September 5, 2010
Real Estate Investing | Is Real Estate Investing Dead
If you’ve been paying attention to the news lately, you may be under the impression that the bottom has completely fallen out of the real estate market and that there’s very little, if any, opportunity left in the arena for those in search of serious profits. Just watch the nightly news. They’ll tell you just how bad it is out there and how everything has turned for the worse in every way, shape and form.
The doom and gloom analysis that litters the airwaves, blogs and newspapers these days is reinforcing this bizarre notion that real estate investing is a fool’s errand. People make a point of trumpeting the bad news about the economy, leading even otherwise reasonable people to worry about the reasonability of sinking even a single dime into real estate.
In the final analysis, though, that’s all misleading. What those doomsday prophets aren’t telling you is just as important as what they are screaming day after day. You see, the downturn isn’t a one-sided thing. It may be whipping those who went into the market and didn’t protect themselves adequately, but it’s also kicking open door of opportunity left and right.
The so-called collapse has led to a fast market over-correction. Right now, many properties are wildly undervalued and sellers are far too motivated to hold out for the right deals. Real estate investing has never seen happier days in that sense–it’s a lot like shopping a sidewalk sale. The deep discounts are everywhere and smart buyers should be snapping up winning properties as quickly as they can.
That’s the real investment story of the day. Instead of focusing on the ugly side effects of a market meltdown for some, we should be paying attention to the real estate investment opportunities it’s creating.
Remember, all investing boils down to a very simple formula: Buy low, sell high. Right now, buying low is easy. In time, selling high will be just as easy. If you’re ready to get into the market the right way and have a willingness to hold your position until an over-reactive market comes to its senses, it’s a great time to get into real estate.
Don’t let the horror stories and the pessimism turn you off to real estate investing. You should be seeing current market conditions for what they are–a great chance to get into wonderful properties at a bargain rate. Your dollars can go farther today than they have at any time in recent memory. The cut-rate deals you can ink right now have the potential of being some of the biggest winners on record.
They say that every gray cloud has a silver lining. That may not be the best description of the current situation, though. The lining in the current real estate investing cloud appears to be nothing less than solid gold.
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8 Comments on Real Estate Investing | Is Real Estate Investing Dead »
May 9, 2011
Welcome Texas Investors, Business Owners and Real Estate Professionals @ 1:12 am:
Welcome To Our Investor's Web Site,
Napolean Hill in his classic work “Think and Grow Rich” stated that one of the main keys to success is to belong to a mastermind group, and I can tell you from experience that is absolutely true. Whiel there are many coaching programs, networking opportunities and mentorship programs, nothing takes the place of a local networking group that is designed to sponsor events, have regular meetings, on-going seminars and even sponsor national speakers to attend and share information with its members.
Here in Texas, we have some great networking opportunities, leading local experts and on-going educational opportunities for people wanting to get started in the real estate investing world.
Please sign up below to receive our Free Real Estate Investing Newsletter, as well as updates on upcoming events in your local area.
To Your Success,
Terry L. Bryan, President
Texas Real Estate Investors Association
May 20, 2011
Joy Smith @ 5:28 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.
May 21, 2011
satarnag @ 7:45 am:
When a property gets foreclosed on, and it's the first lien holder that is doing the foreclosing, then the second and third and fourth (etc.) will get wiped out at the foreclosure auction. What an investor will do is to buy/tie up the property from the defaulting owner and see if he can discount the first and second. The second will most likely agree to a small amount (usually 7-10 percent) because they will lose everything once the property gets foreclosed on. The first will usually accept a 20 percent hit.
Now what you quoted is that the second note holder was stating that he will own the property by buying it from the person in default and take over the first position's loan payments and make it current. Therefore, he is not interested in selling his note to the investors. The investors in that example were idiots for not controling the property first or the owner didn't want to sell. The investors were hoping to buy the second note at a discount and bid at the auction and own the property with at least 15 k equity plus whatever the homeowner had in equity.
You can buy any note by approaching the lending institution that holds the note and making an offer to buy it. You will need cash to do so.
Also, to clear up the quoted reference, you can purchase property "subject to" existing liens/loans. Taking property "subject to" means that you will take over the payments, but the old owner is still responsible for the loan(s). So if you stop paying the mortgage/trust deed, the lending institution will go after the old owner and start foreclosing on the property. Buying property "subject to" existing loans is one way where someone with no money and/or credit can get into a home and own it. The second note holder was buying the property from the defaulting owner using the "subject to" clause.
I either confused you or helped you. Either way, I just saved you hundreds of dollars in late night real estate infomercials!
E-mail me if you have any questions.
Regards
eugene tero @ 4:17 pm:
real estate tips!
June 27, 2011
Boss @ 12:03 am:
Canadian Real estate tips article.
July 4, 2011
mhaize @ 8:20 pm:
You have up to 3 years (exactly) from the time you moved to sell your ex primary residence TAX FREE, assuming that you lived in it for 2 years before you moved away. Price it right and offer a higher commission to a selling agent. It works.
You don't have to manage property yourself. Get a professional manager. It's not a 1039 exchange, it's a 1031 Exchange. You don't avoid taxes forever, you just defer them.
What's wrong with paying taxes if you have a long term gain, the tax rates arent that high. Selling the property could become the biggest mistake of your life. People have made fortunes by holding property long term
July 16, 2011
Biancoa @ 3:42 am:
Congratulations on researching before you make the jump! You can invest in real estate using other people's money whether or not you are a real estate agent. The only advantage the license gives you is access to a multiple listing service. You can also choose not to get your license and have real estate agents bring deals to you – FREE! They only get paid when you close on a deal. Seller financing is one of our specialties. When a seller financing deal happens, you can raise capital or borrow money to invest, and then when you sell or rent the property, you make enough to pay back what you owe and keep a profit. All with NO money out of your pocket. (that's a simplified outline but that's how seller financing works). Keep doing the research, but focus on what's for sale and what's selling in the area you're interested in. Knock on the doors, ask about the properties. The more you know about the area homes, the better prepared you will be to evaluate whether or not a deal is a good one or not.
August 17, 2011
Simpson G @ 2:52 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.