Real Estate Investing During Poor Economic Times

By Doc Schmyz

First let's establish a few ground rules for this article.

1) Bad markets have happen before...and people still made money.

2) Not every deal will fall into a cookie cutter format keep your eyes open...and your mind even more so.

3) Not every tactic or idea works in the same in every part of the country. ALWAYS check local laws pertaining to real estate transactions.

Ok...now on with the article.

Just because a drop in the market has taken place doesn't mean that you, as a real estate investor/professional, are out of luck. It only means you need to add new tricks and tools to your tool box. (Be warned I use "tool box" a lot.)

Marketing/locating property

Besides real estate agents and brokers (still the best way to find good investments in my opinion) there is a huge amount or resources at your fingertip with the Internet.

You can join website communities for investors, follow blogs, get in on group discussion etc. All of these things can lead to new and interesting deals.

Some of my best investments have come to me via a web community contact. I also have gotten countless tips from other investors on investments and financing issues. Do not over look the value of belonging to an "investor community website."

I honestly feel that in the upcoming years the majority of investing will shift to being web related. Not just in finding investment projects but in doing the research for them as well as the funding process and the majority of the marketing/exit strategy as well.

"New" financing

Everyday we are hearing about how the current market and credit crunch is making getting loans harder for everyone. This is currently a fact. No way around it. The loan process has changed. So what options are left?? The answer is several.

Lease options. Assumable loans. Seller financing. Just to name a few.

The above mentioned may well become the big trends in the next couple of years. I am waiting to see how the lenders change the loan guidelines in the next few months to "re introduce" the assumable loan. We are already seeing a HUGE trend in short sales. (This was a practice that was used only in limited capacity in the last 10 years by most lenders now it seems like every other distressed listing is a short sale in some cities.)

Please do not let the current market conditions scare you in to sitting this investment period out. On the contrary use it to inspire you. Take the time to do the research on finance options, look into building a LLC perhaps. Find out about buying real estate with your IRA. Etc, etc.

Buy books. Read investment strategies of the big names in investing. Use the time to educate yourself and above all be creative.

Don't let panic drive you off with everyone else. - 23196

About the Author:

Doc Schmyz has worked with investors all over the U.S.. His website gives thousands of investors up to date real estate investing information Get more info from across the U.S. on Doc's real estate investing resources page.