| What happens when the real estate bubble finally | | | | for real estate investors! After some time passes and |
| bursts? Is it all bad news? Well, it's bad news if you | | | | you have accumulated some properties it will be your |
| were going to use your equity to put your kids through | | | | turn to ride the wave of rising prices to wealth. For |
| college, but if you're a real estate investor, it ain't all bad. | | | | now, it's time to take advantage of the fact that too |
| The end of a real estate boom is the beginning of the | | | | many people have held on to their investment |
| buying season. It's time to start looking around for | | | | properties way too long! |
| bargains. If you don't see any bargains at first, hang on, | | | | How long will the housing market crash last and how |
| you will. As prices continue to fall, the buyers take | | | | bad will it be? Remember, real estate prices vary |
| control. This is where new real estate success stories | | | | region by region. After the 80's bubble burst, some |
| are written: in the shopping phase. Be a creative buyer | | | | parts of the country never felt a thing. Others, like the |
| and the real estate world is your oyster. | | | | northeast were hit hard. The lean years were from |
| For instance, finding a rent with an option to buy is the | | | | 1988 to 1994. This, which was a six-year span, is |
| ultimate way for a person with no start up capitol to | | | | usually, about an average time of a market down |
| get started in real estate investing. In a strong real | | | | cycle. In 1994 buyers started to come back into the |
| estate market, nobody will rent a property with an | | | | market, but nobody noticed because housing prices |
| option to buy but in a weak one, they will. Rent with | | | | were still falling due to the glut of houses remaining on |
| option properties are usually in need of repair or, at | | | | the market. When real estate starts selling after a |
| least, a little TLC. So, someone willing to trade a little | | | | sharp drop in prices, but the prices still keep falling, this |
| time and some sweat; will be able to find a diamond in | | | | is a great sign for the real estate investment |
| the rough at terms that he or she can control. | | | | community. It means BUY! The surplus of housing will |
| Remember in a buyer's market, often the seller will do | | | | soon dry up and prices will soar. That's the way it is in |
| anything to get out from under the debt of a particular | | | | real estate, feast or famine! |
| property. | | | | It is impossible to say how much housing prices will |
| A buyer's market also opens up a world of creative | | | | drop during a real estate price crash because the real |
| financing possibilities. When it is a seller's market, a | | | | estate community will only lower the market prices so |
| seller will never take back any part of a mortgage | | | | much. A particular seller, however, may be willing to |
| because he knows he doesn't have to in order to sell | | | | accept an even lower than "the market" offer. It may |
| the property. However, when things just aren't selling, | | | | be worth it for this seller to unload this property at this |
| he or she might have to. As a buyer you can make | | | | below market price rather than hold on to a property |
| your first offer using terms that would be a dream | | | | that is becoming a big problem for him or her. This is |
| come true for you. You see, you're in the driver's seat, | | | | when a real estate investor needs to be bold. Never |
| now! | | | | be afraid to offer a seller a ridiculously low price, you |
| So, unless you have the purchase of a mansion in | | | | never know, he or she might just be willing to sell at |
| Georgia contingent upon the sale of a Condo in | | | | that price. To this seller, that ridiculous price might sound |
| Connecticut, take heart, falling prices are good news | | | | good! |