Don't Let 2009 Pass You By! (BUY!)

Sure, we may not have hit rock bottom yet. But, maybe we're really close? Who knows? No one does, for sure. There are a lot of experts who consider many variables and make their predictions as to when the bottom will arrive. Many believe that we have another 24 months or so before all the sub-prime adjustable rate mortgages out there adjust and do their final, fatal damage to homeowners around the country.

Many will not be able to afford their mortgage payment once the low, introductory rate evaporates and they are hit with a much higher rate and, as a result, a much, much higher monthly payment than they ever dreamed they would be hit with. As a consequence, many will simply walk away and let their house go into foreclosure. But since Michigan has a six-month redemption period in addition to the time leading up to the actual default, judgment, etc., the house may not actually make it to market as an REO (real estate owned by the bank) for about a year or more after the rate adjusts.

All this means is that there will be a good supply of empty, bank-owned properties waiting to be taken advantage of by the prepared investor for quite some time to come. (Me and you!) Even when the market begins to recover, the values are not likely to just jump through the roof. I would not expect values to just rise as fast as they fell. That's the nature of this popped housing bubble. It inflated over a number of years, but when it "popped!" housing values dropped precipitously. Granted, these values may have dropped artificially low due to the number of foreclosures being sold off at 40-60% of market value. When appraisers started looking at property values for the retail home buyer, they often didn't filter out the "sold" price of the vacant foreclosed property next door.

We are witnessing a huge correction in housing values and we may have seen the market fall a bit lower than the true market value of properties should be. You can expect a recovery beginning in about 36 months and by 2014 you should see reasonable property values once again.

The good news for real estate investors is that you can pick up a ton of houses (REOs, owner occupied, estate sales, etc.) in great condition or that need a lot of fixing up (rehab) - whatever fits your investing style, it's out there!

Don't let 2009 pass you by -- BUY today! If you are new to real estate investing, now is the time to get on the fast track. Read all the books and blogs you can get your hands on and educate yourself. Sell off a bunch of stocks or mutual funds to get the cash you need for a down payment. Whatever it takes, get into real estate now while it's so easy!

If you wait, don't worry. Real estate will always be here. That will never change. What changes are the market conditions and the tactics and strategies you will need to make the best investment. But it boils down to basically two simple strategies: Buy, fix and flip quickly for a profit (best when market is stable or rising), or you can buy, fix and hold (rent) for the long term and build equity.

I like BOTH strategies and I'll continue to do both when it makes sense (cents!) to do one over the other.

Thanks for reading! If you have any real estate related questions, don't hesitate to post a comment. I will be happy to research your question and get back to you with an answer.

Now This Is Ridiculous - But Fun!

As seen in my recent posts, I recently went to the range and was a bit proud of my marksmanship. But I am actually a LOUSY shot with a firearm. Check out this YouTube video highlighting Bob Munden, the fastest gun ever!

No Recession For Me - Thank You!

My thanks go out to Brian Kurtz and Dennis Fassett for bringing this link to my attention. Go check it out. LISTEN to the message. CHOOSE your path and run with it. I did.

Go here: NoRecessionForMe

Look, I know I haven't done everything perfectly in 2008. I have made some errors in judgment. I have chosen substandard quality contractors at times. I have over-improved on my properties a bit. I may have expanded more quickly than I should. BUT - I did something. I made choices. I followed through. As a result, I have flipped one property for a profit and I own three others that are rented and generating income. THAT is a pretty good year if you ask me.

So now what? Am I going to let the news get me depressed? Am I going to crawl into a hole somewhere and bury my money inside a mattress? (side note: Have you ever tried to stuff money inside a mattress? For real? Even if you get your hand in there, you might shred it to pieces while pulling it back out - those springs have sharp edges! No, I don't know this from personal experience, I've just heard about it somewhere before.) Am I going to stop investing my money because the talking heads on the news say that no one is lending money and no one is spending money?

No, I intend to keep moving forward and building my portfolio of investment properties. Would you like to join me? Would you like to partner up with me on some deals? Contact me and let's talk!