It wasn't until the past month that I have turned the corner on seeing real estate as being a great investment. I know, I am a Realtor, and should be preaching this night and day, but I haven't. Now is the time!
I am usually a skeptic while reading the newspapers and magazines (just ask my wife!). After many months of doom and gloom, I am seeing cracks in the armor of despairI. There are properties out there that are ripe for a great investment.
There are 2 people contacting me this week to talk about where the good investments are right now. We talk about goals of appreciation or net rental income, judge how much renovation work they wish to do, and also timeline for cashing out. Each one of these goals put us on a different path.
Example one: Buying a rental property for net income and eventual appreciation. There is a one bedroom condo in Framingham that is bank owned and sitting vacant on market. Comparable renovated units have sold for $125K in the past 6 months. Non-renovated units attempted to sell for the same price and were wildly unsuccessful.
This bank owned condo is listed in the $80K's. How can you go wrong? Renovate it immediately and list it - maybe? Rent it out in current condition, make a net gain each month - maybe? Live in it, renovate it, sell it when market appreciates in a few years - maybe? No matter, I like the possibilities!
Example two: Single family home in great neighborhood is a short sale. This means essentially that the owner owes more than they could sell it for. They ask the bank to accept less rather than foreclose on them. Throw them an offer with the market depreciated over the past 2 years, enjoy life for a few years, and sell it for fair market value in a few years. I think I remember an old saying...
Read the rest of Ed Daniels's posting at http://www.metrowesthome.com/2008/03/19/who-else-wants-to-make-money-in-real-estate/