subject: Three Ways To Profit In Real Estate Investing In 2010 [print this page] So many new or would be real estate investors that I talk to keep saying the same thing to me over and over again. I would like to invest but now is just not the time because of all of the foreclosures out there. I dont want to hurt anyones feelings but that is just crazy. Now is probably the best time to buy homes that we have seen in the last 20 years. They are right about one thing though, there are challenges but the savvy investor will learn to navigate these challenges and profit from them.
Nothing that is worth it is ever easy. You do need to understand that the mortgage market and foreclosures has changed the way you need to do business. But if you understand and embrace each of the three items I am going to share you will have an unprecedented opportunity to make good money in the current market.
Number 1 - Foreclosures. Bank owned homes, or homes that have gone through the entire process and are now owned by the banks themselves have amazing potential to make you money. The banks have a glut of properties on their books that are not making them any money and they need to move these properties from their non-performing assets list to do what they want to do and that is lend money.
If you want to dominate your market then you need to learn everything you can about foreclosed or REO (real estate owned) homes. My secret insiders tip to doing this quickly and efficiently is to network with the source, the REO Realtors in your area. There are many Realtors in your local market that almost exclusively work with banks to sell their homes. Find these Realtors and get on any email list they have to find out what new homes are coming on the market. These Realtors not only have the inventory they also have the knowledge of what the banks are willing to accept on foreclosed homes. This is your leverage to getting the best deals possible.
Number 2 - Private Money/Credit. So many real estate investors are coming to me today with stories of being denied time and again by the banks to fund their investment deals. The market has definitely changed when it comes to financing your rehab or rental properties. The secret is not to give up but find a better solution. In my opinion that solution is private money and private credit. There are literally billions of dollars in IRA money available today from private individuals that would like to get better returns on their retirement funds.
If you really want to kill it in 2010 then go out today, right now, and start to learn everything you can about self-directed IRAs. Once you have done that enlist the help of a qualified trustee company that can manage these funds for your investors. They will be your partner in the whole process.
Once you have your ducks in a row then you need to go to everyone you know and let them know you have deals and want to help them earn good returns on their money backed by real estate. Not everybody is going to be ready to invest but you will be amazed by just how many people would like to partner with you on your deals. Plus they are much more fun to deal with than the banks.
Dont stop where many investors do with private money though. Get creative and look at combing private money lenders with private credit partners. There are many people that can get one or two investment loans based on their credit and financials but dont have the cash to invest. Bring them in on the deals and let someone else fund the down payment while they acquire a mortgage. It is a win-win for everyone.
Number 3 - Uncle Sam has provided real estate investors everywhere with a God send, the first time homebuyers tax credit. While this is set to expire on April 30th, 2010 ever investor needs to do what the old adage says and Make hay while the sunshines. This government program provides a tax refund to qualifying first time and move up home buyers. This is your chance to help someone that might not be able to get a home otherwise buy that first house.
The steps are simple, learn, learn and market. Learn everything you can about the tax credit from government sites and tax experts. Then learn what type of homes these buyers are most likely going to purchase and in what neighborhoods. Then find these homes and market like there is no tomorrow by focusing on these buyers and get them in your homes.
I am not a tax expert and dont have any interest in being one but you must also think outside of the box. There are many ways to sell a home other than just financing it through a bank. Investigate some of your other possibilities such as selling on land contracts and seller financing. These may still qualify as transactions under the tax credit bill and could make you money on homes you never thought possible.
Here is my special fourth thing you need to know to profit in 2010... Take action now. Dont think about doing something but start doing it, get educated, build your team and get out there and get your feet moving and mind working. When you couple an amazing real estate investing opportunity and hard work you will quickly find yourself on the way to dominating your real estate market.
