Morgan Stanley Research released its latest real estate report, Housing 2.0: The New Rental Paradigm to provide market insights to investors. It’s interesting to know that the research team observes how more Americans have become renters instead of homeowners, attributing to different factors in the economy.
The report states:
Across the country, more Americans are becoming home renters, and fewer Americans are becoming homeowners. The beginning of the rentership society is upon us. But all renters are not equal – of the roughly 40MM rental housing units in the country (representing roughly $6 trillion in asset value), about half are multi-family and half are single- family.
And this is good news for real estate investors like you! Wit
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Some people may wonder if it is even possible anymore to make money from real estate. The answer is an emphatic “Yes!” Like any other investment, the goal is to buy low and sell high, and by finding foreclosed properties that banks are anxious to unload, you can certainly do the “buy low” part.
The skill you need is to know how little you can pay, and know ways you can purchase distressed real estate while risking little or none of your own money. When people default on their mortgages, the process of foreclosure isn’t instant, or even quick. It is a long, protracted affair during which many legal steps must be followed. Look at it from the bank’s point of view: a borrower has defaulted on his or her loan, has stopped making payments, and pretty soon the bank is going to be stuck with a piece of property that they’re probably going to have a hard time selling. It is far from ideal for the lenders.
When lenders are buried in repossessed real estate and cars, it is a losing situation for them. Every day tha
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by: Marc Rasmussen – Sarasota Florida real estate
Real estate has not been a great investment the last 5 years. Home prices across the country have been plummeting. In Sarasota, Florida if you bought a home anytime after 2002 or 2003 then you stand a good chance of being under water. With the recent collapse of prices it might be a great time to buy long term rental properties.
Everyone keeps asking if the real estate market has bottomed. Sarasota inventory levels have remained steady since June of 2006. Inventory levels are hovering around a 10 month supply which is a far cry from the 33 month inventory we had in September of 2007. As prices have been falling sales have been increasing which has been eating up the inventory.
Even if we are not at the bottom there is a good chance we are near it. The great thing about a buy and hold strategy is that you don’t have the be precise in your timing. If history repeats itself real estate prices will rise again. It h
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Personally, I very much doubt you can actually make millions in real estate “overnight,” but I just wanted to catch your attention.
Certainly, we all know that many so-called real estate “Gurus” have made a lot of money -maybe not quite overnight- and not in real estate per se, but in selling books to the gullible readers that believe that there is a quick and easy way to vast wealth through real estate.
Real estate investments can be a source of considerable wealth to some, and the road to financial ruin for others. It all depends on the investor. Basically, there is a right way and a wrong way to approach any investment opportunity, with the right way leading to success and the wrong way to failure.
The successful investor in real estate is one who knows that investing is a numbers game, and has studied and carefully researched such details as cash flow, property values, rates of return, taxes, loan-to-value ratios and other key elements vital to investment success.
Even experienced and successful investors and developers cannot consistently make profitable deals -and we have said this before- without a backup team of real estate savvy realtors, attorneys and CPA’s. And, of c
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