April 3, 2010
Real Estate Investing | Real Estate Investing In Times Of Crisis
Don’t you know that the perfect time to invest is when there is crisis? Sellers are in dire needs of money and so they sell their properties at much lower price. A smart investor or buyer would grab such opportunity to acquire a new property and to make a lucrative business out of the crisis.
There is what is called foreclosure investing. You can directly communicate and deal with the banks because they know which properties are going foreclosed and if the property is worth saving from the brink. You can even provide the property owner with a better deal to seize the property right away.
Banks don’t want losses and the government can’t exercise its power most of the time to save a property. You have the money, so you will have all the guts to do what the banks, the property owner, and the government can’t do. So, you buy the property at a lower price with the thought of selling it a higher price in the future, when the real estate market recovers.
Foreclosure Investing is a Profitable Business
Usually, the owner can’t pay for the tax foreclosures because it has accumulated through time and to high to cover. So, if you go to public auctions where the properties are up for bidding, you have to know the strategies and see for yourself if the property is worth buying. If there is a public auction, it would be published on the newspaper and from there, you can start checking for the background of the property. You will know the selling power of each property on the bidding list and you can choose the property that is most attractive to you. This requires a lot of research work and intelligent mind.
On the other hand, mortgage foreclosures would mean you talk to the bank and learn the details of the property from them. They will inform you about the value of the property and how its worth. Dealing with the bank privately would help you understand more of the property and from there you can get an idea about targeting the seller and making sure that the property goes in your hands.
It is important to become knowledgeable about the rules and regulations imposed in various states so you will do all the things in a legal way. You can contact reputable real estate firms and government agencies to determine what course of actions you will take. If you will opt for bidding, you have to have a strategic interaction with the property owners and know what price they want and what deal will favour both parties. Yes, you have to think of the welfare of the other party too, because a real investor can sometimes be more generous to get a better deal out of any foreclosure investing opportunity.
So, if you have the means, invest when there is a crisis and you will definitely know that you are actually investing your money to a huge fortune. You just have to be positive and have a good attitude about it.
Beverly Manago is a freelance writer focused on the real estate industry. She is also a consultant for My Real Estate Virtual Tour, a web 2.0 marketing tool that lets real estate agents create stunning virtual tours and single property sites easily, with a free version available for listing presentations. She also contributes to the MLS Virtual Tours there.
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7 Comments on Real Estate Investing | Real Estate Investing In Times Of Crisis »
March 29, 2011
Mike Holman @ 8:42 am:
I just finished booking a hotel room in downtown Toronto using Priceline.com. I was curious about how Priceline worked and how much money it would save. Unfortunately, I made a mistake when I entering the bids and ended up with an extra hotel room which cost me $116. Oops!
June 19, 2011
brownstoneshopper @ 6:34 am:
The analogy of real estate investing and flying is a good one because an investor takes a risk that investment potential will be favorable in the long run. Retirement or vacation properties in other locales can also be good investments. Just finished an article on good living. Wondering where some of the opportunities are to experience healthy living? Read latest entry brownstoneshopper.wordpress.com
July 31, 2011
rhsaunders @ 8:00 pm:
You're stuck. The 1039 rules refer to a "like kind" exchange, which if you start with real estate, ends up in real estate. But you have options: (a) Get a management company to run the place; they usually charge about 10% of the rent. (b) Sell the duplex, and put the proceeds into vacant land via a 1039 exchange. Basically no management hassles. (c) Sell the duplex, and buy rental property close to your new digs with a 1039 exchange. Then you can manage it yourself.
September 13, 2011
Edward @ 1:26 pm:
You're a decade late for that particular bogeyman.
October 6, 2011
mhaize @ 4:43 am:
Yes, talk to your accountant regarding sale of primary / secondary residence.
The sale on duplex, you may have to bite, unless you convert it into another secondary residence (after the sale of the house at your former state).
There's great savings potential in planning these sales, talk to your accountant, as there are details here that you may need to know. Can't answer your question with limited detail.
Goodluck,
October 28, 2011
Simpson G @ 3:20 am:
Las Vegas real estate isn't going to be increasing in value anytime in the next 5-10 years. If you have the cash burning a hole in your pocket and you know that finding good tenants to rent to is going to be easy, and you don't need to see an increase in property values for a long time, then Las Vegas is great.
Real Estate can be a great investment, if you do it right. If you are going to be mortgaged up to your eyeballs without a property manager and don't know how to run the numbers correctly, it can be a complete nightmare.
Too many people forget to add in things like closing costs, mortgage interest, upkeep, utlities, HOA fees, property taxes, etc, and when they see a $10,000 return without counting all that, they get hooked. Then suddenly they don't understand why they aren't making their mortgage payments and dread that next property tax bill.
November 10, 2011
Simpson G @ 11:42 pm:
Las Vegas real estate isn't going to be increasing in value anytime in the next 5-10 years. If you have the cash burning a hole in your pocket and you know that finding good tenants to rent to is going to be easy, and you don't need to see an increase in property values for a long time, then Las Vegas is great.
Real Estate can be a great investment, if you do it right. If you are going to be mortgaged up to your eyeballs without a property manager and don't know how to run the numbers correctly, it can be a complete nightmare.
Too many people forget to add in things like closing costs, mortgage interest, upkeep, utlities, HOA fees, property taxes, etc, and when they see a $10,000 return without counting all that, they get hooked. Then suddenly they don't understand why they aren't making their mortgage payments and dread that next property tax bill.