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Copyright 2006 Chris Anderson

Business Brokerage Are you confused about where the real estate investment market is going and what you will do in 2006? Well join the club since many, many people are in your situation. I will tell you that many savvy investors are getting very excited BECAUSE the market is changing.

So, how does an investor accomplish this feat Simple. Become an asset to the developer when they NEED you! Last week, we introduced the concept of working in a real estate investment club (or group) and the power of Get 'er done. Quite simply, if a developer or broker knows that your real estate investment club can HELP them, then they frequently will think of you first. To understand the importance of a real estate investment club, relative to an individual investor, let's consider 3 scenarios for a developer.

Forex Broker In this week's article, we are going to conduct a little exercise to clarify what is really meant by The Real Estate Investment Market. Suppose that you read the below article in the New York Times. How do you react? As we go forward, let's compare your reaction to this information with the reaction of savvy, real estate investors who have been there, done that.

Copyright 2006 David Schneider It's true, You can make a lot of money by investing in real estate. Yet, many investors are not. And when you look at their real estate investment strategy, it's no surprise. The problem is that they have been brainwashed by the so called real estate investment gurus. You know the ones that I am talking about. cut secrets to successfully making millions.

Online Brokerage Beach Front Condo Project Bankrupts Local Investors January 11, 2006, Pogomo Beach, FL (APE News)

Thailand is another country with an exciting real estate market has passed, but not yet implemented, an Escrow Law. The same concerns about protecting the investor and preserving the reputation of the country as a place for investment motivated the passage of Thailand’s law and many of these same concerns about the effects of the new law are being raised there. Some lament that the increased costs imposed by Thailand’s new law will seriously reduce the number of participants in that burgeoning real estate market.

Real Estate Broker The struggles of a new, 220 condo unit show the continuation of the real estate bubble. When local real estate agent Daffy Duck was interviewed, he said that some condo values have dropped over 40% in the period since July 2005. The last sale we had was at a high value of $850,000 but now you would be lucky to get $600,000.

In the market for a new home or investment property and concerned that perhaps the asking price is too much Real estate expert Andy Heller — whose successful real estate investing program was recently featured in Fortune magazine — will cover the most common mistake made by new and seasoned investors alike, overpaying on homes, hour special Foreclosure.com Webinar presentation. family houses to commercial properties to condos, this seminar addresses all real estate types and the proven "Buy Low" method that works for the investors who purchase them.

Agency Brokerage Spark APE News has learned that one investor is now having to make mortgage payments of up to $5,000/mo on each of their 3 units. In turn, this is forcing them into bankruptcy. Upon further analysis.

Click any state below to search Map of the United States With the volatile stock market, many investors are turning to the real estate market as a successful investment alternative. Purchasing a distressed property, which you can often find for 30 to 50 percent below market value, is a great way to build wealth in real estate. Even if you've never thought about purchasing foreclosures before, or have been capitalizing on them for years, Foreclosure.com offers everything you need to profit from real estate investing.

Business Broker Before you read the rest of this article, I encourage to step back and jot down your knee jerk reaction to this news. Why? Because you will undoubtedly see such real estate investment headlines in the future. If you can sort of your feelings about these types of stories, then you will be miles ahead of most investors and determine how to best profit. People typically have two reactions to this article:

Brokerage Account Reaction 1: Articles like this indicate that the overall real estate market is getting soft.

Stock Broker Reaction 2: In flat, soft, or declining real estate markets, it is very risky to invest.

Brokerage Online Stock Trading Unfortunately both reactions will limit their ability to produce creative, profitable, real estate investments.

Broker Justin Ticket Let's see how a more experienced investor might think. First, this article would tell the investor that the real estate investment market for $850,000 condos in Pogomo Beach Florida has probably dried up. On the surface, it would appear that both the rental and sales demand are low for THAT particular product in THAT particular area. We will use this knowledge to our advantage in a minute.

Real Estate Brokerage Second, the investor knows that this news tells them nothing about OTHER real estate products in Pogomo Beach. For example, the demand for affordable, $250,000, off beach townhomes could be blistering hot in Pogomo Beach. For that matter, who knows what is happening in the single family home market. THESE REAL ESTATE INVESTMENT SUBMARKETS CAN ACT COMPLETELY DIFFERENT THAN THE $850,000 CONDO MARKET.

Commodity Broker Let me illustrate this point in real life. While writing this article, I am flying to Las Vegas to look at a development that is a condo conversion. Before I left, I have seen several news pieces about high end, on the strip condo developments terminating in Vegas; clearly not great news for high end condo, real estate investments.

Brokerage House On the other hand, we know that Las Vegas area still faces an issue with an ever increasing population, is land locked, and has a shortage of affordable housing. I also know that because of our group size at GetPreConstructionDeals.com, we are getting offered an interesting opportunity to get in first. Time will tell if this development is appropriate for our web site, but we know without seeing it that this submarket of Las Vegas has considerable potential; all the while the popular press has a dim view of the Vegas real estate investment market.

Real Estate Broker Exam Another insight that the sophisticated investor knows is that huge returns can be made in soft or down real estate investment markets; i.e., they understand that all markets do not always go up but there is money to be made regardless of what the markets are doing. To understand this concept, let's go back to Pogomo Beach and see what we can do.

Brokerage Services Suppose your believe as an investor is demand for beach front condo's will be extremely strong. Yes, there may be a hiccup for 12-24 months but the fact remains there is little beach front left and a lot of baby boomers who want to own it ----- someday. When looking at the above news article, maybe the investor decides that if purchased for $485,000, then the Pogomo Beach condo would be quite attractive and likely to generate a nice return in time. But even at that price, maybe they are not ready to rush out and acquire a unit.

Broker Live Ticket Next, maybe the investor understands that some people bought into this project very cheap at preconstruction prices and might be quite happy to get out with some profits rather than having to make mortgage payments month after month, deal with tenants, have to furnish the unit, etc. Quite possibly the investor might be interested in purchasing a unit if they can get the right price let's say maybe $395,000. If somebody excepts that offer, then great, they have just bought themselves a great investment for a real estate product in a soft market. Yes, they are going to have to rent this out for a while to let the market catch back up to them but they know they have just purchased a great asset for a tremendous price.

Online Brokerage Firm Hopefully by using this fictitious article as a training example, you have gotten a better understanding of your believes about how to handle 2006. In addition, with this background, maybe the next time somebody asks you what the real estate market will be for [fill in the blank], you can give them a highly accurate answer: some people will make a boatload of money and some people will lose money. While this will not satisfy them, you know that it will be true in almost every active real estate market in the country.

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Coldwell Banker Residential Dr. Chris Anderson is the founder of http://www.GetPreconstructionDeals.com and is referenced in many venues including the New York Times and USA Today. Get his weekly, thought provoking articles by signing up today!

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