OK, I know it sounds like I've lost my mind, but these are great days for real estate investors.
If you read the papers and listen to the infotainment news programs, you would think this economy is done for. I don't know about you, but I have yet to see people jumping off bridges, guys in suits lining up at soup kitchens, or trying to sell apples on street corners for a nickel apiece just to get by. The economy has no doubt hit a rough patch, and it IS time to use common sense. However, I think think a little dose of reality therapy has been in order, anyway. Folks have forgotten you can't borrow your way to wealth by getting 95% LTV ARMs on investment property (and actually sleep at night) since they end up with neither cash flow nor equity.
Here's the part that's good for us: Everyone else seems to think it's "game over", and some sellers are getting a little desperate because, in the words of Zig Ziglar, their "thinkin' is stinkin'". Right now is the best time in a while to get into buy-and-hold real estate investing. I've heard it said that you want to sell when it's hard for folks to buy, and buy when it's hard to sell. Right now, sellers are having a harder time selling, even if it's just in their own minds.
For you conservative folks looking for a way to build for retirement, here's a thought: Find a great deal, fix what needs fixing, rent or lease option it, and start over looking for another one. Since real estate values may be in a state of flux, this works kind of like dollar cost averaging in mutual funds. Do yourself a favor, too, and when you borrow, don't over leverage and don't take excess cash from closing. Just take whatever you need to buy that next one, and forget about buying that jet ski, RV, or whatever. There's time for that later. Your job is to take advantage of the current market and not end up being that guy selling apples on the corner. BTW, don't quit your day job.
If you read the papers and listen to the infotainment news programs, you would think this economy is done for. I don't know about you, but I have yet to see people jumping off bridges, guys in suits lining up at soup kitchens, or trying to sell apples on street corners for a nickel apiece just to get by. The economy has no doubt hit a rough patch, and it IS time to use common sense. However, I think think a little dose of reality therapy has been in order, anyway. Folks have forgotten you can't borrow your way to wealth by getting 95% LTV ARMs on investment property (and actually sleep at night) since they end up with neither cash flow nor equity.
Here's the part that's good for us: Everyone else seems to think it's "game over", and some sellers are getting a little desperate because, in the words of Zig Ziglar, their "thinkin' is stinkin'". Right now is the best time in a while to get into buy-and-hold real estate investing. I've heard it said that you want to sell when it's hard for folks to buy, and buy when it's hard to sell. Right now, sellers are having a harder time selling, even if it's just in their own minds.
For you conservative folks looking for a way to build for retirement, here's a thought: Find a great deal, fix what needs fixing, rent or lease option it, and start over looking for another one. Since real estate values may be in a state of flux, this works kind of like dollar cost averaging in mutual funds. Do yourself a favor, too, and when you borrow, don't over leverage and don't take excess cash from closing. Just take whatever you need to buy that next one, and forget about buying that jet ski, RV, or whatever. There's time for that later. Your job is to take advantage of the current market and not end up being that guy selling apples on the corner. BTW, don't quit your day job.
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