Know when to hold 'em?

Here is a great article from Real Estate Insights on REALTOR.org about pain that some investors are "feeling". I'm not sure exactly why (other than my age:) but it made me think of the Kenny Rodgers song "Know When To Hold 'Em". The article make a great analogy about investing in the real estate market versus the stock market. This is a must read for anyone who is currently renting! Lawrence Yun, Vice president of NAR Research, has some excellent statistics to counter the argument that people who own and invest in real estate are feeling "pain" now because of the current market.

Mr Yun reports that someone who invested $10,000 as a down payment on a typically priced house in the US that appreciated at 5% per year would have a return of $110,000 after 10 years. Compare that with a $10,000 investment in the stock market at 10% that would yield a return of only $23,600. This could also explain the next statistic. "A typical homeowner had $184,400 in net worth versus only $4,000 for a typical renter." Wow, what a huge difference!

NAR reports that "only the recent buyers (flippers) who bought last year in few specific markets would have encountered a loss" which of course is what the main stream media is reporting on. If you want to buy houses and "flip" them for a quick profit, be careful. It can still be done in today's market but you must do your homework and know what you are getting into.

Investing in foreclosures is also a tricky business and needs to be approached with caution. If you have the nerves for this kind of investing, give me a call. I can offer you some tips that I have picked up along the way.

But if you want to invest for a great return over time, now is the time to enter the world of home ownership. Interest rates are low and inventory is plentiful. Don't let the sensationalism of the media scare you away from increasing your net worth today.

Call me today and I will help you meet your goals.

Michael Bradford
770-862-8002

Ready for your first home?

Most of us have heard that the "sub-prime" mortgage market is in trouble. According to Realtor.org, over 25 major lenders have quit or severely limited this area of lending. On Wednesday, July 18th, The national Association of Realtors testified before Congress regarding a reformed FHA (Federal Housing Authority).

"REALTORS® support efforts to give consumers affordable alternatives to subprime mortgages. We believe that a modernized FHA could offer a safe alternative, especially for borrowers with less than perfect credit,” said John Anderson, broker-owner of Twin Oaks Realty in Crystal, Minn., testifying on behalf of NAR. See the rest of this article here. FHA loans have come back in vogue. Not that they ever left us, but the market produced products that made FHA loans less attractive. That is changing because of the sub prime markets colapse.

Research by the U.S. Bureau of Labor Statistics (BLS) show that the cost of home ownership is going down while the cost of renting is on the rise. With the large inventory of entry level homes available, now may be the best time for renters to own their first home. For those of us who can remember buying our first home, it brings back memories of fear and cold sweats! I personally thought that the $52,000 we paid for our first house was all the money in the world and that I would never pay it off. Looking back, even though I was scared to death, it was the best financial move I ever made.


If the thought of buying your first house has you curled up in the corner, give me a call @ 770-862-8002. I can help you decide if this really is the best time for you to buy your first home.

Real Estate Investing 101

Since we've been on the topic of real estate investing, I wanted to make a point to help clear up any confusion that people have about when a good time to invest in real estate might be. The best time to invest in real estate is ALL OF THE TIME - but especially when the market is slow.

Allow me to explain: When markets are sluggish and the prices are in a holding pattern or downward trend, people begin to worry that it's a bad time to buy and they don't. This is a costly mistake. The best time to buy any investment is when prices are low. (Stock Market Rule #1: "Buy low, sell high" - Also applies to real estate). You can get some amazing deals right now! It is a buyers market... especially in Atlanta. Ands there is a glut of houses listed so you have many more choices and sellers are more open to negotiate on things like price, terms, repairs and even help with financing.

Why wait another minute? NOW is the time to get that investment property you've always wanted. I can help you find a cash flow stream, show you how to get a tenant in and let them pay your mortgage for you while the value of the house, along with your net worth, grows every day. Give me a call and let's talk about your real estate investing strategies.