Are the current glut of houses for sale, and the lack of cheap bank financing, scaring away real estate investors? Is now really a horrible time to try and get into the real estate market as an investor and make some money? The answer to both of those questions is a resounding 'no.' While it is true that in some areas the real estate market is in a decline, and banks are being very stingy with their loans; now is actually one of the best times you can get into the real estate market and really make some serious money.
Why Invest in a Down Real Estate Market?
One of the biggest questions we are asked these days is if it is smart to try and invest in a down real estate market. In this new market, real estate is starting to become increasingly cheaper in many parts of the country. Thanks to the sub-prime mortgage lending mess, and the downward fluctuation in the market, there are a ton of homes available today and plenty of people looking to wait it out as a tenant in a lease-option-to-purchase home until they can obtain traditional financing once again.
Think about it for a moment. Where are all of the people who are being foreclosed on going to go live? Many of them will become renters and others will opt to rent a lease-option with the hopes that in three to five years they will be able to purchase a home again. This scenario is perfect for a new market real estate investor who is interested in buying some cheap properties through short sales, and then holding them as lease-options.
Is The Real Estate Market Really That Bad Everywhere?
Interestingly enough, if you were only to listen to the California real estate market news you would probably think that the market is horrible and never going to recover. However, in areas such as the Seattle real estate market, property is actually holding its value quite nicely. This should tell you that while some markets require one type of investing; other markets offer you different options all together.
To Invest Now or Not To Invest Now?
The simple answer is that the only limitation on your ability to make money by real estate investment is your own beliefs. In truth, investing in real estate is the same as investing in the stock market; sometimes you buy high and hold, other times you buy low and sell high. However, there is never any reason or excuse why not to invest in real estate - great market or down market.
