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by Charles W.
Moore
Some
real estate investors make the mistake of
believing they can only make money by purchasing
during a buyer’s market and selling in a
seller’s market, when the truth is that savvy
investors can make money on their real estate in
any market.
Real estate investors are often nervous about
buying real estate property at a good price
during a seller’s market and even more anxious
about trying to sell a property in a buyer’s
market. However, with proper knowledge and the
right strategy, a creative real estate
investor can make money on their properties in
any market, whether buying or selling. They
just need to have the correct advertising agenda
and reach the right target audience.
As a real estate investor, you should be looking
to purchase newer homes in nice neighborhoods.
These homes are not going to have a lot of
equity in them because they are newer, aside
from the fact that current owners have not had
time to build equity, the homes have also not
had a lot of time to appreciate in value. In a
seller’s market, this can usually be resolved
because the seller can ask whatever he wants for
the home, and buyers will compete to pay it.
However, as a real estate investor, you want
to make sure you don’t pay more than
necessary, so you want to find a motivated
seller who is not holding out for top
dollar. In a seller’s market especially, you
want to find the individual who is in
desperate need of a buyer who can take the
property off their hands quickly so they can
start paying off bills or end a messy
divorce. There should be some motivating
factor so that they are willing to sell on
your terms rather than theirs. Look for “for
sale by owner” ads and signs, and inquire as
to why the individual would want to sell
such a fantastic piece of real estate,
helping you to identify if your seller is a
motivated seller.
When it comes to selling the property,
a real estate investor cannot expect the
same type of client that mortgage lenders
and banks look for. These individuals will
simply obtain traditional mortgage loans to
purchase homes. Real estate investors
should, in fact, be little concerned with a
buyer’s market because the target audience
would be those who cannot afford to buy or
do not qualify for a standard mortgage loan
in any market based on credit, employment,
and other general factors that banks
consider before approving a mortgage loan.
These individuals need nontraditional
financing methods regardless of a buyer’s
or seller’s market and will be glad to
agree to your terms for a lease purchase or
rent-to-own scenario.
In both markets, real estate investors can
pull off excellent profit margins, as long
as they look for the right target audience
and make intelligent decisions. Patience is
important, as is knowledge of the potential
sellers and buyers with which the investor
will be working. Making a hasty or rash
decision is where real estate investors run
into trouble, making mistakes frequently and
not looking at the whole picture. Whether
stuck in a buyer’s market where it seems all
too easy to obtain a standard mortgage loan
or in a seller’s market where it takes a
little more legwork and research to find
motivated sellers, a creative real estate
investor can profit from intelligent
business decisions.
ABOUT THE AUTHOR:
Charles
W. Moore is a U.S. Army Veteran who began
investing in Real Estate in 2001. He's a
Full-Time Investor, Webmaster, Speaker, and
Author of the book, "Million Dollar Rent To
Own Real Estate Secrets Exposed." Get a Free
Report on
Rent To Own Real Estate Investing from
Charles at:
http://www.Rent2OwnExposed.com and learn
more about Real Estate Investing, Investing
in Stocks and Internet Marketing by
visiting:
http://www.REIeBooks.com
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