2007-03-30 11:32:07 · 11 answers · asked by Steve 1 in Business & Finance ➔ Renting & Real Estate
Any investment is a risk. The thing that reduce the risk is knowledge. When to use a different technique, how to adopt new ideas and most importantly the needs of your sellers and buyers.
Look at those that have chosen the stock market as their tool of investment. Sometimes the market is up and sometimes the market is down. These investors simple adjust the way they do business, but they continue to invest and most savvy stock market investors do extremely well.
Once you have identified and solved those two needs you can almost buy and sell without risking that much.
Sometimes the market requires you to purchase and hold, and at times the market requires you to buy, rehab and flip.
There are periods you have to lease option to the existing owner or to another person. You might even have to wholesale to another investor.
So even though there might be a downturn in the market savvy investors always find a way and adapt to the situation what ever it might be.
If you are investing for the short term or trying to make a quick strike you might want to try "futures" real estate investment is and always have been a long term investment.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-03-30 12:06:46 · answer #1 · answered by Skip 6 · 0⤊ 1⤋
Although, of course, investing is never a sure thing, MrKnowitall is pretty right on. These bank underwriters are causing a lot of problems. A few of my clients (including ones with 750 credit scores) have had their loans kicked back like, a week before closing due to some SUPER lame technicality or "guideline". I understand the underwriters are looking out for their side (the banks), but they really do F up a lot of business that doesn't need tweaking. With rates as low as they are and pricing really good in all investable places (Las Vegas, New Mexico, Arizona) there is absolutely no reason the market shouldn't be rocking and rolling right now. For some reason (the media, underwriters' BS and new bank stipulations that are truthfully a bit much) the market is...wierd.
2007-03-30 21:18:33 · answer #2 · answered by CJ 3 · 0⤊ 0⤋
In reality, right now, there is an extremely high demand for houses. What is stifling the housing industry right now are the mortgage underwriters - they are refusing to write mortgages for no money down or flippers or even partially risky purchases. Because of this, many first time home buyers who had contracted to purchase homes and had loan guarantees suddenly found themselves unable to complete their home purchases, and the people with the homes are starting to file for bankruptcy because they cannot move the homes at all.
Blame the loan underwriters for this problem. If it was not for them stifling the market and causing investors and other normal homeowners from going bankrupt, the housing market would be in full swing right now. If you buy anything right now, plan to hold on to it for quite some time.
Maybe an act of Congress can remove these people from the position of power they currently hold over the average citizen and once again, allow us to buy and sell houses as we please.
2007-03-30 18:43:48 · answer #3 · answered by MrKnowItAll 6 · 0⤊ 1⤋
Investing is never a sure thing. You never know what the market will do in the future.
2007-03-30 18:35:10 · answer #4 · answered by William S 3 · 1⤊ 0⤋
All other things being equal, the answer would be "yes." Who these flippers think they will be selling all of these foreclosed homes to, in a declining housing market, with tightening credit and lending standards is anyone's guess!
2007-03-30 18:37:29 · answer #5 · answered by Anonymous · 0⤊ 1⤋
If bought below market and sold above market probably yes. Remember you have a real estate fee to pay.
Fred
2007-03-30 18:36:32 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Investing is never a sure thing, you dont know the markets will COMTINUE to rise...
2007-03-30 18:47:44 · answer #7 · answered by Mark P. 5 · 0⤊ 0⤋
capital growth CAN exceed the profit you make from the actual refurb, but nothing is certain
remember to include the things those programes leave out though.
Finance costs, taxes and fees.
If you dont live in the property you can be liable for (up to) 40% tax on your capital gain.
and if it takes longer than 6 months to complete you will be liable for council tax as well.
good luck
2007-03-30 18:39:05 · answer #8 · answered by Pondlife ver 4 2 · 0⤊ 1⤋
Yes. But that's not really saying much. It's like asking if collecting stamps would be profitable if stamps were increasing in value. Of course. The "if" the the thing that kills your question..
2007-03-30 18:35:16 · answer #9 · answered by jgain 3 · 1⤊ 1⤋
No, of course not. No more than any guarantee of getting laid at a hookers' convention. If the money ain't right, nuthin's gonna happen.
2007-03-30 18:37:04 · answer #10 · answered by Bostonian In MO 7 · 0⤊ 0⤋