Real Estate

Real estate investing: opportunities abound in an embedded market

Today, people are concerned about real estate investment opportunities. We are in the middle of an economic recession. Unemployment rates are skyrocketing. Bankruptcy and foreclosure filings are at an all-time high. The housing market continues to look bleak.

The truth is, now is the time to capitalize on real estate investment deals. Home prices continue to fall across the country, but this trend will not last forever. Financial experts predict that prices will recover by the end of 2009.

People new to investing can gain knowledge by attending real estate seminars. Take the time to research the various types of training courses available and the people who teach them. Local real estate agents often offer complementary real estate investment courses or charge a nominal fee.

Investment seminars can help you determine what types of properties are best for you. Investment properties can include single-family residences, condos, duplexes, mobile homes, and manufactured homes.

Other options include commercial properties such as shopping centers, retail outlets, and business centers. Novice investors are strongly advised to avoid commercial real estate until they have obtained sufficient education and training.

A popular option among novice and seasoned investors is buying houses for the purpose of moving houses. Most people are familiar with this technique from popular TV shows.

Buyers buy distressed properties significantly below market value. They do repairs and renovations and then sell the property for profit. Changing homes can be a profitable investment strategy, as long as the buyer understands the market in which the home is located.

‘Distressed properties’ is a term used to describe bank owned homes and foreclosures. It can also refer to short sale real estate. Short sales are sometimes offered to borrowers when they are behind on their mortgage note. Lenders agree to accept less than is owed in exchange for a quick sale of the home.

Short sales are complicated and require the assistance of real estate professionals. Investors can explore these offers through various real estate websites and local estate agents. Many real estate professionals offer distressed property listings and can be instrumental in getting bids approved.

Wholesaling is perhaps the easiest and most profitable investment technique. Buyers buy houses at wholesale prices and then resell them in as-is condition to another buyer. To obtain wholesale prices, investors must purchase multiple homes at the same time. It is not uncommon for seasoned investors to purchase entire bank portfolios consisting of dozens of properties.

Real estate investing is full of profit opportunities. To be successful, investors must create a business plan, develop long-term strategies, and network with professionals, including real estate attorneys, real estate agents, bank loss mitigators, brokers, and mortgage lenders.

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