Will 2011 be a Phenomenal Year for Housing?

by | BiggerPockets.com

I’ve always tried to surround myself with people who are smarter than me. I’d say that’s one of the biggest secrets to success in life. If you’re in a mastermind group and you’re the smartest person in the room, then you need to find a new group because you’re not learning very much.

I bring this up because recently I was able to get together with two of my higher level contacts in the housing industry. (These are guys who work for big name financial companies, or who are multi-millionaire investors with a background in finance).

Here’s what they told me…

First off, they always spew off a lot of economic facts which go right over my head or which I really don’t care to listen to. But the important thing is they are buying houses now and they believe that 2011 is going to be an incredible year for the housing industry.

Most folks are still highly negative and believe another crash or dip is coming – but not these guys. They believe that inflation is going to come hard next year and as we all know, when inflation hits, hard assets like real estate will do very well.

The point I’m trying to make is that many of us smaller investors did not see the housing crash coming. (These guys did, I just wish I’d met them sooner). And now, if you have a chance to pick up properties at dirt cheap prices, you should do it.

Don’t sit on the sidelines…

And miss an opportunity to make a lot of money when inflation kicks in. And the way I see it, if you buy at a deep discount and make sure the property has a solid cash flow you can’t go wrong. Even if prices don’t rise as rapidly as I suspect in 2011.

I realize most people reading this probably won’t buy houses now, because it’s still not the popular thing to do. But of course, that’s the exact reason to buy houses today. Personally, I’m doing a lot of subject-to deals (getting in for no money down) and will use other people’s credit to ride the inflation boom.

The only thing is, this time I’ll pay attention to what the smart people are doing and sell at the top instead of holding on to so many of my properties.

About Author

Jason R. Hanson is the founder of National Real Estate Investor Month and the author of “How to Build a Real Estate Empire”. Jason specializes in purchasing properties “subject-to” and has purchased millions of dollars worth of property using none of his own cash or credit.

1 Comment

  1. Kimberly Starks on

    from The Street – By Miriam Reimer
    “REITs are back on offense and all eyes are on growth,” said KBW’s Sheila McGrath, “growth prospects for core portfolios, growth from acquisitions and growth in dividends.”
    Morningstar(MORN_) noted that REITs have been catching on with a number of exchange-traded fund investors who consider them as potential hedges against inflation.
    McGrath said equity REITs stand to benefit in 2011 from “superior access to attractively priced capital” as fundamentals stabilize following the “sharp decline” the sector faced amid the Great Recession.

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