate investment refers to the purchase, ownership, management, rental, or sale of real estate for profit. The subject spans a vast range of activities, from buying residential properties to investing in commercial spaces or even participating in real estate investment trusts (REITs). Each of these activities comes with its intrinsic risks and rewards. Understanding what real estate investment entails enables investors to identify opportunities that align with their financial goals, risk tolerance, and personal interest.
Types of Real Estate Investments
Real estate investment can be categorized into several distinct types, each with unique characteristics and investment potential.
Residential Properties
Residential properties include single-family homes, condominiums, and multi-family units. One key characteristic of residential properties is their demand, as they house the vast majority of the population. This demand contributes to steady rental incomes and the potential for property appreciation over time.
The unique feature of residential properties is that they often provide a level of stability compared to other types of investments. However, they also come with responsibilities like maintenance, and vacancies can affect cash flow. For beginner investors, residential properties are an attractive entry point into real estate due to their familiarity and the availability of financing options.
Commercial Properties
Commercial properties encompass office buildings, retail spaces, and warehouses. A notable characteristic of commercial properties is the lease structure, which tends to be longer than residential agreements. This can lead to more predictable cash flows.
Commercial properties often require more substantial capital investments but can yield higher returns. However, they are more sensitive to economic shifts, making them riskier during downturns. Understanding market trends and property locations is essential when considering commercial investments.
Industrial Properties
Industrial properties are typically used for manufacturing, production, and distribution activities. The defining feature here is their purpose, which is fundamentally linked to the supply chain and logistics sectors. These properties are less common and may present unique opportunities for growth, especially as e-commerce expands.
Investing in industrial properties can yield stable, long-term leases. However, challenges include zoning regulations and the need for specialized knowledge in tenant industries, which can complicate investment decisions.
Real Estate Investment Trusts (REITs)
REITs provide a way for individuals to invest in real estate without physically owning properties. They are companies that own, operate, or finance income-generating real estate across various sectors. This offers diversification, as investors gain exposure to different assets without significant capital commitments.
A unique feature of REITs is that they are required to pay out at least 90% of their taxable income in dividends, which can result in attractive yield opportunities. However, investing in REITs also carries risks related to market fluctuations and management performance. Nonetheless, REITs can be suitable for those looking to invest in real estate passively while benefitting from regular income streams.
"Understanding the types of real estate investments can significantly enhance decision-making capabilities, allowing investors to tailor their strategies according to their goals."
Assessing Your Financial Situation
Assessing your financial situation is a vital step when you begin your journey in real estate investment. Understanding your current financial state allows you to identify what you can afford, evaluate how much risk you can take, and create a solid plan for your investments. This assessment is not just about how much cash you have in hand; it includes a comprehensive view of your income, expenses, debts, and assets.
Analyzing Your Current Finances
To analyze your current finances effectively, start by creating a detailed overview of your income and expenses. List your sources of income, including salary, freelance work, and any other revenue streams. Then, categorize your expenses into fixed and variable costs. This exercise will give you a clear picture of your cash flow.
Additionally, examine any existing debts like mortgages, loans, and credit card balances. Understanding your debt-to-income ratio is crucial, as lenders will use this figure to assess your creditworthiness. If necessary, focus on reducing your debts before committing to any real estate investment. This will not only improve your financial health but also increase your chances of securing favorable financing options.
Setting Investment Goals
Setting clear and achievable investment goals is essential for guiding your real estate journey. Start by specifying what you aim to achieve. Are you looking for long-term wealth creation, or do you prefer short-term gains? Distinguishing between these objectives will help you shape your strategy.
Consider the timeline of your investments. Some investors might look at a time horizon of several years before seeing substantial returns, while others may seek quicker turnover. Your goals should also reflect your risk tolerance. It’s essential to balance ambition with realistic expectations.
Here are some questions to help formulate your investment goals:
- What types of properties do you want to invest in?
- What is your budget for the investment?
- How much time can you dedicate to managing the investment?
- What are your long-term financial objectives?
With specified goals, you can establish a more focused investment strategy.
Goals without a plan are just wishes. By defining clear objectives and assessing your financial condition, you give yourself the best chance for success in real estate investing.
Researching Real Estate Markets
Researching real estate markets is a crucial step for anyone who wants to invest successfully. This area can significantly influence the value of your investment. Without comprehensive market research, decisions may be based on assumptions rather than evidence.
By diving deep into the local real estate landscape, you equip yourself with knowledge that can translate into better investment choices. Factors such as local economic health, housing demand, and employment rates are all part of this intricate puzzle. Proper research will help you identify not only where to invest but also when to enter the market or pull out.
Identifying Emerging Markets
Emerging markets represent regions where real estate potential is growing. These areas can provide high returns as they begin to develop. To spot these markets, pay attention to trends such as population growth, new job opportunities, and investments in infrastructure.
Investors should consider the following:
- Demographics: Growing populations often indicate increasing demand for housing.
- Job Growth: Areas with increasing job opportunities attract new residents, boosting housing demand.
- Infrastructure: Major developments, like highways or public transportation, can enhance an area’s desirability.
Being first to recognize an emerging market can set you apart from competition.
Understanding Market Trends
Market trends indicate the direction in which real estate prices are moving. Understanding these trends allows investors to make informed predictions about future market behavior. For instance, is property value rising or declining? What are the signs of a buyer’s or seller’s market?
Key indicators to watch include:
- Average Selling Prices: Track how prices change over time to gauge market health.
- Sales Volume: A high sales volume may indicate a strong market, while low sales might suggest stagnation.
- Days on Market: If homes are selling quickly, demand is high. Conversely, extended periods without sales could indicate trouble.
Keeping abreast of trends helps maintain an edge as an investor.
Utilizing Online Resources for Research
The internet provides various platforms where current data and market analyses can be found. Websites like Zillow or Realtor.com offer real-time listings and insights on local markets. Additionally, forums such as Reddit have communities discussing specific market conditions, sharing strategies, and experiences.
Some helpful online resources include:
- Zillow: Provides data on property values and trends.
- Realtor.com: Offers comprehensive listings and local market insights.
- Reddit: Join subreddits focused on real estate investing for community advice.
- Facebook Groups: Many local investing groups can provide real-time feedback and networking opportunities.
Staying informed through these online channels may enhance your market understanding exponentially.
Decisions made without proper market research are often misguided. Comprehensive research can lead to successful outcomes in real estate investing.
Investment Strategies to Consider
Investing in real estate is not merely about acquiring properties. It encompasses a range of strategies tailored to specific goals, risk tolerances, and market conditions. Understanding these strategies can significantly impact your long-term success, ensuring that your investments align with your financial objectives and market realities. Each method has its own inherent risks and rewards, requiring careful consideration and planning.
When evaluating these strategies, it is crucial to reflect on your investment goals—be it generating immediate income, building long-term wealth, or a combination of both. By doing so, you can position yourself effectively within the property market.
Buy and Hold Strategy
The Buy and Hold strategy is one of the most traditional ways to invest in real estate. This approach involves purchasing a property and holding onto it for an extended period. The aim is to benefit from property appreciation over time while collecting rental income along the way. This strategy is beneficial because:
- It leverages the natural growth of real estate values in the long run.
- Rental income can provide a steady cash flow, which can offset costs and provide extra income.
- Investors have the potential to benefit from tax advantages associated with property ownership.
However, this approach does require patience and a willingness to manage properties. This can be time-consuming, especially if issues arise with tenants or property maintenance. Overall, the Buy and Hold strategy suits those who can commit to a longer investment horizon.
Fix and Flip Strategy
The Fix and Flip strategy involves buying properties that are undervalued or in need of significant repairs and renovating them for resale. Successful execution requires a keen understanding of the real estate market and renovation costs.
Benefits of this strategy include:
- The potential for quick returns on investment if the property is sold after improvements.
- It allows investors to leverage skills in renovation or management, often leading to higher profit margins.
On the flip side, this method carries risks. The market can fluctuate unexpectedly, and renovation costs can exceed initial estimates. Those new to this strategy must conduct thorough research and prepare for financial unpredictability.
Long-term Rental Investments
Long-term rental investments focus on properties leased to tenants for an extended period, usually exceeding one year. This strategy can provide a stable income stream and can be less stressful compared to short-term rentals, as tenant turnover is lower. Key advantages include:
- Predictable rental income that can help in cash flow management.
- Typically lower maintenance frequency compared to short-term rentals.
It's essential to target areas with strong rental demand to ensure consistent occupancy. Market analysis and tenant screening play crucial roles in long-term success. However, managing tenants over time can bring challenges, such as eviction processes and property upkeep.
Short-term Rental Opportunities
Short-term rental opportunities refer to properties rented out for brief periods, often through platforms like Airbnb. This strategy has gained popularity due to the rise of travel and tourism.
The benefits include:
- Higher rental rates, especially in tourist-heavy locations.
- Greater flexibility in using the property when not rented.
However, the short-term rental market can be volatile and heavily regulated in many areas. It's essential to understand local laws before proceeding. Managing bookings and maintaining properties can also be labor-intensive. Therefore, careful planning is vital to maximize profitability while minimizing stress.
Remember, the best investment strategy depends on your unique goals and risk tolerance. It’s crucial to assess your situation thoroughly before committing.
Evaluating Properties
Evaluating properties is a pivotal step in the real estate investment journey. This process determines whether an investment aligns with financial goals, especially as property values can fluctuate significantly over time. For an astute investor, understanding the nuances of valuation, location, and thorough inspections is essential.
Understanding Property Valuation
Property valuation involves estimating the current worth of a real estate property. It is a critical activity that affects purchase decisions and investment strategies. Several methods exist for valuing properties, including the sales comparison approach, the income approach, and the cost approach.
- Sales Comparison Approach: This entails examining prices of similar properties in the area. It's beneficial in assessing whether a property is fairly priced based on market conditions.
- Income Approach: This relies on potential income generation from a property, suitable for rental and commercial real estate. Capitalization rates, which indicate the rate of return on an investment, also come into play here.
- Cost Approach: This considers the cost of rebuilding the property minus depreciation. It suits unique or less typical properties.
Understanding these methods allows an investor to evaluate property value with a critical eye.
Assessing Location and Neighborhood
Location remains paramount in real estate investment. A property's proximity to amenities, schools, public transportation, and employment centers can significantly influence its appeal and value over time. Conducting thorough neighborhood assessments provides insights on long-term growth prospects. Factors to consider include:
- Crime Rates: An area with a low crime rate is often more desirable.
- Schools: Good school districts bolster property values, attracting families.
- Local Developments: Planned infrastructure, like new roads or shopping centers, can indicate future value increase.
Proximity to recreational areas, cultural institutions, and public transport hubs enhances a property's attractiveness.
Conducting Property Inspections
Property inspections are an essential part of the evaluation process. These inspections help uncover hidden issues that could affect the property's value and your overall investment return. Common areas of concern include:
- Structural Integrity: Foundation problems can lead to costly repairs.
- Electrical Systems: Outdated electrical systems might not only present safety hazards but also require updates, impacting budget.
- Roof Conditions: A worn-out roof poses immediate costs and long-term issues.
Hiring a certified inspector can help identify such issues early. A well-documented inspection report aids in making informed negotiations and decisions.
"A thorough evaluation of properties can save investors from potential pitfalls while maximizing returns."
In essence, evaluating properties comprises a careful analysis of value, location, and condition. This careful approach significantly increases the likelihood of achieving long-term success in real estate investment.
Financing Your Investment
Financing your investment in real estate is crucial. It serves as the backbone for making any venture practical and feasible. Without adequate financing, even the best real estate opportunities may remain out of reach. Understanding the nuances of financing can also lead to better investment decisions and greater returns. Different financing options come with unique characteristics and implications for profitability.
Exploring Financing Options
Understanding various financing options helps investors align their financing strategies with their investment goals.
Every option has its advantages and drawbacks, and finding the best fit is essential for long-term success in real estate investing.
Conventional Mortgages
Conventional mortgages are one of the most commonly used financing methods in real estate. They are offered by banks and credit unions, usually requiring a stable credit score and a down payment. The primary characteristic of conventional mortgages is their fixed or adjustable interest rates over a long term, often 15 to 30 years. This offers predictability for budgeting.
- Benefits: The most notable advantage is lower interest rates compared to other loan types. They also usually have lower fees and allow for various repayment plans.
- Disadvantages: However, they require stringent qualifications, including a good credit score and proof of income. This may present challenges for first-time investors.
Private Loans
Private loans are an alternative for investors seeking more flexibility in their funding. They can be sourced from individuals or private lenders, often with fewer restrictions than traditional loans. The key characteristic of private loans is the negotiation flexibility between the borrower and lender.
- Benefits: The ability to customize terms and quicker access to funding are significant advantages. These loans also can be useful when conventional financing is difficult due to credit issues.
- Disadvantages: On the downside, interest rates may be higher than conventional mortgages. There may also be less legal protection, which could lead to higher risk.
Hard Money Loans
Hard money loans are another viable financing option for real estate investors. These loans are typically short-term and backed by the value of the property rather than the creditworthiness of the borrower.
Their main characteristic is quick funding, aimed mostly at investors looking to capitalize on immediate opportunities like fix-and-flip investments.
- Benefits: They allow for fast acquisition, often in a matter of days. This can be vital for investors in competitive markets.
- Disadvantages: High-interest rates and shorter repayment terms pose considerable risk. Additionally, they are generally not suitable for long-term ownership because of their cost.
Understanding Interest Rates
Interest rates play a significant role in determining the total cost of an investment. They influence monthly payments and overall profitability. Variations in interest rates can occur based on economic conditions, the creditworthiness of the borrower, and the type of financing selected. A small difference in rates can lead to significant financial implications over the loan's lifespan. Therefore, understanding how to analyze and predict these rates is essential.
Calculating Investment Costs
Accurately calculating investment costs is vital for making sound financial decisions. Beyond the price of the property itself, various other factors must be considered:
- Closing Costs: Typically between 2% to 5% of the property purchase price.
- Property Taxes: Vary by location and can significantly affect your total costs.
- Maintenance and Repair Costs: These should be estimated based on property age, type, and condition.
- Insurance: It is a necessity; costs can vary widely based on coverage.
A comprehensive assessment of these costs ensures that you are not blindsided by future financial discrepancies. Always use careful calculations, as mistakes can lead to losses. Keep in mind that having the correct financing for your investments sets the stage for future growth.
Property Management Essentials
Effective property management is crucial for anyone entering the real estate investment arena. It ensures that your investment remains viable over time, maximizing both revenue and tenant satisfaction. Proper management encompasses various tasks such as tenant screening, property maintenance, and rent collection. These elements are not just tasks; they are the backbone of a successful investment strategy.
Without effective property management, investors risk falling into financial traps that can arise from neglect or poor tenant relations. Thus, understanding the essentials of property management allows you to optimize your investment returns, while also maintaining the property’s value over years.
Evaluating Property Management Options
When considering how to manage your real estate investments, there are generally two primary approaches: self-management and professional management. Each option has its own strengths and weaknesses deserving of attention.
Self-management vs Professional Management
Self-management means handling all aspects of property oversight yourself. It is an appealing option for some investors because it can save on management fees. Investors who are hands-on and have the time may find it a beneficial approach. A self-managed investment allows for direct control over tenant interactions and decisions regarding maintenance and repairs.
However, this involves a substantial time commitment and may lead to burnout if multiple properties are involved. On the other hand, professional management firms offer expertise and industry knowledge in managing rental properties. Their services typically include tenant sourcing, lease management, and resolving conflicts.
A key factor in the decision-making process is your own comfort level and experience in handling property management tasks. If you find it challenging, hiring professionals might be the better choice, although it comes with added costs.
Understanding Management Fees
Management fees are an essential aspect that investors must understand. These fees can vary significantly based on the services offered. Generally, property management companies charge a monthly fee, often a percentage of the collected rent. Understanding how and when these fees are applied is vital to ensuring that your investment remains profitable.
One advantage of using professional services is the expertise they bring in tenant retention and property marketing. However, high fees can eat into your returns. Conversely, self-management avoids these costs but may introduce other challenges, such as difficulty in filling vacancies and handling maintenance issues promptly.
"Understanding management fees helps align your investment goals with your expected returns."
Creating Effective Tenant Relationships
Building strong relationships with your tenants can lead to numerous benefits. Satisfied tenants are more likely to renew their leases and take better care of the property. Establishing clear channels of communication fosters trust, making tenants feel valued and respected.
It is essential to set clear expectations at the start of the tenancy regarding property maintenance and rental payment procedures. Regular check-ins, without overwhelming tenants, can also reinforce your commitment to ensuring a positive living experience.
In summary, understanding property management is fundamental in real estate investing. Evaluating whether to self-manage or hire professionals, along with grasping the implications of management fees, can have a major impact on your financial success. Cultivating effective tenant relationships will strengthen your investment portfolio and contribute to long-term sustainability.
Legal Considerations
Understanding the legal considerations of real estate investing is crucial for long-term success. Navigating the complexities of property laws, zoning regulations, and leasing terms can significantly impact an investor’s overall experience. Failing to grasp these elements can lead to costly mistakes, potential lawsuits, and a loss of investment opportunities. Ultimately, knowledge about legal frameworks provides a foundation for making informed decisions, ensuring that investments are secure and compliant with local regulations.
Understanding Local Laws and Regulations
Local laws and regulations govern nearly every aspect of real estate investment. These legal guidelines can vary widely by location, making it essential for investors to familiarize themselves with the specific laws applicable in their target market. Laws can dictate how properties can be used, the conditions for rental agreements, and even the standards for property maintenance.
- Zoning Laws
Zoning laws determine how land can be used. They can restrict certain types of developments or define residential versus commercial areas. Understanding these laws helps investors identify suitable properties for their plans. - Building Codes
Building codes set the standards for construction and renovations. Knowing these codes is necessary for anyone looking to fix and flip or rent out a property. Ignoring these can result in fines or required removals of non-compliant structures. - Rent Control Laws
Some regions have rent control laws that limit how much rent can be charged and how much it can be increased over time. Awareness of these regulations can affect cash flow and investment strategy. - Homeowner Association (HOA) Rules
If investing in properties governed by a homeowners association, it's essential to understand their rules and regulations. HOAs can impose restrictions on property changes and assessments that can affect profitability.
Practicing diligence in understanding local laws aids in minimizing risks while maximizing the benefits of property investment.
Drafting Lease Agreements
Drafting a solid lease agreement is a crucial step in the property management process. A well-crafted lease sets clear expectations for both landlords and tenants, protecting the rights of each party while reducing the risk of disputes. Here are key elements to include in lease agreements:
- Lease Duration
Specify the length of the lease. Indicate whether it’s a month-to-month rental or for a set term, such as one year. - Rent Payment Details
Clearly outline when the rent is due, acceptable payment methods, and any penalties for late payments. - Security Deposit Terms
Define the amount required for the security deposit, conditions for its return, and permissible deductions. - Maintenance Responsibilities
Detail who is responsible for repairs and maintenance of the property. This can include specific duties for both tenants and landlords. - Termination Clause
State the grounds for terminating the lease early, including notice periods and procedures for eviction if necessary.
A good lease agreement not only establishes rules but also enhances tenant relations by promoting transparency. Keeping these factors in mind will help investors navigate the legal landscape effectively.
Risk Management in Real Estate Investment
Risk management in real estate investment is vital for long-term success. Investors must recognize that, like any financial endeavor, investing in real estate comes with its share of uncertainties. Proper risk management not only safeguards investments but also enhances potential returns. Understanding the risks involved lays the groundwork for informed decision-making, allowing investors to navigate potential pitfalls effectively.
Implementation of a robust risk management strategy involves several components. First, it is necessary to identify potential risks, which can include market volatility, property damage, liability issues, and tenant-related challenges. When investors are aware of these risks, they can take proactive measures to minimize their impact.
Another benefit of risk management is that it encourages a systematic approach to evaluating properties and making investment choices. This can lead to a more disciplined investment strategy that is less influenced by emotional responses to market fluctuations.
Furthermore, comprehensive risk assessments contribute to a clearer understanding of potential returns. Investors can align their risk appetite with their financial goals, making choices that not only protect their capital but also promise sustainable growth.
Identifying Risks Associated with Real Estate
Identifying risks in real estate is the first step towards managing them effectively. Key risks can arise from many factors. First, market risks involve fluctuations in the real estate market that can affect property values. Economic downturns or shifts in supply and demand often lead to decreased property values.
Moreover, property-specific risks should not be overlooked. These can include physical damage due to unforeseen events, such as natural disasters, or factors affecting the property’s condition over time. Problems with maintenance can also lead to costly repairs and reduced tenant satisfaction.
Another risk category is tenant-related risks. Evictions, bad debts, or high vacancy rates can affect cash flow. The economic status of tenants can also influence their ability to pay rent, which, in turn, impacts overall investment returns.
Lastly, legal risks are always present. Non-compliance with state and local regulations can lead to disputes, fines, or loss of property rights.
Strategies for Risk Mitigation
Implementing effective strategies for risk mitigation is crucial to protect investments in real estate. Some of the notable strategies include:
- Diversifying Investments: By investing in a mix of property types and locations, an investor can reduce the impact of poor performance in any single sector. This spreads the risk across different areas and asset classes.
- Conducting Thorough Due Diligence: Before making purchases, comprehensive research on the property, its location, and market conditions is essential. This includes property inspections, reviewing financial records, and analyzing comparable sales.
- Investing in Insurance: Obtaining appropriate insurance coverage can safeguard against unexpected events. This could include property insurance, liability insurance, and, in some cases, disaster insurance.
- Establishing Solid Lease Agreements: Clear and well-structured lease agreements can help mitigate tenant-related risks by protecting the rights and obligations of all parties involved.
- Maintaining an Emergency Fund: Setting aside funds for unexpected repairs or periods of vacancy can provide peace of mind and financial stability in challenging times.
Long-term Success in Real Estate Investment
Building a successful real estate investment portfolio requires a long-term perspective. This approach is crucial for those looking to reap the benefits of real estate over time. Investing is not merely about the immediate gains but about establishing a strategy that ensures sustainable profitability and growth.
Importance of Networking and Relationships
In real estate, success often hinges on connections. Building a robust network can unlock numerous opportunities, from finding the right properties to gaining access to advantageous financing options. Networking embraces various stakeholders, including real estate agents, investors, contractors, and even local government officials.
Here are a few important points to consider:
- Access to Information: By maintaining relationships within the industry, investors can tap into insider knowledge about up-and-coming markets or properties before they hit the public listings.
- Shared Resources: Networking allows sharing of resources. Investors can learn from each other's experiences, avoiding potential pitfalls while benefiting from shared successes.
- Collaborative Opportunities: Partnering with others can lead to joint ventures, spreading the risk and increasing the capital available for larger investments.
To effectively network, engage in local real estate investment groups, attend workshops, or leverage online platforms like Reddit and Facebook. Each relationship can significantly influence long-term outcomes.
Continuing Education and Market Adaptation
The real estate market is dynamic, constantly influenced by economic trends, demographic shifts, and local developments. To ensure long-term success, investors must prioritize ongoing education. Staying updated with market changes can be the difference between profit and loss.
Consider the following strategies:
- Regular Training: Attend seminars, webinars, and workshops focused on new regulations and market strategies. Staying informed enables better decision-making.
- Market Research: Invest time in understanding market cycles. Gather data about property values, rental yields, and neighborhood trends. This knowledge can guide investment choices.
- Flexibility: Be ready to adapt your strategy based on new information. Real estate investing is not static; the ability to pivot can provide an edge in competitive markets.
"Investors must continually learn and adapt; the market isn't the same as it was a year ago, and neither should your strategies be."
