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2010-05-25 21:29:24

Investment Property: It’s Still the Best Time to Invest

Positive recovery has to happen sometime but it isn’t happening in the immediate future.  The time to invest is now before the recovery happens. Investing in undervalued assets prior to an economic recovery provides the investor with immediate equity once the market starts the upward climb. 
According to the recent Campbell/Inside Mortgage Monthly survey for February 2010, fifty percent of home sales were for distressed properties.  This is a telling bit of information for the property investor.  Simply put, if half of all sales are ones for foreclosure and short sale properties, then the news is there are deals to be struck and money to be made. 
Apparently the high number of these types of sales hitting now has to do with banks having held onto their REO’s (bank owned properties) with the hope that the economy would recover by the first part of 2010.  However, since there doesn’t appear to be a clear end in sight, banks are beginning to put those properties on the market to get what they can for them. 
One other cause for the influx of lower priced transactions is due to homeowners delay in foreclosing or listing their own homes as a short sale.  Homeowners hit by the difficult economic times try to hold on to their homes for as long as possible. 
However, without an economic recovery, are forced to foreclose and we are seeing more of that lately.  As well, the government held a temporary foreclosure moratorium last fall which has now expired causing any backlog of potential foreclosures to come on the market. 
On top of this, the rental market is growing.  As homeowners are unable to hold on to their own homes, renting becomes not only desirable but necessary.  Renting a home in lieu of selling in a low market is the smartest way to provide income while holding onto an asset until the market recovers.  Good news for investors.   
The savvy real estate investor knows this is the time to stock his portfolio with undervalued assets which can currently be rented and then later sold for significant profits once the housing market recovers.  Great investment opportunities exist now and shouldn’t be missed. 
What do you think? 
Jay began his real estate investing career at the beginning of 2005.  He has been a full time investor since 2007. His business focus and specialized knowledge is in rehabs, lease options, rentals, fix and flips, discounted turnkey cash-flowing properties for passive investors, wholesale properties, self-directed IRA investing and basic asset protection. In addition, he is a managing member in two commercial projects.  His expertise has been sought out as a consultant by independent clients throughout the Midwest as well as California and New York. Find out more by visiting

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