A question from Jack

"Jack said....

Hi, I've been following your blog for a while and have a question. With inflation like it is and real estate going down fast....how can you hope to make money from your investments? I don't see how you can, but maybe I'm missing something.

Best Wishes"

Hi Jack!

Thanks for the question.

I am looking into the future so whatever is going on in the markets today is just that -- today. History has proven that real estate has it's up and down times. This is an obvious down time. Wise investors buy in down times.

However, it's not really about timing, it's really about price. Buying at the right price in any market is the key. I am not sure what type of investing your interested in. Flipping a house and keeping a home to rent out are both ideal but I would be more cautious on flipping right now.

Even though the media may portray this as a bad time for real estate it is really an opportune time for real estate investors. Unfortunately, our personal finances aren't in a position to move forward at this time. We already have one house on the market that we need to sell or rent out. We're on a 90 day sales contract with about 60 days left. I can assure you that we will be buying our next one once that transaction is completed.


I also want to note.

If you are a first time home buyer. There are many loans available to help first time home buyers. FHA loans are set up to help you acquire your first home. This is the best way to get started in real estate.

My local real estate market has plenty to choose from. Zero down loans are available and with so many people needing to sell, you may even find someone to pay your closing costs. This can be creatively done in the sale price.

My oldest daughter and her husband purchased their first home last fall. She was just turning 20 and he was 21! Talk about buying smart. They are already ahead of the game at a very early age. Their monthly mortgage is less than what they would have paid for rent.
Of course they have the house to repair and insurance and all the utility costs but they are building equity. If they ever choose to sell in the next few years they can take that equity and buy a better house. Or they can take the equity and start investing in real estate.

I hope I helped answer your question. You may want to search out some books that could provide you with more information than I can. We're just beginners so our experience is limited.

Thanks for visiting.