What are the real estate investments in this economy?

By
Mortgage and Lending with TVM Funding Group LLC

What are the real estate investments in this economy?

I believe the best real estate investments in this economy are probably commercial real estate investments, more specifically multi-family, apartment buildings, mixed use and similar income producing properties purchased correctly. This is where we are currently focusing on the investing and lending side. I have been involved with real estate investing since 1998 and commercial lending since 2002. I agree with many people that residential property for rentals and holding for the long term represents a rare opportunity that many of us may only see 1, maybe 2 times in a lifetime. The average economic cycle from boom to bust is about 7 to 12 years if history is any indicator. That said, purchasing residential properties at no more than 65-70 cents on the dollar including all acquisition, repair, financing costs, etc and holding for a cycle can prove to be extremely profitable. In this market, 10-50 cents on the dollar is possible...imagine the wealth. Make no mistakes this is the shift of wealth you're heard about in your textbooks but rarely see in action. This is where, pardon the cliche, "the rich get richer and the poor get poorer." All these foreclosures were somebody's life savings and so the road to recovery will be slow. Good luck and careful investing to you!


Isaiah Fox
SVP, Managing Partner
http://www.TVMFunding.com or http://www.TVMFG.com

Comments (5)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

The best investments are the ones we can justify and believe in and make sence.

Sep 26, 2009 06:41 AM
Real Estate Course Blog
Real Estate Course Blog - Houston, TX

This is a great point of view. Commercial or residential real estate investing requires a lot of knowledge and education to be successful.

To read some free reviews or write your own reviews of real estate investing courses please visit:

http://realestatecourseblog.blogspot.com

Sep 26, 2009 06:47 AM
TVM Funding Group: Nationwide Private Money Lender Commercial & Residential
TVM Funding Group LLC - Austin, TX

Thanks for the feedback gentlemen.

Isaiah

Sep 26, 2009 06:55 AM
Jim Dunlap
Roberts Realty - Yucca Valley, CA

A lot of investors here in the California desert have been highly successful purchasing single family homes to be used as rentals.  Thanks for the post.

Sep 26, 2009 08:25 AM
TVM Funding Group: Nationwide Private Money Lender Commercial & Residential
TVM Funding Group LLC - Austin, TX

That's good to hear Jim. Many people are running scared from California single family homes but like many others areas it will also rebound eventually and those investors will be even more successful. Thanks for the update.

Sep 26, 2009 10:02 AM