You are reminded daily that the housing market continues to struggle. For Sale and Foreclosure signs hanging on nearly every street shout the reality that the housing market hasn't turned around yet. But this lagging housing market isn't all bad news. It presents opportunity to those who take advantage of it. It's in economic times like this that wealth is created. Some very poor lending practices coupled with a dramatic downturn in our economy have caused thousands of families to lose their homes to foreclosure or short sales. These same families need a place to stay... a place they will rent now that their credit is damaged. As a result of all the foreclosures and short sales, real estate is now selling for upwards of 50% less than they were sold for 5 years ago. Here is the opportunity! Opportunity to purchase homes or units at deep discounts, with amazingly low interest rates at or under 4% with a large and growing population of renters to pay your mortgage.
Here's a real example in San Diego:
Duplex selling for $225,000.00 offers 2- 3bedroom, 1 bath units with private yards and detached garages which will easily rent for $1300.00/month each unit. That's an income of $2600.00 per month! Lenders' rules are tighter now and will require all investors to put 20% down payment= $45,000.00 which means you'll finance $180k. At a conservative 4.5% interest rate, including taxes and insurance, the monthly payment= $1,247.00/month! That's a profit of $1353.00/month and a 36% cash-on-cash return!
Now this isn't a unique example in today's real estate market. There are deals everywhere regardless if you want to buy a condo, a single family home or multiple units. Today is when you start looking at the glass as half full and see the opportunities right in front of you. If you need help making a plan to take advantage of today's lower housing prices and start building your wealth for your future, call or email me.