Real Estate Investing Hope
Today’s real estate market is becoming increasingly difficult to survive in; and, if you watch the news, it’s even worse. However, for those determined to find that sliver of silver lining in the clouds, it could be said that now is a better time than ever to become involved in real estate investing.
With property values at the lowest they’ve been in decades and the number of foreclosures rapidly rising, the current real estate environment could be a possible gold mine for savvy investors willing to take some risks to reap substantial reward. The old theory of “buy low, sell high” is the underlying theme in the messages of advice offered to beginner investors, lately in the form of suggesting the purchase of pre-foreclosure homes.
“Because lenders are under pressure to liquidate bad loans rather than take the property back, large discounts can be negotiated,” says Ben Innes-Ker, author of the Motivated Seller Magnet: Automatic Lead Generating System and full-time real estate investor for 7 years.
“When you look at how easy pre-foreclosure makes it to buy houses cheap and resell for five figure profit checks, all the while helping people out of agonizing life circumstances, it makes little sense to pursue real estate investing any other way,” he says. “By buying houses from people in pre-foreclosure, creating 30%+ equity spreads on houses often in good condition is not a difficult thing to do.”
After hearing such advice, the question then becomes: How long will it be before I’m able to witness a profit on my investment? Well, while most investors won’t hold on to a property for this long, according to www.creonline.com, real estate values have displayed trends of doubling every decade or so.
“About every ten to twelve years, as an average, real estate values tend to double in most major metropolitan areas,” says William Bronchick, J.D., attorney and president/co-founder of the Colorado Association of Real Estate Investors.
He gives the example of original colonial homes selling for just under $2,500 in Long Island, New York in the 1920s.
“Since we now know based on history that nearly all real estate prices will double again, it’s not a matter of if, it’s a matter of when your existing houses will sell,” he said.
He continues that sharing these facts with prospective buyers will put them in the right frame of mind to buy now versus next year if they plan on staying in the home more than five years.
“If a buyer is apprehensive about being the right time to buy,” says Bronchick, “ask him if he’d like to buy his parent’s home for the price they paid for it–the answer will be obviously yes.”
In addition to becoming educated about the real estate investment business, another important step that potential investors can take to is to join their local real estate investment association (REIA) group. To join or find out more about your local REIA group, visit www.nationalreia.com.
There is Real Estate Investing Hope!
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