A new Real Estate Investment Era is upon us

It is here. After 6+ long years there is an extremely profitable buyers market out there! Although Real Estate is highly localized, almost every market across this great country of ours is for sale for a very nice price. This will benefit real estate investors and primary home buyers a like. I have had multiple mortgage brokers e-mailing me over the last few days just going crazy about home buyer rates. In fact I have been told owner occupied loans will drop to around the 4.5% mark in the very new future. 4.5%? Are you kidding me? That means the home buyer who was stuck looking in the $170,000 range a month ago can now bump him or her self up to around the $200,000 range! Pretty sweet. While rates are not quite as exciting for investment loans, the deals are! I just did a short sale in a high end PUD in Liberty Lake WA. Property value was around $475,000-$500,00 even in this market. The two notes on it totaled $475,000. We closed it this morning at $345,000. Home is in perfect shape, needs no work. You should see the smile on the end buyers face:) My fellow investors, foreclosures is just flat where it is at right now. The banks don't want anymore properties. Their portfolios are chalk full. Short sales is a very profitable game right now. Ideally you take these deals down with cash buyers, but we are buying them with mortgages right now! The residential window of opportunity is open. Yes it will stay open through 2009 and probably even leak into 2010 a little bit. But with the rates and the deals, inventories are going to drop! The window will shut. Did you ever here anyone in 2005 say "boy I wish I would have bought some properties 10 years ago"? Yeah me too, and guess what? It's time. A 3-5 year hold or maybe even a little longer is looking really good right now. So what will 2009 bring for real estate investors? The rest of the residential opportunity and the start of commercial real estate market drops and foreclosures! You heard it here. The way the real estate market cycles, commercial is the next melt down. In fact it is already starting. Will it be as bad as the housing debacle? No. Not a major sub prime lending market for commercial. However, there were sub prime commercial loans made. Loans that had a very high LTV (loan to Value) as well. Also, even though most commercial loans are amortized over 20-30 years, they have short balloons on them. Typically 5 years. Well if the banks are not doing a lot of big loans, and retail and office buildings are seeing higher vacancy rates, guess what? Yep, default or motivated sellers. As unemployment hits it's peak and companies go out of business in the next 6 months, their housing needs will change as well. And the cycle goes on. So the moral of the blog? Get up, get out and get investing. Help off set all that money you lost in the stock market. Build a real estate portfolio that will bring you cash flow! Cash flow is king and it will set you free. I am currently putting together a couple multi-family commercial real estate investments. If you are interested in qualifying as one of our investors send me an e-mail and I will send you out our qualification questionnaire. If you need to build some "chunker" capital as David Lindhal would say (chunks of capital to invest later in bigger projects) foreclosures are a great place to start. Give me a call and I will help you get started. Happy Holidays!