Making Money When the Market Is Down

By
Services for Real Estate Pros with Bone Marketing

Rich Dad says that educated investors can make money when the market is up and they can also make money when the market is down. As a real estate investor, I have been watching the nation's house market slump.

 According to sources like MSNBC, the supply of existing and new homes is enough to last the entire year. And there is no end in site. I agree with the opinion that there is no end in site. With 2 and 3 year ARMs coming due, we are going to see an even larger supply of existing homes enter the market as homeowners cannot afford their mortgages anymore and try to sell, or worse, get foreclosed upon.

The only thing that will stop this surge of un-affordable mortgages and foreclosures is if lending institutions retain the same rate on home mortgages when the ARM comes due. Will this happen? Probably not.

As a real estate investor, you should be able to see opportunity. When the housing market is down, you should be buying up properties at reasonable deals. This particular slump will not give way to incredible deals as most homes/foreclosures will only have 2 years of equity. All the current homeowners will be downgraded from owner to renter. My advice is to purchase homes so that these new entries into the home rental market will have a home to rent.

My advice to real estate agents is to focus on investors during this slump. Educate your area about the rising opportunity and create new investors that will look to you to find a good deal!!

For more information about Financial Freedom through investing, I recommend Cashflow Quadrant: Rich Dad's Guide to Financial Freedom.

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Rainer
128,954
David A. Podgursky
Boynton Beach & Lake Worth Florida Real Estate Broker Associ - Boynton Beach, FL
PA

Interesting advice... I agree that the investors are hungry

we just have to get them past their paralysis thinking about a further decline rather than long term gains.

right now is time for investors to think about buying and holding... flipping is not an option in most markets.

June 27, 2007 09:38 AM #1
Anonymous
Anonymous
Anonymous

I agree with you.  Investors can make money when the market is up and when the market is down.  I have one who just sold off a investment that I helped him/her purchase last December, there was some resistance to purchase the property but as it turned out it was still very profitable for the investor.  I have placed a bid on another property for this investor already and am fairly sure we will get the deal. 

I personally tied myself up in a investment in a home that I plan to keep, but will need to spend and spend and spend to get it up to where it needs to be, but am looking for something else to buy as a fix up and sell also. 

 

Lots of very good deals out there investors.  Jump on them.

 

James Boyer

Keller Williams Realty

Summit, NJ 07901

June 27, 2007 09:40 AM #2
Rainer
103,109
Armando Rodriguez
QUEST REALTY SERVICES - Orlando, FL
Orlando Homes 4 Sale, Real Estate Broker-GRI
You should own for the long haul. It really pays off then!
June 27, 2007 09:55 AM #3
Rainer
4,698
Brockwell Bone
Bone Marketing - Baton Rouge, LA
Exactly! The market now will be most beneficial for investors who buy and rent. Hold the property for a couple of years while your renters pay the note and then sell when the market recovers.
June 27, 2007 10:04 AM #4
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Rainer
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Brockwell Bone

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