Real Estate Investing - Make Big Profits in a Down Market

Real Estate Investing - Make Big Profits in a Down Market


During the housing boom, a lot of novice real estate investors where bragging about much money they made by flipping houses and selling properties at astronomically high prices. However, nowadays, a lot of investors who purchased properties in the hope of selling them quickly found that there is so much more to real estate investing than simply flipping houses. Those who took mortgage to buy properties during the boom are now feeling the crunch, especially because they cannot offload their portfolio immediately. Meanwhile, property investment experts who were on the sidelines during the housing boom are now starting to increase their real property investments. These people are aware that during a crisis, there are so many opportunities to buy houses, apartments, and other properties at very low prices. If you are interested in joining the real estate industry, the one thing you need to remember is to buy low and sell high. During a housing growth, the prices of properties are very high so your potential profit in reselling the houses and other real estate that you buy will not be that big. Because of the rise in the number of home sales in the last quarter of 2008 (which is mainly due to the acquisitions made by seasoned property investors), there is actually a 115% rise in home sales compared to the same period in 2007. The figure shows that expert brokers and real estate investors have waited for the proper time to boost their property portfolio. So if you are not having mortgage problems and have substantial amount of money to spare, you can learn from these experts and start gobbling up low-cost property which you can then sell for profit in the next few years. Another way in which expert real estate investors are making money during challenging times is through renting out the houses and properties that they have just acquired. As more homeowners default or fail to pay their mortgage obligations, the number of homes being foreclosed steadily increases. This ultimately leads to an increase in the number of individuals and families who opt to rent for a place to stay. So, even if you are not able to sell the property that you buy during a housing crisis, you can still earn from your investment by renting it out. There is really nothing wrong with flipping houses. In fact, there had been a lot of people who earned big bucks because of this investment strategy. However, if you are a serious real estate investor, you know that earning a substantial amount of money from your property investments should take time. If you are planning to use mortgage or your hard earned money to invest in a house or any piece of real estate which you intend to sell in the future, you have to be prepared to hold on to your property for a long period of time. You need to wait until the demand for housing is rising again. Just like in any industry, the housing market is also affected by cycles. Even if the price of houses and properties are low these days, they are bound to pick up in the next few years. Remember that the population is increasing so there will always be homebuyers in the future.