Real Estate Investment Opportunity Knocking!

 Just when everything was looking so bad for real estate investors, along comes the most exciting opportunity in decades especially in Phoenix AZ. The opportunity in the real estate market these days couldn’t be more lucrative. And yet-all we hear is bad news from the press.  Yes it’s true that millions of people have lost money on real estate the past 3 or 4 years. But the good news is that the market crash has created the greatest real estate opportunity

That opportunity is in the residential rental market. This market offers the opportunity to make millionaires out of ordinary folks in a very short number of years. If you are thinking about your retirement years ahead, now is the time to take advantage of this exciting opportunity. You may never have an opportunity like this again.

Just consider this example. Let’s say you buy a single family house to rent out. You pay $125,000, and rent it out for $1100 per month. Not hard to do these days. That’s over 8% interest on your money, even after allowing 2 months of rent per year to taxes, insurance, upkeep etc.  Pretty attractive considering if you have money sitting in a bank account earning 2% you are not even keeping up with inflation. Now what happens you buy a multi unit like a 4 plex for 150,000 and you put 25000 into it to make it attractive on a short sale and rents are 700 per unit that equates to over 14% with 3 months rents for Taxes, maintenance and water. These opportunities exit in the Phoenix, Glendale and Scottsdale Arizona real estate market. An experienced investor Realtor will welcome the opportunity to introduce you to the properties.

Think no one is buying right now? You would be dead wrong. Houses and units in this price range in our area, sell in days with multiple offers. Think the buyers won’t get financing. You would be wrong again. Because many of these transactions sell for all cash. Even if there are loans involved at this price level it is easy to qualify, since the payments are a realistic amount. Folks don’t really have to have the greatest job in the world to afford a $700 or $800 dollar payment.

That brings us to the next point. Affordability and the likelihood of coming appreciation. Can you imagine if you could go back to 1982 and buy Microsoft stock or 1962 and buy IBM stock. You would undoubtedly profit greatly from such a great opportunity. To get such a do over is like getting to bet on a horse race after you already see the race.  Today, residential real estate offers us just such an opportunity. We know where real estate prices went a few years ago, and now they have resoundingly dropped to levels not seen since the mid 1990’s. this is the do over opportunity of a life time. This has never happened before.

But one more profit area still exists in our present scenario.  Appreciation. No one really knows when real estate prices will start to rise again, but almost everyone believes that they will. Will we ever get back to our pre 2005 levels? Probably not for many, many years, but certainly we will see substantial price increases in the next 2 to 5 years, as the affordability of these homes becomes attractive to new buyers, or even as buyers who have lost homes to foreclosure, return as buyers in a market where they can afford a home. This will put considerable additional demand in the market place for affordable homes. Moreover with the extreme amount of debt we are creating, it is very possible that we are in for some pretty severe inflation. As usual housing prices will lead the way and the 125K house above could be back to $300K in only 3 or 4 years.

What all this adds up to is a terrific opportunity to profit and recover from the economic down turn that we have all suffered through.

Maureen Karpinski

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