Look for deals in real estate - those potential investment properties that need a little work. Buy properties that nobody else wants to buy because they don't see the value. While it might cost more money initially to fix up the property, in the long run, if you buy real estate in the right areas and communities, it will pay off.
Perhaps there are even rental properties where there are tenants and good value in the property, but the owner or landlord is just ready to move on - they can't take care of the property anymore. It doesn't hurt to ask and investigate about certain rental properties, whether it's an apartment complex or a condo. Perhaps you see a building or apartment complex that needs work, maybe the owner is ready to retire and will sell the property at a discount.
Come in with knowledge and experience and turn a profit on an investment property that's a hidden gem …often there is more risk involved with these types of ventures but more reward if you are knowledgeable—know what you’re looking for.
Today, with a number of sub prime lenders in trouble, there will be a lot of foreclosures. See if you can come in and buy a property at a reduced rate and also help someone out, so they don't have to default on their loan and ruin their credit.
"According to the Mortgage Bankers Association's National Delinquency Survey released on Tuesday, 4.95 percent of mortgage loans were delinquent in the last quarter of 2006. That's an increase from 4.67 percent of loans delinquent from July through September. And compared to a year ago, the delinquency rates increased as well. Then, 4.7 percent of home loan payments nationwide were late.
In particular, subprime borrowers continued to have difficulties making their loan payments. Over 13.3 percent of subprime loans were delinquent, compared to 11.6 percent a year earlier."
And while the housing crisis is behind us, for the most part, there are still properties out there that offer a value for the right buyer even though they are in need of repairs.
- REOs (bank owned)
- Foreclosure speculators
- Estate sales
- Behind on payments and lost value in property (bubble burst—in over their head)
- Can’t pay mortgage and the home has dropped in value (equity)
It's a good idea to re-visit this quote, stressing that there's opportunities in all types of real estate markets:
"You simply adapt your strategy and techniques to whatever new market conditions are emerging. Savvy real estate investors ignore the media chatter about bubbles and peaks, hard times, and depressed markets. Intstead, they work the available opportunities--no matter what type of market they face."
-Gary W. Eldred