Why Creative Real Estate Investors Will Make Millions in This Market
By Augie Byllott
What is so special about real estate as an investment vehicle, as a way to get wealthy, as a way to create passive income and retire young and rich? Why is this market so different? Why is this an advantage to the creative real estate investor?
Two things I want to share with you. Never before, have there been more foreclosures in real estate then there are right now. That is because the lending practices of the last five to ten years have encouraged people to get into debt far over their heads. It is not just real estate debt. It is debt from all forms of consumer debt but especially credit cards.
The lending practices in the United States have made it easy for anybody in any condition with any financial history to borrow money - in many cases more money than they could afford to pay back. So right now in the housing market, whether it is single-family homes, condos, or multi-family properties, there are more defaults, more foreclosures than ever before. We are also seeing more bankruptcies, along with more bank repossessions. There are more VA, HUD, FHA, Fannie Mae, Freddie Mac, and other government-insured loans defaulting than ever before in history. Can you say Short Sale?
What all the data is telling us is that there are more properties available at below market prices than ever before. It is telling us that because there are so many people in trouble, it is easier to find Motivated Sellers. It is easier for you to perform profitable transactions!
We have all heard this saying - "in real estate you make your money when you buy and get paid when you sell." You may put money in your pocket when you sell the property, but if you bought the property correctly, you have lots of money making options. But if you bought the property incorrectly, you may not have any options. So finding motivated sellers and properties below market value is the first goal while investing in real estate.
A great advantage of investing in real estate is simply that there are plenty of buyers out there and more coming every day if you know how to locate, prescreen and close them. Unfortunately the credit crunch is making it difficult, and in some cases impossible, for them to get financing. The creative investor will be able to capitalize on this market. Creativity and knowledge will let you step in where the bank used to and you'll be paid handsomely for it! What if you could offer owner financing with your properties? What if you could sell to anyone with either cash or credit?
Now that seems crazy doesn't it? If there are more properties than ever before and at better prices, and if there are more buyers, then why don't the buyers just buy those properties? The reality is in most cases they don't have the techniques that I told you about. So now that you know it can be done, it's time to start investing!
Augie Byllott is a creative real estate investor who has been investing in real estate since 1983. He is the author of several stories published in various newspapers. Augie is also the publisher of a monthly newsletter called the Intellectual Capital Report. He also publishes regularly to his online Real Estate Investing Guide.
Augie is a proud member of Central Florida Realty Investors where he leads several focus groups including the Investing Techniques sub group. He also conducts several training seminars across the country.
Lastly, Augie is a coach and mentor of several students in the Personal Action Coaching Training (PACT) program.
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