According to a recent RealtyTrac report, Phoenix AZ foreclosures have risen more then 25% in the last year.
In fact, more then half of all sales in greater Phoenix AZ (Maricopa County) are foreclosure sales. As a result, Phoenix AZ real estate prices have dropped more than 31% according to the S&P|Case Shiller Index.
What does all this bad news mean to you??
Well, struggling real estate sales can be great news if you are a home buyer or Phoenix AZ real estate or Scottsdale AZ real estate investor.
Usually, cliche’s like ‘be careful of sharks who smell blood in the water’ is used to make buyer beware of quick-buck artists and get-rich quick schemes. However, if you are a real estate investor looking to buy homes in and around greater Phoenix AZ, ask yourself if you can be real estate investment shark?
If so, there are homes listed for short sale, foreclosures and bank owned real estate (REO) that are selling as much as 50% discount prices to the high levels of 2005. Even new Phoenix AZ new home builders are selling inventory specs at or below it cost the builders to actually construct the home.,
here are 5 Phoenix AZ Real Estate Investing Ideas that the millionaire real estate investors are preaching and living by in today’s market.
1. Don’t follow the herd - while everyone else is selling, you may want to buy. You can take advantage of seller paranoia, fear and over-reaction of emotion. You still need to be prudent and know that you are likely not going to be buying at the absolute bottom of the market, but you can get a great piece of real estate at steeply discounted prices.
2. Dont’ be afraid to make mistakes - let me be clear. You will not make money on every investment you ever make. Anyone who tells you that they have, is likely lying. The key is to make investment decisions with sound, prudent investment strategies and don’t risk money you cannot afford to lose. Think, ‘don’t put all your eggs in one basket’ If you diversify and protect your money, you will have a high likelihood of making money over time.
3. Do not be afraid to say ‘No”- Do not fall in love with any one house, stock or any one investment. Make sure you make offers based upon your investment strategy. Do not chase seller counter-offers. If so, you are letting seller dictate your investment strategy. There is no last deal. There is no ‘last’ opportunity. If a deal appears too good to be true, it most often is!
4. Cash is king - if you are a cash buyer, you have a tremendous amount of leverage in getting offers accepted in a credit crisis in which sellers are well aware of the limited amount of borrowers who can qualify for a loan even if they want to buy. Further, protect your cash, do not ‘go all-in’ as they say in poker. Always, keep reserves should you need to hold-on to investments longer then your strategy had outlined or should another investment opportunity present itself.
5. Slow and steady win the race - turn off late night television. Those get-rich investment programs touted by modern day snake-oil salesman are just that. If they worked, these guys would be following their own advice, not selling books for $79.9. Real Estate investing works.
However, it takes time, lots of time, patience and learning from your mistakes. Rome wasn’t built over night , the pyramids were not built in a day. And, you cannot build your fortune quickly either. Again, real estate investing is not for all people. Make sure you only take investment advice from a real estate attorney or experienced real estate agent who has real estate investment representative.
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