The Real Estate Cash Cow – Is It Really At Rock Bottom?

The real estate market is like a roller coaster, always going up and down. Every valley in the roller coaster when it dips down is where big money is made.

There’s a cycle in the market, about every 20 years or so. At the top of the curve, the real estate market looks very sexy and attractive and everybody wants to buy in.

Right now the market is at rock bottom.

How do we know that we’re at rock bottom?

There are a few ways we can tell this:

1) Look at “days on market” which is how long a property is listed for sale before it actually sells. At the top of the market some properties only lasted 5-7 days on market. As the property market came screaming down, the number of days on market increased to 30 days, 100 days, etc. Now if you ask an agent for the average days on market for the last 3 months or so, you’ll see that it has stabilized. We’ve hit bottom.

2) Right now about 35% of all real estate purchasers in the country are cash buyers, the housing property investors. These real estate investors are holding the bottom of the market up.

3) No new builds. When existing houses are not selling, no one wants to build new ones which sell for an even higher price.

4) The affordability index. Houses are more affordable now than they’ve been in 65 years.

5) For the first time in history, more investors are buying real estate than new home buyers.

This is the time of greatest opportunity. When we hit bottom it gets very quiet. You don’t hear about the property market in the media. You don’t hear people talking a lot about it. Warren Buffet says when people are greedy, be scared. But when people are scared, that’s where wealth is made. Now is the time to get involved in the bottom real estate market.

You can learn how to buy even way below the bottom. Then, even if the market slips a little bit, you don’t have to worry because you bought way below the bottom price.

If you don’t have money or credit or you don’t want to be a property investor, you can make money by learning to be an online marketer instead. You can learn to find better deals than anyone else can and learn to find those cash buyers who want to invest in real estate now. That 35% of buyers equals $billions and you can learn to scientifically match them up and make money in the middle. There are housewives, moms, and people all over the country who are quietly making a killing right now doing just that.

There is Still Cash in Real Estate – Why Wealth Coaches Recommend Investing in Rental Units

Recent panic about the burst of the real estate bubble, dramatically low prices and high inventory completely overshadowed a positive side of the current real estate market-opportunities for investors. The message that falling price is the most lucrative component of real estate buying was completely lost in the choir of grouches (and media craziness that followed) about falling property values.

No doubt, millions of home owners suffered from the burst of the bubble, many had to give their houses up, others lost their equity; all in all, housing prices declined sharply signifying a real crisis. However, it would be foolish to forget that there are and will be people, many of them complete newbies, who are going to make a big profit exactly because property prices have declined.

According to Robert Kiyosaki, author of a bestseller “Rich Dad, Poor Dad,” there is a fortune to be made in real estate investing if you decide to take an action now, especially in buying rental units.

“Silicon Valley Mercury News” has recently reported that Bay Area real estate investors have gone on a shopping spree, snapping up homes in low-cost communities outside the region. It he third quarter of this year, for instance, buyers in the nine-county Bay Area purchased nearly 3,000 homes outside the region, up 58 percent from the same quarter last year, typically for prices well below 2008 levels.

The same “shopping spree” silently shook Detroit, where quite a few brokerage companies made nice profits by purchasing low-cost rental houses en mass and then reselling them to hungry hordes of investors. The smartest ones, who took time to gather intelligence about the area and circumvented the brokers, have been raking up profits ever since 2007.

Similar stories are repeated in Florida, Illinois and other states. Remember what investment guru Warren Buffet once had said? “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” Rental units in top condition and great location are plentiful and relatively easy to find. So the emphasis on quality is important.

This is not the time to buy apartment complexes that are ran own or built in shady neighborhoods. Unless you are an experienced broker and have a sixths sense about which neighborhood is about to change dramatically for the better, don’t bother with lengthy and costly renovations and don’t buy property in the places where you would not want to live yourself.

Before diving into the market as an investor, double check your credit score. A shrewd investor will not take any changes and guard every penny during the process of investing. Why pay more when mortgage rates are still at historic low?

Pay all your bills on time, turn down offers of a new credit, stop using bigger part of your credit cards whatsoever and keep monthly balances low on the rest.

You have at least 6 months, maybe even a year to fix your credit. By that time market will be like waking up bear at the best, so you’ll have enough time to capitalize on cheap rental units.

When on a lookout for a property to invest, give yourself enough time to gather the intelligence. Don’t rely on the Internet data only. Visit the area where you would like to invest, preferably several times and at least once during wee hours. Record the feeling in the streets in your head. Did you feel safe walking/driving in the area? Would you be comfortable putting your family/children in the apartment building you are about to purchase?

Have an inspector you know and trust check the house. In the current market there is no need to purchase a very old house or the one that for whatever reasons needs costly repair. Buy rental units with confidence and be ready to start making money, not worrying about spending more.

Profiting from rental units is all about the cash flow, not capital gains. Do your homework and rely on simple math before making an investment. Add up your mortgage payments, property taxes, insurance costs and maintenance, and subtract that figure from what you can reasonably charge for rent. The amount that’s left is your cash flow, your salary and your profit. Start small like this before moving to bigger, bolder, riskier investments.

Which Type Of Real Estate Agent Should You Hire To Represent You?

With today’s real estate market, it is easy to purchase a wonderful property at a fantastic price. There are numerous foreclosed residences now available on the market. These residences are listed at rock bottom prices as the mortgage loan providers simply want to get the amount of revenue due to them.

Using the services of a realtor can assist you locate the best package available on the market.

Continue reading to learn how to retain the services of a realtor that is perfect for you.

Three Types Of Real Estate Agents

In modern day housing world, you will find three types of real estate agents – a buyer’s agent, a dual agent and a seller’s agent. Each one of these types of professionals represents a party in the property purchase.

A seller’s agent:

Functions for the vendor and endeavours to get them the most amount of money achievable. The seller’s agent receives a proportion of the sales price, therefore it is within their best interest to obtain the optimum sales price of the property or home.

The listing agent is always a seller’s agent simply because they have a vested interest in obtaining the optimum sales price; therefore, they always represent the vendor.

A buyer’s agent:

Is employed by the purchaser and endeavours to save them the maximum amount of money when buying a property. Buyer’s agents receive a proportion of the sales selling price; having said that, the buyer also consents to pay the buyer’s agent a portion of the sale’s price.

This contract enables the buyer’s agent to generate a good profit while representing the purchaser. Typically a buyer’s agent charges you between four and six per cent commission rate for representation.

A dual agent:

Represents both the vendor and purchaser equally. This sort of business typically takes place when a prospective home-buyer employs a broker as a buyer’s agent, and then chooses to place an offer on a property or home that the agent has listed. This particular realtor doesn’t represent either client.

The real estate agent doesn’t supply guidance to either client. The broker only works to get the deal sealed. He’ll put in place the appointments for home inspections and discuss with the mortgage company, but will not offer guidance in terms of the sales price.

This particular agency is easily the most risky to both the real estate agent as well as the seller and buyer. The legal waters can be murky in this kind of agency, and ought to be avoided whenever possible.

In the present market, there are plenty of money saving deals to be found. Prior to hiring any real estate professional it is crucial that you are aware of the different types of agency offers available.

This article has discussed every type of realtor accessible to both sellers and buyers.

Utilise the information and facts above prior to seeking that perfect property or home. Then, venture out there and locate your real estate agent. You’re going to be rewarded with a wonderful bargain.

The Foreclosure Debacle

Foreclosures continue their upward climb and the media continues to report the worst the real estate industry has to offer. The latest news comes amidst reports that California has reached a record number of foreclosures. Reports across the board are also reporting foreclosures increasing nationwide.

According to an article published on July 23, 2008 by Reuters, foreclosures in California set yet another record. The article titled, “California foreclosures jump to 20-year high,” leaves not a whole lot of room for interpretation. Here is a snippet from the article, “Foreclosures in California in the second quarter totaled 63,061, marking their highest level since the real estate information service began tracking them in 1998.”

Another article from the Los Angeles Times offered a similar synopsis with an article woefully titled, “Record home losses in California.” The article written by Peter Hong continues by stating foreclosures have been the highest since the data provider began reporting foreclosure figures, specifically, that the reporting agency “began tracking foreclosure data in 1992.”

One article states the foreclosure reporting agency began tracking in 1998 while the other states they have been tracking since 1992. Considering this, foreclosures could have then reached a record since 1992 or since 1998. Either way, while foreclosures may have peeked since 1998 (or 1992), the media fails to report that the actual record was conveniently before both those dates during the savings-and-loan crisis of the late eighties and early nineties. Finding an article that mentions this is not the worst foreclosure crisis the country has seen is like finding a needle in a haystack.

Interviewing a Web Savvy Listing Agent to Sell Your Home in the Crowded 2009 Atlanta Market

Over the last 24 months, particularly in large metropolitan markets like Atlanta, real estate print media has all but disappeared in favor of Internet promotion of listings and services. Web advertising continues to evolve; the ability of agents to provide enhanced listing details has captivated consumers who want easy access to every bit of online information that can be provided before they get into a car to begin the search. In the crowded 2009 Atlanta market with huge and stagnant inventories, differentiation is crucial. With approximately 45,000 single family homes and 10,000 condominiums available for purchase, there is significant motivation for sellers and listing agents to understand and implement high impact web marketing.

Customizable search criteria, birds eye views, street views, back yards, parking, amenities, questionable structures, bodies of water and topography are information used by enlightened Atlanta area buyers to eliminate properties in an oversupplied inventory. The Atlanta metro area has two MLS systems with significant overlap, so many agents list properties on both. In practice, a Multiple Listing System creates an equal playing field, so to leverage their listings, proactive agents are likely to advertise beyond the content of these systems. Powerful area specific websites, such as The Atlanta Journal Homefinder, Craigslist, Backpage, and Creative Loafing have evolved quickly to include extras like mapping tools and photo tours. However, these opportunities remain underutilized by listing agents, even when the advertising is free.

Specialized Internet marketing is not included in the skill set of most agents. Tech savvy agents who really get Internet marketing and property promotion are unique. An example of the typical disconnect is the property listing website, indexed by the house address url. What buyer knows your address before searching for their target dream home? How many web paths does your listing agent provide to move the buyer toward a site that showcases your home’s most appealing features?

More importantly, how does your agent achieve front page ranking on Google for your home? Occasionally I see listings that have placed an informational link in the private remarks section of the MLS listing, so that it may be viewed only by agents. If that is the sole online visibility of the path to a home’s virtual tour then everybody loses. The consumer browsing on a public access listing website misses some of the most compelling information. When I see this error, I know the agent has limited Internet marketing savvy; the chances of this home ranking high on Google are slim.

Descriptive property pages which achieve a high ranking on Google are not the result of large corporate brokerages which “stuff” listings into national real estate websites. In the large inventory of urban, suburban, and rural Atlanta housing, a home search can quickly confuse and frustrate buyers. The most successful web advertising for your home is a carefully crafted product managed by an agent who knows what really matters when consumers begin the search process. If Kennesaw Mountain Battlefield National Park, The Avenue of East Cobb, or Roswell Square are popular destinations near your home, then the agent will incorporate this information into the web page title to capture additional traffic.

Relevant interview questions to help you identify a web savvy listing agent capable of creating a high impact marketing campaign to sell your home are:

* On which local and national real estate websites will you list my home?

* How often do you update my home’s listing information on these sites?

* What keyword searches can consumers use to find my home on the front page of Google?

* Explain how you incorporate SEO techniques into your overall marketing plan.

* Which Atlanta area specific domain names do you own that help potential clients find my house?

* Do you hire a professional photographer to showcase my home’s interior and exterior?

* How many pictures will appear on my home tour and which websites will display the tour?

* Will you add information to the pictures to create additional interest?

* How many seconds does it take for a buyer to load and view my tour?

* Can the photo tour of my home be emailed?

* Can you show me an example of your high impact listings?

* Will you walk me through the process that demonstrates how a buyer will find my home online?

* Will you show me all the details of my home’s listing profile as the public will view it?

* Will I receive weekly emails showing the number of views of my home’s virtual tour?

In the crowded 2009 Atlanta real estate market, the answers to these questions and the derived benefits are important differentiators between top sales achievers and those who won’t get to the closing table.