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Even During These Times, Real Estate Profits Are There To Be Made

Friday, September 14, 2007 | Thomas Neusom, Real Estate Agent (tnmaill) Is this Spam?

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There is little doubt that the pace of real estate sales has slowed over the past year or so. About two years ago, you could put a property on the market and you had to contend with a bidding war. Those who had bought property prior to the dramatic run in prices over the last four or five years, and sold at the right time are probably sitting quite well right now.

Todays market is not one where sellers will be likely to have to deal with a bunch of bidders unless the property is properly priced. And even with a good price, I have noticed that some buyers are hesitant to buy even though I have presented them with properties that can generate a positive cash flow. This presents an unprecedented opportunity for a true businessman or women to make unprecedented profits and set themselves up for massive profits when the real estate market turns around.

Real estate agents such as myself need to make potential buyers aware of the bargains out there and prevent them from getting overly caught up in the latest headlines about a worsening economy and lackluster real estate sales. Even in a bad economy with slowing sales, a dollar made is a dollar made and a positive cash flow is money in your pocket.

At this particular time many people are facing the prospect of foreclosure and are at risk of losing there homes or apartments. With prices dropping valuations are more difficult to make, but the fact still remains if you buy a property for four hundred thousand and receive three thousand in rent while your mortgage note is two thousand a month including insurance and taxes, you are making a thousand dollars a month. There are numerous deals out there that can make you over a thousand dollars a month. You can also purchase a property that has equity that the current owner can't tap into because of bad credit, tightened lending standards or any other number of reasons.

If you are interested in making money in real estate in today's market contact me, real estate agent Thomas Neusom at (310) 928-1866. I am an agent with SLT Mortgage & Realty Corp. based in Bellflower CA. I currently have a list of hundreds of properties in default that can be bought at bargain prices. Buy now for immediate profits, and when the market turns around you could be sitting on unprecedented profits of tens or hundreds of thousands of dollars.



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  1. Ethan R (1 year ago) Is this Spam?

    Wow, where to start? Thomas, I am a Realtor and investor too, so I understand what you are saying. However, you are leaving a few things out. If you buy a building for $400,000, you would have to put down about 40% to get a PITI of $2000. That means you have at least $160,000 tied up to earn back $12,000 a year, a return of 7.5%. But that figure assumes no vacancies, no repairs, and no improvements needed! Quite a reduction of ROI when you factor those in.



    Real estate historically returns about 5% a year, so it would seem that adding that to your 7.5% return is not too bad and compares with the historical average of the stock market indexes. However, the overwheleming evidence would suggest that prices are continuing to head lower in most areas of this country. And that means that the $400,000 building which you buy today, may very well be only $350,000 in a year or two. By waiting, an investor would need far less cash out of pocket to create the same mortgage. In fact, if the market continues lower, it will probably drag the economy down with it, and then the interest rates will decline as well, making the mortgage even cheaper. So why buy today?



    On the other hand, Jester, a house is not just a place to live in, it can be an investment as well. Thousands of people own rental properties, and have a pretty good rate of return. Yes, we do have to paint and patch walls, and clean up some nasty stuff sometimes, but most of us actually enjoy the hands on work. And as another poster said, do not assume that everything is purchased for fair market value, and with cash. If you buy a foreclosure or short sale home that is worth $200,000, and you only pay $170,000 for it, you have a pretty nice return from day number one. Also, the principal that is paid down on the mortgage for you by the tenant, adds up over time, and has to be factored into the total Return on Investment, along with appreciation and cash flow.



    People who don't want to buy or can't buy a home need a place to live, so somebody has to buy rental homes to accomodate that need. But Jester, you are absolutely correct that it is not "an easy way to make a quick buck" and it is certainly a lot of hard work at times. But then again, so is investing, and all things that are worthwhile.



    Bottom line: There is room in the investment world for both stocks and real estate!

  2. jester112358 (1 year ago) Is this Spam?

    The usual thing happened. People got greedy and thought real estate was an easy way to make a quick buck. Its really quite hard and a lot of work. So, if anyone tells you about easy profits in real estate, options trading, commodity trading etc. just ask yourself: if its so easy why isn't everyone making a killing? If is sounds too good to be true, if it quacks like a duck, you know the rest. Caveat Emptor! A house is a place to live, not an investment!
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