Commercial Real Estate Investment Articles

In checking through my files, I came across this article from several years back. I think this would be a good time to run, since nothing has really changed. And while it was directed toward the manufactured housing business (mobile homes), it applies equally to the current housing industry, as well.

Whether you are new to real estate investing, or you have just reached a “plateau” and need some ideas, these reminders will help “jump-start” your real estate investing career and get you back on track.

I was asked two questions recently: Are used mobile homes and mobile home parks still a good business to consider in the present economy? What would you do different if you were starting out today?

In 1986, I started buying used mobile homes for $2,000 to $3,000, and selling them for $5,000 to $6,000 with payments of $200 to $300 per month. Over 20 years later, I’m still buying and selling mobile homes at the same prices, same payments.

Building an investor list is the key to success in real estate investing. The concept is simple: Find a list of investors who buy houses, then go out and find the inventory to flip to such investors. Let these investors know that you buy houses, too. The more people in your network, the easier it will be to buy and sell houses.

Despite the obvious bursting of the housing bubble and the associated freezing up of credit markets, many (suspiciously self-serving?) forecasters and investors suggest that the housing slump is close to bottoming out–or soon will be!

As the real estate market slow down continues, and with foreclosures on the rise in most of the country, lenders are finding themselves overwhelmed with many sub-performing and non-performing loans.

The market is slowing and investors are drowning in house payments. Is there an end in sight? Probably not. But, there is something you can do about it. Dropping the price until you get it sold is one way to do it. But, I’ve got a better solution–sell the house.

When it comes to saving taxes, being proactive is definitely the way to go. Now that the hectic holiday season is over, don’t forget to take a new look at ways to save money. Here are three suggestions to help you out:

For years, hot-shot speculators made huge profits flipping condos in Florida and Vegas before they were even constructed. All the while, the naysayers in the ivory towers of Wall Street and academia warned of a “housing bubble” that was sure to burst as all bubbles do.

So you’ve just purchased a new home study course. You followed the instructions. You found a good deal. You present your contract to the listing broker, and you get laughed at!

[Editor’s note: Buying a home “subject to” means “subject to the existing financing” already in place on the property. The terms of the original note with the lender stay the same, and the note remains in the seller’s name. Typically, you would then sell the house to a tenant/buyer on a lease option.]

Most of us are smart enough to realize that no real estate “system” is foolproof, and if anything seems too be good to be true, it probably is.

The day has come when savvy entrepreneurs, investors, rehabbers, FSBOs, Realtors, and other real property owners have come to the realization that they can sell their properties faster by offering owner financing and still get to a cash position.

Year after year, home remodeling fraud costs consumers thousands of dollars and considerable stress and aggravation. Contractor fraud is a criminal activity pulled by scam artists on consumers. They tend to prey on senior citizens and singles, taking advantage of their willingness to trust others who sound believable.

Most people have come to mistakenly view cash (including cash to an existing loan and/or cash to a new loan), rather than benefits, as the driving force behind real estate transactions. So when cash is tight, transactions don’t get done, and benefits for buyers AND sellers are left by the wayside.

Every real estate investor has heard how important it is to build rapport with distressed homeowners. What we never hear about is how to do it. What is it about someone that makes us instantly like or dislike them? We do not really know what it is about that person; we just know it is something.

Real estate and housing markets across the nation are changing. You can hardly turn on the national news without hearing a story on how home prices are peaking–or even declining. Homes are taking longer to sell. The spread between asking prices and selling prices is widening. Unsold inventories are up. Foreclosures are on the rise.

Many people start out in real estate investing with great fervor, only to become discouraged after a few months when they don’t attain instant fortune.

People who have always put their money in blue-chip stocks, bonds, and money-market accounts commonly think of real estate as being an inherently risky investment. While real estate can be risky, you can certainly limit that risk by educating yourself.

The headlines keep on coming. The only thing for certain is as leading business consultant, Tom Peters, would say: “If you’re not confused, you’re not paying attention!”

Another month, another “home sales” decline, as the real estate markets in many parts of the country decelerate and transition into something less than the hyperactive state of the past few years.

Housing markets throughout the nation are changing. It’s getting harder to buy right in some areas and tougher to sell quickly in other areas. Many creative real estate investors will leave the business frustrated that what was once working well is not working as well anymore. Attendance at real estate investor club meetings is declining. People are giving up on their dreams.

Ray, what factors indicate the climate, good or bad, for investing in mobile home parks?

The so-called day after “hangover” from the fast and loose lending spree that helped fuel the real estate boom during the first half of this decade keeps getting worse, with a continued fall out among lenders who catered to high-risk (or “subprime”) borrowers. Several dozen lenders have closed their doors because the Wall Street firms who have provided their funding will no longer do so.