Televisions programs about “flipping” houses can be found on several channels and many billionaires on Forbes.com list of wealthiest people are real estate moguls. Even with the down turn in the economy, can you still make money in real estate? The answer is yes, if you do your homework.
If you have the money to invest and are willing to wait out an upturn in the real estate market, this may be the time to invest in real estate. The bad news on the real estate front generally revolves around the consumer mortgage and foreclosure crisis. As sad as it is, this can be good news for the savvy real estate investor. Houses are still being bought and sold, no matter the market.
The key to real estate investing in the current economy: Can you and are you willing to sit out the market until values begin to strengthen? Can you afford to be patient!
Here are some examples of the most recent real estate statistics –
~ California’s foreclosures compared to 2007 rose 261 percent
~ The number of homes facing foreclosure in the U.S. has reached over one million
~ Almost one-half of the homes foreclosed are in Arizona, California, Florida, Michigan, Nevada and Ohio
With approximately 4.5 million homes on the market that’s not optimistic news for homeowners looking to sell. We are now in a buyers market. That means home sellers out number homebuyers. Prices are dropping and there are bargains to be had. That’s very good news for the savvy real estate investor.
Remember – there is risk in investing in real estate while prices are declining and the economy is unstable. As always do your homework, use common sense, be cautious and consult with your financial advisor/expert before investing. Don’t try to go it alone especially if you’re not sure of what you’re doing. And, don’t risk more than you can lose!
Here are some tips:
* Buying homes to fix them up for a quick resale or “flipping” them, is not as easy as it was several years ago. With prices declining, a flip may sit longer, giving you less return on investment. A point to remember: You’re responsible financially for the mortgage, taxes, etc. until your “flip” sells.
* Do your research and try to determine which areas of the community are most likely to experience future growth. Where are people likely to move now and as the economy makes an upswing? Clue - Are there any large chain stores moving into a neighborhood – that may be a pretty good indication of future growth.
* You may want to buy real estate with an eye to renting it out until the housing market strengthens. Rental rates generally remain strong, especially as displaced homeowners are looking for alternative housing solutions.
* Do your homework when it comes to buying foreclosure properties. Some of the best bargains can be found among the foreclosed homes. You may want to work with an expert on this. There are many legal and financial aspects to buying foreclosed homes, be a wise investor.
Yes, if you’re looking to invest in real estate this could be the time. It’s up to you to be a wise, educated and savvy investor. Real estate investment opportunities abound!
**Please check with a financial professional before making financial decisions. This article is not intended as investment or financial planning advice.**
Here's a resource guide from the Wall Street Journal you may find interesting – you can find it on Amazon.com – here’s a link: The Wall Street Journal Complete Real Estate Investing Guidebook
***You may want to take a few minutes to visit my website www.SharonMichaels.com for more empowering suggestions, tools and tips.