Doug Digs Real Estate

by Doug Hall

The surge in the foreclosure rate has reached epidemic proportions for homeowners who are struggling to make their mortgage payments. The U. S. housing market has not experienced a downturn of this magnitude since the Great Depression. According to RealtyTrac, a real estate data firm, U. S. home foreclosure filings rose 4 percent in April 2008, from March 2008, and are an astronomical 65 percent higher than a year ago. That represents 1 foreclosure filing for every 519 U. S. households.

As bleak as the housing market appears, the astute investor has an opportunity to make a fortune by purchasing foreclosure property. The astute investor is one who possesses the knowledge of how the process works, has a well thought out plan of action, and is motivated to act without hesitation when the right opportunity presents itself. Education is the key to you becoming an astute investor and is critical to your success.

If you are a first time investor, do not fall prey to the late night infomercials. Their promise to make you an overnight success in real estate investing is dubious at best. Most of those programs are recycled ideas that may have worked in the past, but rarely work today. If you do succumb to the lure of fathomless fortunes, earnestly work the program. Do not get discouraged if it does not work like advertised. Glean the ideas and methods and build upon them. Remember, education is the key.

There are many books available that cover a wide range of topics, such as: real estate foreclosures, broker price opinion kits, ultimate guides to real estate and many more. These books provide the aspiring investor with valuable information and help to de-mystify the process. Books are the foundation on which everything else is built. The astute investor has a solid foundation.

Consider your local college or university. They have numerous evening classes designed around working adults to help you gain valuable investment knowledge.

Another great source of information is your local real estate agent. It pays to develop a working relationship with one of your local Realtors®. Once they understand what you are looking for, they can help you find it. They have a wealth of information at their fingertips and can help you find the right property to invest in. A good Realtor® is invaluable to your success and can save you thousands of dollars.

Before you set out to make your fortune in real estate, make sure you are an astute investor. Your efforts will pay huge dividends.

by Doug Hall

A lot of people have a false impression that to make money investing in real estate, the only thing they have to do is find a property, buy it and then resell it. This is far from the truth. In fact, investing in real estate is more than a part time job. There are many things you must do in order to make money with real estate.

The first thing you must do is formulate a plan of action. First and foremost, you will need to have an objective for your investment. This means developing a plan to determine what you are going to do with the properties you purchase. Are you planning to flip the property, or do you want to keep it for rental income? This can make a big difference in the properties you consider. Some homes are perfect for flipping. Flipping is where the investor buys the property and then puts it right back on the market in hopes of selling it for a quick profit. Others are best suited for keeping as rental income. Once you’ve decided your objective, the next step is absolutely critical if you are to be successful.

In my opinion, this is the most critical aspect of your investment plan. You must get to know your market. Just because the house down the street is being offered at auction for one third of the appraised value, does not mean it’s a good investment. The house may need extensive repairs. It might need a new roof, or costly foundation repairs. The house may even have a mold problem. Any of these could lead to investing more time and money than you really want to put into an investment property. If you buy a property that needs extensive repairs, will the neighborhood support the value once the repairs have been made? In other words, will you have the most expensive property in the neighborhood? The surest way to lose money in real estate is to overbuild for the neighborhood. Get to know your market. It’s critical to your success.

When you know your market, you can determine what is and what isn’t a good investment. You will know how long it should take to sell your potential investments. A good real estate agent can help with this type of information. He or she can tell you how long the properties have been on the market, what the listing prices were and what they sold for. Using an agent to assist you with your purchase can save you countless hours of research and usually there is no fee for their services. If you’re serious about investing in real estate, I highly recommend you establish a working relationship with a Realtor®.
Investing in real estate is more than a part time job, but if you make the effort, the rewards can be substantial.