The Upside to Real Estate Investing, Part 1
Most people reading this article are well aware that we are living in a unique time. The global economy has been struggling for some time now; the US economy nearly ground to a halt in 2008; European countries have either been bailed out or have been on the brink of bailout. The job situation is VERY GRADUALLY improving. The mortgage industry is in a state of correction after virtual collapse. Our government has pumped so much money into our economy that massive inflation is inevitable in the coming years. Remember though, volatility makes for good investing and I am here to talk about one thing… the time to buy investment property. That time is now.
Distressed properties are plentiful and prices are at historic lows. This bodes well for both flippers and long-term real estate investing as you should be able to buy properties for a song. If you are a flipper, this means you lock in your profit at closing and, assuming you are buying the property in a solid area, you can count on the upside when you sell 4-6 months later; if you are a landlord interested in adding to your portfolio of rental properties, anything you buy now is virtually guaranteed to grow in value between when you close and your investment horizon (5, 7, 10 years) even if the property requires a good amount of renovation or improvement. If you have access to cash and some experience either improving properties yourself or managing a team of subcontractors, or the willingness to learn the ropes, you should be investing in real estate.
In our next several posts, we will provide insights and recommendations on how to you can take advantage of a recovering housing market. If you are interested in following this thread, click here to sign up and stay tuned.