Property for Sale
There is plenty of property for sale, but in this day and age most people are leery of investing in real estate. With unemployment rates continuing to soar and increased lending restrictions, taking the plunge of buying investment property can be a frightening thought.
The types of property for sale range from residential homes to commercial real estate. Millions of foreclosure homes and bank owned properties are sitting vacant with low price tags to entice buyers. Even reduced prices and multiple incentives haven't been sufficient to stimulate much action in the real estate market.
With that being said, investing in real estate today could pay off handsomely once the market rebounds. The latest trend for investors who buy homes is investing in properties for use as rental homes. Considering the number of homeowners who have lost their property to foreclosure, there is significant need for rental property.
Rental properties can be used in many ways. There is the standard way of renting houses to tenants and collecting monthly rent. Then, there are lease purchase option agreements which allow tenants to rent the property while working toward restoring credit so they can buy the home within a few years.
Investors can rent their properties under Section 8 housing to receive government housing assistance payments. Or, they can offer the properties for sale using seller carry back trust deeds which require sellers to act as the mortgage lender for all or part of the purchase price.
Investment property can be traded for like-kind property using 1031 exchanges which allow investors to defer capital gains and depreciation recapture taxes. Or, investors can join an investment group to purchase commercial real estate or large parcels of undeveloped land.
That's the beauty of real estate investing. The possibilities are endless. However, in order to succeed in this market, investors need to determine their niche and become educated about how to capitalize on opportunities.
In today's market it is more important than ever to develop a solid real estate marketing plan. Investors cannot stick a 'For Rent' sign in the front yard and expect the perfect tenant to arrive at their doorstep. Nor, can investors fly solo. They need to network with a variety of realty professionals and build relationships so when opportunities arise their real estate partners will immediately think of them.
It is a good idea for investors to join real estate clubs and online investing groups to meet peers and helpful people. Not only will investors meet potential business partners, they can learn insider-secrets and investment strategies that will allow them to reach their goals.
I have been investing in real estate for years and have witnessed the complete debauchery of the market. The one thing that has kept me afloat through all the turmoil is the ability to change course when market conditions change.
I share the insights I have learned over the years in my real estate investing article library. Here you will find information and resources on the various investment strategies and creative financing techniques that I have used or learned from my peers. I hope you find something of value and encourage you to subscribe to my mailing list so you don't miss future publications.
Published on September 27, 2010 at 02:36 AM