The current real estate market has formed the perfect storm for real estate investing. All the market conditions have created an unprecedented opportunity to buy real estate, with positive cash flow, with little (or no) money down, with good or bad credit! Check this out…

1. Prices are falling. This is a period of incredible real estate liquidation, the great real estate sale! As the old adage goes…buy low and sell high!
2. Interest rates are low and look to go even lower! What an incredible time to establish long-term fixed-rate financing on investment properties!
3. Income is rising. When does that ever happen, when the prices are falling and the rental income is rising. There is major market stress causing the rental rates to go up in nearly every major market.
4. Great terms and seller financing opportunities are everywhere. With homes siting on the market longer and longer the sellers are getting more motivated and are becoming more amenable to creative options for getting their homes sold. Not only that but there are banks that are offering “seller financing,” that is…unstated, non-traditional loans created from the banks themselves.
5. Vacancy is falling in every major market. It is easier to keep rental units filled and at higher rents.
6. Limited new rental units being built. The major areas of development are not producing new rental housing and the existing rental housing is being eliminated through demolition (due to old age) and condo conversions.
7. A surge of new renters in the market. The country is still seeing an increase (net migration) of people coming to this country. We also have a wave of foreclosures that will create a new set of permanent renters (at least for the next 7-10 years). And the “echo boomers,” children of the baby boomers, represent millions of new renters in the market over the next few years.
8. The foreclosure epidemic is claiming income properties. Many people have been hit economically and are now using the rent monies to pay their personal bills instead of their mortgages. These same people are now losing those properties back to the banks.

Not only are we seeing all the “problems” (or opportunities) but we have major uncertainty with the election still pending. Depending on who is elected US president will have a major impact on the tax structure which will send a new set of waves through the economy. Regardless, every few years the market has to cycle and go through a correction. This particular correction just happens to be one of the best corrections for investors that our country has every seen. The only question is whether you take advantage of it or watch it pass you bye!