When you buy you make money…

Sounds counter-intuitive doesn’t it. Make money when you buy? But “wait a minute” you say, “I am spending money because I am buying something”. Well yes. That’s true. But with real estate, especially in this down market if you buy now and hold on you will definitely make money. The days of flipping until you are swimming in green is long gone. Now its a holding game and here in the Bay Area you can pick up some fantastic properties and actually be cash positive.

 Lots of REOs and foreclosures out there. The truly dominate. What I’m finding is that more people are going out on the market paying all cash.  We should all be so lucky. But for the ones that are out there looking for good deals there’s gold in them thar hills. So many people need to off load property its painful to watch it all go by.

For example, here in the East Bay a great 2bd condo was listed for $218K with a $62K assessment. Another condo smack dab on Alameda a stone’s throw from the beach went for $279K. By the time you ran the net sheet they were both even inspite of the outrageous assessment. Single family homes are also going for really great prices. Off of Golf Links road there was a 3bd/2ba home for just over $200K, another property in Leona Heights went for just around the mid twos. Cash flow in California? You bet. We haven’t seen this much cash flow in a long time.  And if you want to really want to look at some great cash flowing properties you should take a look at Antioch, Pittsburgh or Brentwood.

I am trying to get Carole Rodoni in the interview hot seat to let us know what she thinks about the market. She will be able to claifry for amny women what the 4  defining markets tare right now.  If you are going to invest you better know the market place and where to invest accordingly. The 4 markets, per Carole Rodoni are: teaser markets, negotiation market (reo’s and short sales). eroding markets and discount or soft markets.

2, 3, 5 years from now we’ll be on the upswing again. If you haven’t had a chance to look at the cyclical real estate patterns you should take the time to do so. If you are waiting to read in the papers or hear on the news that we have hit rock bottom we’ll already be on the upswing and you could miss the boat.

When I am out in the field I see many many MANY properties and neighborhoods that continue to garner multiple offers. It’s only a matter of time that the area you are interested will be on the way up as well.  Would you rather wait or take advantage of the opportunities in today’s market and better yet will you be pepared?