Investing in real estate is always a good idea says Jeff Adams. As an expert in real estate investment, he points out that the 2015 real estate market has been improving steadily. With a steady economy, lower-than-average interest rates, and a healthy construction industry, almost anyone can now afford to buy a home.
However, before you jump into the investment market with both feet, he points out that the 2015 real estate market is dramatically different from the pre-recession real estate market. Rates have changed, markets have changed, and investment areas are totally different from the pre-recession real estate market in the US. If you are serious about kick-starting your real estate career, you should read these real estate tips he was willing to share with us.
Although the market has improved and jobs are available, there will always be homeowners who are struggling to make ends meet. According to RealtyTrac, more than 15% of homes in the US are still in different stages of foreclosure, and likely to be repossessed by mid-2015. The states with the most expected inventory will be Nevada, Rhode Island, Florida, Illinois, and Michigan.
In late-2014, construction rates increased; and in 2015, these rates reached pre-recession levels. As a result, buyers can choose from single-family homes, condos, luxury dwellings, and multi-family homes in several locations all over the country. Location differences have cropped up though.
Construction has increased on the outskirts of large cities like New York and San Francisco in suburban areas and in satellite towns and communities. This is because these large cities have already reached the apex of development. For investors, satellite towns and communities around large cities are the best place to find affordable property of any kind.
Mortgage rates are at an all-time low. Websites like Kiplinger stated that the average 30-year fixed interest rate mortgage rate hovered around 4% in 2014. This rate was expected to increase by less than a percentage point in 2015. Lenders like Freddic Mac and Fannie Mae also relaxed their lending criteria and down-payment requirements to encourage buyers.
For first-time buyers, this is great news and it will definitely provide a valuable boost to the market.
In 2015, most singles and couples will prefer to rent. This is because many of these people will need to save for a down payment. Apart from finances, other factors like a stable job, marriage, kids, etc. will also result in younger couples preferring to rent until the real estate market stabilizes. This is good news as investors can easily rent their homes and gain a steady income.
As an industry professional, Jeff Adams #1 Real Estate Trainer states that anyone can invest successfully in real estate. All you have to do is research. Once you have the legwork in place, nothing can go wrong. If you still require a little assistance or mentorship before you set out in your real estate career, just drop Jeff Adams a line and he will be glad to help you out.
The 2009 recession hit the real estate market badly. Thousands of homeowners lost their homes and banks had to deal with empty properties all across the US. In an effort to recover their investment, these foreclosed properties were put up for auction at below-market rates. Smart investors were able to snap up properties quite comfortably.
In fact, large corporations and trusts purchased tracts of property and this gave a huge boost to the real estate market. However, by 2014, large investment groups had purchased most of the foreclosure inventory in the US. Did this mean that there were no more foreclosure properties for small investors and first-time buyers?
Foreclosed properties are still available says Jeff Adams #1 Real Estate Trainer. The market is slightly different though as several factors are affecting the foreclosure market.
Declining Inventory in Some States, Increased Inventory in Other States
Jeff Adams pointed out that US foreclosure inventory declined by 33.2% from January 2014. Completed foreclosures also declined by 63% from the last 37 weeks. On the other side, he stated that foreclosures would always be present as there would be several reasons for mortgage default. Based on this fact, he stated that there were about 549,000 homes still available for sale, but these homes were caught up in the red tape of foreclosure.
States like Florida, Michigan, Texas, Georgia and California still had several properties in foreclosures and these five states now accounted for almost half of all foreclosed homes in the US. However, states like Alaska, Delaware, North Dakota, Nebraska, Arizona, and Montana had the lowest foreclosure inventory and rates would not increase in these areas.
‘Zombie’ foreclosure properties refers to those properties that are stuck in the foreclosure red tape. The homeowner has vacated these properties but the bank has not yet taken over these properties. Almost 25% of foreclosed properties are ‘zombie’ properties and this percentage has increased by 20% in 2014. Cities with the highest number of zombie properties are New York, Miami, Chicago, St. Louis, Portland, and Las Vegas. Jeff Adams states that these properties are perfect for quick purchases if you can locate the homeowner and broker a deal quickly.
According to RealtyTrac, bank repossessions have increased in 2015. However, the average foreclosure rate is still below the average foreclosure rate in 2014. Adams points out that the average sales of these foreclosed properties was still 25% below the market rate. This means that buyers still had a wide choice of foreclosed property available for sale. Areas like Dayton and Ohio posted lower than average job numbers and this could result in a notable increase in foreclosed property in 2015-2016.
Adams states that buyers can still find foreclosed properties all over the US. However, they will have to research the market as much as possible. As the 2015 real estate market improves, investors may start purchasing foreclosed in bulk and this will increase rates and lower inventory.
If you yearn to start a successful career in real estate, there are several guidelines you should go buy right from the time you get your license, as listed below.
An aspiring real estate agent should counter-check their sources of finance to ensure that they are capable of purchasing a decent property that they can start with. If the agent settles on purchasing old property due to limited finances, they should factor in rehabilitation costs.
Any other agent whether financially empowered or limited in that sector, should put some finances aside for marketing their property. Another option would be to hire a listings company to do the marketing for you. Remember to calculate the estimated returns versus the investment to see whether the property you are looking at is financially feasible or a waste of time.
Remember no matter how much money you have, it is always advisable to start small when entering the real estate industry. You don’t want to end up in debt due to unpaid loans.
When entering a new industry such as real estate, make sure you do enough research on the current trends in the market and look out for market weather forecasts by real estate experts like Jeff Adams. Use the internet to dispel any doubts about real estate investment and solicit advice from other agents who are already in the game.
Researching about what is trending in the real estate market is not enough. Taking a closer look and studying the environment of the location you want to invest in will be beneficial to your career. You should find out when most purchases take place during the year, what the average cost of single family units in that area is and what features are most popular among residents of that area.
It is up to the real estate agent to go to the clients and ask them what they want. This will help you know the right time to buy and sell property so as to make a profit.
Most agents make the mistake of investing with the expectation of making huge profits in such a short amount of time. You can’t make huge profits just from one sale. You have to be dedicated to your career and make sure you get the right clients for the property you are selling. Otherwise, houses stay for even a year without going on sale, so be patient.
Another thing you should persevere through is your clients. You’ll get clients with different characters, some of which you might agree with and others not. From choosy to indecisive, they are all potential clients, so don’t throw the towel on them.
Because seasons change, synchronizing you sale patterns with the highs and lows in terms of prices will ensure you make big bucks.
The growing domestic real estate market is tempting first-time buyers into purchasing property. Large investors have stopped investing in the local market and small buyers can now find new constructions, foreclosures, and short sales available for investment. On top of that, real estate investors like Jeff Adams note that mortgage rates are still affordable and lenders are willing to sanction loans to buyers in an effort to rejuvenate the real estate market. A word of caution though; the real estate market has just recovered from the 2009 mortgage crisis.
Although property is available, there are a few things you should know while investing in the real estate market.
Although this may seem redundant, it is quite true and very applicable in the 2015 real estate market. Buyers can choose from short sales and foreclosures as these properties are usually priced below market rate. A savvy real estate buyer can find property in almost any price range, renovate it for a small fee, rent or re-sell the property at a neat profit. However, it all comes down to finding and buying affordable property priced at below-market rates.
It’s easy to find cheap properties. However, that does not mean you choose a property located in an empty neighborhood or a high-crime area. Choose a property that requires minimal repair, is located in a good neighborhood, and that can be rented immediately. In case you require immediate cash, you can also move into the new property and then rent out your original home.
When you buy as owner occupant, you are more likely to get financing with a lower interest rate and the down payment will be smaller as well. By choosing livable properties, you are also going to know what is wrong with your new home, you can make repairs and you know that you can rent out the new home quickly in the future.
Although this may be your first choice, think about it before you invest. Most large cities are also reaching saturation point in terms of houses and land. Property rates are also very high. It’s a far better idea to invest in satellite cities or towns located close to large cities. For example, in California, communities like Freemont have good homes on sale at affordable rates. Although the community is still developing, it has almost all the amenities found in a large city with none of the drawbacks. Choose communities like these to invest in and stay away from high vacancy areas or densely-populated large cities.
Jeff Adams #1 Real Estate Trainer states that investing in real estate is simple if you make informed decisions. Take the time to learn as much as possible about investment options, mortgage rates, lenders, neighborhoods, etc. before you jump into the market. The more you learn, the better you will be able to find and invest in affordable properties and make a success of your real estate investment career.
If you are on the market for foreclosure properties, it would be to your benefit if you have lists of foreclosed homes to refer to. A foreclosure list contains properties that have been foreclosed due to the crash of homeowners to pay their mortgage or taxes.
A foreclosure list may contain all kinds of foreclosure properties bank owned homes, government foreclosures, tax foreclosed homes and even bankruptcy homes. There are numerous lists of foreclosed homes out there. However, there are only a few that enclose the qualities that can help you make an informed buying decision.
An excellent foreclosure list is accurate. This means that there are no typographical errors in the information provided for the foreclosed assets. The address, price and other significant details should be accurate. There is no room for mistakes because it would be a complete waste of your time if you have chosen the property and could not find it because of the wrong address.
Another quality of a good foreclosure list is it should give you with all pertinent information you will need to know about the assets and will help you in building an informed buying decision. It should have the cost, address, statistics about the vicinity and local schools, number of bathrooms or bedrooms and many more.
A good foreclosure list covers approximately all states and major cities and towns in the country. Keep in mind that thousands of houses are being foreclosed and placed on the market every day. You can at once find a good property deal if you have a list that carries all foreclosed properties in diverse places.
With low mortgage rates, rising inventory in new construction, and a predicted increase in foreclosed properties, buyers can literally pick and choose properties in any price range. However, the 2015 real estate market is little different from the real estate market of 2009 to 2014.
Real estate professional Jeff Adams recommends you pay attention to these factors before you step into the investment game.
One of the best aspects of the current US real estate market is the low mortgage rate. At present, the mortgage rate is currently just under 4% and this rate is the lowest it has ever been for several years. As the economy improves, this rate could rise and this will then put pressure on the mortgage market. If rates increase to 5% or more, it could level out the real estate market and decrease investment.
To encourage new buyers, lenders like Fannie Mae and Freddie Mac have introduced lending programs that require only about 3% down payments. This will increase the number of people who will then decide to buy homes. Experts like Jeff Adams #1 Real Estate Trainer, state that this is a great time for first-time buyers or investors to step into the market and find affordable homes for purchase.
Most real estate investors prefer cosmopolitan cities like Dallas, Houston, and New York for investment. These cities run 24-7 and rental properties are in demand. However, the focus is now shifting to smaller satellite cities located close to these large towns. Local authorities are now developing these satellite cities with better infrastructure, retail establishments, and housing to encourage the relocation of large businesses.
As land and property values flare in large cities, more and more businesses will start to move out into smaller satellite cities resulting in a rise in local jobs. Cities that are already facing this situation include Oakland located near San Francisco; Madison, Wisconsin; Fredrick, Maryland; Lakewood, Colorado, and Mobile, Alabama.
All of these cities are all turning out to be great cities to invest in due to increasing jobs, flourishing local economies and proximity to premier cities.
Due to a steadily improving economy, real estate investment has picked up in the commercial sector. Changing business models, increasing local manufacturing, economic and demographic growth, etc. have all resulted in a tremendous interest in commercial properties. Large investors have started looking into commercial properties and sales have increased substantially. In fact, real estate pundits recommend investing in commercial properties in small cities to make the most profits.
As you can see, the real estate market has changed dramatically since 2009. With changing demographics, investors are looking at cities that combine office, retail, and residential areas with transit, walkability, and jobs.
Of course, secondary investments in short sales and foreclosed properties are also possible but inventory in these areas is building very slowly. Adams recommends that you take the time to attend as many local real estate seminars and training sessions as possible before you step into the real estate market.
In today’s day and age, successful real estate investing requires knowledge about new technology, in particular, how the internet can be used for the purpose. With the growth in presence of the internet, the number of real estate resources available also grows. These resources are useful in gaining information, saving time and making deals.
There are numerous real estate websites of different kinds. From buying and selling tools & listings, there are also renting resources and reviews. However, you cannot base your investing decision on any one website.
Just as you would consult multiple people before investing in a property, you should consider multiple websites before making a decision. This does not mean that you rely on all the sources that there are. Simply select 3-4 leading websites and use them for investment information.
Use websites to compare homes of a similar type as far as size, location, style, date sold, lot size, baths, bedrooms, etc. are concerned. Making unrelated comparisons will only cause distortion in the results.
At least 4 sales of the similar kind should be used during calculation of property values. This sets a range of results and ensures accuracy. If a value comes out to be unreasonably high or low, you will know that there has been an error.
In cases of homes which require refurbishing, the ARV (After Repaired Value) is of high importance. It is this value which will be imperative in calculating results from website to website.
The internet is flooded with new real estate investment articles and real estate investment resources daily. Even after you have decided your preferred source, you must constantly look for resources which will help you gain more and better information.
Using tones of resources or referring to multiple websites does not guarantee success. Ultimately, it is one’s own skill in making her/him a successful real estate investor. Once you achieve some success, there are numerous benefits which will follow. These, in turn, will improve your future investment options.
A successful real estate investor:
Since you do not own Title to the properties, you have the freedom of doing numerous deals without running out of credit.
As a successful investor, you are efficiently using OPM (Other People’s Money) to increase your wealth. Quickly buying and reselling properties will maintain regular cash flow.
A successful investor knows the benefits of controlling real estate over owning real estate. They spend less and earn more by engaging in sale and resale rather than carrying costs, liabilities, property taxes, etc.
Having a shorter sales cycle allows a successful investor to start making money in days, rather than months. She/he uses the increasing availability of homes to their benefit by holding properties for a shorter time period.
As a real estate investor and educator, I look at just about every new product and program that comes on the market. And if something looks good I’ll buy it.
Like you, I’ve sunk a ton of money into real estate investing products, programs and seminars over the years, always looking for the next big thing and an easy way to earn money in real estate. I found that most didn’t come close to the big claims they make, and I’m usually disappointed because the strategies are old, tired and don’t have any chance of succeeding in today’s market. Does that sound familiar?
Last month, Jeff invited me to Las Vegas for a preview of his new course, Foreclosure Profits and truthfully I was blown away.
Well, mainly because I used to invest in foreclosures and now that the market has tanked and there are SO MANY foreclosures flooding the market that I know now is a great time to jump back in. But I was worried that my strategies were out of date.
So, I dove into the course and was happy to discover that my favorite strategy will still work (and Jeff covers it, too!). I learned so much that I’m actively looking for REO’s again because really, I’d be an idiot not to in this market with this information.
Interested in foreclosure properties? Well, why not? Almost every website and newspaper has been buzzing about the five million homes that are open to sale all over the US. These foreclosed homes were owned by banks, but that was in 2010.
Large investment firms have snapped up chunks of property all over the US and inventory is a little low. So does that mean that the foreclosure market is exhausted? No says Jeff Adams, surprisingly the foreclosure market is still going strong and expected to bloom by the end of 2015.
We are now almost eight years away from the mortgage crisis in which nearly five million homes were lost. Financial analyst CoreLogic states that the crisis has receded and foreclosures have dropped to an acceptable 1.7% in June 2014. Sales of foreclosed properties are at their lowest since 2008 but almost every industry expert agrees on this: foreclosures will spike again by mid-to-end 2015.
Credit rating firms like TransUnion estimate that almost $50 to $79 billion in home equity loans will default again resulting in a spike in foreclosures by mid-2015 to late-2015.
A) As an investor, you should be prepared to exploit the foreclosure market when it comes around. You can start by arranging finance. Lending firms usually do provide loans for real estate investors. You may have to pay a higher than normal interest rate but you can recover this if you rent or resell your property.
B) Start by researching the foreclosure process. The foreclosure process has changed since 2009 and a little hard work will be required. Attend real estate investment classes, math and accounting training, and foreclosure investment training. Experts like Jeff Adams #1 Real Estate Trainer are your best choice as they are regular investors and they know how the market works.
C) Research the neighborhood you like. Try not to invest in large cities as these areas are already saturated with investors. Choose satellite towns or small communities located close to large towns. You are more likely to find affordable property in a great area.
D) Search for foreclosed properties, short sales, or properties in pre-foreclosure. All of these options are great. However, at the same time, don’t forget to take a look at new properties as well. New construction is increasing and you should use it as a comparison feature to understand what you are buying.
E) Invest in property. Once you’ve decided what you want, it’s time to do due diligence on the property, put in your bid, and pay the piper if your bid is selected.
Jeff Adams #1 Real Estate Trainer states that a second foreclosure spike is imminent and it could result in a boom for first-time investors. With large firms out of the picture, small investors and first-time buyers have the pick of the market. If you are one of these investors, just make sure you research the sale as much as possible. If you are careful, you could easily end up making a substantial profit on a very good deal.
Real estate investment sector is a harbinger of big money. It is perhaps the only way one can earn in millions of dollars using a few basic investing skills. This is why it has become the sole source of income for many investment biggies. And why shouldn’t it be? Some of the richest real estate investors in the country are placed at a net worth of billions. In fact, the combined net worth of the top 10 investors in USA is placed at $51.5 billion. It is for this reason that numerous new real estate investors are digging for gold in this promising sector.
Just like anything else, real estate investing requires an analytical, gritty mind. While there will always be hits and misses, there are a few thumb rules which will go a long way for real estate bounty hunters.
It is fruitless to procrastinate taking the first step on the pretext of not being “ready.” It is impossible to have complete knowledge of the market. It is impossible for conditions to be perfect. The key is to get started and move towards success after you’ve taken the plunge.
Real estate investments are all about going against prevailing preferences and taking that one big risk. Careful analysis of personal resources (experience, money, time) and the market is extremely important. Compile this information to devise a personal investing strategy. This may change over time with changes in resources, but the strategy should always be your own.
Not many investors can predict the market perfectly, and those who can will not share their knowledge. Your strategy should not revolve around waiting to buy real estate, rather, buying real estate and then waiting. The simple rule of demand and supply ensures a positive outcome in almost all cases.
There is no one-step solution to seizing gold in real estate investments. It is all about calculation and patience. This involves:-
Do not underestimate the importance of talking to people. Real estate investments are a people-oriented business. You should try and get as many leads as you can and work on building your people skills.
The success in real estate investing is based on performance, management, numbers and facts. Do not get influenced by what people think about your investment decisions and what your personal preferences are. As an investor, you must do your job – that is make money.
Buy at a low price and sell at a high price. Sometimes, emotions may cause you to do the inverse. But you must always take prudent decisions.
Remembering these 5 Thumb Rules will save you from losses and help you maximize your earnings. As you become more experienced with real estate investing, your credentials will also improve.