2009 in real estate

This year has been a lot about changes. We've had changes in the real estate business that makes us all change the way we think about real estate.

For example values have dropped 40%-60% from their highs. Some people think about that as something awful. Losing equity and having your loan upside down is not a good thing. I've talked to many people that are letting their property go to foreclosure or short sale.

Investors have a lot to think about in this market. Should they keep the homes they have and continue to wait for property values to come back? Or do they dump their property and move on with life? Each decision should be based on their situation.

Today's market allows you to buy options(cheap homes) that helps you hedge your portfolio with real estate that makes money on rent and they have a great equity position.

I believe this market is poised to make investors a great return. Yes home prices have dumped a lot in some areas, but rent has not fallen that much compared to the retail sale prices on real estate. This makes holding a property profitable. It's called cash flow!

For that reason me and my investors continue to buy homes. We can buy a home remodeled for $20,000-$40,000. These homes get $600-$1000 a month in rent. The values are at least double to what we pay for them. That's a win win situation for the investor.

These deals will not last forever, prices will stabilize and everyone will be saying the same thing. I wish I would've bought back then if I had of I would be rich.

I've been doing this for 24 years and have seen up and down markets. Buying condos in Phoenix Arizona in the 1980's was cheap. $15,000-$30,000 per unit. I had people lines up to rent these units out. They later became worth a lot more and I sold them! That's called cash flow with a great end game.

So when you start planning your investing next year don't forget that real estate is still a great way to create wealth for your portfolio.


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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://sites.google.com/site/rooftopproperties/