Wednesday, October 25, 2006

For investors it is time to buy...



I’ve been spending a bit of time lately on different real estate investment sites. TheCreativeInvestor.com is the one where I get most of my information, but there are a few others. Anyway, what I find interesting in the different discussion boards on these sites is that the strategies for investors has not changed significantly since the slow-down. Many of them are still trying to employ the creative financing and acquisition techniques. However, most have adopted a buy and hold attitude.

You may be asking, what does that mean to me? Well, if you are not an investor yourself, you may have clients that are. If you look at the market right now, we are in a lull where the opportunity is present to position yourself for some substantial long-term gain. Prices have stagnated or dropped, but interest rates are still at historic lows. Prices will remain low-to-stable for the next year, but will inevitably begin their slow march up again. For those investors that are looking for a long term return, now is the time to acquire properties with positive cash flow (NO FLIPPING) that they can hold onto for a few years. As rental rates rise, so will the values of the investment property. Although rates of appreciation will likely not reach the double digit growth that we have seen in the past few years, you can still retire wealthy simply by buying rentals with positive cash flow and holding those properties for the long term.

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