Aug
Today’s Real Estate Market: Gold at Silver Prices
Written by admin
Over the last several years real estate investing has become extremely popular, almost mainstream. Real estate investment groups have sprung up all over the country, complete courses have been developed to educate the masses, books on the subject arrival on the shelves daily, and reality TV even joined the bandwagon with a variety of shows. Suddenly every bartender, receptionist, cabdriver, and Tom, Dick and Harry is into real estate “investing”. Everybody is trying to create wealth through real estate.
And for a while it was working. As a whole, our country experienced several years of exceptional appreciation in real estate values, making many investors wealthy. Most were accomplishing this by “flipping” real estate. People from all walks of life were buying house on Sunday and quickly selling them for a profit on Monday, with very little downside. There was a time when almost everybody thought real estate investing meant buying and “flipping” properties.
But then things changed. Virtually overnight the real estate fairytale ended. The subprime market crashed. Interest rates on ARMs started to climb. Foreclosures hit record highs. Values started to plummeted. Really plummet.
In fact, as I write this, it is estimated that the current real state crash will be the second largest since the Depression. Some analysts are projecting drops in value of 10 to 20%, maybe more. Foreclosure rates may again double. (Currently, one of every 200 homes is said to be in foreclosure). Some lending institutions are closing their doors. Others are barely hanging on.
But even though this may be an extremely large crash, there are a few factors that separate it from previous down markets. For one, the economy is still pretty strong in most areas of the country. This means, as of yet, we are holding our own against a recession, or worse, a depression. Also, interest rates are still very affordable and should be in the near future. These are two important factors real estate investors look for as they invest in property.
What does this all mean? To sum it up, it means the real estate market is flooded. It means people and banks are willing to deal. It means anyone wishing to dispose of real estate are selling real estate gold at silver prices. It means it’s is time to buy! Only now the investor will not profit by flipping or selling their property, they will have to hold their property and wait for values to resurface. The new strategy for real estate wealth will be simple, buy at the fire sale, and sell after recovery. This wealth will come to those who can successfully accomplish two important during this time:
1. Purchase solid homes in stable neighborhoods at steep discounted prices,
2. Rent those homes to quality tenants who will pay the rent and maintain the property until the recovery occurs.
The average investor thinks wealth is accumulated by purchasing real estate. Successful investors know wealth is created by having quality tenants pay for that real estate under your name. If you really want to invest in real estate, now is the time, fire sales don’t last forever.
Now if you’ll excuse me, I have to go. I have gold to purchase.
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Help answer the question about for real estate
How do I get started in real estate in the entry-level status?I am wanting to know how to jump head first into the real estate market and get my feet wet while still making money. I do not have any experience what so ever, just a real urge to get into this market! I want to take classes but, I really don't know what I need to take 1st and I want to start on my associates degree as a at-home work study but, I'm not sure what employers are looking for as far as education in the real estate world other than Business Admin. I hope there are some real estate guru's on here to help a sista out! Thank you in advance!
By Xiang Z on Aug 16, 2010
Russ Whitney has a great coaching program you may want to take a look at.
Good Luck
Sheldon Moylan of Dominion Lending Centres
By Jackie on Aug 16, 2010
Yes its public knowledge
In general under a 6% commission; 3% goes toward the selling agent/broker where the broker and agent split the 3% depending on the deal between listing agent and their broker
as such the other 3% is split between the buyers agent and the buyers broker in some manner of % as well
so in general your listing agent will be entitled to around 1.5% to 1.7% of the actual sales prices in commission the rest goes to other parties
now if the listing agent also finds the buyer then the whole 6% is split in house but this is rare for the listing agent to find an actual buyer for the home as well
By Ashleefrtd on Aug 16, 2010
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By DrewDownsManagement on Aug 16, 2010
Nice Vid. I enjoyed it. We market properties and other things on youtube, we hope to create a large network of people interested in making money. Your video gets a five star rating from us. I hope you feel the same about ours.
By eldhose98 on Aug 16, 2010
The last person that answered and said it is not possible to collect a commission if you are the principle is incorrect. They may want to check their source.
I am an active real estate agent. I have bought 2 homes that were my primary residence in the last 7 years. Each time I represented myself as the buyer's real estate agent. Each time I deducted my commission from the price of the home because that is how I wanted to get paid. But I had the option to get paid the normal 3% as the buyer's agent and have that money go through my broker and their commission split to be taken out. So in order to avoid all that, most brokers allow their agents to have at least 1 personal transaction in order to benefit from it. Maybe things are different in NY – I am a TX agent. I say get your license but don't be a broker (more expense and liability) just be an agent. Find a broker that will just charge a minimal desk fee ($250) per month or a certain amount per transaction ($200) and they also will pay your E&O insurance. As long as you keep your license active, this will be a great asset to have in the future as you and your family or friends buy homes. It will save you money in buying and selling. Just make sure that everyone involved in the transaction knows you are a licensed agent and representing yourself.
Good luck.
By operaphantom2003 on Aug 16, 2010
the broker hires agents under there license and get a cut of commissions. The agent does listing and sales and earns a commission
By ladyvibe03 on Aug 17, 2010
If you are talking about selling real estate as an agent, then
You can take real estate classes in college or you can go to a real estate school (this is what most agents and brokers do) you will have to take a licensing test from the state.
If you are talking about investing, then there are REITs you can invest in through a stock broker,
If you are talking about investing by flipping (buying and fixing then selling)
you will need to learn about costs of materials, value of real estate in your area, subcontracting for plumbing etc and have time for equity labor.
below is link to kaplan schools, one of the better real estate schools
By Lisa L on Aug 17, 2010
You have a LEGAL AND BINDING CONTRACT. all disclosures within the contract should be what the seller knows about the property. Now the other agent cannot FORCE you to sign anything. Basically what the agent is trying to do is cover his clients ass- if the selling side has a problem with it you can always take it before arbitration (see how they like that). Either way the selling agent is not within his rights to present other docs. for disclosures, nor do you let them off the hook. You will have no recourse if you do. Hope this helps.
By RichardT on Aug 17, 2010
Century 21 has always offered this. (i don't work there)..
By Ryan 1 on Aug 18, 2010
I am a real estate agent in Australia with my own independent office.
I am not sure what courses are like through franchises, however, here, the courses with regular real estate schools are very good.
When you are looking to find an agency to work for, consider the following:
- do they regularly pay for training for their employees? what kind of training and how frequently?
- does management get regular training and upgrade their knowledge on changes in legislation etc (here we have special annual education to attend to stay in the know)
- what internal systems and procedures do they have that will assist people who are just starting out? for example, a good computer software and training resources in the office for when you get stuck on something.
- is there someone more experienced in the office that can mentor you?
I believe that a franchise is not necessarily the best, often all the training that they attend is in house, and they are not open to external training providers (which can be very beneficial).
You need to look at the individual operator of the office to decide if it will be a good environment to start your career or not.
By mevanr8x7 on Aug 19, 2010
I have a friend that moved to brokering heavy equipment sales and leasing. He seems to be living very comfortably on the income. If you already have contacts as an underwriter and loan coordinator, you're already half-way there. You need only start developing a customer base.