In the Real World

Lease option used to be the strategy of choice but no more.

NOW is a good time to be buying real estate…Believe it or not, interest rates are still at historic lows and better yet, property prices ARE coming down, and this is why it is a great time for those who would like to pursue one of the best investment opportunities available.

One should realize that real estate is a long term investment that with time will always increase over the long term. This has been the case throughout history. It has been proven that one cannot “time” any investment market. Those values on a daily, weekly or even monthly basis may go up or down, but overall, real estate has always trended up over the long term – returning better overall than any other investment index.

Look at what’s happened in 2006 and the current market condition of 2007. The “frenzy” in the Real Estate market has faded as speculators leave the market and prices are no longer driven by speculation plus the lure of easy and low priced credit. Property values have become more normalized. We are seeing these corrections in pricing already resulting in some real bargains out there.

I was searching the MLS the other day and I could not believe the number of really great houses that were being sold for pennies on the dollar. (for free easy access to the MLS go here.) The problem right now is not the lack of properties for sale at low prices. The problem is the lack of funding (mortgages are not easy to find yet) and the ability and knowledge to put it all together. Buying foreclosed properties can be quite a complex task. And you generally need cash…lot’s of cash. What if you don’t have a lot cash? If you have a little cash and good credit there are ways to make it happen- with planning and a strategy. Private lenders are popping up everywhere. The banks are contracting but there is still funding available to investors that is secure and affordable. More about private funding in another post.

You can succeed in this creating wealth through real estate investments - If you follow prudent investment strategies and not make emotional decisions. Do your homework. Assess the market and the future growth in that particular neighborhood and so on – on your own. Or, you can hire a professional to put together a portfolio with you with very little stress. The professional I’m referring to is Acquisition Consultant. An Acquisition consultant should be working for you to put every piece of the puzzle together, including a property that has 30% equity. Or you could try it alone, without an acquisition consultant to help you navigate, but I don’t recommend it!

For more information about Acquisition Consulting go here.