We all know foreclosure rates have escalated dramatically and are now
amplified even higher. However, this doesn�t mean anyone is going to be
making fast money off this real estate bubble. The words, �Long term
investment� need to stay in the minds of any real estate investor no
matter what the state of the economy is in. The real estate market seems
to be following a 10 year cycle.
This does not mean that real estate investing is a bad idea. In fact,
it's just the opposite, now is the perfect time to invest in real
estate. Although the market is bad for sellers, it is excellent for
buyers. On top of that, the mortgage interest rates are lower than ever.
It is hard to imagine a better time than now to invest in real estate.
Several tips on investing in real estate in the market today and how to
make money are as follows:
Look for the long term investment. Be set to hold onto the property for
many months so the market can rebound.
Look into renting property. People are always going to need a place to
live. You can rent your property to those who need a home and make money
when you sell after the market rebounds.
Think about investing in commercial real estate. Although residential
markets are bad, the commercial market has remained steady. You can
invest in property such as strip malls and office buildings and still
make money.
Consider investing in vacant land. Look for property in regions that are
undeveloped. You may find in 10 years that your property is worth 10
times more than what it is today. Think of the people who owned farmland
in Orlando. The property is now worth thousands of times more than first
asking price.
Do not freak out. This should be rule number one. If you own a home, do
not panic and be quick to sell if you do not have to move.
Consider new construction. If you are able to play the role of general
contractor and build a home, there is a great potential to make money.
New construction is always desired by most people as they like to be the
first to live in a home. If you are in the trades, consider building
your own home.
Buy foreclosures. Look at foreclosures that are on the market and that
are owned by banks and mortgage lenders. Put in a bid and do not be
scared to bid low. There are thousands of foreclosures across the
market, even in chic neighborhoods. This is where you can make some
serious money if you buy low, hold onto the property for a while, and
sell high.
Buying low and selling high is how you make a profit in any business and
is alike in the real estate market. The current market, however, does
not make it possible to sell high. There are more homes on the market
than there are buyers. Many of the buyers that are out there are foreign
investors who can spot the opportunity of purchasing property in the
United States at bargain basement rates. Although this is not the market
to sell high, it sure looks like the market to buy low.
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