Opportunity is Knocking...Right Now

By
Real Estate Agent with RE/MAX First AB21301874

OpportunityYesterday while posting the market numbers for Southern Indiana Real Estate, I said that I am really excited about opportunities I see for both buyers and sellers.  Today I'd like to expand on that a little bit, but from mainly a buyer's point of view.

I think it is safe to say that most people know we are in a challenging real estate market right now.  There has been an above average number of foreclosures and home prices have dropped on the national average over the last year or two.  Neither of these things are good and they aren't what we like to see.

With that said though, no one ever talks about a few things that I'd like to point out here today.  The first being that our market here in the Midwest and more specifically, Southern Indiana, is a much more stable market than some of those around the country.  While we didn't see the dramatic price increases during the "Real Estate Boom", we also didn't see the dramatic decreases when the "bubble burst" either.  Our market has proved over time that real estate was, is and in my opinion always will be a great investment opportunity.

The second thing I want to talk about is the foreclosures and other investment properties.  So often when I hear of people wanting to get into the investment side of real estate, it is on the "flip" side.  That means they want to buy low, fix it up and then sell high for a profit.  This is a good way to try and make money quickly.  The only problem with that is again the fact that we live in a much more stable market.  Their is much less room for error than there is on any the real estate shows you see on TV.  The margins that they have in some of those areas compared to those we have here don't really compare.

What I try to talk to people about is a different side of investing.  If there was ever a time to buy property to hold onto, now is it!  If history has proved anything, it is over time our market will continue to climb.  Combine that with the fact that there are some unbelievable buying opportunities out there (ie. foreclosures, relo homes, etc.) and I can't think of any good reasons why you wouldn't want to do it.  Some will say they don't want to mess with tenants or something to that effect.  I say phooey!  If you know that is part of it and you have to deal with it up front, you will be able to handle it and will probably be surprised by how easy it can be.  Plus, if done correctly, and you are cash flowing money every month, those tenants won't seem to get to you near as much as you thought they might.

Folks, think of it like this.  If you don't do it, somebody else will.  And they will be the ones reaping all the rewards from them taking their chance when opportunity came calling.  Wayne Gretzky probably said it better than anyone else when he said "You miss 100% of the shots you don't take.

If anyone would like more information or has questions they would like answered, please don't be afraid to call or email me.  I would love to hear from all of you.

***EDIT***

I almost forgot, these are some lists of homes in the Southern Indiana area that currently have tenants in them.  What a great way to get started, buy a house that is already making money!

Clark County Indiana homes with tenants as of 10/2/08

Floyd County Indiana homes with tenants as of 10/2/08

Posted by

Your Best Move for Southern Indiana Real Estate

Brett Mumaw REALTOR®

Semonin Realtors

3707 Charletown Rd. Suite 1A

New Albany, IN 47150

(812) 542-9057 Office

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Topic:
Real Estate General Information
Location:
Indiana
Groups:
ABR/REBAC
Indiana Real Estate Professionals
Midwest Rainers
Posts to Localism
Realtors®
Tags:
southern indiana
real estate
for home buyers
foreclosures
real estate investing

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Rainer
2,691
Al Gonzalez
CFI d/b/a Lending Group

It's true that the opportunities are great, however I noticed that most folks don't do their home work prior to getting involved in investment type transactions not thinking that the market has changed considerably in just months. 

October 02, 2008 05:59 PM
Ambassador
738,649
Jeff Belonger
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans
Social Media - Infinity Home Mortgage Company, Inc

Brett.... there are many opportunities....  home values are the lowest in many years and rates are still very good.  Things will get better in the furture... in 2 years... this is the time to buy.

jeff belonger

October 02, 2008 11:55 PM
Rainmaker
91,512
Greg Gorman
Naples Florida Real Estate
John R Wood Properties

Hey Brett- Love the photo and your attitude. We all get caught up in the media when pots of gold surround us. Just look at Warren Buffet's actions...he's like a kid in a candy shop because he sees the market as opportunity. Thanks for sharing & inspiring us. Greetings from Paradise.

Realtor Greg Gorman & Team Paradise Logo

October 03, 2008 05:32 AM
Rainer
50,693
Brett Mumaw
Your Indiana Move
RE/MAX First

Al - That is where we come in and help guide them with our expertise.

Jeff - This is the time to buy!  Thanks for visiting.

Greg - I get sick of listening to the media.  I have to stop sometimes because it is so negative.  The crazy thing is that I don't think people realize how big the media's role is in all of this.  When doom and gloom is all people hear, it isn't going to get better.  If they would try and focus on the good things, it would help to stimulate the economy.

October 03, 2008 07:31 AM
Rainer
22,200
Peter Vekselman
Real Estate Trainer and Coach
Coaching By Peter-Real Estate Investment Coach

Brett:

Amen to your post! Many do not want to deal with renters, but this really is the best time to buy, hold the property and start your monthly cash flow.

If you buy at the bottom of the market and hold onto these investments, even if you break even on your rental vs. costs for a period of time, there is no question that in a few years you will start building serious equity. 

Sure, there may be headaches with rentals, but as your post notes, if you know what to expect upfront and how to DEAL with them,  the cash coming in and the equity you are building year after year will quickly make these rental deals look pretty darn sweet, not to mention all the great tax write-offs these properties offer you.

If you do decide to move forward on investments, do not go it alone. Get a knowledgeable Realtor, find an investment coach or real estate trainer who can walk you through the steps so that there are no unpleasant surprises. Mentors are out there for you as well, seasoned investors who know the pitfalls and will help you avoid them.

This truly is the best time to jump on the investment bandwagon and as the Kenny Rogers song goes, you need to "Know When To Hold 'em"....Well that time is now!

Thanks for your Post Brett...

Peter Vekselman

 

October 03, 2008 12:21 PM
Rainmaker
64,676
Toby & John T. Williams
Douglas Elliman Real Estate

In my area, the investors are finally back in the market!  Opportunities to "flip" homes now exist.  It is still hard to buy a home as a rental property because the taxes are so high that is is hard to have a positive cash flow. 

October 03, 2008 01:40 PM
Anonymous #7
Anonymous
Anonymous

Great post Brett.  Have a great weekend.

October 03, 2008 01:46 PM
Rainer
50,693
Brett Mumaw
Your Indiana Move
RE/MAX First

Peter - Love the Kenny Rogers line!

Toby & John - Taxes are one area that can affect whether a home should be rented or not.  They are really trying to push for changes here in our state to help encourage investors to get back in the game.  As of 2010 all residential property will have a 1% cap on the assessed value.

Richard - Thanks for stopping by!

October 04, 2008 07:43 AM
Rainmaker
76,119
Randall Schrader
Competitive Insurance of Dundee

Investors are buying!  Things aren't so bad in Florida now.  A lot of our foreclosures have been bought up at real bargains and have decorated for Halloween!

October 19, 2008 10:36 AM
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Rainer
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Brett Mumaw

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