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Invest in Real Estate?!…

February 2, 2010

Invest in Real Estate?!… Really?!

Some may think that investing in real estate in the middle of the economic turn-down may be a case for mental review.

However, at the risk of sounding like a realtor, this is the best time to buy.

Prices are the lowest in recent history. Many markets have corrected their over inflation. Not only a stabilization, but an actual 4% appreciation is projected to take effect in 2010 according to the National Association of Realtors.

No where is this more apparent than what we are seeing take place in our local market (Charlotte, NC).

Good deals are possible if you know where to look or how to structure the deal. Because of the abundance of foreclosed properties or properties that are in a pre-foreclosure state, we are bombarded with calls from sellers and realtors that are looking to move good investment properties. Because of the volume, many of them we have to pass on or sell to other investors that see the opportunities as well.

Many of these deals require us to partner with investors. We all have our specialties and many are not comfortable land-lording (tenant, toilets & taxes) and prefer a hands-off approach. We work with many of these in the form of financiers.

Others are interested in our wholesaling the properties to them in the form of an assignment or out-right sales. In all cases, we are more than happy to work with other investors.

One of the ways we work with other investors is tenant/buyer managers. This field is beginning to build momentum with both the investors as well as actual homeowners that have been unable to sell their vacant properties. Because the credit restriction (both for us and our buyers), our sales cycle has stretched from 3 mo. to 12 mo. or more. This has caused a creative sales approach in the form of selling on a lease/purchase. We are becoming a go-to group for the tenant/buyer supplier.

Since we are not realtors, we act as property managers and budget consultants for the property owner. We will coordinate and fill the property with a tenant/buyer. Then walk the tenant/buyer through the process of working through their credit issues, budget priorities, and documentation needed for a mortgage. Each of them must work on correcting the issues in the past, however many of them are cleaned up and ready for a mortgage in as little as 6 months.

The face of real estate investing has changed in this economic climate and the ones that are flexible and creative will survive and flourish. The ability to work with the investor (as well as homeowner) community will realign and strengthen our local market. Anyone that is interested in learning more of what we do, please feel free to contact us.

See you!

Gene

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