Thursday, June 18, 2009

Notes on real estate investing

Today, I went to a real estate investing seminar. It was very basic, parts of it was similar to the presentation we give for potential investors:

Why Real Estate? We say it's an I.D.E.A.L. investment.
I - Income, D - Deductions, E - Equity, A - Appreciation, L - Leverage
What they had to say was similar:

1. Huge Paydays!

2. Great tax benefits; tax laws are designed to benefit real estate investors

3. Leverage! Wow - can put 0 - 20% down and realize the benefit of 100% of the appreciation.

4. Simple to learn; this is a checklist business. Follow the 11 simple checklist items and you've completed the transaction; and on to that huge payday!

Success leaves clues!! According to USA Today, 74% of the millionaires in the US made their millions in real estate.

Real estate goes in cycles; the time to get involved in any cycle is at the beginning. 1999 was the beginning of a tremendous growth cycle. Now, in 2009, we have a new cycle and pattern. We have reached a 30 year record inventory for distressed properties, for a myriad of reasons. With this new cycle, trend, pattern, investors must respond with a different solution.

The solution that works is specialization, working financially distressed properties in today's economy.

So, who is the # 1 most motivated seller? The banks, REO (Real Estate Owned) Properties. There are a number of reasons banks accept discounted REO Purchases, primarily to clean up their books and get back to banking.

There are specific checklists to follow when

Number 1 discipline for successful investors - we make money when we buy.

So, call me at 949 243-0738 to learn more about investing in real estate.

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