Buffett and Trump Say Buy Real Estate Now

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Did you hear the news? Warren Buffett says that now is a great time to buy. That’s true. With interest rates and prices also at all time lows, why not make purchasing a property a priority in 2012?

But, is it a good time for investor buyers? Yes and no.

For investor buyers who want to hold onto properties for rental purposes, now is an awesome time to purchase a property. There are a fair amount of properties available, and investors who are paying cash have an additional edge—particularly on properties where condition may be a factor that impacts a buyer’s prospects for obtaining a mortgage loan.

But, on the other hand, those investors interested in ‘flipping’ properties may not have it quite as easy. In San Diego County, we rarely see properties (particularly bank-owned ones) selling for cents on the dollar. Those pesky banks seem to prefer to take their chances with FHA first-time homebuyers (and move up buyers) that are making higher offers as opposed to recognizing the benefits of cash in pocket right here, right now.

What’s an investor to do? For those investors looking for a steal (or a deal), the best option seems to be identifying homes that will not qualify for any sort of loan programs. This will decrease the buyer pool significantly and may allow the buyer to get that deal that he is looking for.

Buying a property cheap ain’t easy. You have to write a lot of offers, in many cases, before you are able to put together a worthwhile deal. But, with prices expected to stay low for some time, it seems that investors will definitely have the opportunity to get the deal they are looking for.

Photo: pasukaru76

About Author

Melissa Zavala is the Broker/Owner of Broadpoint Properties and Head Honcho of Short Sale Expeditor®. Before landing real estate, she had careers in education and publishing. Many folks say that Melissa is genetically pre-disposed to success with short sales. In fact, last year she and her staff obtained over 500 short sale approval letters! When she isn’t speaking with lien holders, Melissa enjoys practicing yoga, walking the dog, and vacationing at beach resorts.

4 Comments

  1. Melissa: The big problem with “flipping” today is (1) being able to buy cheap enough to fix it up and market it well below retail, and (2) finding qualified buyers. Also, depending upon the buyer’s loan, you may have to hold it for 90 days before you can sell and may even be given a forced profit limit… quit un-American, I think.

    But, you’re right – buying and holding with tenants is the way to go today. More tenants then ever and climbing. If you plan to hold for 10 years, you’ll definitely be selling at a good profit and you’ve had the cashflow and tax advantages all those years.

    I can’t imagine doing this business in California but, here in North Carolina, real estate investing rocks!

  2. Hi, many years ago I started buying properties instead of stocks like most. So when I was ready to retire I could cash them out and live comfortable. Although they have decrease by 30%, still get a great cash flow each month. If I had bought stocks, I be pulling my hair out. Buying property for the long run and cash flowing IS the only way to go. Now is the best time to buy, with values so low along with interest rates, one can have a great retirement at any age!

  3. The market still has a long recovery ahead of it before flipping houses becomes attractive or viable once more. Too many people have been burned by the real estate market and will be a lot more cautious before dipping their toes in it again. Investing in and holding on to rental property is the way to go right now.

  4. “When is the best time for you to buy a real estate property?” – I believe that this question can only be answered by the buyers. Because it will always depend on their financial capability and emotional readiness to get involved in this kind of investment.

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