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Reasons For Buying Cheap Houses Now

Guest post by: C.J Lauria

Article Overview: Presently there are hundreds of real estate “wholesalers” across the United States. These businesses are often operated on a local level and often out of the wholesaler’s home. In fact, they provide a very good service to cash home buyers everywhere. They may lock up a purchase in contract and subsequently assign that contract to the first buyer that comes with all cash. They take a modest profit say, 10%, and leave the major margin for their buyer at 20-30% below market.

Reasons For Buying Cheap Houses Now

“Buy low, sell high.” These words have continued to ring true throughout history. As with any timeless principle, some things never ‘change with the times.’ As author George Clason stated in his book The Richest Man in Babylon, that this basic principle of finance is ‘an insight that will aid one to acquire money, to keep money, and to make their surpluses earn more money.’

It is amazing to me how such a simple concept can be so foreign to the majority of people inj society. They imagine having lots of money and freely spending like their supply is limitless. Without regard for how hard money is to come by, new lottery winners are soon bankrupt when their “supply” is sadly exhausted.

It really comes down to discipline, doesn’t it? If one cannot discipline himself to budget hie funds, account for depreciation, discern markets in advance and allow for a financial “rainy day,” he will soon be in the poor house. Thus the expression: “A fool and his money are soon parted.”

This is one reason so many suffered heavy losses in the real estate market starting late 2006. Without regard for the grossly inflated market conditions, many continued to buy and/refinance properties, indescriminately enjoying their new-found “wealth.” Nonetheless, their losses can be our gain.

Applying the principle to “buy low, sell high,” savvy real estate investment professionals everywhere are cashing in. They have seized the opportunity by buying cheap homes and either “flipping” them for a quick profit, or they rehab and manage as an income producing rental for long-term gains. Cash home buyers have a distinct advantage as they can avail themselves of wholesale deals on properties that others cannot acquire using conventional financing. Banks just operate fast enough. That’s why we buy houses for cash all the time.

Presently there are hundreds of real estate “wholesalers” across the United States. These businesses are often operated on a local level and often out of the wholesaler’s home. In fact, they provide a very good service to cash home buyers everywhere. They may lock up a purchase in contract and subsequently assign that contract to the first buyer that comes with all cash. They take a modest profit say, 10%, and leave the major margin for their buyer at 20-30% below market.

One such company is now offering deals in numerous markets simultaneously. They are known as INVESDOOR CORP. and have territory managers in several metropolitan areas. You can visit their website at invesdoor to see how they have turned a negative economic condition into an extremely lucrative one.

There are still millions of foreclosures to hit the streets in 2010. This will tend to hold off any “recovery” in the housing market prices nationwide for some time to come. In the meantime, opportunity knocks constantly every day and will continue to offer real estate investors great deals on cheap houses providing huge profits as a result. Yes, eventually prices will inch up, but we will likely never see this kind of opportunity again in our lifetime. In this market you would be hard pressed to sell your home fast any time soon. But if you are looking to break out into your own REI business, now is better than ever!

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Article Tags: home based real estate business, how to invest in real estate, real estate coaching, real estate investing, real estate investing business plan, real estate investment strategies, real estate mentor



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