Can money be made in today’s real estate market? - By: John Nguyen, Posted on: 2007-09-10

Can money be made in today’s real estate market?
By Marty Ford

The real estate market in the US has proven over the years to be one of the soundest investments in the country – in both booming markets and surprisingly - in depreciating markets. It has been a steady performer over the long haul, and now with a significant dip, quite possibly the greatest depreciation we’ve seen in three cycles.

Now with possibly the greatest decrease in market values and the ‘worst being over’ there are huge investments being made in US real estate. There are hedge funds capitalized with billions (yes, that is a B) and even small, individual investors alike that are going to make their fortunes. This market is proving out and giving people with the foresight the opportunity to grab real deals with a simple strategy; buy low and sell high.

Today's California real estate market has slowed down after a newsworthy boom. While some homeowners may bemoan the lowering value of their homes, it does provide investment opportunities. If "buy low, sell high" is the investor's mantra, now is the time to look around and buy California real estate.

You may ask - so how can I, a regular person without a lot of experience make money in today’s real estate market? There are several ways to buy investment real estate. It can be as simple as working with a real estate agent looking for properties with very motivated sellers – you have to be patient – it can take months to find one deal... and make sure not to over a minimum of 30% less of market value to cover all your buying, holding and resale costs, plus a tidy profit for your risk.

One of the most overlooked forms of buying is to find cash buyers who possess or have access to large amounts of capital. The best play in today’s real estate market is buying real estate portfolios and notes directly from the bank (known as REO properties, portfolios or notes.) These bank owned or REO properties can be purchased at steep discounts as much as 40% of market value and bulk notes sales as low as 18 cents on the dollar (not always that low). You can make some large profits by simply finding a cash buyer (by word of mouth) and bringing them to a source for these REO deals – and you can make a great return on your time from a referral fee paid. The best referral fees come from bringing a direct buyer. The buyer then turns around and sells these properties at a profit and then, most likely, buys another portfolio – and you make again – a great referral fee!

There are few legitimate sources for REO portfolios and they are not easy to find. You want to make sure they have a simple program that is based on ethics and possess a lender relationship that makes it all work, one we found can be found at www.reopackages.org

In summary, real money can be made in real estate whether it’s a booming or declining market – finding a cash buyer for an REO source can be a very lucrative treasure hunt.

Article Source: http://www.southerncaliforniarealestateagent.com/submit-real-estate-articles

I have a passion for investments and love sharing with others Interest: Investments for the common man. Contact: 760-660-9740 Email wholesales@agencynurse.net

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