Back to the future – 1980’s here we come!

In today’s roller coaster world of economics it can be challenging to find solid ground when it comes to investing.  Fortunately, real estate is a great investment when purchased correctly and especially in today’s market.  Here are 4 reasons why I believe so:

1)     Prices are now adjusted and homes cash flow well with financing on many properties at historic lows.  Even if the property is over-leveraged you can discount 2nd mortgages and take over 1st mortgages where banks are VERY motivated.

2)     It is easier to work with banks and sellers to negotiate deep discounts and “subject to” is less of a concern to everyone.  In short, banks and individuals DON’T WANT PROPERTY.

3)     People need solutions and are open to non-conventional options more than ever.

4)     Buyers are more excited for rent-to-own or owner financing options as fewer people are able to get traditional financing.

It’s the 80’s all over again and doing a few things well now in the real estate world could set you up for a great retirement.  As an aside, with all the macro economic dynamics going on you may not have much with social security or Medicaid as the government is spending incredible amounts of money to what I feel will be one of the biggest Ponzi schemes ever!

You can probably bet that with the way the current economic shift is going, inflation is likely so, taking over fixed, low-interest debt is a great thing on good properties.  It may become harder for people to get financing and the financing they get will be at a higher interest rate.  So on RTO and OF properties you can acquire and put tenant buyers into, you will get better cash flows.

Don’t wait.  If you want to learn more about how to do this wisely, VREM has classes to help you learn.

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