Latest Articles
Is the Real Estate Bubble About to Burst?
How long can prices rise before no one can afford to buy? In a nutshell, that is the basic question that is niggling at the back of our collective subconscious when we talk about the real estate bubble.
Real estate is appreciating at staggering...
Real Estate Ownership - Condominium or Fee Simple
I. Introduction
There is a common perception that condos are apartment-style
buildings, that townhouses are two-story row houses with
adjoining walls, and that garden homes are free-standing houses
on small lots. Unfortunately, this...
Real Estate Teams - Fulfilling the Brokers Role
Real Estate Teams are Taking Over.
1.Team approach uses specialists with strong marketing directed
to attract ready to act buyers and sellers. It is a new age in
real estate where a marketing professional is the most effective
agent.
...
Real Estate Investor's Lockbox Strategy
How do "ordinary" people get rich in real estate?
They buy 4 or 5 single family homes and hold them until
they double in value.
But wait! This article is not about getting rich... this
is about you who already have an awesome gain in real
estate wealth.
If during the past few years you bought rental homes in
or near Los Angeles, Boston, San Diego, Phoenix, Las Vegas
or many other cities... you probably have a mountain of
wealth hiding in those properties.
In many areas home values have more than doubled in the
last 5 years making you "ordinary" people rather wealthy.
Gaining wealth is Part #1 of the success formula. Part #2
is what too many people fail to work into their plan....
"Hold on to what you've earned!"
All you investors who have fat profits probably should be
planning on moving into a defensive position, right now.
If you own 5 homes each valued at $150,000 when you gained
control of them... and each is now worth $300,000... you
have over $750,000.00 exposed to the current dangers of the
real estate market.
You were smart and you bought low... now it's time to sell
high... or at least protect those huge profits.
Real estate values go in cycles. Historically unusually
rapid and sustained appreciation is followed by
substantial
price depreciation. In other words... what goes up comes
down.
Experience reminds us that the real estate cycle often tops
with a violent shakeout. At that point your gain vanishes.
Everyone is dumping property and there are darn few buyers.
But hold on... you know enough not to SELL your property!
When you have a big real estate gain selling is profit
suicide, because your partner Uncle Sam, grabs a third of
your gain. Just thinking about that makes me feel faint.
Your best weapon is probably a 1031 exchange. Move your
investment to another area that is just beginning a
pattern of growth... or into a different class of
property that has a more stable price history.
If you've had enough or property management you might
want to exchange into a Tenant-In-Common (TIC) structured
real estate investment. They can be a very attractive
investment for your gains.
Not room to explain TIC deals now. You can learn more
by doing a Google Search for "TIC".
Don't let that new wealth evaporate. Take a tip from
a former presidential candidate and put it into "a lockbox".
About the Author
Mark Walters is an investor-entrepreneur helping other
investors from his Web pages at
http://www.Lease-Option-Sub2.com
Written By: Mark Walters