Tips on How to Successfully Invest in Real Estate in a Down Market

Tips on How to Successfully Invest in Real Estate in a Down Market

With a volatile stock market and housing prices on the decline, many investors are looking to take advantage of the real estate down market. Although, as real estate pros know, real estate is the greatest wealth creator, knowing what, when and how to buy can scare off even the most seasoned professionals. Here are some tips for industry pros on how to successfully master today's changing real estate market

1. Make your money going-in when you buy (vs. sell).
The time to gain is on the front-end when you buy. Go against herd, play contrary to market. Buy something of extraordinary value when no one else wants it. Sell when fewer people are selling and buy when fewer are buying.

2. Being lucky means being ready.
In falling markets people need to sell more quickly, which means buyers can get a discount on the true market value. Buyers might consider taking out an equity line on their own home so they'll have easy access to cash and can quickly act on the best deals.

3. Buy quality.
When it comes to deals in the overcrowded condo market - look to buy in the projects that were built first during the recent boom. They are usually in the best locations vs. projects that were built later after the popularity of the first projects took off.

4. Don't be scared off by problems - these can often be the best opportunities for you. Market confusion is an ally - don't despair when problems arise in a real estate deal - often they present great financial opportunity. For example, if you took out a sub-prime mortgage and now are having a difficult time meeting the payment - re-negotiate the terms with your lender. They don't want to take back the property anymore than you want to foreclose.

5. Invest. Don't speculate.
Investing means you can rent it out vs. holding on to it just to hope it goes up. A good investment is one that you can rent out quickly to cover your mortgage and expenses - your short-term earnings, then sell when the market is right for significant capital gain. (You can't rent out or live in your bonds.)

6. Start with what you know.
For most people, residential properties are easier to understand, purchase and rent out. Start in your area - where you can be close to your investment. When the real estate market stabilizes, you can look to sell for a significant profit.

For further information about investing in real estate in the Colorado Springs area contact Jason Daniels at RE/MAX Advantage for your own consultation meeting at 719-201-8052. 

No comments have yet been submitted for this entry.

Join the conversation by filling out the form below.

Your email address will not be displayed.

Share This Page

Contact Information

Photo of Jason Daniels & Associates Real Estate
Jason Daniels & Associates
Jason Daniels & Associates at RE/MAX Millennium
9362 Grand Cordera Pkwy Suite 100
Colorado Springs CO 80924
(719) 966-1500
(888) 351-1099