Everyone knows the current state of real estate. However, few people know about the REAL state of real estate. Ghost towns exist where the next big subdivisions were built. Nobody wants to buy, and this is your chance.
Real estate prices have gone down
No doubt this is quite true. It seems that everyone is afraid to buy real estate. Mortgages are also harder to come by as banks get flooded in today’s economy. These are NOT negative circumstances, they are POSITIVE OPPORTUNITIES!
Because so many people are afraid to buy real estate, or less able to, that means there are hardly any buyers out there. This puts the seller in a bad position. They can only do two things in your situation:
- Keep lowering your prices until someone buys. Your sales will probably be a loss to them.
- They can constantly increase bonuses and incentives for buyers. Again, this puts them at a progressively worse financial disadvantage.
Neither option is one that sellers want to use. Like everyone else, they want to get the most out of their sales. The problem is they HAVE to SELL. This leaves them fighting, hoping, and begging for SOMEONE to buy their property. This is a perfect opportunity for buyers to participate.
What are smart investors doing right now?
Smart investors right now are buying real estate like there’s no tomorrow. Since there are so few buyers, there is almost no competition. They may well be the only bidders on certain properties. The prices are LOW and the benefits are HUGE. An offer of almost any kind is a blessing for sellers. This is the very definition of a buyer’s market.
Last month, I saw a seller offering a duplex for the respectable price of $530,000. This property had been on the market for four months with no bidders. I made my offer to this seller and bought the duplex for only $430,000; $100,000 was knocked off the price in a few days of trading. That’s the kind of market I’m talking about.
Not to be outdone, my fiancée recently found a property that she is interested in purchasing. It is a commercial property with two tenants and has a lot of additional land available for another tenant. The collective rent each month is already at $20,000. If you add another tenant, we’re talking about a significant increase in rent. Right now the property is listed at around $2,800,000. At that price, the property is already a good deal with positive cash flow. The interesting thing is that this property has been on the market for more than a year WITHOUT A SINGLE OFFER.
Now here’s the real trick. You probably won’t believe it, hold on to your seat, she’s thinking of offering $800,000. That’s how it is; she is going to offer a total price of $2 million of the asking price. Of course, after staying in this property for a year, what do you think the seller is going to do?
It’s time to change the way you think about real estate. It’s a buyer’s market, and if you’re not buying, you’re LOSING.