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How to Make Money in Real Estate in the New Economy

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As a beginner to the world of real estate investing, I found this book a realistic, down-to-earth perspective on the real estate market. It is a primer on the author’s perspective that real estate is still a solid investment in 2011-2012, even with the economic meltdown still in progress. Although he is quick to point out is not nearly as easy to invest as it was in 2005 at the peak of the bubble.

This book is an excellent, in-depth summary of the trends and mind sets leading to the recession, and does a great job of explaining what to do about it. With great tragedy and strife, comes great opportunity and reward…and for those who can adapt to succeed in these times, they will profit as the economy rights itself.

This book Themes

– The amatuers who bought at the real estate peak, on cheap financing and emotional zeal, expecting to sell at even higher pricers…have fled the market. The pro’s who remain are buying on TODAY’S cashflow.

– Expect to put 20% down or more for investment properties…banks are wary of investors.
– Expect to hold your investments for 3-5 yrs, flipping is no longer in fashion.
– Adapt to the current market’s supply/demand, plan to learn a completely different stragegy in 3-5yrs as the economy develops…those who weren’t bankrupted by the fall of 2007 adapted by diversifying into new services and markets (property maintenance for bank owned properties, or the author’s negotiating with banks on behalf of investors).
– Invest in your area, where you know and where you can control…it’s appealing to chase after properties in distant cities and markets, but you lose your competitive advantage and your control over your investment. Leave international investing and trans-US investing to large funds and companies, the small company and individual will still be able to compete on their home turf with efficiency and first-hand knowledge.

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