How To Make Money In A Real Estate Recession
Alright, so the real estate market has crashed and burned. Itís time to earn some money in this recession and the time is RIGHT NOW. First off, interest rates and home prices arenít going to get any lower. Foreclosures are happening right and left, and now is the time to get the long term investment that will fund your retirement!!
Because the market is currently a buyers market and there are many more homes for sale than there are buyers, it is smart to look at real estate investment in this recession as a long term investment. This means that the idea of investing in the home, fixing it up and selling it for a profit is over for now. For now. The real estate market is just like any other market and has its ups and downs. Right now, it is experiencing a downslide. It will rebound.
The way to make money now in the real estate market is to either buy partial construction homes or dirt cheap foreclosures and rent them out to tenants. Real estate is a unique investment. It is unlike other investments that are usually on paper. Real estate is something that you can actually use. Not only that, it is something that we actually need. Everyone needs a place to live. You can capitalize on that by purchasing dirt cheap foreclosures, fixing them up a bit and renting them out to tenants.
We were once though of as a nation of renters. Until WWII, most people rented property instead of owning a home. Mortgages were pretty tough to get and demanded a 50 percent deposit. Today, mortgages are easy t get and we have become a nation of homeowners. Although the tide is changing and many people are finding that they bit off a bit more than they could chew when times were good. Now that the real estate recession threatens the entire economy of the United States, many people are finding themselves out of work and unable to afford payments on their homes. This is one of the reasons for all the foreclosures.
You can grab foreclosure properties easier than ever before. You will need to do your homework and make sure that the property is in a good area where the home prices are stable. You will also need to have proof that you can purchase the property for the amount that you bid. This will include a pre approval letter from a lender as well as a certified check for the amount of the down payment. If you are planning on paying in cash for the property, you are required to show proof that you have the funds available.
You can get a pretty good deal when you buy a foreclosure. You will have to wait for a decision as banks and lenders do not have the incentive to act as quickly as individual homeowners, but if you do manage to be able to purchase a foreclosure, you will be surprised at the bargain that you get. Buying a foreclosure and either living in the property or renting it to a tenant is one of a few ways to make money in a real estate recession.
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