The Real Estate Reformation

The Sub-Prime Mortgage Lending crisis has changed the face and landscape 0f the Real Estate market for much of the foreseeable future. Foreclosures have risen to an all-time high, reaching roughly 50% of homes.

The Flippers are now flopping. Gone is the day of no money down and quick reselling of properties.

So does all of this "doom and gloom" mean an end to the profitability of Real Estate? By no means. That is such a foolish notion. What we have experienced is merely a correction in the market. The market was saturated with overinflated prices. This allowed for poor investment methods. Now the prices are normalizing.

I have dabbled in single family home residential properties. That is, by the grace of God given the current circumstances, not my expertise.

My focus in on Multifamily Residential and Commercial Properties. This means duplexes, triplexes, quadraplexes, and pretty much any # of units beyond this. This is a great method because I do not deal in speculation, which means that I don't buy property based on the predicted future value.

I base all of my real estate investment decisions based on the cash-on-cash return, meaning if I put in $50,000 and can find a property that will give me back 25% per year, then that shows me its value.

This is the best time to invest in Multifamily property. People are losing their homes and need a place to live. You can rent them your apartments. The more units the better. In case you have one unit empty and own 10 units, its only 10% of your income. If you have one unit empty with your single family house, you lose 100% of your income. The numbers just work better. What a beautiful thing.

I will post more specific data come some time soon.