The Rich Get Richer: Investors are positioning for a HUGE year!

Investors Ready to Make a Fortune!

Those who know me or listen to my podcast, know that I always say, "When they say the real estate market is "bad", that means it's bad for home owners wanting to sell their homes for top dollar. But if you are an investor, then it's the best time to buy.”
Buy low / sell high, works in real estate as well as it works in anything else. Let's look at what's going on. There is a surplus of homes on the market, which means that there are far more sellers than there are buyers. Sellers are in trouble and can't afford to pay for their homes, so they are willing to do anything to just out from under their situation. Lenders are losing money and getting far too many properties back in their inventory (which they don't like, they are in the money lending business, not the real estate holding business), so they are very motivated to recoup as much as possible on their loans.

When you add all this up, what do you get?

You get a situation that is one of the best in many years for investors to make tremendous profits. More Millionaires are made in the economic downturns, than in the good times.

Smart investors who understand these markets, can make a lot of money. With foreclosures approaching record levels, opportunities are everywhere. Sellers are willing to sell their properties for literally no more than they owe on it, and lenders are willing to do what is called a "short sale", where they will accept a discounted amount as payoff for the loan in order to avoid having the property go through foreclosure and risk getting it back.

I know that all sounds incredible, why would the homeowners just walk away from their properties, and why would the lenders accept less than they are owed?

The answer is, because they don't have a choice. The homeowner is over leveraged, they owe more than the home is worth. Same for the lender, if they take the house back, they cannot sell it for enough to recover what they are owed. This presents opportunities for us, the investors. We get the house under contract from the owner, then negotiate with the lender for a lesser payoff amount (often 30%-40% off, sometimes much more) with a cash offer.

So while everyone else is running away from real estate, smart investors who want to create tremendous profits, are running out to buy all they can get. Even in a slower market, if as an investor, you buy the property right, you can still sell it for a profit. A market slowdown does not mean that there are no buyers. It means that the majority of the general buying public is not getting into home ownership at this time. In a slow market 2 things will sell a property .... Price, or terms.

Price means that if the price is right, you will find a buyer. Buy a property for 60% of value, you can turn around and sell it quick to an investor for 70%-80% and turn a profit. Buy it for even lower than 60% of value, and make even more.

Terms, means selling it with good financing. As a rent to own (also known as a lease/option), or owner financing. With the slow down in available credit from lenders, buyers are looking for ways to still get into home ownership. By being willing to sell on terms, you can get at or above full market value, and take a option fee or down payment up front to put cash in your pocket.

So if you want to truly make money as a real estate investor, do what the wealthy do (buy property now), and not what the average person does (wait for the market to improve, which means high prices and less profits).

NOW is the time to get into investing in real estate in the U.S.