10. It may or may not be a well known fact that real estate is the number one investment vehicle for creating wealth and accounts for the major wealth of millionaires today.
9. The concept of using leverage in the purchase of real estate can make much more money than stocks. A $10,000 investment in stocks may only produce a 4-10% profit per year. This is an increase of $400 - $1000 over a year. Now take into consideration that if you took a $10,000 investment and put it into a $40,000 house with an After-Repair-Value (ARV) of 85,000, this would give you a $45,000 ROI which is 450% return. This is a no brainer.
8. Instant equity of thousands of dollars can be attained! Assuming you make a good deal on real estate you can end up with 10-40% instant equity - particular where foreclosures are concerned. Take the example above. You purchased the house for $40,000 in "as is" condition but it has an immediate "as is" resale value of $60,000 and next year it will be worth $68,000. You walk away with $20,000 instant equity, and next year could sell the property for $28,000 in profit. Spend $2000 - $3,000 adding curb appeal to the property and you could maybe get $85,000.
7. The real estate market is at or near the bottom concerning valuations and more remarkably speaking many properties are SIGNIFICANTLY UNDERVALUED. The banks simply don't have enough manpower to make valuations on their foreclosures and are heavily relying on Broker Price Opionions. If you buy and hold the property until the market rebounds, investors stand to gain considerable equity (and profit).
6. For the most part, investors are in a buyers market. It's a buyer's paradise! Since the market is flooded with foreclosures on the market and with so many people who are struggling to sell their home, this gives any investor an upper hand in negotiating and bargaining power.
5. Some landlords have extended their holdings and are over leveraged. Their properties are having a hard time producing income in such a rough economy. Picking up a good deal may be a real possibility if you can find the right landlord.
4. The unemployment rate is hovering at nearly 10%. Many people are losing their homes to foreclosure. If you can purchase a house in pre-foreclosure, you may be able to help the owner out of his or her tough financial situation. Subject to financing may be appropriate here or even a pre-negotiated short sale with the seller's bank.
3. Many foreclosures and Real Estate Owned (REO or Bank Owned) property can be bought for a fraction of the value right now.
2. Another large wave of of foreclosures is right around the corner. Foreclosures are starting to rise again posing strong investment opportunities.
1. Real Estate is at an all time low. Pricing for the current housing market is at levels not seen since the last bust in 1989 following the recession of 1990. Of course, that bust created many real estate millionaires. People who saw the opportunity from the 1989 housing bust profited immensely. Even more opportunities exist in this real estate market bust as in the 1989 bust. I suspect, in large part, that we will never again in our lifetimes see this type of mammoth investing opportunity.
Michael Hathman
Real Estate Broker
Smart Solutions Financial Services, LLC
“Extraordinary Investing Opportunities”
636-533-4070 – Direct
888-605-5181 – Toll-Free
http://www.smartsolutionsfs.webs.com/
real, estate, investing, real estate investment, cre online, creative real estate, real estate, rental income, raw land, appreciation, commercial property, residential property, location, development, flipping, house flip, land production, make money, right now, with no money, tax liens, 2011, investing, now, notes, foreclosure, foreclosures, pre-foreclosures, preforeclosure, preforeclosures, pre-foreclosure, notes, tax deeds, tax certificates, tax sales, sheriff sale
No comments:
Post a Comment