10. Real estate is the number one investment vehicle for creating millionaires. If this alone is not a good enough reason to become an investor, I do not know what is!
9. By allowing a person to leverage his/her money, investments in real estate can make much more money than stocks. A $10,000 investment in stocks may raise 8-10% a year. This is an increase of $800 - $1000 over a year. A $10,000 dollar investment in real estate on a $100,000 house which may increase in value 5-6% a year would give you $5000 - $6000 ROI which is 50-60% return. This is a no brainer.
8. Instant equity! If you make a good deal on real estate you can end up with 10-30% instant equity. Take the house mentioned above. Say you made a good deal on it and purchased it for $85,000. The house is worth $100,000 and next year it will be worth $105,000. You walk away with $15,000 instant equity, and next year could sell the property for $20,000 in profit. Spend a couple thousand adding curb appeal to the property and you could maybe get $115,000.
7. The real estate market is at or near the bottom. If you buy and hold till the market regains its composure you stand to gain considerable equity.
6. We are in a buyers market. With all the foreclosures on the market, many people are struggling to sell their home giving you bargaining power when you talk to them.
5. Landlords that over leveraged their properties are having a hard time. You may be able to pick up a good deal if you find the right landlord.
4. People are going through tough times with the unemployment rate at about 10%, Many people are losing their homes. If you purchase the house in pre-foreclosure you can help the owner out of his or her tough situation. This opens an opportunity for creative financing using subject to, I would be cautious of doing seller financing because if the person ends up filing bankruptcy you could be out of a house.
3. Many foreclosures and Bank Owned property can be bought for a fraction of the value right now. Here in Miami county Ohio, the foreclosures at the sheriff sale have risen about 50% this month, and the docket looks just as full for the next two months. By going to the Sheriff sales you can get property sometimes at 2/3rds of the appraised value.
2. The next big wave of foreclosures is right around the corner. There was a pause in foreclosures from October 2008 to March of 2009. The six month waiting period is now over and foreclosures are starting to rise again posing an investment opportunity.
1. Real Estate is at an all time low. The current housing market is at levels not seen since the last bust in 1989. This bust created many real estate millionaires. People who saw the opportunity from the 1989 housing bust profited immensely. Many if not more opportunities exist in this bust as there were in the 1989 bust.
Posted December, 2010
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