Real estate is dead as an investment in 2008 isn’t it? Real estate markets are plunging, prices plummeting, people losing their homes, foreclosures and bankruptcies are up and the credit crunch is upon us, so we can’t get a loan.
Time to forget real estate investing and move into something else.
Or is it? Lets have a look.
Real estate investing is really a simple business. You need to find a property that is in demand by buyers so that over time the price goes up, you’ve got to make sure that your property is well tenanted, and that preferably the rental return you get from your property adds up to a good return on investment so that you have to top up the mortgage with your own funds as little as possible, if at all.
That’s real estate investing in a nutshell. There are of course variations on the theme, and all sorts of schemes and tricks, but when it comes down to it that’s the basics of real estate investing, and it’s the basics that make you money.
So lets examine that. Firstly, finding a property that is in demand by buyers. Now there’s no doubt that many properties aren’t in demand by buyers at the moment. Look at those Florida condos that have gone on eBay for a minimum bid of $1 lately. All that news about those McMansions that no one seems to be able to sell. However that’s SOME properties, not all of them.
When the real estate market erupts on a bubble like it has over the last decade some properties take off in value, like those described above, and if you get in right you can do very well. But when it all start crumbling they fall out of favor very fast. However there are other properties that don’t take off in value, but when it all starts crumbling they stay in demand.
Which properties? Those bread and butter main street properties that millions and millions of Americans live in in those suburbs that surround the countless cities that make up mainstream America. Not all the suburbs mind you, but many.
Because those properties most in demand are those that most people need to rent, or buy, to live in. Not the condos or the McMansions, but your average 2 or 3 bedroom home that your average mom and dad and 2 kids live in across America.
Believe it or not there are heaps of people needing to buy or rent properties like that right now, and they have been for years. Those types of properties are STILL in demand. Both by purchasers, and by tenants.
As long as you buy in the right place, you’ve got to be extremely selective and know what you’re doing.
And as those types of properties are typically $100,000 or less, the return on investment is good from the rental return you receive.
However it’s a tough market, you really know what to buy, where, and get a deal. And get the loan.
Can you do all this yourself? Of course, if you know what you’re doing. But if you don’t you can get burned.
However there ARE ways to invest in good quality homes in areas in demand, with good rental returns, and buy at good prices, with a loan, a guaranteed tenant and rent guaranteed for 2 years. And usually you buy in at prices below market. No cash down.
Whether it’s a private investment or through your IRA or 401k, it works the same.
Sound like it’s too good to be true? It isn’t.
It’s available right now through a publicly listed US company run by one of Americas most respected businessmen.
Real estate investing in 2008 is alive and well, for those who know where to go to access some of the best real estate investments.