Real Estate Investing Is A Tricky Market Today
Today’s real estate market is much different than last decade where we saw banks lend out lots of credit to builders. This building boom saw an incredible amount of property all over the country go up for sale. Real estate investors had a field day since it was easy for them to borrow money and buy up a lot of the property. This led to the practice of buying a home for the purpose of quickly flipping them to make a profit.
Easy Money Is Gone
Unfortunately when the housing market bottomed out so did the access to easy money for borrowers looking to invest. This has also affected regular homeowners who are just looking to buy the dream home. But with investors they have lost a huge amount of leverage since you need a lot of capital today to get a bank to budge if you want money for real estate investing.
Deals Are There and Maybe In Your Neighborhood
The people today who are doing well in real estate investing are the ones who can afford to put up their own resources. This has helped them find tremendous deals because they aren’t reliant on financing, just straight cash deals. They have been able to buy up some great properties that they will hold onto until the market turns around.
There is a good article by multi-New York Times Best Selling Author Dean Graziosi that was in the Huff Post. It is about buying foreclosures in your neighbor as away to make profit. Excerpts from the article are below:
Foreclosure Hurting Your Neighborhood and Home’s Value? – – Buy It! by Dean Graziosi http://www.huffingtonpost.com/dean-graziosi/foreclosure-hurting-your-_b_5990698.html?utm_hp_ref=business&ir=Business
Recent news and data tells us that there are far fewer homes for sale in foreclosure than in recent months. In August 2014, foreclosure inventory plummeted 33 percent year over year……
All of this information is nice, unless you own a home in a neighborhood with a foreclosure in poor condition sitting there dragging down neighborhood home values. Actually, there is some lemonade to be made here…..
But, if there is one or maybe two, you can do your neighborhood a favor, help your home’s value, and generate some great cash flow in the process….
Why not buy that foreclosure and convert it to a rental? You’ll take it off the market as a deep discount property. You’ll improve the neighborhood when you fix it up.
There May be Help Out There Some areas are aggressively working to avoid neighborhood blight by offering government-backed financing for distressed homes and/or repairs….
It’s a Great Investment But, with today’s miniscule savings rates and risky stock market investments, it’s nice to be able to generate double-digit ROI with special tax advantages as well….
Dean Graziosi’s major point in this post is that it is a great idea to invest in your own neighborhood. Dean continues to publish great content that can be access in many places on the internet. One of the places you can go is to his YouTube channel and check out his “Weekly Wisdom” videos. Here is one of his latest –
The Real Estate Market Maybe Tougher But…
It is unfortunate that the real estate market went south but hopefully it will turn around again because the people who got hurt the most was the middle class. They saw their investments nearly cut in half once the recession hit. Now that things are picking up again, so have the real estate prices. It is just a lot tougher today for the average investor to put their money in real estate because they don’t have the capital to do it.
You can still make smart real estate investments, just not on a grand scale anymore. Until the banks feel comfortable again lending out money, it is going to be tough going in he real estate investing market for some time.