FIRE SALE!                                                                                                                    December  2008

Do you buy "On Sale" or pay full price?

The following are opinions I have formed and also the feelings of many investors & customers and other Investors I have talked with in various investment groups that I belong to, but it is all based on the news that is right out in front of all of us, I think you will agree and maybe even want to participate after you have read this!  (hint hint!)

Right now we are seeing one of the greatest fire sales on real estate that our country has ever seen. Many pundits are comparing it to the real estate market that we had in and after the Jimmy Carter days and the Great Depression!     Talk is serious that pricing is about to bottom out and will start turning around.

While that could take a little while longer the time is great for buying at a discount. Take a minute and think back to January 1, 2000. If you can remember that far back, that is when pricing had hit a low a few years prior and had stabilized. As we moved forward from that day, prices went through the roof. Anyone selling in 2005 made a killing!

I know that if there was one of us that could create a time machine to go back, we would, so that we could buy anything and everything that we could get our hands on. To know what happened to pricing from January 1, 2000 forward would make anyone buy. We are at January 1, 2000 again figuratively.    Prices are higher because we have gone through eight years, but compared to what they are going to do, they will be considered low, even historically low.

Our current real estate market and economy have created a "Perfect Storm" for investing! Here are just a few of the reasons why you should be buying income-producing properties NOW. I didn't say buy them "next week", or buy them "soon", I said buy them NOW!

For those that are no longer interested in buying property, I have a special note for you to stay involved in growing your investments faster than you may be now. See my conclusion area near the end.

Here are 8 factors in our economy and the current real estate market that are creating this rare opportunity for educated investors:  

•1.      Prices are falling                                                                                                                 This is no secret. We all know that residential housing has taken a hit, and is still dropping. But, no one is talking about how income-producing properties are also falling in price! Commercial and multi-family properties are also being foreclosed on at alarming rates. Smart investors know how to find these properties.

•2.      Interest rates are low and could go lower.

•3.      Great terms and Seller Financing opportunities are abundant.
Do you know that for some bank owned properties, some banks are now offering seller financing without qualifying like you would for a "new loan"?   (You don't get it unless you ask for it, some of the people in my investment group have, and they have gotten it w/ great terms!)                                        In addition to banks now offering Seller Financing, many property owners are more open to Seller Financing than ever before.

•4.      Income is rising.
By "income" I mean rents and income from income-producing properties.    Not as many people can afford housing and/or get financed, and this is creating an increase in the number of renters looking for housing.

5. Vacancy is falling & Rents WILL rise!
Among other things, the surge of renters has made it much easier for landlords to keep their buildings full and cash flows strong.

6. There is not a lot of new apartment construction.
I recently read in the "Harvard Housing Study for 2007" that over 4000 units were taken off the national market last year alone.

7. We are about to experience a population surge of buyers/renters.
The next home buyers/renters are the Echo Boomers (the kids of the baby boomers). Many of them won't be able to buy and will need to rent. This is important because there aren't a lot of new apartments for them to occupy.  There is also still positive and increasing migration into the United States. Do you see how this will Increase the demand and cause rental prices to increase soon?      It will be the start of a larger increase in rental prices than we have seen before.

8. People are losing their homes AND income-producing properties to foreclosure.
Everyone is talking about the foreclosure crisis in the residential sector. Commercial and multi-family properties are also being foreclosed on at alarming rates. Smart investors know how to find these properties, and I can help you!

2009 will be great for real estate investing, IF.... you know how to turn those factors above into equity, cash flow and profits.

WHAT ARE YOU GOING TO DO ABOUT IT? WILL YOU ACT OR SIT ON THE SIDELINES LIKE YOU MAY HAVE 8+ YEARS AGO? WILL YOU MISS A REAL ESTATE SALE THAT COULD SURPASS ANY IN HISTORY WHEN IT IS ALL DONE? WILL YOU CREATE UNPRECEDENTED PERSONAL WEALTH OR MORE EXCUSES?

In conclusion - BUY SOMETHING, a house or units! I personally plan to BUY several properties now and I would like to help you do the same thing! In 5 years, I expect to see gains of hundreds of thousands of dollars individually for those that act now. I will be buying individually OR I am open to partnering if you would like to.  For those not wanting to get involved in buying properties right now, but would like to see their CASH investments grow faster than they may have in the past, Myself and/or investors in our investment group are offering good returns on your CASH investments. These returns can vary from 7% and more depending on if the individual investments are short term or longer term. I would be happy to discuss this further if you like.

I would like to wish you Happy Holidays and let's start thinking about growing your investments. I hope to hear from you soon if this sounds good.

Michael D. Clark - Investor/Broker   -    www.mclark.com

Experienced since 1972