Real Estate has historically been the safest and most profitable vehicle for investment. However, there is no such thing as investment without risk, even in Real Estate. All numbers and estimations given by us – electronically, orally or in print – are based on the information that was given to us by real estate developers and by our research of investment publications, trade publications and other expert business sources. We can use historical precedent and current market conditions and trends to project future expectations. However, no projection is ever a guarantee of future profitability. We strongly recommend investors to carefully inspect the available properties and to do their own research before investing. It is always advisable to consult a licensed professional before purchasing property. Also, in order to know the tax benefits a particular property will bring, the investor should consult a professional tax advisor who specializes in working with Real Estate investors.
Is Real Estate Still the Great Investment?
1988 to 2010 Statistics:
Real Estate $203,1709
Stock Market $8,439
When I bought my house for $172,500 in May, 1998, the Dow was at 9033. I made a down payment of $34,500. On August 19, 2010, the Dow closed at 10788.
I sold the house several years ago for $400,000, but let's assume that I still owned it and was still living in it. My mortgage payments were lower than the rent I would have paid, so I won't factor them in.
Even though the house lost a lot of value in real estate downturn, it is still worth over $350,000 as of August, 2010 - more than double the price I paid for it.
2010 Real Estate Investment Update
How to Play it Safe and Make Money in Real Estate Investing Today
A few years ago people were buying a dozen investment properties with as little as zero down, enduring negative cash flow and waiting for their properties to double in value. It looked like an easy way to make a cool million or more in 10 years.
Was it a Good Idea?
It seemed to be a good idea back then. Real Estate had a history of outperforming the Stock Market for decades, with the leverage, appreciation, cash flow and tax benefits it produced.
Nobody knew the Economy would take such
Downturns come every few years or so, and everybody expected them. We built our real estate ships to weather a big storm. And then a tsunami hit.
What to Do Now
Savvy investors know to buy low and sell high. Real Estate is at a low. Mortgage rates are at a historic low. If there was ever a time bo buy low (other than 40 years ago), it's now.
Find a market where the economy is on the rebound and housing prices are just starting to rise again. Buy an inexpensive below-market property ($30,000 to $100,000) with 20% down. Make sure you will be able to cash flow at least $200 a month when it is rented, and put your cash flow in the bank.
It's nice to invest near your home, but if you cannot find nearby properties that meet these criteria, plan to invest in an area where you can find them.
Cash Flow HousesFree Webinar
Average Price $55,000
Good Areas for Investment
Tuesday, August 24, 2010
6:00 PM Pacific (9:00 PM Eastern)
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