Tags |
|
|
Links |
|
|
Suggest You - The Real Estate Investment Market In 2006: Why Experts Are Excited And New Investors Are Nervous
Forex traders are raking in big profits with low risk high yield, investment strategies that exist only in the foreign currency market.Especially those who have a trained eye that can see excessive profit points that explode when done correctly. The forex market has created many millionaires who understand the exceptional leverage that is provided by trading currency. To be exact a 100:1 leverage ratio, this means you can leverage your money 1x100 so $100 leverages $10,000 and $10,000 leverages $100,000. This extraordinary benefit of the currency market allows you to realize windfall profits in a short period of time and can quickly make you a lot I mean a whole lot of money. Big Businesses, banks, and wealthy investors have bee
Another insight that the sophisticated investor knows is that huge returns can be made in soft or down real estate investment markets; i.e., they understand that all markets do not always go up but there is money to be made regardless of what the markets are doing. To understand this concept, let’s go back to Pogomo Beach and see what we can do.
Suppose yo
As small business owners, the most daunting obstacles to reaching our Biggest Vision for our business are our unique personal fears. Often, we don’t realize that we’re deciding not to pursue a great opportunity or try something new in our business because of fear. We get locked into an idea of how we should market, sell, manage, or structure our day. We hesitate to change, and when we get mediocre or poor results, we still refuse to abandon our approach.I was always a very determined person (okay, stubborn!). I’d stick with an idea, strategy or plan, even if it felt like I was batting my head against a brick wall. This way of doing things is like continuing to head the wrong way on a one-way street, despite the signs that ar
In this week’s article, we are going to conduct a little exercise to clarify what is really meant by The Real Estate Investment Market. Suppose that you read the below article in the New York Times. How do you react? As we go forward, let’s compare your reaction to this information with the reaction of savvy, real estate investors who have been there, done that.
Beach Front Condo Project Bankrupts Local Investors January 11, 2006, Pogomo Beach, FL (APE News)
The struggles of a new, 220 condo unit show the continuation of the real estate bubble. When local real estate agent Daffy Duck was interviewed, he said that some condo values have dropped over 40% in the period since July 2005. The last sale we had was at a high value of $850,000 but now you would be lucky to get $600,000.
APE News has learned that one investor is now having to make mortgage payments of up to $5,000/mo on each of their 3 units. In turn, this is forcing them into bankruptcy. Upon further analysis.
Before you read the rest of this article, I encourage to step back and jot down your knee jerk reaction to this news. Why? Because you will undoubtedly see such real estate investment headlines in the future. If you can sort of your feelings about these types of stories, then you will be miles ahead of most investors and determine how to best profit. People typically have two reactions to this article:
Reaction 1: Articles like this indicate that the overall real estate market is getting soft.
Reaction 2: In flat, soft, or declining real estate markets, it is very risky to invest.
Unfortunately both reactions will limit their ability to produce creative, profitable, real estate investments.
Let’s see how a more experienced investor might think. First, this article would tell the investor that the real estate investment market for $850,000 condos in Pogomo Beach Florida has probably dried up. On the surface, it would appear that both the rental and sales demand are low for THAT particular product in THAT particular area. We will use this knowledge to our advantage in a minute.
Second, the investor knows that this news tells them nothing about OTHER real estate products in Pogomo Beach. For example, the demand for affordable, $250,000, off beach townhomes could be blistering hot in Pogomo Beach. For that matter, who knows what is happening in the single family home market. THESE REAL ESTATE INVESTMENT SUBMARKETS CAN ACT COMPLETELY DIFFERENT THAN THE $850,000 CONDO MARKET.
Let me illustrate this point in real life. While writing this article, I am flying to Las Vegas to look at a development that is a condo conversion. Before I left, I have seen several news pieces about high end, on the strip condo developments terminating in Vegas; clearly not great news for high end condo, real estate investments.
On the other hand, we know that Las Vegas area still faces an issue with an ever increasing population, is land locked, and has a shortage of affordable housing. I also know that because of our group size at GetPreConstructionDeals.com, we are getting offered an interesting opportunity to get in first. Time will tell if this development is appropriate for our web site, but we know without seeing it that this submarket of Las Vegas has considerable potential; all the while the popular press has a dim view of the Vegas real estate investment market.
Another insight that the sophisticated investor knows is that huge returns can be made in soft or down real estate investment markets; i.e., they understand that all markets do not always go up but there is money to be made regardless of what the markets are doing. To understand this concept, let’s go back to Pogomo Beach and see what we can do.
Suppose you
I am going to make a bold statement but it is a true statement nonetheless. If you ever plan to retire comfortably or at a reasonable age you cannot abuse credit cards. They are financial cancer.I used to be buried in credit card debt. Part of it was sensible because it helped me purchase books and other things to get me through college, which I financed on my own. However, some of it was just stupidity. Once I decided to make a change in my thought process it only took me 2 years to get out of this debt and I wasn’t making lots of money at the time either.Let’s take an example. The average credit card debt is almost $10,000 per household now. Let’s say you have a $9000 credit card debt balance and
APE News has learned that one investor is now having to make mortgage payments of up to $5,000/mo on each of their 3 units. In turn, this is forcing them into bankruptcy. Upon further analysis.
Before you read the rest of this article, I encourage to step back and jot down your knee jerk reaction to this news. Why? Because you will undoubtedly see such real estate investment headlines in the future. If you can sort of your feelings about these types of stories, then you will be miles ahead of most investors and determine how to best profit. People typically have two reactions to this article:
Reaction 1: Articles like this indicate that the overall real estate market is getting soft.
Reaction 2: In flat, soft, or declining real estate markets, it is very risky to invest.
Unfortunately both reactions will limit their ability to produce creative, profitable, real estate investments.
Let’s see how a more experienced investor might think. First, this article would tell the investor that the real estate investment market for $850,000 condos in Pogomo Beach Florida has probably dried up. On the surface, it would appear that both the rental and sales demand are low for THAT particular product in THAT particular area. We will use this knowledge to our advantage in a minute.
Second, the investor knows that this news tells them nothing about OTHER real estate products in Pogomo Beach. For example, the demand for affordable, $250,000, off beach townhomes could be blistering hot in Pogomo Beach. For that matter, who knows what is happening in the single family home market. THESE REAL ESTATE INVESTMENT SUBMARKETS CAN ACT COMPLETELY DIFFERENT THAN THE $850,000 CONDO MARKET.
Let me illustrate this point in real life. While writing this article, I am flying to Las Vegas to look at a development that is a condo conversion. Before I left, I have seen several news pieces about high end, on the strip condo developments terminating in Vegas; clearly not great news for high end condo, real estate investments.
On the other hand, we know that Las Vegas area still faces an issue with an ever increasing population, is land locked, and has a shortage of affordable housing. I also know that because of our group size at GetPreConstructionDeals.com, we are getting offered an interesting opportunity to get in first. Time will tell if this development is appropriate for our web site, but we know without seeing it that this submarket of Las Vegas has considerable potential; all the while the popular press has a dim view of the Vegas real estate investment market.
Another insight that the sophisticated investor knows is that huge returns can be made in soft or down real estate investment markets; i.e., they understand that all markets do not always go up but there is money to be made regardless of what the markets are doing. To understand this concept, let’s go back to Pogomo Beach and see what we can do.
Suppose yo
If your credit card balances are outstanding and you want to get rid of this loan and become debt free, you may opt for a debt management service. Realize that you are not alone in facing this kind of financial difficulty. With high rates of interest and high finance charges, many people are finding it difficult to pay off their loans completely in less time. They just manage to pay the monthly minimums and thus take a long time to repay their loan. A debt management company may be of great help in solving this problem.You have many options for eliminating your debt. You may choose to get a second job. Or, if you have a home, you may opt for a debt consolidation home equity loan. But, your options become somewhat limited, if
Reaction 1: Articles like this indicate that the overall real estate market is getting soft.
Reaction 2: In flat, soft, or declining real estate markets, it is very risky to invest.
Unfortunately both reactions will limit their ability to produce creative, profitable, real estate investments.
Let’s see how a more experienced investor might think. First, this article would tell the investor that the real estate investment market for $850,000 condos in Pogomo Beach Florida has probably dried up. On the surface, it would appear that both the rental and sales demand are low for THAT particular product in THAT particular area. We will use this knowledge to our advantage in a minute.
Second, the investor knows that this news tells them nothing about OTHER real estate products in Pogomo Beach. For example, the demand for affordable, $250,000, off beach townhomes could be blistering hot in Pogomo Beach. For that matter, who knows what is happening in the single family home market. THESE REAL ESTATE INVESTMENT SUBMARKETS CAN ACT COMPLETELY DIFFERENT THAN THE $850,000 CONDO MARKET.
Let me illustrate this point in real life. While writing this article, I am flying to Las Vegas to look at a development that is a condo conversion. Before I left, I have seen several news pieces about high end, on the strip condo developments terminating in Vegas; clearly not great news for high end condo, real estate investments.
On the other hand, we know that Las Vegas area still faces an issue with an ever increasing population, is land locked, and has a shortage of affordable housing. I also know that because of our group size at GetPreConstructionDeals.com, we are getting offered an interesting opportunity to get in first. Time will tell if this development is appropriate for our web site, but we know without seeing it that this submarket of Las Vegas has considerable potential; all the while the popular press has a dim view of the Vegas real estate investment market.
Another insight that the sophisticated investor knows is that huge returns can be made in soft or down real estate investment markets; i.e., they understand that all markets do not always go up but there is money to be made regardless of what the markets are doing. To understand this concept, let’s go back to Pogomo Beach and see what we can do.
Suppose yo
Everyone has something that drives them up a wall. You may be surprised at what aggravates reporters.They deal with horrors like jargon-filled press releases, poorly-written news advisories, and gimmicky pens and mousepads, but reporters consistently and overwhelmingly name one habit of publicity-seekers as their number one peeve.What is it? It's when someone calls after a press release has been sent and asks "Did you get my press release?"This is the single worst way to follow up after sending something.When you make this no-no call, the reporter thinks: "If I wanted to call you, I would" or "Doesn't this person think I know how to open mail?" What's worse, they may even say this to you right over the p
Let me illustrate this point in real life. While writing this article, I am flying to Las Vegas to look at a development that is a condo conversion. Before I left, I have seen several news pieces about high end, on the strip condo developments terminating in Vegas; clearly not great news for high end condo, real estate investments.
On the other hand, we know that Las Vegas area still faces an issue with an ever increasing population, is land locked, and has a shortage of affordable housing. I also know that because of our group size at GetPreConstructionDeals.com, we are getting offered an interesting opportunity to get in first. Time will tell if this development is appropriate for our web site, but we know without seeing it that this submarket of Las Vegas has considerable potential; all the while the popular press has a dim view of the Vegas real estate investment market.
Another insight that the sophisticated investor knows is that huge returns can be made in soft or down real estate investment markets; i.e., they understand that all markets do not always go up but there is money to be made regardless of what the markets are doing. To understand this concept, let’s go back to Pogomo Beach and see what we can do.
Suppose yo
Some Internet Marketing bloggers will post topics that vary greatly. Other Internet Marketing bloggers feel most comfortable when they are posting on a particular topic. The question has often been: which way is best? Studies demonstrate that defining your niche creates better blogging. So, using this discovery, it is assumed that it is best to choose one route to take, and stick with it. This can mean that you choose one large topic and use it to produce your total blog topic list. You will likely get repeated visitors if you are posting on the same subject matter in any case. If you are still not sold however, check out these other explanations for why defining your niche can lead to more successful Internet Marketing blogging.land locked, and has a shortage of affordable housing. I also know that because of our group size at GetPreConstructionDeals.com, we are getting offered an interesting opportunity to get in first. Time will tell if this development is appropriate for our web site, but we know without seeing it that this submarket of Las Vegas has considerable potential; all the while the popular press has a dim view of the Vegas real estate investment market.
Another insight that the sophisticated investor knows is that huge returns can be made in soft or down real estate investment markets; i.e., they understand that all markets do not always go up but there is money to be made regardless of what the markets are doing. To understand this concept, let’s go back to Pogomo Beach and see what we can do.
Suppose your believe as an investor is demand for beach front condo’s will be extremely strong. Yes, there may be a hiccup for 12-24 months but the fact remains there is little beach front left and a lot of baby boomers who want to own it ----- someday. When looking at the above news article, maybe the investor decides that if purchased for $485,000, then the Pogomo Beach condo would be quite attractive and likely to generate a nice return in time. But even at that price, maybe they are not ready to rush out and acquire a unit.
Next, maybe the investor understands that some people bought into this project very cheap at preconstruction prices and might be quite happy to get out with some profits rather than having to make mortgage payments month after month, deal with tenants, have to furnish the unit, etc. Quite possibly the investor might be interested in purchasing a unit if they can get the right price let’s say maybe $395,000. If somebody excepts that offer, then great, they have just bought themselves a great investment for a real estate product in a soft market. Yes, they are going to have to rent this out for a while to let the market catch back up to them but they know they have just purchased a great asset for a tremendous price.
Hopefully by using this fictitious article as a training example, you have gotten a better understanding of your believes about how to handle 2006. In addition, with this background, maybe the next time somebody asks you what the real estate market will be for [fill in the blank], you can give them a highly accurate answer: some people will make a boatload of money and some people will lose money. While this will not satisfy them, you know that it will be true in almost every active real estate market in the country.
Copyright 2006 Chris Anderson
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.suggestyou.com/article/134984/suggestyou-The-Real-Estate-Investment-Market-In-2006-Why-Experts-Are-Excited-And-New-Investors-Are-Nervous.html">The Real Estate Investment Market In 2006: Why Experts Are Excited And New Investors Are Nervous</a>
BB link (for phorums):
[url=http://www.suggestyou.com/article/134984/suggestyou-The-Real-Estate-Investment-Market-In-2006-Why-Experts-Are-Excited-And-New-Investors-Are-Nervous.html]The Real Estate Investment Market In 2006: Why Experts Are Excited And New Investors Are Nervous[/url]
Related Articles:
3 Mandatory Tools for the Super Money-Making Affiliate Marketer
10 Sure Fire Ways To Multiply Your Online Profits!
Using a Credit Card Debt Consolidation Loan as a Means of Debt Relief
Bookmark it:
|