7 ways to make money in distressed real estate in 2010

They past two years will inevitably go down as the most distressed real estate market in U.S history. Yes, worse than the Great Depression, worst than the 80′s Savings an Loan crisis, worse than the 90′s Dot.com bubble. This article isn’t about the whys and hows we got to that point…its about HOW CAN YOU TAKE ADVANTAGE of this opportunity.

Now is the time! The competition is on the sidelines, the builders are broken, investors are hoarding their cash and all this points to an incredible investment opportunity for those of you ready to do some homework. Class begins…now.

1. Buy and Hold – The oldest, most tried and true method of real estate investing takes advantage of inflation, market appreciation and amortization. Fancy words for, if you hold it…wealth will come. But not all property in 2010 will be a good choice for this strategy. READ MORE…

2. Short term plays aka ‘Flips’ – The dirty word in the real estate game is a property “Flipper” or one who takes advantage of short term property trends. Why is this a bad thing? Well, if it involves fraudulently influencing value it can hurt the entire surrounding neighborhoods. However, timing is everything in business and this strategy is all about Short Term profit taking. READ MORE…

3. Short Sales – Its emerging as a savior to the Foreclosure Crisis many homeowners currently find themselves in, but can it be an investment opportunity? Yes indeed, sir… or mam. READ MORE…

4. Bank owned properties – Its on everybody’s hot list and almost nobody really knows the ins and outs of buying bank owned property. The hassles and headaches and rewards and opportunity are all about knowing when and where to look. READ MORE…

5. Distressed Multi Units (use 68 Wood and capitalization rate) – Suddenly what was once a play that made no sense because of over priced properties relative to Rent Roles are now not only back to reality, but are great investments. READ MORE….

6. Cash is King (be the banker don’t beat the banker). Leaving cash in the bank to collect a paltry CD-like return on investment is not a sensible approach. Owner financing or ‘carrying the paper’ on a property will give you monthly returns at above market rates, all while having the protection of a tangible asset. Bernie Madhoff beware!!! READ MORE…

7. Waterfront bank owned property – They’re not everywhere, but in Maine, they’re here. READ MORE…

So, there is plenty of upside in a down market, with recent stock market turmoil and volatility, it makes more and more sense to pull out of riskier positions and start getting those gains back!



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