5 Reasons To Invest In A Down
Real Estate Market
By Peter Vekselman
The author has permitted the reprinting and redistribution of this
article.
We’ve been talking about investing in the down real estate
market for a while now, but there are so many people out there who are
afraid to plunk down the kind of money it takes to get going in a down
real estate market. Here are five things you should keep in mind when
investing in a down real estate market
1) First, do not ever pay full asking price. The majority of people
will be asking for prices at or near the amount of their mortgage, as
if they held all the cards. They don’t, especially now that
we are all facing a down real estate market. Seriously appraise the
property and decide if you want it. If you really do, and it seems like
it has the potential to be a return on your investment, then you should
make an offer. Some places can be had for as low as a 20 per cent
discount on the asking price; that is the beauty of purchasing in a
down real estate market. If they balk at your price, you can walk away
knowing that they will eventually come down to earth and realize that
in a down real estate market, there are very few buyers.
2) Second, think location, location, location. As the real estate
market boomed the last couple of years, the locations for some housing
developments started to become really whacky; out in the middle of
nowhere, down one lane roads, and with the barest of infrastructures,
housing tracts sprung up like mushrooms after a rain storm. You need to
think strategically; the desirable houses will be more centrally
located when people finally realize that the credit crunch and real
estate market is making a come back.
3) Real estate in a down market is a long term investment. You will
probably not be able to unload your investment any time soon, but you
should keep in mind that eventually, people will want to purchase new
homes again, and when the credit markets do open back up, you will be
sitting pretty. Be patient and you will make a tidy bundle when you
finally do sell.
4) You aren’t going to be able to flip a house in a down real
estate market, so why bother. Don’t put more into a house
than to make it habitable; some people may be lucky to flip in some
areas, but flipping is quickly becoming a thing of the past. Maximize
your dollars and invest in multiple properties while rehabilitating
them only if necessary.
5) Become a land lord. Landlords are holding all the cards right now.
Just because someone loses their house doesn’t mean they are
going to become homeless. In fact, in many rental markets, there is a
shortage of landlords who can rent to all the people needing houses.
Being a land lord can be seen as an interest return on your investment
since a 200,000 dollar house rented for 1,000 dollars a month returns
12,000 dollars, or 6% on the investment per year!
Peter Vekselman has been successfully investing in real estate since
1996. He has completed over 1000 real estate deals, owned a
construction company, been a private lender, and owned a property
management company. Peter currently works with clients all over the US
httpwww.CoachingByPeter.com .
If
you would like to take advantage of the market and learn how to invest
in real estate and you are local to the Dallas Fort Worth area, I know
a really great teacher and mentor here in Arlington Texas. Please take
a look at his web site: DennisJHenson.com,
Dennis has a great Mentoring and training program, I know because I am
one of his former students. I learned a lot from his one on one
teaching technique. - Michael Harman 817-457-7572
mchfun.business@gmail.com
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