Investing is based on appreciation and a wide array of financing options

Everywhere you turn you hear about the poor real estate market. The bottom line is there

have always been ups and downs in the market. Adaptability determines who will be

successful. There is the right way to invest and the old way to invest and if you're

investing the right way you could set yourself up for life. The old way of investing was

based on appreciation and a wide array of financing options for even the worst borrower. If

you are stuck in this way of thinking you are one of those crying and whining about the

market and you will be for a long time to come. This way of investing is gone with the wind

and all that remains is the griping industry remnants left in the dust.

The right way to invest is based on the huge foreclosure market and its crippling effect on

values. You're probably asking yourself how that can be a positive, and here's how. The

real estate market is currently supporting two distinct markets. There is the homeowner

market, which consists of homes that are primary residence to its owners and there is the

foreclosure market. The homeowner market is made up of homes that can be financed with

traditional FHA/conventional financing because the homes will pass a mortgage appraisal.

The foreclosure market is primarily composed of homes in poor condition that will not pass

an appraisal and therefore in most cases cannot be financed traditionally. This leaves cash

buyers as the only outlet for banks to rid themselves of these liabilities.

Cash buyers are able to take advantage of these abnormally low values and profit heavily

from them. An investor in Cleveland can purchase a property for $25,000 put $20,000 in

repairs and rake in $1200 monthly in gross rents. That's 32% annual return on your

investment! Try getting that from your 401k.

My company specializes in taking the cash buyer business model to the traditional investor

who relies on purchasing investment property with a 25% down payment on conventional

financing. We achieve this by purchasing and rehabbing the property so that it is now

financeable to the average investor. I have clients all around the world purchasing

investment property with 25% down and seeing huge ROI's. A typical deal works like this.

We buy and rehab a duplex in a good neighborhood. We then hire a property management

company to screen and place desirable tenants. Once this home has been renovated and now

has tenants in place it can be financed because the banks now view this property as an

asset.

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