Thread: Real Estate Investing

Is this a terrible time to invest in RealEstate with prices on the decline and many people trying to rent that cannot sell?

Steve

There is never a bad time to buy real estate. Just find the deals that make sense.

Buy when everyone else is selling, and sell when everyone is buying. Trust me. Housing will come back big time and those who bought bargains today, will reap the benefits.

I have an investor buying workforce housing. Meaning single family homes in the $100's-low $200's on the outskirts of metro areas. He is purchasing 50-100 at a clip and doing lease options for high credit risk buyers. He will hold the paper after the option expires.

He got out of the Stock Market 6 months ago. Pretty good timing.

A great quote from a meeting I went to last night was: "The best time to buy is when sellers are afraid tomorrow will be worse than today".

At least where I'm at, we're pretty much there! It's a good time to pick up great deals. As long as you buy them right. Buy at a discount, with owner financing or Sub2. And make sure you have multiple exit strategies, whether they be short-term or long-term.

There are plenty of people out there that are highly motivated and will be creative with you.

If you buy right, you will be sitting pretty when (not if) this market turns around.

Hey all,
In this business, you need to realise the value both today and tomorrow of property. Whether you are selling land or property, commercial or residential. The main factor that determines the value of land are location, surrounding property and accessibility, meaning access to water, power, sewer systems, roads...which are usually givens in the developed world. You also need to take into account the book value of property and the market value....the two almost definitely differ...there is no point holding out to a price if people will not pay...talk to people...this really helps...people's opinions matter and they often listen to what others have to say, particularly the ones who seem to know what they are talking about, experience plays a crucial part. I would welcome a response.

Originally Posted by CreditCardRadio.com

Is this a terrible time to invest in RealEstate with prices on the decline and many people trying to rent that cannot sell?

Steve

Your right it is a terrible time to invest if you are a hobby investor. Professional real estate investors make money in any market. Now would be the time to get a real estate investor coach.

The problem I am seeing is what I call the On top of Scenario.

It seems like you can get great deals on property right now for investment. The problem is Real Estate Taxes are eating peoples profits up and then the high cost of insurance on top of this. This can make a good investment turn bad when you factor these in on top of your mortgage payment and could put you in a negative cash flow position when renting the property out.

Thanks for your inputs.

Originally Posted by CreditCardRadio.com

The problem I am seeing is what I call the On top of Scenario.

It seems like you can get great deals on property right now for investment. The problem is Real Estate Taxes are eating peoples profits up and then the high cost of insurance on top of this. This can make a good investment turn bad when you factor these in on top of your mortgage payment and could put you in a negative cash flow position when renting the property out.

Thanks for your inputs.

Well thats exactly why you do an analysis on the property so that when you factor in PITI you have enough rent to cover those items and all the "other" expenses involved.

Well years from now, I'm sure real estate business will boom. It has been the common business nowadays.

Try investing in Dubai, its the place to invest in Real Estate.

Originally Posted by CreditCardRadio.com

The problem I am seeing is what I call the On top of Scenario.

It seems like you can get great deals on property right now for investment. The problem is Real Estate Taxes are eating peoples profits up and then the high cost of insurance on top of this. This can make a good investment turn bad when you factor these in on top of your mortgage payment and could put you in a negative cash flow position when renting the property out.

Thanks for your inputs.

From your post it sounds like you are from south florida b/c you described the market well. Florida is still a great place to invest as I do so myself but there are many other parts of the country where taxes and insurance are not so high. Ex. 100 month positive cash flow in south florida is good on SFH but you can do 350+ in other parts of the country.