Buying Real Estate for Profit

Where Will Residential Real Estate Head In The Coming Months?

With the economy on a steady downturn, home values are most likely to continue to fall. This is the time to save your cash, and make sure to get your house payments in on time. Your home will always be a good investment, so even if it is worth less than you paid for it right now, you will still be able to take the interest deduction on your income taxes, and eventually real estate always goes back up, higher than it was before.

Home Buying Secrets - 7 Reasons Why 2008 Is The Year Of The Home Buyer

This is a guest post by Mortgage Advisor Racheli Smilovits.

Let's dive in and see what's in store for you

•  The supply of homes is increasing rapidly-The number of homes for sale around the country has increased way faster than home sales, creating a continued surplus of homes and in some locations can last 4+ years. Obviously some areas are seeing higher numbers than others. Here are some stats:

In 2005 we had 2,846,000 Homes for sale

In 2006 we had 3,450,000 Homes for sale

In 2007 we had 3,974,000 Homes for sale

As of January 2008 there are  4,191,000 Homes for sale

These are national numbers from the NATIONAL ASSOCIATION OF REALTORS®

•  Prices are way down-Because of the access surplus of homes on the market sellers are forced to reduce prices to be more attractive. We have seen locations that have gone down as much as 30%-40%

• Sellers are very motivated- Because of the increase in inventory sellers who are serious about selling are more willing to negotiate knowing that the buyers have lots of homes to choose from. You need to be more attractive than your neighbors. Sellers know that.

• Rates are historically very good- 30-yr fixed rate mortgages are at a little over 6%. (as of this article 3-08). From 1992 to date rates have ranged from 9.25% and 5.25%. So +6% is on the low side. Take advantage of cheaper money.

• Take a little cut on selling your current home and get a big cut on your new home-  If you currently own a home that you need to sell in order to buy a new and more expensive one, think about discounting your home let's say by $30,000 or so to sell it fast. And get a much bigger cut $70,000 or more in savings when you buy your new home. Yes you will act as a buyer expecting you seller to negotiate and be more willing to cut prices

• Buyers have many options to choose from- and sellers know that. A few years ago buyers had to settle for what was available even though the home was not really what they wanted, because of bidding wars and multiple offers. Now buyers can pick and choose and in many cases get more than they thought they would.

• Short sales are an option, don't get hung on them- The number of short sales and foreclosures are climbing. It may be a great opportunity but be prepare to deal with a lot of red tape. The banks take their time to reply. Weeks sometimes months pass by. You must have a company that knows what they are doing when negotiating with banks. We will gladly refer you to one.

And now you can see why and how 2008 is a great year to buy a home for 1st time buyers, upgrading to a bigger home or down sizing. I would like to offer you a free access to the weekly video news so you can stay informed and up to date.

Also you will get the free guide "10 biggest mistakes people make when buying a home" by going to http://www.loans-4-u.com/FreeBonusReportBuyingaHome?c=2  to sign up.

View Racheli's bio at http://www.rachelismilovits.com/

Super Tuesday and the Real Estate Market

Now that Super Tuesday has passed and we are in full swing as we gear up for the national election, real estate may start to move again. The interest rate keeps dropping, allowing many more people to buy than in previous months. Also, California will benefit from the changes with non-conforming loans. Many people will be saved from foreclosure and the market will loosen up a bit.

If you do not need to sell your home, hang on for the ride. If you are able to buy, look for residential properties in upscale neighborhoods where the schools are desirable and the economy is stable. When prices begin to rise you will be in an excellent position.

Buying Rental Properties As An Investment When Prices Are Down

While real estate prices are down, rents have steadily increased across the country. This makes sense because people who are waiting to buy real estate until the prices go down further will continue to need someplace to live.

If you are an investor, this is the time to purchase properties that make good rentals. What kinds of properties make the best rentals? Here are some things to look for when considering a property as a rental investment:

• Is it close to transportation? This is crucial when you are renting out a property. People need and want to be close to bus lines, railway stations, and other types of mass transit. Look for properties that are within a block or so of mass transportation.
• Are there two bathrooms? Homes with only one bathroom are never desirable, but when they are rentals it becomes even more important to have that second bathroom. A buyer will always feel like they can add one on later, whereas a tenant will want it immediately.
• Is it in a quiet location? No one wants to be in a property that is on a main street, adjacent to a school or next to commercial property. Look for properties that are located on quiet streets and away from the busy, noisy areas.
• Are there an abundance of tenants in the area? You may have to check with a realtor to find out exactly what the statistics are, but you can do your own investigation by looking in the local papers and on the internet. This will also give you an idea of the rental rates so that you can arrange financing that will be in your favor.

Rental properties can make you wealthy as an investor, but you must do your homework first.

Investing in Foreclosures and Abandoned Properties

This is the time to make big money in real estate if you know where to look for the best opportunities. This may be easier than you think. Investing in foreclosures and abandoned properties can make you wealthy if you have the right information at the right time.

The undisputed expert in this field is Reggie Brooks. He is an author, investor and international speaker on the subject of purchasing foreclosures and abandoned properties. I went through a seminar with him back in 2005 and was able to purcahse some incredible deals here in the Los Angeles area.

Politics and Real Estate - How the Upcoming US Elections Will Affect Prices

With the Iowa caucus looming, it is time to examine whether the presidential election next November will have much of an affect on interest rates and real estate prices. Traditionally, when the current president is completing a second term both parties make every effort to show that they will be the ones to turn the economy around. The question is whether or not this will be enough to give the real estate market the boost it needs. The war in Iraq is also a major factor and time will tell if we will benefit from anything going on in the political arena.

Buy Real Estate in A different City Than Where You Live

If you live in the Los Angeles area, as I do, you may be thinking that real estate prices are down all over the country. This is not necessarily true. There are many areas of the United States and Canada where residential real esate is still appreciating. Do your research and then go after the deals that  make sense to you.

Short sales and REO's will be lucrative in 2008 in Los Angeles and much of the rest of the country. Again, do your homework before you make any offers or sign any contracts.

If you are a realtor or agent, take a look at my Marketing for Realtors program. You will learn how to get clients to come to you and make more deals than ever before, without cold calling or knocking on doors.

Have Prices Finally Hit Bottom?

Prices may be just about as low as they are going to get, according to many leading industry experts. The National Association of Realtors is holding its annual convention in Las Vegas this week, and everyone is buzzing about the future of real estate throughout the United States.

Many feel that prices will not go down much further, and that we will see at least a temporary boost in activity over the next year because of the impending presidential election.

Las Vegas Real Estate Home Values

I am here in Las Vegas for a convention and decided to take a look at some residential properties for sale. The prices here have dropped significantly since last spring and there are some very good deals to be made.

For the first time in over five years, owners are again ready to carry back paper and offer other concessions. This would definitely be the time to buy if you were ever considering Las Vegas or the surrounding area for an investment.

California Fires - How Will Real Estate Be Affected?

The fires that ravaged southern California over the past two weeks, causing several counties to be declared federal disaster areas, are now almost over. Thousands of people in the San Diego area remain evacuated from their homes, but things are getting back to normal almost everywhere and the rebuilding will soon begin. Just how will real estate investments be affected by this?

If you look back at past natural disasters, you will see that generally areas affected by floods, hurricanes, earthquakes and other catastrophies come back stronger than before. This is due in part to the influx of insurance money and government aid given to people in order to rebuild their homes and businesses. It also strengthens the economies over the next one to two years by making jobs and other construction supported industries busier than before the disaster.

Hopefully, this will be a good thing in the long run for San Diego, where foreclosures are up and property values down.