Bull Gains in a Bear Market - Real estate investing for professionals

Introduction

The economy is in recession. Thousands of employees are getting laid off every day. Millions of Americans have lost billions of dollars in their personal portfolios. Should I keep going? To the layman, the current economy may indicate a time to return to the time-tested financial idioms, don't put all your eggs in one basket, work hard and save money, look before you leap. All of these ideas are based on a conservative style of investing. The only drawback to conservative investing of course is conservative returns.

Note: If you are happy making 10% on your portfolio, happy with 15% and worried about risk at 20%

"STOP READING THIS ARTICLE NOW"

If, however, you are the type of person who can appreciate opportunity when it knocks, then please continue.

Methodology

Various opportunities have availed themselves and some areas of the market are growing like gangbusters. The following list details some of the more prominent opportunities to be had in a strong declining market;

1. Short-sale property acquisition (loan balance exceeds value)

2. Pre-foreclosure property acquisition (i.e. late on payments by several months)

3. Equity purchase agreement with borrowers(s)/homeowner(s)

4. Single REO property acquisition through realtor

5. Bulk REO property package acquisition through exit strategy company

6. Direct Purchase of single lien from lender

7. Direct purchase of multiple lien package from lender

8. Home-equity lines [**with EXERCISED CAUTION**]

9. Buyer representation

10. Loan origination

All of the above offer short to medium term return-on-investment for initial capital invested. Typical of market economics, the acquisitions made in bulk offer greater discounts and decreased payout periods with respect to the initial investment. I should also note that all transactions should be conducted with licensed professionals who have their licenses registered with a supervising broker. STICK WITH BIG NAME COMPANIES. Check your references and do research on EVERY COMPANY before doing business with them.

IF YOU ARE BEING SOLD BY A PUSHY SALESMAN BEWARE!! Any successful professional realizes that his or her past successes and referals speak for themselves. I follow the golden rule and treat everyone the way I desire to be treated.

I will be expanding on items 1 through 10, covering one topic each week for the next 10 weeks.

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