The Number One Skill Needed for Real Estate Investors in a Changing Market
No matter what happens to the real estate market, investors who buy property right always come out ahead.
Due to the high demand for housing and easy financing over the past eight years, investors made a killing buying and selling, or flipping for quick cash. Even those investors who paid market value made money with rapid appreciation. But the investors who held onto properties saw home values double and triple.
What does the changing market mean for investors? The ability to spot a bargain-priced home that also rents for positive cash flow will make the next generation of real estate investor multimillionaires.
If interest rates climb, more people will be forced back into the rental market. Home sellers will offer lower prices and owner financing to capture the buyers able to purchase a home.
Because many home owners refinanced with adjustable interest rates, many home owners may find it difficult to pay the higher payment. For investors, this opens the pre-foreclosure market, which has been dried up over the past few years.
If you want to become one of the real estate investor multimillionaires over the next few years, here are three action steps:
1) Get your financing in shape so you don't pay high interest and mortgage costs. Every dollar becomes more important in a soft real estate market.
2) Get to know your market. Choose one area to focus and watch home sales. Keep records of sales, days on market, and sales terms (owner concessions such as financing, paying closing costs, etc.). Also, watch the rental market, rates, vacancy, and demand. You may need to choose an area away from your home base to find a location where rental income matches mortgage payments.
3) Negotiate. Once you find a bargain property with a motivated seller, ask for seller concessions. With fewer competing offers, you can get a real bargain.
Investors who buy right in any market make money. If you can hold onto a property that pays for itself, you will make more money for your future.
Copyright © Jeanette J. Fisher
Set up your real estate investment business plan, join our FREE Teleseminar "How to Get Started Investing in Real Estate". Get expert advice for beginning real estate investors from Jeanette Fisher. More real estate investing tips http://doghousetodollhouse.com/
Due to the high demand for housing and easy financing over the past eight years, investors made a killing buying and selling, or flipping for quick cash. Even those investors who paid market value made money with rapid appreciation. But the investors who held onto properties saw home values double and triple.
What does the changing market mean for investors? The ability to spot a bargain-priced home that also rents for positive cash flow will make the next generation of real estate investor multimillionaires.
If interest rates climb, more people will be forced back into the rental market. Home sellers will offer lower prices and owner financing to capture the buyers able to purchase a home.
Because many home owners refinanced with adjustable interest rates, many home owners may find it difficult to pay the higher payment. For investors, this opens the pre-foreclosure market, which has been dried up over the past few years.
If you want to become one of the real estate investor multimillionaires over the next few years, here are three action steps:
1) Get your financing in shape so you don't pay high interest and mortgage costs. Every dollar becomes more important in a soft real estate market.
2) Get to know your market. Choose one area to focus and watch home sales. Keep records of sales, days on market, and sales terms (owner concessions such as financing, paying closing costs, etc.). Also, watch the rental market, rates, vacancy, and demand. You may need to choose an area away from your home base to find a location where rental income matches mortgage payments.
3) Negotiate. Once you find a bargain property with a motivated seller, ask for seller concessions. With fewer competing offers, you can get a real bargain.
Investors who buy right in any market make money. If you can hold onto a property that pays for itself, you will make more money for your future.
Copyright © Jeanette J. Fisher
Set up your real estate investment business plan, join our FREE Teleseminar "How to Get Started Investing in Real Estate". Get expert advice for beginning real estate investors from Jeanette Fisher. More real estate investing tips http://doghousetodollhouse.com/
posted by Jeanette at Sunday, December 25, 2005
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