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Forget about buyers and sellers markets - THIS IS AN INVESTORS MARKET!

By Steve Baklaich

Real Estate Agent with RE/MAX Results St Cloud Mn real estate

January 16, 2011 06:39 AM

Seriously, now is the time to remove your emotions from the buying process and look at the investment potential, THIS IS AN INVESTORS MARKET!

Investment property Scrabble Forget about the late night infomercials, forget the news about a buyers or sellers market, forget what info your Uncle Fred gave you about waiting; now is the time to get motivated and get your real estate portfolio together, seriously do it now!

As I posted in my blog "Buy a house... Then Buy another" the market is prime for the investor buyer, and they are out buying right now. Economists like Ben Stein, Hedge Fund Managers like Paulson, NAR, the WSJ and many more are pointing out that we are seeing the best combination of factors for the investor buyer that we have seen in over 35 years, and the prices are very nice too.

Right now there are quite a few single family homes in St. Cloud priced under 100K in decent condition, and many of these homes will cash flow (quite nicely). If you have the ability to do some handy work your return on investment can be even greater (each home needs to be evaluated for its own potential ROI individually, and I can help you with that too).

With all of the homeowners who have gone into foreclosure and the current state of the building industry we have seen vacancy rates on apartments and rental houses drop down to almost zero (then take into account the rental moratorium that was in place in St Cloud too.) This is a wonderful opportunity for those who are willing to make a move towards financial stability now.

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Dan Rosenberger

Harvest Realty - Westfield, IN

Steve, I think many buyers are hesitent right now. After all, what if prices go down? The reality is that prices are very favorable. Even if they go lower, that does not necessarily mean a bad investment.

Rates are close to the lowest they have been for a very long time. An investor who purchases rental property will have it paid off in 15-30 years. If there is inflation and higher interest rates, not only will that mean potential for larger rental income but also the ability to pay off the loan qucker.

Jan 16, 2011 06:51 AM

Steve Baklaich

RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN

Treating Buyers & Sellers to Full Service Always.

Hi Dan,

Excellent points, I am working on my next few posts that will address some of what you have mentioned in greater detail. Many are predicting that the rates will rise (even more than they have recently), and really where do they have to go but UP! Thank you for the thoughtful comment and stay tuned.

Jan 16, 2011 07:01 AM

Tish Lloyd

BlueCoast Realty Corporation - Wilmington, NC

Broker - Wilmington NC and Surrounding Beaches

Steve ~ This is an excellent post -- you have made it so simple for people to understand the process, the market and what a wonderful opportunity exists right now. Had to lean . . .

Jan 16, 2011 09:59 AM

Steve Baklaich

RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN

Treating Buyers & Sellers to Full Service Always.

Thanks Tish. I will keep beating the drum in hopes it will stir some activity in the market. The deals are just too good right now!

Jan 16, 2011 10:54 AM

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Jan 17, 2011 07:22 AM

Jeramie Vaine

Century 21 Carioti - Orlando, FL

Steve,

Great post, I am in the Orlando Market and I have been seeing as many Investor buyers as I have primary home buyers! By writting blogs like this and providing the up to date market statistics, the investor fear factor is being reduced and the big picture view is taking over, cash flow! Low prices, high rent demands and a market suited for investors, the time for investing is now!

Jan 18, 2011 12:00 AM

Steve Baklaich

RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN

Treating Buyers & Sellers to Full Service Always.

Jeramie: You said it well and I agree completely. Let's spread the word to every corner of the market, every day:) There's no better investment and no better time!

Jan 18, 2011 05:13 AM

Aneta Ivanova

Urban Nest Realty - Las Vegas, NV

#Your Realtor for Life

I agree, I agree, I agree. This is investors market. I can feel in my vein. But where to find investors. Some idea?I recently read some article which are the best investment cities in USA, and Las Vegas unfortunately is not one of them. And again I feel that is the best time to invest in Las Vegas.

I will appreciate any idea, how to find investors for Las Vegas area.

Jan 20, 2011 10:59 AM

Steve Baklaich

RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN

Treating Buyers & Sellers to Full Service Always.

Aneta: Even in Las Vegas there have to be people with money that will jump in when they feel the time is right, and with all your foreclosures, they need to rent now. Unless they all moved out. Find the people with money and there you have it.

The other market is snowbirds, like folks from Minnesota and Wisconsin, looking for a seasonal home in a warm climate. Or Canadians. Network with northern Realtors on AR and ask for referrals:)

Jan 20, 2011 03:09 PM

Aneta Ivanova

Urban Nest Realty - Las Vegas, NV

#Your Realtor for Life

Thank you for sharing this valuable information. I am new in real estate, but very motivated and appreciate every advice, especially from people with more experience and knowledge. Can I ask you one more question? How to ask for refferals? Some good subscript in mind?

Jan 22, 2011 08:47 AM

Mike Hagen

Ryan Hill Realty - Wheaton, IL

Featured Agent on HGTVs House Hunters

There are many great places to meet investors, but before you go looking for them, practice what you preach: BUY AN INVESTMENT PROPERTY FOR YOURSELF!. If you don't have personal experience with investment property of your own, how are you going to relate to an investor? You wouldn't hire a golf pro who has never actually played golf, so why would an investor want to work with someone who does not own investment property themself?

Jan 26, 2011 04:40 AM

Aneta Ivanova

Urban Nest Realty - Las Vegas, NV

#Your Realtor for Life

I do have some investment properties. Condos in las Vegas, house and condo in Europe. I am pretty much familiar how to invest, but do not know where to find investors

Jan 27, 2011 09:29 AM

Greg Rand

White Plains, NY

This is what it feels like to buy low. The added benefot of learning the investor market is that you can network with financial planners and CPAs for business, and end up getting hooked up with high net worth clients as a result. Bottom line - an agent who can service investors professionally is the smartest real estate pro in town. It's not jsut who you know anymore. It's what you know.

Jan 28, 2011 04:12 AM

Steve Baklaich

RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN

Treating Buyers & Sellers to Full Service Always.

Aneta, Mike and Greg stepped in nicely with some great advise, thanks guys.

Asking for a referral is key, but depends on the relationship. If you just met someone, a CPA for instance, they may not refer a client to you. But, if you have a working or networking relationship that may provide a bridge. A small investor can be made, but if you're looking for established, monied investors, you need to network with the business people in your community. Kiwanis, Chamber of Commerce, Rotary. Have printed on every business card, email, letter, etc. a simple message, like "Your personal referral is very important. If you know anyone who may be buying or selling real estate, please give them my name/card".

Get educated and credentialed.

Jan 29, 2011 02:02 AM

Anonymous

Thank you Steve. This is great advive. I already sign for some meet up groups, and I am very excited to meet with new people.I will follow your advice. And already printed on the back of my business card "Thank you for your refferal"

Jan 29, 2011 07:45 AM

#15

Mike Hagen

Ryan Hill Realty - Wheaton, IL

Featured Agent on HGTVs House Hunters

Aneta,

Glad to hear that you already own investment property yourself. That is a HUGE step in being able to work with investors, because you can talk from experience. Go to REIClub.com and search your local area for a Real Estate Investors club. As an agent looking for business there, you may need to join as a vendor member/sponsor. Be warned though, you will also find a lot of dreamers there who will never buy property, so you will have to get good at "weeding through" those people.

Mike Hagen

Feb 08, 2011 01:30 AM

Steve Baklaich

RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN

Treating Buyers & Sellers to Full Service Always.

Another big nugget. I would add to Mike's comment by saying, even some of the dreamers can become valued clients, with some seasoning. I was approached many years ago by a young dreamer who wanted to do some investing, he ended up becoming one of the bigger developers in the area.

Feb 10, 2011 10:13 AM

Charles Perkins

Charles G. Perkins, CPA - Burien, WA

Steve as an investor, I must agree that now is an excellant time to invest in RE. I happen to know many others that are investing as well.

I must say though that many who would start investing have no real clue what it costs and what cash flows are likely to be. Fewer still beginning investors understand the nonnumeric issues that need to be reviewed when looking at a potential property to buy.

Feb 12, 2011 05:56 PM

Steve Baklaich

RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN

Treating Buyers & Sellers to Full Service Always.

Charles: You are right of course. That's why the budding investo needs a good honest REALTOR, as well as good financial advice from tax professionals, and legal advice, etc. We do try to advise as to the issues involved in owning and managing investment property. From properly screening tenants, to maintaining licencing and inspections, to proper relations with tenants and all that goes with it. We've been there.

Feb 13, 2011 04:19 AM