Hopefully this post finds you with money to invest! The stock market has been falling fairly sharply recently. If you have money, you probably want to put it somewhere you can have something to show for it.
Is Real Estate A Place To Invest Your Money? For some investors Real Estate has been their main vehicle. If they started investing in the last couple years or a long time ago then the Real Estate investor has wither had success or positioned their self for success.
Yes, Real Estate dropped hard from about 2006 even through the current times. During those times there have been investors making money flipping houses (although thats been tough, its doable), and they have been making money by purchasing properties and renting them.
Right now it would seem that in the north Metro Areas of Minnesota where I do most of my business that Real Estate prices have declined to near the bottom. Sure there might be a little dropping left, but all in all there are good homes and good deals at prices that are crazy low. On top of that interest rates are very low.
You will normally have to put about 20-25% down on an investment property. Most of my investors just buy homes CASH. Right now you can get a good in shape home that needs very little work, and it will be a 3-4 BR, 2 bath split entry for a little over $100k. If it needs a lot of work it might be $80k or less. You can turn around and rent it for $1000- $1200 dollars.
You want to do some diligence to find a good renter. But with the foreclosures there are a lot of good people that just need a clean start looking for homes to live in. If you do find a home that is in great shape and say you only put $100k total into it and make $12,000 back on rents this year that is pretty good return on your money for one year.
The idea is that you rent it for many years. Still keeping it in good shape and over time you can then resell it and certainly one would think make money on the sale in the future, plus the years of renting.
Thus, if your looking for a place to park your money its time for you to take a look at investing in Real Estate.
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