{"id":37136,"date":"2010-07-08T09:51:12","date_gmt":"2010-07-08T09:51:12","guid":{"rendered":"http:\/\/forestridgevoice.com\/2010\/07\/08\/long-term-real-estate-investors-are-in-for-a-bonanza\/"},"modified":"2019-04-23T20:53:42","modified_gmt":"2019-04-23T20:53:42","slug":"long-term-real-estate-investors-are-in-for-a-bonanza","status":"publish","type":"post","link":"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/","title":{"rendered":"Long Term Real Estate Investors Are In For A Bonanza"},"content":{"rendered":"<div id=\"attachment_598\" style=\"width: 155px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-598\" loading=\"lazy\" class=\"size-full wp-image-598\" title=\"Nest Egg\" src=\"http:\/\/forestridgevoice.com\/files\/2010\/07\/Nest-Egg.jpg\" alt=\"Your Golden Opportunity\" width=\"145\" height=\"80\" \/><p id=\"caption-attachment-598\" class=\"wp-caption-text\">Your Golden Opportunity<\/p><\/div>\n<p>John D. Rockefeller said, &#8220;The way to make money is to BUY when blood is in the streets.&#8221; \u00a0 Another noted rich-guy said, Warren Buffet, \u00a0believes you should &#8220;be fearful when others are greedy and to be greedy only when others are fearful.&#8221;\u00a0\u00a0Huge success comes to those who see confusion as an opportunity.\u00a0 More millionaires were created as a result of the Great Depression than at any time in the nation&#8217;s history.\u00a0 Today, there is a significant opportunity for new millionaires to be made.<\/p>\n<p>With interest rates at historic\u00a0lows and\u00a0home values where they are (the Housing Affordability Index is as favorable as it has ever been) I have one question&#8230;.&#8221;Why hasn&#8217;t everyone jumped into the market?&#8221;\u00a0 Housing is still one fo the most basic of needs (food, clothing, and SHELTER).<\/p>\n<p>Real estate is the way to building a financial fortune.\u00a0 Today, rents collected can cover mortgage payments, often creating a positive cash flow.\u00a0 That is a critical determinant to the strategy; buy something, have the rent make the payment, and wait for the market to improve.\u00a0 Ten years from now you will be glad you did.\u00a0 This is no &#8220;get rich quick&#8221; scheme.\u00a0 It is a long term commitment.<\/p>\n<p>I believe that to eat up all this inventory we are going to have to entice more people who want to own their own slice of the American Dream into the market.\u00a0 We need to bring back the entrepreneur to real estate&#8230;the investor who wants to &#8220;buy and hold&#8221; real estate for a long-term investment.\u00a0\u00a0Investors uy multiple units\/homes and find long term results that outpace the stock market.<\/p>\n<p><strong>WHAT IS HOLDING PEOPLE BACK?<\/strong><\/p>\n<p>1.) <strong>Fear of further declination of home values<\/strong>(better known as greed).\u00a0 The &#8220;Why buy now if prices are going lower?&#8221; mentality will hurt today&#8217;s buyer the same way as the &#8220;Why sell now when prices continue to climb?&#8221;\u00a0 mentality hurt sellers 5 years ago.\u00a0\u00a0By the way, who cares if prices delcine in the short run, you have a positive cash flow, remember?\u00a0 And, you&#8217;re not selling this home for 10 years.\u00a0 It&#8217;s like losing your first bet in the casino.\u00a0 It doesn&#8217;t matter until you leave the building before you determine if it was a good day.<\/p>\n<p>2.)<strong> Limited Financing Options<\/strong>.\u00a0 For competitive rates, most lenders require 25-35% as a down payment (while there are limited programs with 20% down at higher rates).\u00a0 When mortgage programs constricted, investor loan products were among the first to go because people are more likely &#8220;not to pay&#8221; the mortgage on the house they don&#8217;t live in.\u00a0 But with conservative loan- to- values and A+ borrowers being the only people being approved for these loans, there is a reason to believe that the tightening may be loosened a bit.<\/p>\n<p>3.)<strong> Being A Landlord.\u00a0 <\/strong>Many people don&#8217;t want to be bothered collecting rents or getting the phoe calls in the middle of the night that the air conditioner doesn&#8217;t work.\u00a0 I see this as an opportunity for more real estate agents to become Property Managers, where they can take on these headaches for the invesors (for a fee).\u00a0 Agents are best positioned to identify property, find a tenant, and manage rent collection and home improvement\/maintenance issues.<\/p>\n<p>There are real estate speculators (who buy low, fix up, and hope to sell high), but that is a full time job that should be left in the nads of the experienced professional.\u00a0\u00a0<\/p>\n<p>Let&#8217;s look at an example of a long term investor who is bullish on the long term value of real estate in America.<\/p>\n<p>Buy a home for $200,000, expend $50,000 for a down payment and clsoing costs, and have your monthly carrying costs covered by rent.\u00a0 If you sell the property in 15 years for $400,000, you did not double your money, you had a 400% return on your money (because you only used $50,000 cash to get your $200,000 profit).\u00a0 The fact that you canleverage real estate is how fortunes are made.\u00a0 If you could cover your expenses through rent payments received, and leverage your cash invested at a 3:1 ration,<strong> WHY WOULDN&#8217;T YOU EXPLORE THIS STRATEGY TO BUILD YOUR FUTURE NEST EGG FOR RETIREMENT???<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>John D. Rockefeller said, &#8220;The way to make money is to BUY when blood is in the streets.&#8221; \u00a0 Another noted rich-guy said, Warren Buffet, \u00a0believes you should &#8220;be fearful when others are greedy and to be greedy only when others are fearful.&#8221;\u00a0\u00a0Huge success comes to those who see confusion as an opportunity.\u00a0 More millionaires<\/p>\n<p class=\"more-link\"><a href=\"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/\" class=\"themebutton2\">Read More<\/a><\/p>\n","protected":false},"author":5759,"featured_media":130092,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_expiration-date-status":"","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[]},"categories":[11767],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Long Term Real Estate Investors Are In For A Bonanza - BHHS EWM Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Long Term Real Estate Investors Are In For A Bonanza - BHHS EWM Realty\" \/>\n<meta property=\"og:description\" content=\"John D. Rockefeller said, &#8220;The way to make money is to BUY when blood is in the streets.&#8221; \u00a0 Another noted rich-guy said, Warren Buffet, \u00a0believes you should &#8220;be fearful when others are greedy and to be greedy only when others are fearful.&#8221;\u00a0\u00a0Huge success comes to those who see confusion as an opportunity.\u00a0 More millionairesRead More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/\" \/>\n<meta property=\"og:site_name\" content=\"BHHS EWM Realty\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/EWMRealtyInternational\" \/>\n<meta property=\"article:published_time\" content=\"2010-07-08T09:51:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-04-23T20:53:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ewmrealestate.com\/blog\/wp-content\/uploads\/2019\/06\/BHHS-On-Solid-Background.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"376\" \/>\n\t<meta property=\"og:image:height\" content=\"376\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"pattireid\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"pattireid\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/\"},\"author\":{\"name\":\"pattireid\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/#\/schema\/person\/3884199c9616c95232f0602dd52df5eb\"},\"headline\":\"Long Term Real Estate Investors Are In For A Bonanza\",\"datePublished\":\"2010-07-08T09:51:12+00:00\",\"dateModified\":\"2019-04-23T20:53:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/\"},\"wordCount\":708,\"publisher\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/#organization\"},\"articleSection\":[\"EWM News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/\",\"url\":\"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/\",\"name\":\"Long Term Real Estate Investors Are In For A Bonanza - 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Rockefeller said, &#8220;The way to make money is to BUY when blood is in the streets.&#8221; \u00a0 Another noted rich-guy said, Warren Buffet, \u00a0believes you should &#8220;be fearful when others are greedy and to be greedy only when others are fearful.&#8221;\u00a0\u00a0Huge success comes to those who see confusion as an opportunity.\u00a0 More millionairesRead More","og_url":"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/","og_site_name":"BHHS EWM Realty","article_publisher":"https:\/\/www.facebook.com\/EWMRealtyInternational","article_published_time":"2010-07-08T09:51:12+00:00","article_modified_time":"2019-04-23T20:53:42+00:00","og_image":[{"width":376,"height":376,"url":"https:\/\/ewmrealestate.com\/blog\/wp-content\/uploads\/2019\/06\/BHHS-On-Solid-Background.jpg","type":"image\/jpeg"}],"author":"pattireid","twitter_misc":{"Written by":"pattireid","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/#article","isPartOf":{"@id":"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/"},"author":{"name":"pattireid","@id":"https:\/\/ewmrealestate.com\/blog\/#\/schema\/person\/3884199c9616c95232f0602dd52df5eb"},"headline":"Long Term Real Estate Investors Are In For A Bonanza","datePublished":"2010-07-08T09:51:12+00:00","dateModified":"2019-04-23T20:53:42+00:00","mainEntityOfPage":{"@id":"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/"},"wordCount":708,"publisher":{"@id":"https:\/\/ewmrealestate.com\/blog\/#organization"},"articleSection":["EWM News"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/","url":"https:\/\/ewmrealestate.com\/blog\/long-term-real-estate-investors-are-in-for-a-bonanza\/","name":"Long Term Real Estate Investors Are In For A Bonanza - 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