Everyone is well aware of the current financial climate. Credit has dried up, foreclosures are raining down, and people everywhere are tightening their portfolios. The days of almost immediate gains in real estate through speculation, gambling, and unethical methods are over. So why do people keep asking and offering real estate investment advice? Simply put, because while the above is quite true, the current economic crisis has also brought a number of unique real estate investment opportunities.
While this is not the time for undisciplined investors looking to make a quick buck, disciplined businessmen will find the cost of owning a home to be at its lowest point in years. Debt and the threat of foreclosure have led homeowners to sell their homes at 70% or less of their fair market value. Investors who do their homework will find this a great time to get low-priced properties and immediately trade them to larger investors for minimal but low-risk profit or resell them for higher profits once they have been remodeled and renovated. There will always be a market for homes at the right prices, and there are alternatives to immediate sale that can be just as advantageous. Leasing with an option to buy at the end of the lease, for example, will generate at least enough income to pay the mortgage, and a person interested in a lease with an option will most likely look to buy the house at some point.
Yes, the economy has stagnated and everyone is suffering the consequences. Lack of credit and continued layoffs have reduced the number of people buying homes. But for those seeking real estate investment advice, I’ll just say this: unique and exclusive opportunities are available to those who are smart and disciplined enough to take full advantage of them.