Real Estate During A Poor Market
First let's establish a few ground rules for this article.
1) The market has had a down turn before and people still made money.
2) Not every deal will fall into a cookie cutter format.
3) Not every tactic or idea works in EVERY state/province. Check local laws pertaining to real estate transactions.
Ok..now that we understand the rules...lets move forward.
So the market has taken a big drop this doesn't mean that you, as a real estate investor/professional, are out of luck. It only means you need to add new tricks and tools to your tool box. (Be warned I use "tool box" a lot.)
Marketing/locating property
Besides the normal channels of RE agents and brokers (still the best way to find good investments in my opinion) you have a huge amount or resources at your fingertip with the Internet.
You can join website communities for investors, follow blogs, get in on group discussion etc. You can even start your own website for investors and network. All of these things can lead to new and interesting deals.
Several investments have come to me via the web. I also have gotten many tips from other investors on investments and financing issues. Never over look the value of belonging to an "investor community website."
I truly feel that the future of investing will be web related. Not just in finding investment projects but in doing the research for them as well as finding the funding and the marketing/exit strategy as well.
"New" financing
Currently we are hearing about how the current market and credit crisis is making getting loans harder This is true. No way around it. The loan process has changed. So what options are left?? The answer is several.
Owner financing. Lease options. Assumable loans.
The above mentioned may well become the big trends in the next couple of years. I am waiting to see how the lenders change the loan guidelines in the next few months to "re introduce" the assumable loan. We are already seeing a HUGE trend in short sales. ( 10 years ago short sales were a lot harder to find, now it seems like every other distressed listing is a short sale in some cities.)
Please do not let the current market conditions scare you in to sitting this investment period out. On the contrary use it to inspire you. Take the time to do the research on finance options, look into building a LLC perhaps. Find out about buying real estate with your IRA. Etc, etc.
Buy books. Read investment strategies of the big names in investing. Use the time to educate yourself and above all be creative.
Don't let panic drive you off with everyone else. - 23208
1) The market has had a down turn before and people still made money.
2) Not every deal will fall into a cookie cutter format.
3) Not every tactic or idea works in EVERY state/province. Check local laws pertaining to real estate transactions.
Ok..now that we understand the rules...lets move forward.
So the market has taken a big drop this doesn't mean that you, as a real estate investor/professional, are out of luck. It only means you need to add new tricks and tools to your tool box. (Be warned I use "tool box" a lot.)
Marketing/locating property
Besides the normal channels of RE agents and brokers (still the best way to find good investments in my opinion) you have a huge amount or resources at your fingertip with the Internet.
You can join website communities for investors, follow blogs, get in on group discussion etc. You can even start your own website for investors and network. All of these things can lead to new and interesting deals.
Several investments have come to me via the web. I also have gotten many tips from other investors on investments and financing issues. Never over look the value of belonging to an "investor community website."
I truly feel that the future of investing will be web related. Not just in finding investment projects but in doing the research for them as well as finding the funding and the marketing/exit strategy as well.
"New" financing
Currently we are hearing about how the current market and credit crisis is making getting loans harder This is true. No way around it. The loan process has changed. So what options are left?? The answer is several.
Owner financing. Lease options. Assumable loans.
The above mentioned may well become the big trends in the next couple of years. I am waiting to see how the lenders change the loan guidelines in the next few months to "re introduce" the assumable loan. We are already seeing a HUGE trend in short sales. ( 10 years ago short sales were a lot harder to find, now it seems like every other distressed listing is a short sale in some cities.)
Please do not let the current market conditions scare you in to sitting this investment period out. On the contrary use it to inspire you. Take the time to do the research on finance options, look into building a LLC perhaps. Find out about buying real estate with your IRA. Etc, etc.
Buy books. Read investment strategies of the big names in investing. Use the time to educate yourself and above all be creative.
Don't let panic drive you off with everyone else. - 23208
About the Author:
Doc Schmyz has invested all over the US and Mexico. He built a free website shares Real estate investing information for all over the US. Find real estate information by state
posted by X - Men @ 2:37 AM
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