What is so special about real estate as an investment vehicle, as a way to get wealthy, as a way to create passive income and retire young and rich? Why is this market so different? Why is this an advantage to the creative real estate investor?
Two things I want to share with you. Never before, have there been more foreclosures in real estate then there are right now. That is because the lending practices of the last five to ten years have encouraged people to get into debt far over their heads. It is not just real estate debt. It is debt from all forms of consumer debt but especially credit cards.
The lending practices in the United States have made it easy for anybody in any condition with any financial history to borrow money - in many cases more money than they could afford to pay back. So right now in the housing market, whether it is single-family homes, condos, or multi-family properties, there are more defaults, more foreclosures than ever before.
We are also seeing more bankruptcies, along with more bank repossessions. There are more VA, HUD, FHA, Fannie Mae, Freddie Mac, and other government-insured loans defaulting than ever before in history. Can you say Short Sale?
What all the data is telling us is that there are more properties available at below market prices than ever before. It is telling us that because there are so many people in trouble, it is easier to find Motivated Sellers. It is easier for you to perform profitable transactions!
Many investors will tell you that money is made when a real estate investor buys their property and its not until they sell that they get paid. Maybe you get a larger chunk of cash when you sell, but if you bought right, you have lots of profitable options. A bad transaction, however, can leave you with few or none. So focus on great deals and only work with sellers who are truly motivated.
One huge plus of real estate investing is that people are always in need of a home, so there is always a market. Even in this bad market, you can find buyers, if you know how. Now that the banks arent lending as easily, it can be hard to find buyers who can find loans. If you use your mind and think outside the box, this isnt a problem. If you have the education and can be clever, you can be the bank and will be well compensated for your efforts. Can you offer seller financing on your properties? Can you sell to the non-traditional buyer?
Now that seems crazy doesn't it? If there are more properties than ever before and at better prices, and if there are more buyers, then why don't the buyers just buy those properties? The reality is in most cases they don't have the techniques that I told you about. So now that you know it can be done, it's time to start investing!
Two things I want to share with you. Never before, have there been more foreclosures in real estate then there are right now. That is because the lending practices of the last five to ten years have encouraged people to get into debt far over their heads. It is not just real estate debt. It is debt from all forms of consumer debt but especially credit cards.
The lending practices in the United States have made it easy for anybody in any condition with any financial history to borrow money - in many cases more money than they could afford to pay back. So right now in the housing market, whether it is single-family homes, condos, or multi-family properties, there are more defaults, more foreclosures than ever before.
We are also seeing more bankruptcies, along with more bank repossessions. There are more VA, HUD, FHA, Fannie Mae, Freddie Mac, and other government-insured loans defaulting than ever before in history. Can you say Short Sale?
What all the data is telling us is that there are more properties available at below market prices than ever before. It is telling us that because there are so many people in trouble, it is easier to find Motivated Sellers. It is easier for you to perform profitable transactions!
Many investors will tell you that money is made when a real estate investor buys their property and its not until they sell that they get paid. Maybe you get a larger chunk of cash when you sell, but if you bought right, you have lots of profitable options. A bad transaction, however, can leave you with few or none. So focus on great deals and only work with sellers who are truly motivated.
One huge plus of real estate investing is that people are always in need of a home, so there is always a market. Even in this bad market, you can find buyers, if you know how. Now that the banks arent lending as easily, it can be hard to find buyers who can find loans. If you use your mind and think outside the box, this isnt a problem. If you have the education and can be clever, you can be the bank and will be well compensated for your efforts. Can you offer seller financing on your properties? Can you sell to the non-traditional buyer?
Now that seems crazy doesn't it? If there are more properties than ever before and at better prices, and if there are more buyers, then why don't the buyers just buy those properties? The reality is in most cases they don't have the techniques that I told you about. So now that you know it can be done, it's time to start investing!
About the Author:
Before you get started, come check out Augie Byllott's blog where you can learn about items such as how to Buy Homes with Lease Options and become a Real Estate Investor.
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