Real estate property values are at their lowest mark in more than 20 years. The market is paralyzed with hesitant buyers unsure that the American Dream still includes home ownership.
The weak economy and unimproved employment situation has combined with more stringent lending practices to put many would-be homeowners in a holding pattern. While it is clearly a buyers market, with the lowest interest rates in many years and with depressed asking prices from serious sellers, the buyers are on the sidelines.
Real estate investors know this is the time to make money. When the amateurs are not in play, investors get serious. And, one of the most appealing aspects of this “down” market is the availability of countless short sale opportunities.
Profitable real estate opportunities abound in a plentiful short sale environment. These properties may not yield immediate profits, but real estate investors know that time is on their side. More and more investors are coming back to the market and acquiring single-family residences that are in short sale status and that are in need of repair.
A popular formula has been to buy low, hold and sell until the market improves. After negotiating the shot sale, the investor makes tax-deductible improvements to the property and enters into a lease that covers the property’s overhead.
Experienced investors have profited in bad markets before. They know the market will come back. And, while homeownership may not be at the top of the list for first-time buyers right now, the investors are confident that the advantages of homeownership will win out in the long run.
In terms of establishing roots, tax advantages and school enrollment, the advantages of ownership far outweigh the risks of being a tenant. While there are not as many buyers on the scene right now, demand for houses for rent is strong.
To be successful in the short sale market, put your paperwork together, build financial support and be positioned to obtain pre-approval letters from a lender. Then, get the word out that you are a solid landlord. The undervalued properties are out there, right alongside persons looking for rental properties. What are you waiting for?