Here's the situation:

While Houston and Dallas rank 6 and 1 in the nation for commercial real estate growth, the commercial real estate field is very bleak.

North County times reports that: Banking analysts warn that the nation could be swept by a wave of foreclosures of apartment buildings, retail outlets, industrial space, and office complexes in the coming year.

So we just lowball and short sale all these properties right?

Sam Zell who made billions of dollars in commercial real estate doesn't think that will work, especially with apartment complexes not having much equity at all.

His suggestion: Invest in the debt!

Same can be applied in residential real estate as well. This is different from a short sale. Here the note is actually being sold for a discount. Different department all togethe
Ok. Now real estate reports and news are getting to be just like medical journal reports.

One day its bleak and gloomy, the next day it's full of sunshine.

While many reports show that we actually have a 3 year backlog of foreclosure inventory moving much faster than banks can sell their REOS, Epoch times seems to think that real estate is actually on the upswing.

According to Epoch, 'the northeast sector is beginning to stabilize and private capital for real estate investing is available, while there are diminishing distress properties'.

Now I'm not sure at all about the lack of distress properties. Even in Houston, Texas where prices have not dropped as dramatically as the rest of the country, we still see quite a bit of distressed properties and investors are continuing to find deals.

Either way. Run your numbers (you can get a free property analyzer here on the right) and make sure you have a profit as soon as you buy the property. Never wait on appreciation as this is speculation not investing.

So matter what the reports say, you are personally responsible for your fiscal health.

Click 2 Houston posted an article showing that many families are actually living together due to the economic downfall.

This may mean that they're bringing in grandma and grandpa or moving into their home.

This can actually be a good thing as the older generations can provide a positive influence on children.

Families can take advantage of real estate investing strategies such as Life Estates, owner financing and other options in order to reduce debt or even take advantage of income while still living in the property they own.

Whatever the situation homeowners and investors do well to speak their mind as to their needs and work out a win win situation.

MSN money had an article showing that the safest way to invest in real estate for the newbie investors is buying bank owned properties.

According to Bankrate, its because 'there's no risk, no taxes, no liens, no tenants to evict".

Additionally, the article shows that the lender may be willing to finance the deal.

Let's think about this for a moment. "NO risk?". How can this be said anytime you are risking your credit and money? There is always a risk. Especially if you are buying at close to market rates which is what happens if the REO is a fairly nice home in a good neighborhood.

Remember, anytime you have quite a bit of competition, prices can be bid up.

IN reality, one of the lowest risk, highest yielding routes to investing in real estate is through wholesaling. Here you are assigning a contract for a fee, but only risking earnest money and/or option consideration.

Risk is taken one when one starts to KEEP properties.

Hey Guys,

I responded to this question on a real estate forum. Here's my answer to folks that look at courses and gurus out there and tend to jump from guru to guru:

I've been investing in real estate and teaching real estate investing for 25 years.

Here is the answer: The best real estate investing system is the one that you implement.

People will tend to bad mouth investing gurus when they don't apply what they learn.

I suggest you learn the basics of how to invest and start off with minimal risk investing such as
wholesaling to get your feet wet and earn while you learn.

Remember, you have to be willing to step outside of your comfort zone. The real estate investing courses can't turn into a 'staremaster".


PS Fill out the contact form and you'll get your
FREE Deal analyzer, step by step roadmap on how to invest in real estate and free conference calls with me!
Hi everyone!

More and more HML (hard money lenders) are looking at your credit score. However, if you can get a deal with a very low Loan to value ratio you may be able to negotiate with the HML.

YOu'll find a link to investment clubs in your area on my blog unde REI Clubs.

Private investment money is also a great alternative. You can create a simple packet to present to prospective private lenders on my site under "rehabbing".

Private lending is really the best way to go as it affords you flexibility in terms, great interest rates, and sometimes no monthly payments while you fix up a property and get it ready for sale. Many times you can actually get more private money than with hard money loans.

Private money affords you with privacy (since you're not doing full docs like other loans) as well as a quicker turn around so you can get your deals done fast.

According to managing director of Managed Mortgage Investments Don Konipol, here are what the private lenders are looking at when they think of investing:
1) Type of property
2) Exit strategy
3) Yield, cash flow, income
4) loan to value ratio

Hope it helps.

Standard and Poors reports that it will take at least 3 years for the REO Back log to clear out.

With mortgages continuing to fail at a faster rate than REOs (Bank owned real estate) are being sold, we're heading into a serious back log of properties well into the next few years as well as diminishing home prices.

With the continued under performance of the Home Affordable Modification Program, home prices will continue to go down well into the end of 2010.

Bad news all around.

Homeowners need continued help with Loan Modifications and be well informed and educated as to its use so Loan Modifications don't simply turn into forestalling the inevitable.

Real Estate Investors will also need to watch how they buy. Investors don't want to overextend their purchasing not knowing which way prices will go.

A nice mix of wholesaling (limited risk while earning a nice income) as well as buying at a sizeable discount can help limit risk as well as get you in on a buyer's market that won't be seen for years to come.

Builders are trying to cash in on the home buyer tax credit- building up spec homes in hopes to lure first time homebuyers and 'move up' buyers as well.

These buyers come from somewhere and if they're buying these new homes, they're not buying existing homes. It's an emotional move as brought out in the Wall Street Journal article, but is it the right one for people?

Remember how we got in this mess in the first place!

Buyers still have to be careful and not buy just because they can or because there's a deadline to beat.

I've included direct links to IRS forms that new buyers will have to fill out if they will be taking advantage of the tax credits (see Tax Credit category on the right)

Current home sellers can add to the attractiveness of their home by providing financing through lease to own programs or owner financing.

Here's a link to a Free Rent to Own Ebook.

We all have a responsibility in how we get out of this housing crisis.

Well, we all knew the housing dream of a few years ago was too good to be true.

We were right and it turned into a nightmare.

According to Housing Predictor:
The new wave of foreclosures is already impacting markets in Southern California, Arizona and Nevada where the crisis triggered some of the worst housing deflation in the country. A new crop of ALT-A loans backed by Fannie Mae, Freddie Mac and the FHA are showing high levels of default. Nearly 4-million other mortgages are at risk of foreclosure in 2010 from subprime and what were newly created mortgage products developed by bankers that helped trigger the crisis.

Additionally, equity in homes have been slashed in half! and Bank of America is foreclosing on folks left and right.

An estimated 15 million more foreclosures are due in the next 5 years while current government measures have only helpd 66,000 people modify their existing loans.

There are solutions we can provide as investors:

From Forbearance, Loan Modifications, Short Sales, and SubjectTo Techniques that can save homes, protect credit, or even give homeowners a fresh start.

The Key is having the knowledge about these options at your disposal to provide the needed help

Some of my best deals with huge equity have been through probate deals where there were no mortgages on the property.

Here's the secret to getting probate deals from probate attorneys.

You have to be in the club.

You'll hit a brick wall when you try to go in the front door so just like with any clubs, you need a referral.
 What you do is get another attorney that you have done business with or knows you to write you a referral that you can mail to other attorneys.

All you need is one.

This puts you in the club, because now one of the members is vouching for you.

I use this technique myself and had to stop because I couldn't handle them all.