With the real estate market in turmoil these days, real estate investing can seem like a daunting proposition.
Riding on the coattails of the masses who overinvested in their homes may not seem sound to you, but within the turmoil is a lot of opportunity and potential.
For the first time in history, homeowners are quick to abandon their properties after finding themselves underwater, unemployed and unable to carry on.
Some foreclosures are better left alone, but some are ripe for the picking and a sound investment for you, and while foreclosures are getting all the media attention these days, properties not in foreclosure can be a great value, too.
Despite the downturn, real property is still a tangible good that traditionally only grows in value.
Within this economic climate, the biggest difference is that the market is flooded with bargain prices, meaning a lower risk investment.
However, with the glut comes inherent risk.
It is best to not be blinded by the price and to stop and ask yourself why you think this particular property may increase in value in the future.
If the area has a lot of established industry, there may be a better chance of recuperation than if the area had only one large employer that shut down the doors or left overseas.
As a personal investment, there is no better time to be investing in real estate.
In some cases, the property value means naught when you consider that you can live cheaply in a home that even after extensive renovation costs less than the going rate in the market for rentals.
If you buy for the long term, the chance of recuperation on your initial investment goes up as your equity grows and in some areas the bottom has been hit hard enough that there is only one direction the housing can go, which is up.
Finding properties you believe in is a vital piece of successful investing in real estate.
As there are no guarantees, having a back-up plan can help buffer any potential loss.
If you invest in a restaurant property, for example, having the know-how to start and run your own restaurant, or knowing people who do, may help you if you cannot find a renter or an eager buyer for the property right away.
The same holds true for a home; if the house is livable and meets your needs, it is a great investment regardless of what numbers fall.