Experts Ponder Real Estate Price Spike In 2008/2009 - Should You Invest Or Wait?
January 13, 2008
Some experts expect the real estate market to rebound in 2008-2009 and others aren't quite so sure. With such a diverse spectrum of opinion on how the housing market is likely to shape-up over the coming year many investors are riding the fence, unwilling to make a move. That's unfortunate, because proven investing systems do exist for just such an uncertain market environment. This article will give you a taste of one such system.
Fifty Year Record Appreciation Rates Are Over
Frankly, it really didn't take a whole lot of knowledge to make money in real estate over the past few years. As long as you bought in a decent neighborhood and the property wasn't a total wreck you were virtually assured a tidy profit when you sold a year or two later. And therein lies the rub — because property values were rising at historical, 50-year record rates, almost anybody with a little luck could make a killing in real estate. Those days are over and they probably won't be back for another fifty years!
You Can Make Huge Profits In Today's Market With The Right System
That said, in no way does this mean that real estate isn't still one of the best investments in the world. After all, investors were making millions in real estate long before the historical run-up in the market and those who know what they are doing will continue to do so even as the market goes through a period of retrenching and normalization. Now is a great time to invest if you have a proven system!
While appreciation based systems worked over the past few years, "cash-flow" systems are what will take you to the land of real estate profits in the coming years. Your goal should be to find nice (but not extravagant) single family properties, in decent neighborhoods, in communities where the outlook is solid in terms of jobs, infrastructure, etc.
Why A "Rent-to-Own" Investment Model Might Be The Way To Go
What if there were a proven, safe, hassle-free way to invest in real estate that virtually eliminated the risks and hassles of landlording, provided a valuable service that had tenants with "cash" flocking to your properties, and ensured you a healthy return on your investment - would you be interested? If you haven't considered a rent-to-own approach to investing you might want to check it out, especially given today's market environment.
Some of the benefits of this approach include:
- Turn inexpensive houses into virtual money-machines that consistently churn out returns of over 400%.
- Transform a small nest-egg into several hundred thousand dollars of equity in as little as 24-48 months.
- Generate large up-front payments from your tenants that you can use to purchase more properties
- Negotiate leases where your tenants willingly accept the majority of responsibility for upkeep and repairs.
- Build competition among prospective tenants and have them clamoring to pay you above market rents.
- Sidestep the risks and hassles of landlording and put your investing on autopilot.
If any of this sounds too good to be true, I can assure you that it is not. As a popular author and real estate trainer I can tell you that I have personally bought and sold property using this lucrative, virtually foolproof method and I have taught countless others to do the same!
With prices softening and sellers more willing to negotiate their prices, now really is a great time to invest in real estate if you have a proven system that fits with today's market conditions. Now is the time to familiarize yourself with rent-to-own investing techniques - if you do, your success as a real estate investor in the coming years will be as close to a sure thing as is possible.
John Michailidis is a recognized business consultant, attorney, success coach, and author of the WealthLoopTM Series of books and training materials for aspiring entrepreneurs and investors. Please use the contact form to get in touch with him regarding personal coaching and business consulting. Download the FREE, 40-page, .pdf "Wealth Creation Manual."
Fine Tuning Your Finances Is Easy
January 3, 2008
Optimizing your finances need not be a difficult, or complex process. As I see it, fine tuning your finances involves:
- Control
- Growth
- Preservation
By control I mean having the ability to direct your funds towards the types of investments that are best for you. Too many people hand their money over to so called "financial advisers" to invest on their behalf. Unfortunately, it is not uncommon for such advisers to base their investing decisions more on the amount of commission they will make rather than how sound or appropriate the investment is for you and your goals.
Growth is just what it sounds like — having your money outpace inflation, and any investment fees, so that it is increasing in "real terms" and not just on paper. If inflation is 5% and fees are 1% you are not even breaking even until the investment earns 6%!
Preservation has to do with "waste". Keeping what you already have is usually much easier than making more, so simple common sense and frugality are necessary components of financial fine tuning. Setting and sticking to budgets is a great way to keep yourself on track with respect to finances.
Above all, you will have to do some homework if you want to ensure that your finances are on sound footing. Don't just invest in something because that's what everybody else is investing in. Have clear goals and pick specific investments to reach those goals. Don't just look to stocks and bonds, but realize that you can invest in precious metals and commodities, real estate, businesses, collectibles, etc. All have their pro's and con's and all are appropriate in certain situations. When it comes to your finances, don't be a "one trick pony," do your homework, and take charge.
John Michailidis is a recognized business consultant, attorney, success coach, and author of the WealthLoopTM Series of books and training materials for aspiring entrepreneurs and investors. Please use the contact form to get in touch with him regarding personal coaching and business consulting. Download the FREE, 40-page, .pdf "Wealth Creation Manual."
Foreclosure Crisis Looms Large — Many Property Owners Getting Hurt!
September 16, 2007
Take even a cursory perusal of the financial headlines lately and you'll be inundated with tales of the so called "mortgage crisis" and of people loosing their properties to foreclosure. The situation is actually quite dire in many parts of the country, as this recent ranking of the top states for foreclosure filings (RealtyTrac, Aug. 2007) reveals:
1. Nevada
2. California
3. Florida
4. Georgia
5. Ohio
6. Michigan
7. Arizona
8. Colorado
9. Texas
10. Indiana
11. Tennessee
12. Massachusetts
13. Connecticut
14. Maryland
15. New Jersey
16. Illinois
As an active and successful real estate broker and author (who regularly counsels property owners facing foreclosure) I am naturally interested in these market trends and how they might affect my clients and customers. In order to gain a better understanding of market conditions I personally conducted an Internet survey targeted towards property owners from across the country who were facing foreclosure. In more than fifty responses to my survey, I was shocked at what I discovered.
I had assumed that the majority of respondents would be in the early stages of the process, trying to figure out how best to deal with a situation that was for them, looming on the horizon, but had not actually come yet. I figured that the responses would come from people about to miss their mortgage payments, who were trying to figure out how to minimize the damages of a situation they were about to face. In fact, all but one of the survey takers had already missed two payments and more than half had already missed four payments or more!
While it's true that fifty or so survey responses is a very small sample, it became apparent to me that most people were initially "hiding their head in the sand" rather than taking proactive steps to mitigate the negative effects of foreclosure, or possibly avoiding/stopping the process all together.
Understand that when it comes to the foreclosure process TIME IS YOUR WORST ENEMY! The worst thing that you can do is to do nothing! As soon as you even think that there might be a possibility that you'll not be able to meet your mortgage obligation, you should simultaneously take all of the following steps:
1. Call your lender and explain your situation - Do not hide from the lender! You do not want the lender to be against you, you want the lender to be working to help you.
2. Check into refinancing possibilities - See if you can refinance into a loan with more favorable terms that you'll be able to afford. This will not be possible if you are already missing payments, so take this step early.
3. Contact a real estate broker experienced in foreclosure loss mitigation and real estate short sales - Do not choose just any old broker! The broker should have formal foreclosure loss mitigation training and experience, and have extensive contacts with area lending institutions, attorneys, investors, and other brokers.
The bottom line to all of this is that time will not make the problem go away, but will only make the consequences of foreclosure worse. Avoiding or stopping foreclosure is a very realistic possibility if you face the problem early and take proactive steps to correct the problem. The process can be complicated, so do not hesitate to enlist the help of a professional real estate broker who is trained and experienced in foreclosure loss mitigation and real estate short sale techniques and procedures.
Finally, BEWARE OF SCAMMERS! Never agree to pay a so called "foreclosure rescue company" a large up-front fee! Don't do it — it's likely a scam (not 100% of the time, but 98% of the time). A genuine foreclosure assistance expert might reasonably ask for a nominal up-front servicing fee to offset such legitimate costs as document preparation, phone charges, postage, etc. Such fees should rarely exceed $100.00, or so. A reputable foreclosure expert will negotiate to have their compensation covered by the lender. Beware of anyone asking for $500, $1,000, $2,500, or more up-front in order to help you with your foreclosure. Don't do it!
John Michailidis is a recognized business consultant, attorney, success coach, and author of the WealthLoopTM Series of books and training materials for aspiring entrepreneurs and investors. Please use the contact form to get in touch with him regarding personal coaching and business consulting. Download the FREE, 40-page, .pdf "Wealth Creation Manual."
