You MUST add some Buy and Hold to your mix

[Dennis (MI)]

For those of you familiar with the real estate market in the Detroit area, you know that this is prime opportunity to build a real estate portfolio.

Why?

Let me ask you this - where else can you routinely find single family homes priced at forty to fifty cents on the dollar, with a minimum of $40,000 in equity, that need LITTLE or no rehab?

Tell me - where else?

There is no other market like this. Is it risky? Sure. And even more so with the sub-prime crash. But is good, solid suburban property ever going to go to zero value?

No.

When you take into account the fact that General Motors and Ford BOTH turned a profit last quarter for the first time in a long time, you begin to see that the real estate market in this area is not as it seems on the surface.

[FONT=Tahoma][FONT=Tahoma]So as I discussed in a prior post, I seriously recommend that you add some

[anf301]

Dennis, I completely agree. The ONLY way to successful weather a real estate market downturn is through diversifying your real estate portfolio. The perfect way to do that today is through buy and hold. I don't believe that long term investors should abandon all efforts at flipping properties, but I do believe that now is the absolute best time to be acquiring as many properties as you possibly can, be it in Detroit or elsewhere.

Our real estate investing company has been following a portfolio diversification formula of sorts, and it has been absolutely crucial in maintaining a sustainable real estate business model during such a market correction as we're currently witnessing. Our investment company hosts a real estate community site for articles on real estate investing, and there is an article on there regarding our current approach to market diversification (check out the site, in the signature below (boozwatt.com) -- the article is titled "How to invest in real estate in a market downturn"). Hopefully you'll find it helpful.

[JonathanLIVE]

This is an interesting formula... There are still a few unknowns that can knock you out... but I think if someone applies this formula and treads softly to start, they might do well.

Jonathan