Now is the time to set up your passive income strategy through Real Estate Investment.

Posted by Owen McGab Enaohwo on Feb 8, 2010 | View Comments

Now is the time to set up your passive income strategy through Real Estate Investment.

News reports say that the real estate industry is at its lowest point now. The news is bad and seems to look bad for the next year and a half. This is how the news sums up the real estate industry:

  1. Property values have gone down.
  2. Housing inventory has gone up and there seems to be no takers.
  3. Banks and other financial institutions have limited their exposure to property investment initiatives.

The three points paint a very grim picture which is discouraging and very depressing. But there are two sides to the news. Many people see the bad side which is obvious to all, and get overwhelmed by fear and then go into depression. The smarter few strive to find a silver lining in the bad news, and step up to the challenge to rise above the discouraging situation.

The silver lining in the bad news allows smart and tough real estate investors to set up a passive earning strategy for the long term. This strategy is rooted on the fact that hard economic times don’t last forever. Those who understand this fact have the determination to see things through, and will take a long term investment position for future profits and benefits.


What is the silver lining in the bad news and what are these long term investment positions?

  1. Buying property is more affordable than ever because property values have gone down. This means that setting up real estate investment requires lower capitalization. So now is the right time to invest in real estate and stock up on housing inventory you can sell later to others for a modest return.
  2. Housing inventory has gone up, and this means that there very many houses for sale and very few takers. This is a buyers market. Real Estate Investors can purchase a house at a more affordable rate than ever before. The good side of this is – there are many houses to choose from. So you can take your pick on available houses and get them for a much better price.
  3. Because banks and other financial institutions have limited their exposure to property investment initiatives, there is a need for other sources of funds so real estate development can continue. Real Estate Investors see opportunity in the low real estate values. The slowdown in housing construction and rehabs has also lowered the cost of materials. The economic downturn has lowered real estate development costs. For tough, smart and determined investors, now is the time to develop new real estate projects or rehab existing real estate projects. The scarcity of conventional financing from banks has opened opportunities for private individuals with excess capital to step into the space left vacant by banks and other financial institutions. This has created the opportunity for you to play the role of the bank, earn high interest rate of return on your money which is secured by real estate that is both at very conservative Loan to Values (LTV). Since investors are desperately looking for funds to finance their projects, you can expect a higher return on your investment now. The key is to find an investor whose investment strategy is in line with your overall investment goals to make your money work for you passively.



The banks aren't lending - You can become the bank


Opportunities in real estate investment are plenty even during these hard economic times. Determination, information and knowledge are needed to rise up from these challenges. Your mindset determines how you view the news and see opportunities in crisis.

Video

MP3 Audio

 
 Now is the time to set up your passive income strategy through Real Estate Investment [4:52m]: Play Now | Play in Popup | Download

So what do you think? Do you share the same view point or not?

Take time to share you views with me. Let’s compare notes and work together through these challenging times so we reach our goals.

Visitors who read this post also read:

  • Very interesting and well-written article. he most common real estate investment strategy, however, is one which I condemn: buying properties which the investor believes will soon increase in value due to market-wide appreciation. This is, in fact, pure speculation. No one knows which areas will appreciate. Many billions have been made by investors pursuing this strategy, but they were simply lucky. Another common strategy which is advocated by most real estate gurus are various forms of finding unsophisticated sellers and using some convoluted real estate transaction to take advantage of their lack of sophistication. These strategies are unethical, immoral, and often illegal. I do not advocate them. - Charlie
blog comments powered by Disqus