Do You Want To Know What The Real Estate Markets Are Doing For Real?
As a real estate professional and someone who only focused on Buyer over the last 17 years, I can show you and tell you why this is the time to buy real estate. The fact; is with prices falling and interest rates still at an all time low now is not the time to sit and see.
You have opportunities out in the markets, that are really like walking into an orchard and have your pick of the best fruit.
Think about what you want need and desire this is the most important issues. Do not be like the people that are in trouble; they thought with their egos and not their heads or pockets. The very first issue is knowing exactly what you can afford to spend, and if you are financing then have your mortgage commitment in hand. Then once you have that start thinking about what it is that you want, need or desire. Be very specific and detailed in your plan ! Read more
How do I Make Good Money in a “Bad Market”?
Newer real estate investors have many questions, and this seems to be one of the most popular.
What exactly is a “bad market”? I would say that the answer has to do with your prospective on the question at hand. If you are a normal homebuyer and the interest rates have gone up it probably is a “bad market”, since you may not qualify to buy at the higher rate, and if you can still buy the monthly payments will be higher. On the other hand as an investor the rates going up helps us show sellers that it is in their best interest to accept our creative purchase offers. Also when the rates go up it gives us an opportunity to sell our properties quicker. We will be able to hold more financing on our sales; at a higher interest rate; allowing us to make more money overall!
Home buyers will think that a “buyer’s market” is a great market, since it allows more choice and negotiation in their favor, whereas the seller will think that the same situation is a bad market since he will probably have to have the property on the market for a longer time at a reduced price. The seller will also have to give in on negotiations or risk keeping the property. This gives us as investors a great opportunity to be more creative using little or no money down techniques. We can also negotiate great positive cash flows on the properties that we may want to hold.
Housing starts are used as an economic indicator, which would suggest a strong economy or a slowing or weak economy. Most people, when they see a slow down or weakening of the housing starts statistics, tend to believe that the real estate market is not doing well. These statistics are based on the number of new privately owned homes only. In real estate if you are a builder or housing developer, a slowdown in this economic indicator is probably not good. As an investor we may be able to buy new construction properties that are not selling that the builder is “stuck with”. The more houses that are already built that the builder can’t move – the better for us. This is great news to the investor who can pick up the property (sometimes for less than what the builder owes on it) then finish the construction and sell the property for great profits.
New laws are always being implemented in many areas that either directly or indirectly affect the real estate business. Income tax law, for example, may allow depreciation of investment property. At one time the building depreciation was based on a schedule of sixteen years, as compared to twenty seven and one-half years. When the sixteen year schedule was no longer allowed by the IRS, over half of the smaller real estate investors got out of the business. They couldn’t see anything positive in the situation. People like myself found positive ways to use it to create more cash flow and wealth. Others got out of the market and we acquired more properties than we could handle. What a great feeling!
Let’s take the words “bad market” out of our vocabulary. There is no “bad market” for the educated real estate investor! Read more
Chaos Begets Opportunity – Even in Real Estate
Consumer Confidence has literally tanked due to the fall-out in real estate and the credit crunch. These hard times in real estate are affecting the stock market, retail sales and small business. However, in chaos there is always opportunity – Always! So where is the opportunity in real estate, how can you make money on this bubble bursted collapse?
Well, it just so happens that the other day I was streamlining my library and chucked some books into a box going to the Goodwill, then I grabbed one, and thought well maybe I should re-read a few chapters in this one, scan the material once more. Interesting indeed, the book in question:
“A Fortune at Your Feet – How you can get rich, stay rich, and enjoy being rich with Creative Real Estate” by A.D. Kessler – 1981.
Do you have what it takes to make money in real estate, using A.D. Kessler’s creative methods? We all know A.D. Kessler as a real estate guru, late night infomercial hype guys and this book is an extension of that type of methodology. Secure real estate with no money down, make deals, find foreclosures, make negotiations and build wealth. A.D. Kessler was one of the first real estate guys of this type and had a very successful magazine on creative real estate, and trained many real estate professionals to use his system and methods to achieve wealth.
With the real estate market crashed and foreclosures running ramped his books and advice are now becoming very popular once again. How do you find the best properties to buy? How do you find tax lien sales, how do you find properties that are distress sales? A.D. Kessler’s book discusses all this and more. If you are ready to do a little homework, you might find yourself in a position of opportunity during this drastic time of chaos in the real estate markets. Read more
Avoid The Rough Seas Of Mass Hysteria
I was on a battered old excuse for a barge sputtering along noisily between the many islands of Indonesia. I had just nearly escaped being eaten by a Komodo dragon and was fighting for a place to stretch-out on above the slosh of saltwater, sweat and other unfortunate body fluids (or remnants of lunch) while en route to Sumbawa.
I’d been traveling in Indonesia for nearly 5 months, learning the culture and geography of the land.
Indonesian people are always friendly. They kindly greet every traveler with a loud “Hello Mister!” regardless of gender. But one strange consistency I experienced was that some Indonesians don’t travel well. Buses, ferries and trains were always packed full of travel sick locals. In Indonesia it’s easy to gorge oneself on the sweet and greasy foods offered at odd hours of the night and then get sick on whatever mode of transport you’re on and whomever you’re near.
On this occasion the seas where a bit choppier than usual and the boat quaked and swayed like a one-legged flamenco dancer. I quietly watched one passenger, who earlier was the envy of us all for he had a hammock, get battered from ceiling to floor as his hammock upturned and released him to the pull of gravity. Then those fragile souls who had no control of their stomachs began to empty them in mass exodus.
One man, a man named Nolan, came forth and offered sage advice “Ride the Wave” he said, “Don’t panic”.
See, travel sickness has some sort of mass psychology – one person starts and everyone follows, caught up in a flood of nausea they submit.
That reminds me a little bit of the stock market the past couple of weeks- maybe not as extreme but at least similar. Granted, the stock market gave reason to turn your gut (I know a few bargain hunters that are smiling though).
Panicking to list your house for sale is also type of half-hearted hysteria. Nolan’s comment of “Don’t panic, ride the wave” is good advice. Read more
Why the Rates of Foreclosures is on the Rise – An Ideal Opportunity to Start Real Estate Investing
The rate of foreclosures has risen to historic levels. It was projected that 2 million homeowners will lose their homes to foreclosure by the end of this year, according to the Center for Responsible Lending. The two questions to ask about this financial phenomena are (1) why are foreclosure rates rising and (2) how is this an opportunity to start real estate investing? Here are just some of the answers.
1. Job losses. This THE number one reason that people lose their homes. This is particularly true in the Rust Belt (Ohio, Indiana, Michigan) suburbs and cities.
2. ARM’s. An adjustable rate mortgage (ARM) fluctuates with the lending rate. What was at first a very modest home loan made it very easy for someone to buy a home at a rate that was reflected by the then low prime lending rate. However, as the prime lending rate goes up or down with the economy, so does the house payment. A homeowner with an ARM can easily see their payment go from $300 to $400 and upwards within a very short time. Then they can’t make their payments.
3. Interest-only mortgages. This is a way the mortgage brokers and bankers have lured people with good credit to take a loan that they eventually can’t afford. The lender makes the loan with the home buyer paying only the interest, or even less than interest, then resetting the loan at a higher interest rate and making full payments. Interest-only and adjustable-rate mortgages share a 63% cut of all new mortgages.
4. Lending to poor credit risk individuals. Banks and mortgage brokers have been using the methods mentioned above to lend to people with a poor credit history. These loans are, at best, risky in nature. These home owners have low incomes and little or no health insurance. Of those who required emergency foreclosure help, 40% stated that medical costs were the cause of their problem with being able to keep up with their house payments. So, instead of creating wealth for these people through building up equity and stabilizing their lives, it destroys their wealth building capacity and destabilizes not only them, but the community around them. Read more
Don’t Overheat on the Cooling Real Estate Market
Due to the current drop in the real estate market, many homeowners are selling their properties to save what is left in their equity. If you are considering selling for this reason, you should wait. Over the last five years there has been a steady increase in real estate prices, and there is no reason to believe that prices will not recover in the future. The areas that boomed in 2002 are now experiencing a downward trend, maybe for a couple of years, but real estate prices have proven to eventually swing upwards. However states like Texas are on the upswing and investors should consider buying outside of California. So if you can wait through this drop, you could end up with a lot more money than if you were to sell now.
If you look at a map of California real estate median prices you’ll see that in 1992 there was a decrease in prices that continued for five years. This may seem disconcerting, for a person who wants to sell. But prices did increase and these five years were the longest period of decline in the California real estate market since before 1968. Let’s see what would happen if Jane and Joe each had bought an investment property in California in 1992 for the average median price of $197,030.
Joe had been following the market and noticed that prices were declining and decided to sell in 1996 for the median price of $177,270. That is close to a $20,000 loss for Joe. Jane, on the other hand, did not sell her property until 2002. The median price for California real estate in 2002 was $316,130, which means Jane made a 60.4% profit on her investment. If she had waited two more years to sell, she would have had both a price appreciation of $119,100 and a loan reduction from the renters.
Now with the huge upward trends in the first half of this decade, it is natural that there is a drop in prices. But for those of you who are willing to fight the market and wait a few years, benefits are in store because prices will rise. So do not worry about a slight loss this year, because your house will soon continue appreciating. If you are still worried, understand that the national rate of appreciation for real estate has averaged 6.1% over the last 30 years. Moreover, other markets are booming. For those investors just starting out or those who want to continue investing, they should look into other areas of the US real estate market. Read more
Trends Of The Real Estate Market
It’s funny how often you hear people ask for advice or tips in the investment real estate industry. From home-study courses and seminars, to boot camps and one-on-one training, these methods have been proven to be not only interesting to millions of people, but capable of bringing massive wealth to those that take action on what is taught – those that go on and actually make real estate investments themselves. Another benefit of doing things from this angle is that you’ll probably find a lot less competition especially in your local market relative to the other side of the fence of traditional real estate investments It’s the Easiest Form of Real Estate Investing – Investing in pre construction real estate is the easiest form of real estate investing, all you need to do is buy a property wait a few months for it to get into a higher phase of construction then sell it for a profit.
To find out more about the Orlando Florida investment preconstruction real estate market please visit our website or give us a call at the number below. However, the real money making difference for real estate investors comes into play in the return on investment (ROI). In short, real estate investment is a realistic option for most investors looking to diversify their holdings, but the key to benefiting from it is getting the right advice from the right source.
In conclusion, there are compelling reasons for you to consider putting money into real estate and real estate is today no longer solely the domain of the rich. Learn from the professional real estate investor and don’t get caught up in the ‘get rich quick’ hype of highly leveraged real estate. Today we are discussing a somewhat advanced strategy for you to use after you have been in the creative real estate investing business for a while. Read more
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