OK let's establish a few ground rules for this article first.
1) Bad markets have happen before...and people still made money.
2) Not every deal will fall into a cookie cutter format.
3) Not every tactic or idea works in EVERY state/province. ALWAYS check local laws pertaining to real estate transactions.
Ok...now on with the article.
Just because a drop in the market has taken place doesn't mean that you, as a real estate investor/professional, are out of luck. It only means you need to add new tricks and tools to your tool box. (Be warned I use "tool box" a lot.)
Marketing/locating property
Besides the normal channels of RE agents and brokers (still the best way to find good investments in my opinion) you have a huge amount or resources at your fingertip with the Internet.
You can find and join website communities for investors, follow blogs, get in on group discussion etc. All of these things can lead to new and interesting deals.
Several of my investments have come to me via a web community of some sort. I also have gotten countless tips from other investors on investments and financing issues. Do not over look the value of belonging to an "investor community website."
I honestly feel that in the upcoming years the majority of investing will shift to being web related. Not just in finding investment projects but in doing the research for them as well as the funding process and the majority of the marketing/exit strategy as well.
Finance
Currently we are hearing about how the current market and credit crisis is making getting loans harder This is true. No way around it. The loan process has changed. So what options are left?? The answer is several.
Lease options. Assumable loans. Seller financing. Just to name a few.
The above mentioned will become the big trends in the next couple of years. I am waiting to see the lenders change the loan guidelines in the next few months to "re introduce" the assumable loan. We are already seeing a HUGE trend in short sales. (This was a practice that was used only in limited capacity in the last 10 years by most lenders now it seems like every other distressed listing is a short sale in some cities.)
Please do not let the current market conditions scare you in to sitting this investment period out. On the contrary use it to inspire you. Take the time to do the research on finance options, look into building a LLC perhaps. Find out about buying real estate with your IRA. Etc, etc.
Read investment the strategies of the big names in investing. Use the time to educate yourself and above all be creative.
When everyone is running for the hills it is your time to figure out how to buy the valley they just left.
1) Bad markets have happen before...and people still made money.
2) Not every deal will fall into a cookie cutter format.
3) Not every tactic or idea works in EVERY state/province. ALWAYS check local laws pertaining to real estate transactions.
Ok...now on with the article.
Just because a drop in the market has taken place doesn't mean that you, as a real estate investor/professional, are out of luck. It only means you need to add new tricks and tools to your tool box. (Be warned I use "tool box" a lot.)
Marketing/locating property
Besides the normal channels of RE agents and brokers (still the best way to find good investments in my opinion) you have a huge amount or resources at your fingertip with the Internet.
You can find and join website communities for investors, follow blogs, get in on group discussion etc. All of these things can lead to new and interesting deals.
Several of my investments have come to me via a web community of some sort. I also have gotten countless tips from other investors on investments and financing issues. Do not over look the value of belonging to an "investor community website."
I honestly feel that in the upcoming years the majority of investing will shift to being web related. Not just in finding investment projects but in doing the research for them as well as the funding process and the majority of the marketing/exit strategy as well.
Finance
Currently we are hearing about how the current market and credit crisis is making getting loans harder This is true. No way around it. The loan process has changed. So what options are left?? The answer is several.
Lease options. Assumable loans. Seller financing. Just to name a few.
The above mentioned will become the big trends in the next couple of years. I am waiting to see the lenders change the loan guidelines in the next few months to "re introduce" the assumable loan. We are already seeing a HUGE trend in short sales. (This was a practice that was used only in limited capacity in the last 10 years by most lenders now it seems like every other distressed listing is a short sale in some cities.)
Please do not let the current market conditions scare you in to sitting this investment period out. On the contrary use it to inspire you. Take the time to do the research on finance options, look into building a LLC perhaps. Find out about buying real estate with your IRA. Etc, etc.
Read investment the strategies of the big names in investing. Use the time to educate yourself and above all be creative.
When everyone is running for the hills it is your time to figure out how to buy the valley they just left.
About the Author:
Doc Schmyz has been investing in real estate since the 90's He designed a free online resource for real estate investors to get free real estate investing information for more of Doc's tips go to his blog: Super investment Geek
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