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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.
The above being said let’s move on.
Just because a drop in the market has taken place 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.)
Finding Deals and Marketing 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.
Some of my best investments have come to me via a web community contact. I also have gotten countless tips from other investors on investments and financing issues. Do not 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.
Finding financing
Right now we are hearing everyday about how the current market and credit crunch is making getting loans harder for everyone. This is currently a fact. 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 will become the big trends in the next couple of years. I am waiting to see 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. (This was a practice that was used only in limited capacity in the last 10 years by most lenders now it seems like every other distressed listing is a short sale in some cities.)
Please don’t let the current market conditions scare you in to sitting this investment period out. 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.
Read investment the strategies of the big names in investing. Buy books build your investment library. Use the time to educate yourself and above all be creative.
Don’t let panic drive you off with everyone else.
Doc Schmyz has invested all over the US. He built a free website shares Real estate investing information or all over the US. Find real estate information by state
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