During a time when the value of Real property is falling is the best time to invest in or buy such Real property that will eventually rise in value due to improved economic conditions. Tens of thousands of single residences, rental properties and commercial properties can now be found at bargain prices.
Several lending institutions are in financial trouble. If that insn’t bad enough, the rising cost for oil and the cost of the two wars in the Middle-East have contributed to a huge increase in the rate of inflation for everything that keeps us healthy and alive.
You are now seeing the result of the actions of the elected politicians within the Government of the United States of America. Those people continue to do nothing worthwhile for the majority of “We People of the United States of America.”
There are more than enough problems here in our Country that need attention. Since most citizens of the United States of America see the need for a new direction, you better believe that a whole lot of do nothing politicians will be looking for new jobs after the 2008 election.
“We People” clearly have to stop the extortion of the owners and the controllers of those huge multinational corporations. When that happens, in spite of their best efforts to bankroll additional “Yes People” into our Government Buildings, I believe that most of them will fail to be elected because more of the majority will certainly vote for a change of Republican policies that are about to bankrupt the Treasury of our Government and cause millions of citizens to go deeper into debt.
Buy as much Real property as you can without creating an economic hardship for yourself. In other words, don’t mortgage yourself to the hilt in hope that your cash flow will remain the same. You should have an adequate reserve available in which to pay your operating expenses when such an event takes place.
During depressed economic periods people lose their jobs, their life savings and their homes, and some of those people become homeless, together with the other members of their family. You can use the bank’s money to help you become rich but they too must earn a profit as a result of the money they loan to others. If you aren’t careful, you too could lose your entire, mortgaged to the max, Real Estate portfolio within a matter of weeks if you fail to maintain a positive cash flow.
The more you owe to others, the more risk you assume and the greater possibility that you too will go broke. From an economic standpoint, the economic well being of the economy of the United States of America appears to getting worse with each passing minute. The bottom hasn’t been reached and, no doubt, thousands more properties will become available for purchase. Wisely choose the properties that you do buy.
It is a buyers’ market and good properties can be found that are also in excellent condition or not damaged by the former owner. Those well maintained properties are your best buy because you will have a better chance to sell those kinds of properties if you now have a negative cash flow problem through no fault of your own.
Wise tenant selection is the key to keeping your cash flow in the black. That means that those people should earn enough to pay the rent and also have a job that they kept for a number of years, together with a good credit history. Then again, even long time employees lose their jobs during depressed economic times and you do assume some risk in regard to their future economic well being.
Today’s outstanding and responsible citizen can be tomorrow’s homeless person. You better believe that our economy will become much worse before it gets better.
To wait for the bottom to occur and then buy is to lose real opportunities now that will add to your future success. Knowledge is power and I suggest that you learn as much about the Real Estate market as you can and be ready to take advantage of each and every excellent investment opportunity that presents itself. Then too, being lucky never hurt the investor because that once in a lifetime opportunity really does come once in a lifetime.