Real Estate – Best Time to Invest: How You, as a Layman, Can Invest in the Real Estate Market and Win

There are a tremendous number of financial opportunities that currently exist which, when properly handled, could create very profitable deals, depending on the amount of an investment and the risk that one is willing to make.

All investments have a certain amount of risk. Some are very great as in “futures, puts and calls”; and some at no risk (assuming they are government guaranteed issues which is now debatable. Yet those that are guaranteed, have low rates of return and may even have lower-end values because of inflation which is bound to happen. And some are risky, as in cases of the devaluation in the stock market that occurs periodically. Presently, I do not have much faith in the stock market despite the fact that it is presently doing well which I believe is going to be a short run. The question is how long will it do well especially with the fiscal cliff that is yet to come.With a seventeen trillion dollar debt deficit, you can bet on it.

As is commonly known, banks, have either just about shut down their loan operations or have set up loan standards that are unrealistically restrictive, thereby causing many properties to be sold at a much lower price than their true values. These assets have become much less valuable not because the true value of the property is not there, but because of the unavailability of financing or lack of reasonable financial terms, and yet, for more than any other reason, is that the property or business owners are financially in trouble and as a result of it, they have no alternative but to dispose of their assets at bargain prices or work special deals with investors. That is why hard money lenders are out there lending money where the banks are not lending, and doing very well. These lower property values are temporary. There is no question that with time, property values will climb to their true values. For these reasons now is a great time to get into the entrepreneurial mode and invest.

Real estate is limited and does not grow. Real estate is scheduled to sky rocket in value in the future. Why? Simple. Less land and increasing population which means more people looking for land or property. What makes profitable deals is by seizing the opportunity by buying now and selling later i.e. buying at a lower price and selling at a higher price or holding on the investment bringing in a continuous net income far superior to bank savings. A great source of making profitable deals is by providing secured financing to “creditworthy” property owners or prospective qualified buyers therefore making a good return on the use of your money and the use of their property to mutual advantage. Our definition of “credit worthy” is not based on credit scores alone but on the security and the viability of the deal. There are depressed property owners with unsatisfactory credit scores who have extremely valuable property, who are only in need of short term capital to upgrade their property for a better financial return or improving the marketability of their property which in turn make investments in them safe investments for investors. Again this is why hard money lenders are loaning money on these kinds of properties and are doing so well. I am not saying that you have to be a hard money lender.

The fact is that there are many good and safe deals that are in need of lenders investors. The situation is not that the properties are distressed properties but that the properties are owned by distressed people. Some of these people with the availability of little financing would be tickled pink to do a joint venture with a investor still providing the investor with a very good return or equity. Then there are deals whose values are long term. For example of land that presently has little value because of its location but over an extended period of time will clearly be of much greater value. These kind of deals are ideal where one wants to provide for their children. Simply putting the property in a trust to mature at an age when they would need it most; e.g going to college or buying a home. What a gift!!!

The First of a Six-Part Series

I. General.  II. The Finder.   III. The investor  IV. The Risktaker.   V. The Servicer.   VI. The Dealmaker.

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