Notice that I said long term. Flipping is out; long term investments are in. Why? It is hard to sell a home for a great deal of profit in today’s market. The strategy of investing in today’s market, therefore, should include purchasing property well below value, holding onto it and selling it once the market turns around. And it will turn around.
One of the most successful strategies that you can implement involves buying cheap foreclosures and partial constructions. You can then rent these properties out to tenants. You see, many other types of investments are also losing value in the current market. The difference with real estate investments is that you can use them to generate income until the market turns around.
Did you know that it is easier to get a mortgage now than it has been in the past? Before WWII, most people rented. Why? Mortgages required a 50 percent deposit. Today, mortgages are easy to get, so easy that many people bought houses that they could not afford. The prevalence of foreclosures attests to it.
The number of foreclosures on the market it sad, but the existence of foreclosures also presents an opportunity. You can buy a home at auction for up to 50 percent less than value. Be sure to pick an area where prices are relatively stable. These will be the areas that will turn around more quickly once the recession is over.
It takes time, patience and know how to purchase an investment property in today’s market. But if you can manage to do it, you can make a lot of money by buying a foreclosure and using it as your home or as a rental property until the market stabilizes.
Sal Vannutini is the author of " The 8 Power Profit Secrets To Making More Money With Less Risk In Real Estate, " a free strategy report for investors. Get your complimentary
copy at www.FastFixerUpperProfits.com today.