Jeannie Niles Real Estate Investment
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Investing In A Changing Market
Updated June 20, 2008
Now that you have memorized the basic strategies of investing in a separate article on this web site………it’s time to look at current market conditions and what we should be doing.
The real estate market has been in a downturn since November 2005. Prices have fallen substantially as a result of the foreclosures and REO’s (bank foreclosed property) can be purchased at very attractive prices.
Now is the time to be buying! Aggressively priced properties are selling over listing price with multiple offers.
All REO sellers are requiring an approval letter to be attached with your offer by a qualified lender. You will also need to have “proof of funds to close escrow”. This is a copy of your bank statement, CD’s or where ever the funds are coming from. Have these available so when a good buy comes along you are ready to submit your offer.
Use minimum leverage by putting enough down payment that your negative cash flow (if any) is very small. It is likely there will be a V shaped recovery however you always need to prepare for the worst case scenario.
Review or have a qualified broker check out your current portfolio to see what changes should be made.
All adjustable loans should be refinanced to fixed rate loans for at least five to seven years. It is likely interest rates will rise after the November election.
Basic Investment Info
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While your strategy will change depending on the market, there are 4 primary ways to make money in real estate.
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When crunching the numbers on a property, you'll often encounter some real estate lingo. Here's what things like 'cap rate' mean, and how to use them.
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There are some basic strategies that apply across the board no matter where you are investing or what the current economic conditions are.
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Good brokers don't simply sell you property, they help you define your investment strategy.
Investment Strategy
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Now is the time to be buying! Aggressively priced properties are selling over listing price with multiple offers.
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While almost everyone says they invest for “MONEY,” in reality, we all invest for what we expect the “MONEY” to provide us. Read on for info on defining realistic goals and developing a strategy to achieve them.
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Compared to other types of investments, real estate provides you an incredible amount of control over your property.
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When I work with a client, I try to match the type of property to the investor's personality and portfolio.
Optimize Your Portfolio
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I always encourage my clients to “never be sellers” but there are times when a property needs to be eliminated from a portfolio.
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If you currently have an option loan, also known as an exotic loan and want to get out of it, there are some serious issues to address.
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Good property management is the number one factor in the success of your real estate portfolio.
Every investor's situation is unique, and I have over 25 years experience solving problems. Use the form below to ask me about your unique needs.
Jeannie Niles Real Estate Investment
P.O. Box 317
Palm Desert, CA 92261
P: (760) 360-4020
F: (760) 340-9069
E: jniles@realestate-investment.com
