Long-Term Real Estate Investing in a Bad Economy
Author: Peter V
Author: Peter V
As you are watching the real estate market crumble and the deals multiply exponentially, you may be thinking to yourself (and any economist would agree with you) A bad economy is a great time to spend money. All political issues and platforms aside, for real estate investors this is nothing short of the bare, honest truth. When the market sinks, the deals come out and a buyer with cash has his or her choice of the lot.
However, you may not feel like you have that money to spend. Perhaps you are hesitant to sink your nest egg into a long-term real estate investment that all signs indicate could be complicated to get out of. This is not paranoid or gun-shy, as many real estate investing gurus would like you to believe. This is just plain common sense. Do not spend what you cannot spare. Fortunately, this does not have to mean that you have to pass up on the long-term real estate deals of a lifetime just because you do not have hundreds of thousands to spare in the bank.
If you want to invest long-term in real estate when the economy is bad, you will need to be flexible and informed. Creative financing is at its peak popularity right now because traditional loans are so hard to come by, which will make your flexible thinking a little easier to swallow for many sellers. So do not be shy about suggesting creative financing alternatives for purchasing properties. Do not forget that you have many options, including seller-financing, subject-to transactions, lease-option transactions and private money, to name a few. In addition, you should plan to spend a lot of time working on the down payment that your seller requires, since there may be a lot of upkeep or repair involved in the property that you are interested in. The down payment is certainly not a thing of the past, but unless you are buying with the help of a bank, a 20 or 30 percent down payment is unreasonable, and many sellers are settling for little or nothing or installment down payments just to get their properties off the market and off their backs. You need to think flexibly so that your seller can be flexible too.
Once you have the flexibility down, work on getting informed. If you are clear about the options that you can present a seller, then you will save yourself a lot of time and effort when you are tracking down deals. For example, if you know that you can put down 2000 dollars on a house but no more and that you want a subject-to transaction with a fixed interest rate of 5 percent or lower, then you will be able to target deals that appear to fit these criteria. Being informed about your options lets the seller know you are serious and will help them take you seriously even if you are suggesting things that they may not feel comfortable with.
In a lot of ways, I think this is the best market yet for real estate investors whether they have cash to spend or not. Being educated and flexible is the key to real estate investing in any economy, but these traits will skyrocket you over the rest when it comes to snagging the good deals in a bad economy.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate investing. For more information please visit
www.CoachingByPeter.com.About the Author:
Peter Vekselman has been successfully investing in real estate since 1996.
He has completed over 1200 real estate deals, owned a construction company,
been a private lender, and owned a property management company. Peter
currently works with clients all over the US helping them achieve riches in
real estate investing. For more information please visit
www.CoachingByPeter.com
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