Comments on: Is This A Good Time to Invest in Real Estate?

By: David Daily

David Daily — Tue, 09 Feb 2010 05:22:03 +0000

You would think these people needs some place to live. I can say that from leasing 3 sfh from November 2009 to January 2010 a big percentage of my callers were living with family and friends and a lot continue to do so. My homes are in great shape as alway and I had to come down $50.00 on each to get them rented. I had more call than ever but its the first time I had someone ask me if I had a house for $750 or $800. I do not know if multi familt rents are up or not, I just know my sfh are down.

It is the best time to buy ever. If you can buy. There is always some way to do it, but it is not easy. It just does not seem right that you can have 780 credit scores, cash reserves and steady income, and lenders will not lend because of this or that. They should look at the fact that I have owned many houses for 5 years and never missed a mortgage payment. If I were a lender, that would do it for me.

By: Amber FitzPatrick

Amber FitzPatrick — Mon, 23 Nov 2009 21:13:49 +0000

This really hit home for me. “Demand for rental property is up. The news continues to report that foreclosure rates are still on the rise. The third quarter of 2009 saw
record high foreclosure activity record high foreclosure activity. What does that mean to the real estate investor? What it means is that a one time home owner has been forced to become a renter. Those families who have lost their homes to foreclosure still need a place to live. They don’t just disappear, they go into the rental market. This means that thousands of families are in need of clean, functional housing that is provided to them by the real estate investor.”

By: Alfonso

Alfonso — Tue, 10 Nov 2009 17:50:26 +0000

Elijah, cudo’s to you for wanting to take positive steps. When I was 19 I put $500 in the bank then took out a loan for $500 (that was over half a month’s salary for me back then, I was in the USMC). I paid it off in 2 months. Then I got a secured credit card with a $500 limit. That started building my credit. Before I knew it I had great credit, even though I hadn’t made over $15,000 a year when I was in the military and in college.

Every financial advisor in America is going to tell you to buy mutual funds. That’s all they know because they aren’t truly financial advisors, they are mutual fund salesmen who have to obtain the title “Financial Advisor” in order to be allowed to sell mutual funds. You’re doing the right thing by exploring different options.

Keep educating yourself, there is no real hurry. Keep reading books and you’ll learn a lot. Kick around the Lifestyles Unlimited website, there is a lot if helpful information here.

Good luck.

By: Elijah Murray

Elijah Murray — Sat, 07 Nov 2009 22:55:22 +0000

Great article. I am new to the real estate market and am learning as quickly as I can. If I can muster enough for a down payment by April, I would like to either enter a rent to own program (me being the landlord) or buy a small rental property. I’ve been doing a lot of online research, but sadly still cannot find an answer to my query: how do I invest as a teen?

I am 18 years old, and know that now is the best time to invest. I have spoken to a few financial advisors (all of whom suggested mutual funds), gone to local real estate meetings, read several books and am setting up a meeting with an agent to see what advice he has to offer.

I believe that my biggest obstacle is credit. If I want to be approved for a mortgage, I need an established line of credit (or a cosigner) which I’m not sure I can build quickly enough. I applied to for a couple of credit cards all of which were turned down, most likely due to the market. Going as basic as possible I applied for a secured credit card but I feel that this will take too long.

I am open to any suggestions, advice etc. and would ever grateful. Please let me know by responding here, or directly to elijah.murray@gmail.com

Thanks again!

By: Alfonso

Alfonso — Tue, 03 Nov 2009 20:41:45 +0000

Victor, thanks for the input. That’s a great point to bring up about unemployment. One of the concepts we teach here at Lifestyles is to offer the best product at the best price. That way you get the greatest number of prospective tenants. Thus, even in times of high unemployment, because you offer the best product you give yourself the best chance of always having a tenant in place. Also, if you buy at a deep enough discount, as you say, then you will still be shielded from a further dip in prices.

On the bright side, as a geologist myself, I have several friends in the oil and gas industry and the word I got just today from a friend is that layoffs have not only slowed, but that hiring has actually picked up again. Let’s hope this is indeed the case.

By: Bill

Bill — Tue, 03 Nov 2009 19:51:58 +0000

As a Lifestyles Realtor, I am seeing exactly what Alfonso suggests in this terrific article. Prices of the properties are lower, yet rents are still high. By buying now the investor captures extra equity and enjoys the increased cash flow. This is across-the-board, not an isolated example.

By: Victor Sifuentes

Victor Sifuentes — Tue, 03 Nov 2009 02:14:55 +0000

One thing that is not being considered here is the real potential hit in the employment base in the Houston area. Many large oil and gas companies are planning large lay offs in the coming months. If this comes to pass, the housing picture will become as bad here as it is in other areas of the country. Some have hinted “real unemployment” could approach 25% here in Houston. It is not unreasonable to assume a 25% hit in real estate prices from current levels. Buyers should make sure to purchase 40% below current “market prices” to ensure not becoming upside down in the downdraft to come.