Now is the time to buy real estate with the right training

I drive through a lot of neighborhoods and see a lot of empty houses with a “For Sale” sign that investors could buy if the banks would just give them some credit. Personally, I don’t buy houses with my own money or with a bank loan. I have several creative techniques and private funds to do this. Once you get about 10 loans in your name, lenders think you’re high risk, even if you’ve made payments in full for many years and have good credit. Has no sense.

However, for many investors and rehabbers, private funds are the lifeblood of their business. It is very unfortunate that with all the government stimulus money, a qualified investor with a good business record is having such a hard time getting a loan. If investors don’t buy these houses and fix them up, then the houses will stay and continue to deteriorate along with the surrounding neighborhood. Banks and the government must view the common real estate investor as a positive force in moving the real estate market in the right direction.

The engine that has fueled every US recovery since the 1960s has been the housing sector, and the market is now stagnant even after President Barack Obama committed $275 billion to prop up housing. Bankers seem reluctant to finance buyers who will not live in properties and this is not helping change. In addition, stricter qualification rules and the large down payment most people have to make have slowed the housing recovery, which is now at its lowest level in 13 years.

The $8,000 first-time homebuyer tax credit has done little to spur real estate purchases in the United States. Housing has pulled the US economy out of every recession for at least 50 years, and for that to happen again, more incentives and jobs will be needed.

In many areas, market sales have rebounded from previous months, but if you look at the number of homes sold in the same period a year ago, it’s still much lower. Additionally, the median price in most areas is down from the same month in 2008. Home starts are low and US home inventory is around 10 months old. Usual inventory averages about 4.5 months based on data from 2000 to 2005.

The most important key is JOBS. Many people want to buy but are afraid to spend money for fear of losing their job. Simply put, the job market is pretty lousy, and as of this writing, the unemployment rate hit 9.5%.

Real estate foreclosures have not ended yet and therefore the housing market is still bottoming out. According to Zillow.com, about 20% of homes, condos, etc. were worth less than their loans as of March 31, 2009.

Lack of jobs, tighter credit policies (which go beyond strict to crazy), and higher down payment requirements are putting people off even though the demand is there.

Silver lining for the SMART real estate investor

Now is the time for the savvy real estate investor to begin training in the proper ways to buy and sell real estate. Conditions are right for an intuitive investor to buy real estate below market and in a way that minimizes risk. It’s all about getting the right real estate training and making the right decisions based on a solid foundation of knowledge. I have seen far too many would-be investors get caught up in the hype and buy properties without the real estate skills and training necessary for success. I know you can make money in real estate in rising and falling markets because I have done it. It’s all about adjusting your buying and selling techniques to current market conditions. Now is definitely the time for the first time homebuyer with the $8000 tax credit, low interest rates and low home prices! To me, this is the perfect scenario and I urge all first time homebuyers to take advantage of this opportunity.