Real Estate Investing Links for November 11, 2009

Real Estate Goal Setting

Lifestyles member Bryan Upton blogs about how to set investing goals and the five ways real estate makes you money. The article, from Allie’s Acquisitions, demonstrates how to form strategies for specific goals such as cash flow and net worth. Peppered throughout the post are useful investing maxims such as “a liability is someone else’s asset,” and “never do a deal where you don’t have monthly cash flow.”

Real Estate Investing Strategies

Creative Real Estate Investing shares investing strategies for today’s market, focusing on three central tips. First, invest in real estate knowledge. They advise attending seminars and conversing with mentors so that you know what to expect and don’t have to “go it alone.” It is also useful to know that you can be successful in any economy, and that actually, there are discounts to be had in slumps that don’t necessarily exist in “economic booms.” Finally, it is important to not let a money shortage intimidate you into not investing; you can get rich off of other people’s money!

Home Prices “Bottoming Out?”

CNN Money reports that after recent jumps in home prices and months of previous decline, the housing market may finally be stabilizing. While dwindling inventories and the advent of a second quarter of consecutive gains are sure signs of recovery, home prices are still down from 2008. Countering the encouragement of the first time home buyer credit are the psychological factors facing victims of record high unemployment (10.2%!) Although hopeful, writers Les Christie and Ben Rooney acknowledge the role of progressive economic and psychological factors in full recovery.

Knocking out Beliefs that Hold You Back

April Dykman of Get Rich Slowly uses her dream of being a freelance writer as a metaphor for vanquishing fears and accomplishing goals. She outlines three steps that will help you overcome road blocks by setting intentions, finding mentors, and ignoring others limiting beliefs. The thought process Dykman has employed to achieve her dream of being a freelance write can be applied to any goal- including overcoming common real estate investing fears.

Bank Failures – A Good Thing?

Multifamily Insiders accepts that banks are failing at alarming rates – but doesn’t necessarily view this as bad news for the economy. They claim that the capture of “zombie banks” (banks whose operation is merely a formality) by more stable institutions could result in new lending opportunities for real estate investors. Comparing the current situation to the S&L crisis of 1992, Multifamily Insiders credits amazing buying opportunities and increased “transaction volume” as some of the benefits investors can expect to face as a result of weak bank failures.

7 Common (Expensive) Financial Mistakes

Robert Kiyosaki’s blog, Wisdom of Rich Dad, highlights some of the most common financial mistakes young adults make and how to avoid them. He lists keeping an emergency fund, being aware of slow leaks (like unnecessary daily purchases), and being an effective budgeter as the best ways to avoid these monetary pitfalls. Warning of the hazards of bad credit, he emphasizes the importance of not using college loans for casual expenses and of course, the dangers of using credit cards.

New FDIC Rules’ Impact on Commercial Real Estate

Denise Kalette of National Real Estate Investor considers the new FDIC banking rules’ implications for commercial real estate. Although she admits that it will delay a banking crisis, many experts feel that that’s all it will do. They believe that the new rules are not enough and that the FDIC should take measures to ensure that loans are not secured by property that’s value is less than the amount of the loan. With nearly half of 1.4 trillion commercial mortgages expected to default before maturity, commercial real estate’s role in a future banking crisis is certain.

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