Starting Over or Going Full Force!
Many investors are asking me Kimberlee what should I do right now? Invest in more property, wait, try and sell what I have? Give the property back to the bank? I recommend taking time to re-educate yourself about your marketplace. Figure out your mistakes and look for new strategies and solutions to avoid making those same mistakes again. Right now is a great time to buy and start your investment strategies with fresh and new ideas.
Buying discounted properties is an investor's dream and with so many properties available on the market now, this is the best time ever for making long term real estate investments and rebuilding your portfolio. If you have cash, now is a great time to purchase real estate or if you have good credit, you might have to but a little more money down, it is still well worth the investment. Another option is to ask the seller if they are willing to do seller financing.
If you are selling your investment property, then Seller financing is a great way to get buyers with less than perfect credit to purchase your property. I recommend offering this incentive to your buyers as well as other incentives such as prepaid homeowner dues or taxes, credit for repairs. Since the competition is stiff, you need to be creative with your marketing of your property and pricing at or below market.
Also, if you own luxury or vacation property, you may want look into selling it fractionally. Fractionalizing your property is when you sell the property to different buyers in different percentages and each buyer gets a deed for their percentage of ownership. The buyers share the maintenance costs and work out a use schedule. Before you decide to fractionalize, I do recommend you speak to your attorney to make sure the property qualifies under your state and county laws and also check with your homeowner association, if applicable to make sure they allow fractional ownership.
The advantage of purchasing fractional real estate for buyers is that they don't have the high costs and maintenance responsibilities associated with ownership of a vacation or retirement home because those costs are shared. Buyers get to own a luxury vacation property in a great area that they could not otherwise afford on their own, and they get the amenities of a four or five star hotel with all the comforts of their own home. The advantage to the seller is that fractional real estate usually sells for a higher price since several owners are purchasing it, buyers are willing to pay more because individually they are still buying the property for less than if they were buying it on their own. Vacation areas like Florida, California, Nevada, Arizona and Colorado are popular vacation destinations and good choice areas to sell fractional real estate.
Team Up with Other Investors
Several of my students are teaming up with other investors, friends and family and buying bulk properties. In fact, there are lots of investment opportunities all over Florida right now because Florida was one of the hardest hit areas as a result of the subprime mortgage mess. Short sales, foreclosure auction properties and bank owned properties are just some of the investments that my students having been taking advantage of in the Florida real estate market. Prices have declined as much as 30% or more in some areas because of the high foreclosure and short sales so it is definitely a market worth checking into.
Other students and experienced investors are also using my proven Real Estate Junkie methods to purchase these discounted properties and then offer a lease option to their tenant/buyer. By obtaining a large upfront deposit from their tenant/buyer, they are able to establish a monthly cash flow, reduce their mortgage payments and at the same time rebuild their equity and investment portfolio to achieve their goals of long term wealth.
If the tenant decides to purchase the property, then the small portion of the monthly payments and the upfront deposit are credited towards the purchase price. If the tenant decides not to exercise their lease option, then the monthly rental payments are just applied towards the rent and the deposit is nonrefundable. Also, many students have implemented my system of negotiating in the lease that the tenant is responsible for the first $200.00-$300.00 of repairs each month. This reduces your monthly maintenance costs and keeps the tenant interested in purchasing the property because they have already made a financial investment in it.
These are just some of the ways that my students and seasoned investors are rethinking and implementing new strategies to keep their investments growing and secure.
Now is a great time to start the new year fresh with new and innovative real estate investing techniques and systems. I am offering a 15 minute free consultation for anyone who wants to take their business to the next level. All you need to do is go to my website www.RealEstateJunkie.com and send me an email to schedule an appointment. For more information on my seminars and coaching programs, you can also visit my website at www.RealEstateJunkie.com.