Finishing up 2009, the markets are still a mess. While there are signs that the American economy in general is recovering, there are also several factors that could derail much of the gains that we have seen. So things are still going to be ugly.
Those 5 year option arms from 2004 and 2005 are still coming to term and will be resetting soon, so round 3 of foreclosures? How about the commercial real estate sector where buildings are going empty and predictions are that prices will drop to 40% or less of their values from a few years ago. Scared yet? Don’t be, unless you are too scared to take advantage of the opportunities in front of you.
Let us not forget that the credit markets are tight as hell and no one can get a decent loan. How can we buy and sell homes if no one can get a loan? Cripes! How can I be saying that 2010 is going to be the best year yet to invest in real estate. To make matters worse, a dubious energy bill that our lovely government is trying to pass an ‘energy bill’ that could totally screw home owners.
This all means that the real estate markets will be chaotic. That chaos will keep the amateurs and would-be real estate investors that don’t have what it takes, out of the market. Without easy access to funds to buy homes the weak investors won’t be able to buy properties. Furthermore, they won’t be able to move them because they will need to sell on conventional financing.
The creative real estate investor can take advantage of chaos, build networks, teams and do deals when other investors are running scared. Private lending and joint ventures will be critical to making deals happen. Likewise, being able to offer creative financing to buyers will be important.
Just starting to invest in real estate? I encourage you to start building your team NOW! Get your network going, you are going to need buyers both wholesale and retail, as well as cash partners and investors. Don’t wait! Start today. As I am writing this we are coming into the holiday season. Things will be busy, but it is a great time to get organized and start figuring out who you need to have on your list.
Take advantage of opportunity while others panic and you will make 2010 a year that can’t be beat for real estate investing!