subject: Three Reasons To Invest In Residential Real Estate For Explosive Profits [print this page] There isn't a better time to become a wholesale investor. Property values are at their lowest levels in decades. Interest rates are at historic lows. And there are many foreclosed properties available to snatch up at record prices.
It's a time of big opportunity for many real estate investors.
I got into the wholesale business years ago, during much tougher market conditions. I still am a big believer in residential properties.
But whether you become an investor today or 10 years from now, here are three good reasons to get into residential real estate right now.
It's a relatively easy investment. Investing in any business usually requires a large financial commitment. It can easily cost $200,000 and up to buy a nationally-known franchise restaurant.
Residential real estate offers a much lower investment and fewer handicaps to entry. Sure, you can go out and invest in $200,000 properties.
But with many banks lending up to 100 percent of the purchase price for your investment, you may not have to put much money down.
A rental property allows you to take full control of your investment or you can hand off some of the control to property management companies. Either case, you are the boss. There's no one to yank your franchise or cancel your operating agreement.
No matter the economy, people need a home. This is one of the things I love about investing in residential real estate: People need somewhere to live. It's that simple. It's a lot different than commercial real estate. People can put off renting an office. But a home? Shelter is a basic need.
And if your property is located in a well-established, popular area with jobs, good schools, relatively low crime and stable property values, your investment could always retain its value.
Be careful about the area where you decide to invest, but keep in mind that areas near colleges, hospitals, affluent communities and diverse jobs tend to retain their property values.
Proven results. Investing in homes isn't a fad. It's relatively easy and doesn't take an accountant to figure it out. There are no prospectuses, complicated investments or payouts to figure out. Ideally, you should buy low and sell high. Or, buy low and rent the property out to bring in residual income.
Investors have bought residential properties for hundreds of years. This is not a new, fly-by-night investment, nor is it new.
This doesn't mean the market hasn't changed, but the basic formula remains the same. Buy solid properties in solid neighborhoods. Rent to solid tenants and you'll get a return on your investment.
