Even with close margins, investors who bought properties at 70% loan-to-value or higher still made profits after costs for financing, improvements, and disposition. Gone are the days when the investor bought properties that "feel" like good deals. Today's market has left the novice investor that was analyzing deals based on "feel" with over-leveraged properties that have drained cash flow, receive rents that are short of covering their mortgage and carrying costs, or worst yet, sit empty while listed for sale waiting for a buyer that will pay top dollar before the foreclosure auction date.

While "art" has its place in the world of investing, "analysis" takes precedent in today's investment strategy. The "short-sale" was an unknown phenomena two years ago. Only practiced and implemented by investors who were savvy enough to negotiate with lenders on behalf of their sellers who were upside down or short on equity to make the deal worth their while. Conducting a "short-sale" was the exception instead of the norm it has become in today's short sale listing frenzy. The need for critical analysis is evident as each dollar invested becomes more valuable and scarce in the world of ever shrinking sources for conventional investor financing.

Today's investor needs to balance "art" and "analysis", be conservative in their estimates for acquisition, carrying, and disposition costs. The art of marketing to acquire good leads on high equity deals is where creativity can have space to experiment with new and innovative ways of attracting new business. However, when it comes to "scoping" the deal, investors must be more "analysis" than "feel". In today's market investors must have a predetermined investment criteria that easily screens each deal, separates the "wholesale" properties from the "keepers".

Smart investors are increasing their level of critical investment education by attending courses that "crunch the numbers". Courses offered through higher education institutions that have traditionally lead to Masters Degrees in Commercial Development or Real Estate Investment are good places to become familiar with institutional level investment analysis and strategies. Certification through reputable designation courses such as the Certified Commercial Investment Manager (CCIM) have attracted mid-level investors seeking to bring their investment game to the next level.

Obviously, the days of the 60 day-buy-rehab-sell model of investing is on hold (for the most part unless the property is simply in a very unique market). Today's investor is diversified by buying with little or no initial cash outlays for acquisition and improvement, placing high quality tenants in their properties, collecting cash flows over a 3 to 5 year holding period before they 1031 to another property or cash out some equity for another deal.

This market is essentially an investors dream. Those who accumulated high returns during the peak of the market's bubble should be well positioned to accumulate extensive portfolios at deeply cut prices that will grow as the market naturally corrects itself over the long term. Be creative, use your "feel" and be artful in your approaches to acquiring new opportunities and disposing of those properties that are not "keepers". However, be "analytical" and conservative when it comes to "whooping out your cash" to acquire those "keepers". Find and develop your own balance between the "art" and "analysis" of your real estate investment practice.