Yes, real estate is cheap right now. Yes, homes in America are more affordable than they have ever been on record. However, this doesn’t mean that you should just rush out there like a headless chicken and buy the first properties you can get your hands on and call it real estate investing.
Well maybe you should buy up everything you can at rock bottom prices, but you do need to approach it with some common sense and a good real estate investing strategy. You also need to recognize that while prices are still below their previous highs in almost every part of the country and good deals can be found in every town, some areas are already rebounding well, while others may stay depressed for a little while longer. Make sure what and where you are buying matches with your real estate investing strategy and expectations of returns. Are you OK with buying where you may have to wait several more years to sell for a big spread or do you want something that you can flip now?
So yes, buy low priced deals, but do it with a solid real estate investing exit strategy in hand. Know how you are going to cash out and when, and have a back up plan. Even better and smarter, only buy or add properties to your real estate investing portfolio which already hold instant profits.
Smart flipping means only buying when you already have a seller lined up, not buying and holding in hope of finding a buyer. This means instant returns and eliminating risk. So, yes please buy up bargain priced foreclosures and short sales, go heavy into flipping houses and help the economy rebound, just do it wisely and you will never need another source of income.
