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