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Make Money Today In Real Estate

April 10th, 2008
The real estate bubble may have burst, but the fact remains that real estate is still an attractive investment. You just have to be able to look at the advantages that are presented in the down economy.
 
Some say that the real estate market is in a depression. Others call it a recession. Others are in complete denial.   The third parties are usually those in politics or real estate agents. Anyone who is trying to sell a home knows it is bad out there. But the good news is that as bad as it is for sellers, it is a great market for buyers.
 
Anyone who has money to invest should invest part of it in real estate. The reason for this is threefold: The interest rates are rock bottom and not likely to get any lower, the housing prices are lower than ever and the market will eventually rebound. You can still make money today in real estate, you just have to look at the property as a long term investment instead of the quick buck.
 
The days of flipping real estate properties that are accumulating so fast in value that you cannot keep up with them are gone for now. They will most likely return, but not for a while. Now you have to work with what you have which is a real estate market in which there are a lot more sellers than buyers. This puts the buyer in the drivers seat. 
 
Along with the fact that it is a buyers market, you can also work with the fact that the mortgage rates are lower than ever. So you have an opportunity to buy low because the market is saturated with homes for sale and not enough buyers as well as an opportunity to get a good loan package because the rates are low and lenders are dying to make loans so that they can stay in business. 
 
If you have money to spend on real estate, you are in a great situation today in the real estate market. Look at the real estate investment as a long term investment instead of a short, get rich quick scheme. You can make money when the bubble begins to grow again, and it will. The real estate market goes up and down like the stock market. It will rebound. 
 
You can make money today in real estate but you have to make smart choices. Purchase property in areas where the housing prices have remained stable. Also look at the growth in your area. Where is the next boom likely to hit? This is speculation, but if you track trends in the real estate market and do a little bit of a study, you can see the next area where developers will likely target. This is a good place to buy real estate, even if it is just a vacant lot. 
 
Real estate is usually always a good investment, especially if you plan to live in the property. However, it should be looked upon as a good long term investment and not a way to get rich quick. 

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Low Rates And Low Housing Prices Make This The Time To Buy!

April 9th, 2008
If you have been pondering investing in real estate but have been afraid of the recession in the real estate market, fear no more. This is the ideal time to purchase real estate. Interest rates are very attractive as are home prices. Because the housing market crashed last year, the real estate market has been in a recession. It is expected to remain in a recession for a few years, after which it will rebound and start booming again. This happens all of the time in investment markets. We see it in the stock market as well. It always bounces back. 
 
Now is the time to buy because you can get a good deal on a home as well as one on a mortgage. Mortgage lenders are dying to give away money. There are some lenders who are calling people that they dealt with years ago in order to try to get them to refinance. If no loans can be made, lenders go out of business. Many lending companies are already laying off employees and others have completely folded. Those lending companies still operating are offering attractive packages to potential customers. Some are even offering to pay closing costs so that they can get the loan. 
 
As a buyer in the real estate market today, you have your pick when it comes to choosing the best home as well as the best mortgage package. You can get a good deal on both if you take your time and shop around. Do not be frantic to get the first home that you see and jump into the first mortgage that comes along. Now more than ever, it pays to shop around.
 
You can use a real estate agent who will show you around or one who is listing the house. Take a look in the area that you like and look for homes on the market. Ask a real estate agent to pull up listings for you so that you can look around yourself. If you see something that you like that is in your price range, take a look at the home. 
 
The old rule of thumb was to knock off 10 percent from the asking price in your first offer. Now the rule is 20 percent. Chances are that the seller will not accept this offer, but you are always better off to go in low and have them counteroffer instead of jumping in with a price higher than what they would take. 
 
Do not allow the real estate agent to sway you when it comes to making an offer on the property. The real estate agent wants to make sure that you offer the most money possible so that he or she can make a commission off of the sale. Make sure that you offer what you want and not get pressured into offering more than you think the seller will take. You can even offer less than the 80 percent if you think that it is warranted. 
 
Because rates are so low in conjunction with housing prices, this is the perfect time to buy real estate. Whether you are using it as a residence for yourself or a rental property, there has never been a better time to make this long term investment. 

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Investing In Real Estate In A Recession

April 8th, 2008
It can be scary to invest in anything during a recession. We all have visions of the great depression and bread lines and people selling apples. The idea of putting your money into anything other than a mattress can be frightening. However, real estate should never be looked upon as an ordinary investment. 
 
Real estate is one of the few investments that we actually not only can use, but need. Everyone needs a place to live. And real estate has systematically proven to have risen in value over the past several decades. Yes, you are paying interest in a mortgage for your home, but you are also getting a tax write off for the interest as well as a write off for any property taxes that are paid. 
 
The mortgage rates have not been as low as they are now since the 1960s. This is an ideal time to purchase real estate and take advantage not only of the low interest rates, but also the low prices on homes. Because there are so many more homes on the market than buyers, the price of homes in most areas has fallen considerably. On top of that, people who overextended themselves in the early part of the century are finding themselves in foreclosure.
 
Now is the time to buy and buy cheap. Do not feel intimidated by a real estate agent who tells you that you are going to “insult” someone if you offer a low price for a home. The real estate agent wants you to spend as much as possible because they get a commission off of the sale. Use your head and take a look at the market. When you are buying a home in a real estate recession, consider the following:
 
Is The Home In Foreclosure?
 
If the home is owned by the bank, you should be prepared to offer a lot less than the asking price. Do not allow a real estate agent to sway you when it comes to making an offer. If they use any tricks such as “I do not want to present such a low offer,” tell them that you will find someone else who will. Real estate agents are a dime a dozen, especially in the market today. If the home is in foreclosure, offer at least 20 percent less than the asking price. At least. 
 
How Long Has The Home Been On The Market?
 
A few years ago, a home that was on the market for several months was either priced too high or there was something significantly wrong with the home. Nowadays, homes stay on the market for 90 days as a matter of routine. Never make a really low offer on a home that is fresh on the market unless you know the home is in foreclosure or about to become foreclosed upon.   Feel free to make low offers on those homes that have been on the market for a month or so. Those that have been on the market for a year are owned by people who are willing to wait out the storm and will most likely not be sold for a low price.
 
Why Is The Owner Selling?
 
You can find this out by directly asking or looking around. If the home is in a state of disrepair, chances are that there are financial problems. You can offer a significant amount less. If the owner has another home that they are buying, you can also offer less. 
 
Make sure you do your homework and do not be afraid to invest during a real estate recession. Contrary to what you may have heard, this is the best time to buy a home. 
 

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How You Can Invest In Real Estate During A Recession

April 7th, 2008
Just because the real estate market has plummeted into a recession is no reason to give up on real estate investing. In fact, just the opposite is true. There has never been a better time than now to grab onto some real estate bargains and invest for the long term.
 
During the real estate boom, many people were investing in real estate for a very short term. In some cases, investors were contracting for homes to be built in desirable areas and then selling them to a buyer who wanted to live in the home right after construction of the home was completed. Holding on to a piece of property for a very short term and then selling it right away is called flipping. This practice reached its peak in the early part of this century when everyone was taught how to get into the real estate investing game.
 
Some people did make money in this type of real estate investing. More lost money. The range of foreclosures that are all over the market attest to the fact that the entire investment frenzy created a false economy for homes, especially new construction. This actually caused the collapse in the real estate industry. Now the residential real estate market is in a full recession. 
 
The way to invest now in real estate is to invest in property the old fashioned way - as a long term investment. Real estate is mean to be a long term investment and is a very good one for several reasons. One reason is that real estate values tend to rise along with inflation and the cost of living. Even homes in blighted areas rise in value over a period of 20 years. 
 
The other reason that real estate is such a good long term investment is that it is useful. You can rent the property to others or live in it yourself. If you are renting, you are paying a mortgage for someone else. This is the best time ever to stop renting and buy a piece of property. As you need a place to live anyway, you might as well buy and pay yourself. You can not only have a great long term investment, but a roof over your head as well as tax incentives.
 
Another great reason to invest in real estate is that the market tends to fluctuate. It is at the bottom now, but it will go back up again. It always has and always will. In addition to that, the mortgage interest rates are lower than they have been in decades. Mortgage lenders are going above and beyond to try to loan money to individuals for mortgages. Even if your credit is less than perfect, you can most likely get a mortgage. 
 
Take a look around at the homes in your area and consider investing in one as a place in which to live or to rent to others. Chances are that you pass bargains every day that will end up making you a fortune by the time you are ready to retire. 
 

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“Short Sales” Can Be Anything But Short

April 6th, 2008
Current economic conditions have generated a rise in Short Sales. Short Sales refer to a circumstance where an outstanding loan balance exceeds the value of the property being sold. They differ from foreclosures, but may lead to a foreclosure outcome if the property does not produce a ratified contract of sale in a timely manner. With a ratified contract of sale contingent upon 3rd party approval, many lending institutions may suspend foreclosure activity.
 
Short Sales are complicated transactions requiring patience and an investment in time from all parties involved. In situations where a Short Sale may be anticipated, sellers should plan well ahead and contact the Loss Mitigation Department of their lending institution to learn about Short Sale processing procedures (e.g.: Some lending institutions may charge a non-refundable, up-front processing fee) and any financial/credit impact.
 
Listing agents need to understand the full complexities of Short Sales to ensure that the all documentation, both from the seller and buyer, is submitted correctly and in a timely manner to the lending institution. Selling agents need a full understanding of Short Sale processes to ensure that their buyers appreciate and can await the necessary timeframe to obtain Short Sale contract 3rd party approval. Thirty, sixty or even ninety days may be required to complete processing. During this period, it is highly important for listing agents to stay in touch with the lending institution(s) and provide selling agents with feedback on progress. Short Sales require constant communication between all parties to maximize chances of success.
 
When multiple 3rd parties are involved, Short Sale processing complexity may significantly increase (e.g.: Home equity loan plus a mortgage loan from separate lending institutions).
 
Whether you are a Short Sale seller or buyer, the services of a real estate professional may make the process more understandable and, ultimately, more successful. Short Sales may not be short, but they can take far less time with proper planning.
 
 
Submitted by Barbara and Herb Novitsky, Columbia Office

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How To Make The Real Estate Recession Work For You

April 4th, 2008
In case you have not noticed, we are currently experiencing the worst real estate recession in decades. The prices of homes in some areas have plummeted to the point that many people are paying more in a mortgage than the home is actually worth. 
 
Developers in many areas have gone bankrupt, even large developers that appeared solid and structured. There are hundreds of different sub developments scattered all over the United States that have been left unfinished. There are thousands of new construction homes that are either in the process of construction or have never been occupied. 
 
On top of that, there are more existing homes on the market than there are buyers. Many of these homes have gone into foreclosure because the owners lost their job in this blighted economy. Things truly look bleak. 
 
In order to try to keep the nation from falling directly into a recession, which it already has although many politicians are denying it, the Federal Reserve has systematically lowered the interest rate for home mortgages. Home mortgage lenders are so desperate to make loans that they are calling people that they made loans to years ago in an attempt to try to get them to refinance. There was a time when people who wanted to refinance their homes could not get through to a lender. 

What does all this mean to you? It should mean opportunity. The interest rates are low and so are the housing prices. That means this is the perfect time to buy and buy cheap. 
 
This is not the perfect time to sell, however. If you own real estate, you should not panic and hold onto your investment until the market rebounds. Do not worry, it will. In the meantime, you can take advantage of the market by either refinancing your own home or buying additional property that you can rent out to other individuals. 
 
Everyone needs a place in which to live. You can take advantage of the low mortgage interest rates as well as the abundant foreclosures on the market and buy a home to rent to a tenant. The tenant will pay you rent in the amount that covers the mortgage, insurance and any property taxes. If possible, you can make a few extra dollars on the side. This can be put towards repair of the house in case the tenant ruins the carpeting or walls. 
 
You should ask for a security deposit and credit check from the tenant. This way, you will have some security that the tenant is of good character and will most likely pay their rent on time. You should have a bit of knowledge about lease laws in your state in case the tenant does not pay their rent so that you know the eviction process.
 
Renting to tenants can be a profitable way for someone to make money in real estate. You get to hold onto a piece of property for a long term basis, watch the equity continue to grow and someone else pays your mortgage. And this is the best time of all to get into this type of real estate investment. 

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How To Make Money Renting

April 3rd, 2008
Although the residential real estate market has hit the skids, it is not as gloomy as it appears. The market may be down, but it is not out. And it never will be as people will always need a place to live. You just have to be prepared for a long term investment in real estate and not panic. 
 
If you own property or want to make money in the market today, the way to go is to rent out property. We have always been a nation of renters. Over the past 50 years, however, we gradually moved towards home ownership. There are still many people, however, who rent and some people who prefer to rent. Home ownership is a responsibility that not everyone wants to take on. 
 
You can make money in the real estate market today by renting out property to individuals. You can rent out your own home instead of selling it if you are planning on moving, or even purchasing property to rent to people. If you are looking for a rental investment to buy, there has never been a better time. Housing prices are lower than ever as are mortgage rates. You can purchase a home or a condominium to rent to others and also be a long term investment for you.
 
Be careful if you purchase a condominium unit with the intent of renting that there is nothing in the bylaws that prohibits renters. You should also make sure that you do your own market study of the area. How much are other homes or condominiums being rented for each month? You need to find out whether the rent will cover not only the mortgage payment, but also the taxes and insurance. 
 
Do your homework carefully before purchasing property to rent to others. This can be an ideal way to make money in real estate today, but you have to make sure that you understand the market as well as the tenant laws. Tenant laws usually favor the tenant, so make sure that you screen any applicants carefully. You should also take a good security deposit, especially if you are renting a single family home out. The security deposit should be returned when the house is vacated and in the order as agreed to in the lease. 
 
If you buy property now, you can take advantage of the low housing prices as well as low lending rates. You can then hold onto the property for several years while renting it to tenants who will, essentially, pay your mortgage. When the real estate market moves towards a sellers market, which it eventually will, you can have the property appraised. Chances are that it will be worth a lot more than for what you pay now and by selling, you will get a sizeable return. 
 
Making money in the real estate market today is not difficult if you are patient and willing to look for the long term investment. Always look to the best locations in which to invest in property as they will tend to gain in value quicker than any other locations. 

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How To Make Money In A Real Estate Recession

April 2nd, 2008
There are a lot of ways to make money in a residential real estate recession. There really has never been a better time to buy than right now. The interest rates are at rock bottom and so are the prices of homes. There are more foreclosures on the market than ever before, which gives you an opportunity to make a killing when it comes to a long term real estate investment.
 
Because the market is now a buyers market and there are many more homes for sale than there are buyers, it is smart to look at real estate investment in this recession as a long term investment. This means that the idea of buying the home, fixing it up and selling it for a profit is over for now. For now. The real estate market is just like any other market and has its ups and downs. Right now, it is experiencing a downslide. It will rebound.
 
The way to make money now in the real estate market is to either buy partial construction homes or dirt cheap foreclosures and rent them out to tenants. Real estate is a unique investment. It is unlike other investments that are usually on paper. Real estate is something that you can actually use. Not only that, it is something that we actually need. Everyone needs a place to live. You can capitalize on that by purchasing dirt cheap foreclosures, fixing them up a bit and renting them out to tenants. 
 
We were once considered a nation of renters. Until WWII, most people rented property instead of owned a home. Mortgages were pretty tough to get and required 50 percent deposit. Today, mortgages are easy t get and we have become a nation of homeowners. Although the tide is turning and many people are finding that they bit off a bit more than they could chew when times were good. Now that the real estate recession threatens the entire economy of the United States, many people are finding themselves out of work and unable to afford payments on their homes. This is one of the reasons for all the foreclosures.
 
You can grab foreclosure properties easier than ever before. You will need to do your homework and make sure that the property is in a good area where the home prices are stable. You will also need to have proof that you can purchase the property for the amount that you bid. This will include a pre approval letter from a lender as well as a certified check for the amount of the down payment. If you are planning on paying cash for the property, you need to show proof that you have the funds available. 
 
You can get a pretty good deal when you buy a foreclosure. You will have to wait for a decision as banks and lenders do not have the incentive to act as quickly as individual homeowners, but if you do manage to be able to purchase a foreclosure, you will be surprised at the bargain that you get. Buying a foreclosure and either living in the property or renting it to a tenant is one of a few ways to make money in a real estate recession. 

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How To Invest In Real Estate In A Down Economy

April 1st, 2008
The real estate economy has hit rock bottom. There are thousands of foreclosures all over the United States. States such as California and Florida have found that their foreclosure ratio has reached epidemic proportions. All across the country people are finding it more and more difficult to get by.
 
The United States is experiencing the beginning of a recession. Things will get worse before they get better. They will, however, get better. They always do. You just have to be willing to wait it out.
 
If you want to invest in real estate, this is the perfect time to do so. With the mortgage rates being lower than ever before and the housing prices also at rock bottom, there are so many opportunities to make a good investment in the real estate market. This includes buying property for both residential use and to let out to tenants.
 
Everyone is affected by a collapse in the residential real estate market. It starts a chain reaction that has really just begun. People begin to be laid off in the trades and stop spending money on entertainment or new cars or furniture. The effect on everyone is astounding.   The real estate recession is like a virus out of control. 
 
You should always look at your home as an investment. If you are renting property now, realize that you are paying a mortgage for someone else. You can be paying yourself that money as well as taking advantage of tax incentives that are available to homeowners. 
 
Investing in real estate in a down economy is actually the best time to invest in real estate. You have to make sure that the property in which you choose to invest is in area in which the homes have systematically grown in value. If you want to speculate, you can invest in an area that is up and coming, such as a place where people are moving to get away from urban sprawl. Track the patterns of growth in your area and determine the next development boom. If, for example, the growth is going Southwest, go to an area one point farther than the most recently developed area and purchase property in that area. Because prices are low as well as mortgage rates, this is the perfect time to do this. When things get rolling again as far as developments, you may be sitting on a goldmine.
 
If you own a home and still want to invest, consider buying a home that you can rent to others. People always need a place to live and a rental unit is usually a good investment. Because of low interest rates and housing prices, you should be able to get a good deal on both property and a loan. Loans for investment property that you plan to rent are usually different than those in which you plan to live and in some cases, you need to put down 50 percent of the property value to get a loan, so be aware of that. However, the rates are still rock bottom so this is a good time to buy.
 
If you are investing in property that you plan to rent to tenants, make sure it is in an area where people want to live so that you can be assured of having a steady flow of income. 
 

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