Not As Top Secret Real Estate Market Investing Keys

It may seem like investing in property is the wrong thing to do right now, but it could actually be the best thing to do. If your financial goals are clear, there are real estate investing secrets that are simple, proven and workable.

The property investment market has reached an all-time slump. Elders have always given that tired advice, “buy low, sell high”. That’s obvious. This is the “low” they were talking about. The problem is, no one explained that everything else would be in the tank, too. Any real estate purchased needs to be self-supporting: it needs to pay its own way.

Rental income property is the key. The inventory of properties for sale right now are rife with homes that are underwater, or worth less than their mortgages, or they are going through foreclosure or other forms of financial challenges. Among the many new options is a thing called a “short sale” which allows a property owner to sell the property, but not pay taxes on the net gain of the sale.

There are neighborhoods in some of the harder hit states across America that have homes worth 25, 35, even 50% less than their original purchase value. These homes selling and they are in good neighborhoods with good rental prices. Another fact to remember is that people always need a place to live. But the housing pool has not changed so much that rental prices went down. This means that a house that once cost an unreasonable amount per month to buy becomes affordable as a rental. A three bedroom house that once cost $3,600 a month for its payment is now $1,600 or less to finance while renting it for $1,900 per month.

Obviously, a ten or twenty percent down payment is less on a house worth less. Put together a down payment and see a lender for beginning to set up the loan. Lest we forget: while money is tight, lenders still want to lend. It’s what they do, it’s their business. If they are shown an accurate portfolio of financial responsibility, lending is not as hard.

Agents who sell homes are also agents who buy homes. An agent who is short selling a home may be very inclined to become the buyer’s agent as well. In this case, both the buying and selling commission go to the same agent, so costs can be negotiated down. These same agents also work with a cadre of professionals involved in industry; brokers, lenders, title insurance agents, all of them will be looking for stable and reliable customers with whom to do business. These people will have useful tips of their own to share.

Real estate investing secrets can be a dime dozen, but the ones that are thought out, planned well and executed with an eye on the future become the secrets that last.

Handy spots similarly to Rock Bottom Blueprint may very well demonstrate a person a little more involved with all the obligated tips.