As the real estate market continues to downturn, it’s an opportune time for investors to take advantage of monster deals. In a recent interview with Real Estate Magazine, Joe Clement of RE/MAX Properties in Colorado Springs noted, “People are realizing that having money sitting in a savings account is not smart.” There has been no better time than now to invest your money in real estate, but you may be hesitant to get your feet wet if you’re new to the investment market.
First time homebuyers and new investors are seeking reasons to stop fearing the market. But in the meantime, experienced investors are making a killing in the foreclosure and REO markets. The inventory grows and shrinks within each month, but forecasts predict that we are going to continually see huge surges in these markets for months to come.
So, how do you stop fearing the market as a newbie in the investment world? For one thing, you need to realize that your savings plan won’t get you very far. And the stock market isn’t doing you any favors right now. Would you like to sit patiently while your money earns only pennies on the dollar each month in a standard savings account at your bank? Or would you rather see a good return on your investment that puts cash in your hand for creating even greater deals?
It’s important to note that today’s market doesn’t allow for fast flipping. And you don’t want to be that type of investor anyway. You have to be willing to make calculated risks on the market and exercise patients when it comes to finding the right deal. Decide what you want to do with a home once you purchase it and execute a business plan for each deal. Buying and selling real estate as an investor is just like any other business. You have to go in with an exact strategy and know what you plan to get out of the deal.
An estimated 59% of the investors in today’s market are new to real estate investing. With proper education and the right team of experts to help you along, you can successfully buy and sell distressed homes and short sales. Find a realtor in your area who specializes in investment purchases, and work with a lender who can help you make the deals happen.