Smart Decisions to Make Before Investing in Down Market Real Estate

Sure, you want to invest in a down real estate market, but you want to do it smartly; being stupid got people into a lot of hot water recently and you are not stupid. You are smart, the kind of investor who wants to make a well informed decision before plunking down the kind of cash that will be required to make a good investment in a down real estate market. You have to be quick on you feet, so to speak, to be able to weather this current financial fire storm, so here are a few tips to help you make the smart decision in investing in a down real estate market.

1. Land lords are holding all the cards. Right now there are literally millions of people losing their homes. Dows that mean that there will be millions more homeless people running around the streets of towns and cities all across America? Not by any stretch of the imagination. In fact, the majority of those people who have lost their homes are still working at relatively well-paying jobs and can afford to make rent. Becoming a land lord makes sense because the market is full of renters wanting to get into a house and resume some semblance of normalcy in their lives. Think of becoming a land lord as being a wise, and safe, investment strategy. If you purchase a 200,000 home and rent it out for even 1,000 dollars a month, you will receive 12,000 dollars a year in return. 12,000 dollars a month on a 200,000 dollar house is a 6% return on your investment; not bad in a time when even gold is having trouble finding buyers.
2. Purchase for the long haul. The investment strategy of the past decade or so was to buy and sell quickly, hoping to make some money off the volatility of the stock market. That investment strategy is killing people now as the market see-saws all over the place. The same is true for the real estate market; eventually someone will get bit in the rear end for trying ti flip houses or to make a quick turn around; it may not happen right away, but it will happen fairly quickly. We need t return to the older philosophy of investing; buy when it's low and sit on it. Some economists say that this down turn is going to last a year, others three. Either way, prices will eventually start going back up and if you buy now, when discounts are made to order, you will have gotten in on the ground floor, so to speak, and be ready to sell at a good profit when the markets return to normalcy.

Be smart about the location of your purchase, your purchase price, and your investment strategy. Think about what people will need and what they will be willing t pay, eventually. This storm will end and while others are running for cover, if you work quickly - and smartly - you'll be sitting pretty when the dust settles in the real estate market.

Peter Vekselman is a National Real Estate Investment Coach, training you to succeed in real estate investing with a custom program built around YOUR needs and goals.

www.coachingbypeter.com