The Simple Man's Guide to Real Estate
Is This A Good Time to Start Investing?
There are many who believe that the current market conditions of rising interest
rates and a slow down of home sales will mean that the time for investing
in real estate is over. They believe this because they simply do not understand
the fundamentals of investing. To help you ascertain the truth, we have put
this page together to dispel some of the myths. Rising interest rates mean
the economy is going strong - perhaps a bit too strong. If rates are not increased by the Fed,
inflation could easily occur. So, rising rates are a sign of a very healthy
economy. Housing sales slowing down - or even a reduction in prices - is
actually GOOD for buyers and investors. Would you rather pay higher
prices, or lower prices? Because of this potential slowdown, buyers are in a
better position to negotiate with sellers, and sellers are having to negotiate
if they want to sell. This means better bargains for buyers and investors.
Over the last several years of the "housing boom", a great many people
chose mortgage options that are unwise, such as the "interest only" mortgage,
or ARM's (adjustable rate mortgages). With housing values stabilizing, or even
falling, those people could easily find themselves facing foreclosure as
they find themselves hard put to "pay the piper". It is expected that a good
percentage of those "creatively mortgaged" homes will end up on the auction
block - yet another boon for investors. It has been a very long time since
market conditions were so positioned to benefit investors. Certainly, over the last
few years, many investors made a lot of money from rising appreciation. Now,
however, the wise investor will make a greater fortune from bargains in the
marketplace.
Rising interest rates and housing slowdowns only serve to create bargains.
If you want to be ready for the profit-taking from those bargains, now is
perhaps the best time in over 35 years to start investing - especially since it will be
even easier to get started.
Other Economic Factors
This is what really sets our program
apart. Our techniques are not affected by economic changes, nor are your
profits. Here's why: When you buy and
hold, as advocated by other programs (Carlton Sheets et al), you own an
expensive asset that is subject to economic changes. With mortgage payments
that do not change, this can hurt you in a "down" economy. Our techniques
do not require that you buy and hold. If you buy on February 1st, and
you sell for a profit on February 1st, the only economic factors that affect
you are those that exist on February 1st. Our
techniques, when used to buy and hold (by those who choose to do so) are
designed to provide you with either "up-front" cash or additional equity
and profits not otherwise available. So, if you buy and hold and the economy
sours, you have a wide safety margin - lots of equity (that cost you
nothing) and cash already in your pocket. It is unlikely that, short of
a wide-scale long-term depression, that you would lose anything.
By cashing out immediately at the time you buy,
you may use your cash to invest in whatever is best during that type of
economy. With cash (instead of real estate, which is not "liquid")
you are more flexible, and have more options available to you. And, you
are not tied down with mortgages, taxes, insurance and maintenance.
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