"Houses cost too much for the mass market. Today's average prices is...out of reach for two-thirds of all buyers". (1948 when the average cost of a home was $8,000).
"In California...it's not unusual to find families of average means buying $100,000 houses. I'm confident prices have passed their peak" (The Coming Real Estate Crash, 1980).
"Most economists agree...a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980's" (Money magazine, April 1986).
Think the days of getting rich from real estate are over? Better think again. Take a few minutes to explore real estate predictions from days gone by to see how history tends to repeat itself then get set to join the ranks of the rich by building a REO portfolio. The majority of self-made millionaires derived their wealth directly from real estate but even more importantly, when asked where they are putting funds today...the majority rank real estate as a top designation.
So, what drives the local market? It's a simple question but one which the majority of investors can't communicate when put on the spot.
1. Are basic jobs increasing or decreasing in the surrounding area? Remember, all real estate is local but even within any given town, there are areas of growth and blight. Keep an eye out for business or government building projects, new construction of hospitals or schools and other activities that lead to the need for shelter.
2. Recovery efforts.
Donald Trump has long been associated with the ability to transform undesirable properties into cash cows but the so-called secret of his success has less to do with strategy and more to do with outright courage than anything else. Plain and simple, Trump bought when others walked. Economic downturns tend to frighten away people at the very best time to buy. Position yourself to profit from the eventual recovery by buying right.
Business and individuals tend to migrate from high cost areas to low cost areas. Follow the tax laws, energy expenses and other information to find out where tomorrow's hot growth areas are likely to spring up.
4. Quality of Life.
Beach-front property never goes out of style since it affords a very specific quality of life. Even the most hum-bug little cottage can fetch tens-of-thousands more than a comparable property located anywhere else due to the lifestyle issue. Properties that provide a lifestyle -not just a home- are likely to remain in high demand long after building styles change.
No discussion of REO profits would be complete without mention of cost but price alone rarely determines the full potential of any property. Defining a "great buy" is much like beauty...it's in the eye of the beholder. Learn to see the value of every property in order to sell it successfully.
I have bulk REO Inventory available in many states for .50 cents on the dollar. Contact me today with POF (Proof of Funds) and have your REO Inventory within days!!!