Tips On Making Money In Real Estate Today
We all know foreclosure rates have gone through the roof and are now
raising 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 poor idea. To the
contrary, 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.
A few 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 always 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 regains its strength.
Think about investing in commercial real estate. Although
residential markets are terrible, the commercial market has remained
stable. 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 parts 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 original asking price.
Do not freak out. This should be rule number one. If you own a home,
do not panic and 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 the potential for a
lot of money to be made. 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 worried about bidding low. There are thousands of
foreclosures across the market, even in fancy 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 return in any business
and is the same 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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