You know - it's funny. We stand here, in this truly weird economic environment and try to answer some questions. What the heck is going on? How did we get here? Where is all this going? Should I be learning to speak Chinese? (kidding...sort of.)

It's times like these that remind me to just "keep it simple". Instead of trying to understand everything - observe what actually is working - and try to draw some conclusions. And I am here to tell you, two things are CLEARLY working.

Duplexes are selling almost immediately after being listed - and at prices very close to asking. And investors are snapping up homes in the $20k to $50k range, fixing them up, and then either selling them, or renting them out.

As an Agent that focuses on providing financial analysis to my clients -  I want to share something with you.  And you can take this to the bank. The returns on these two types of investments are KILLER. I mean THEY WORK.

Now - you read about the tremendous influx of foreign investors snapping up domestic real estate. This is primarily due to two factors. Depressed selling prices (buyers market) and the weak US dollar. I just returned from France and let me tell you boys and girls - the dollar sucks. I mean - it is incredible. We are exchanging US dollars for about $0.65 Euro. Remember, we used to exchange a US Dollar for MORE than $1 Euro. My beer cost me $12 US. A cab ride for 25 minutes cost me $140 US. THANK GOD for expense reports. But - I digress. The weak dollar is driving foreign investment.

So what? Well - put one and one together. Savvy investors are drawing some pretty simple conclusions. First - renting and rents in general are going to become much better profit generators. You can figure out why. And prices are DOWN. SO -  lower cost homes, combined with a little sweat equity - can yield returns on investment that are better than ANYTHING out there. Normally "risk = return". Now, "little risk = big return".

A buddy of mine is buying at $10k to $15k, investing $10k, and selling for $55. That's $25k in, and $55k out - within 6 months. Pretty decent. I would call this "very doable" in this market.

And for those of you that aren't comfortable doing the renovation thing - think about buying a $70k home and renting it out for $700. Cash flow, tax shelters, appreciation - the full Monty.  I will walk you through it. These are hot commodities right now. Many can not afford to buy, or choose not to, but want a home to live in. And they are willing to pay some decent rent to accomplish that. Look for that trend to EXPAND !

There are some tricks - and I can help you with those. Call me. Now - for those of you thinking "if this is such a good idea, why aren't you doing it?" Just let me say..."I am".

Every set of economic circumstances presents opportunities. Tomorrows millionaires are the ones that understand this and ACT. But they ACT smart - and use professionals to guide them. That's me.

417-312-0165.

Rock on.

Mike Johnson

Charles Burt Realty