Information » Conservative investors have learned fro

There has been noticeable slowing in the market. One of my contacts reports that after years of strong sales of log homes in the North Georgia mountains this summers market slowed to a virtual crawl.


It appears that rising rates are taking a toll on the number of buyers who can qualify for a mortgage. Higher energy prices mean higher home maintenance costs. And Cheap Dion Dawkins Jersey , the seasonal drop in buyer demand, common in winter months, will add to the slowing pace of real estate sales.


In the investment community, appraisers are being pressured to be more conservative as lenders Cheap Zay Jones Jersey , stung by fraudulent deals and high foreclosure rates, are fighting back.


Many loans are requiring more than one appraisal in order to verify the value. Some appraisers, in an attempt to keep lenders happy, are dropping appraised values by as much as 15%. This is going to have a snowball effect in 2006 Cheap Tre'Davious White Jersey , as todays flattening purchase appraisals become tomorrows comparable sales.


Overall the economy is still strong, and with interest rates still at historical lows, there is no reason why investors cannot continue to profit from real estate, as long as we use common sense when evaluating deals.


In a crunch Cheap Kyle Williams Jersey , the only real protection you have against such market conditions is your equity. I know all the arguments about how you can't spend equity and how people with equity don't have any cash. BUT I can also assure you that the people who cash out their equity and use it for spending money find that this habit will eventually lead to trouble in a flattening market.


The refinancing craze of the late 1990's and early 2000's was based on the assumption that prices are always rising. We are now entering a cycle where this is not a reliable assumption in all areas. For the average investor in the current market, refinancing should only be done to eliminate other debt payments, and not for spendable income.


Conservative investors have learned from experience that markets go in cycles, and that hard times will come sooner or later. We are seeing the end of the investment cycle that began in the early 1990's. It is important that our attitude toward handling real estate investments change along with it.


Highly leveraged properties can work in a rising market that is seeing strong demand and growth Cheap LeSean McCoy Jersey , but when the market begins to flatten or drop, as is now the case, it is critical to avoid being over leveraged. Equity is your only real protection in a flattening market.


This means that many of the popular strategies of the past 10 years, that led to high leverage should only be used carefully Cheap Tremaine Edmunds Jersey , if at all. A seller may offer you 100% financing to avoid a foreclosure, by letting you take over their house subject-to their existing loan. But you have to be sure you can generate enough income to cover those payments.


Creative strategies that lead to high leverage are not a good idea in a falling market. They work well during strong job markets, when housing demand is at it's highest. When the demand slows down, high leverage deals are the first to suffer loss of cash flow.


The safest and best way to invest in real estate is not the sexiest or the most glamorous. The safest way to invest is to have adequate equity when you buy. Whether you want to hold for years or sell quickly Cheap Josh Allen Jersey , your profit is in your equity.


I can't sell as many seminars, tapes and courses by telling you the facts.


To sell stuff, we are supposed to get you all worked up into a lather over how wonderful it's going to feel when you start making $10K per month tax free by pulling out all your equity. But don't forget about the other end of that tax free income is a loan that someone has to pay back.


This brings me back again to the fact that you make your money when you buy. Why is that? Because you are supposed to insure that you pay a lower price that will guarantee equity. The presence of equity is what gives a deal it's value. The more equity that is there, the better the deal is likely to be. It's just that simple. And equity is like a life jacket when real estate markets begin to sink.

The first pillar is understanding and believing that referrals are the best way to grow your business. Why? There are four reasons. One is the fact that prospects prefer to meet you through a referral over any other way. If you need a plumber Cheap Devin Singletary Jersey , would you rather pick a random name out of the phone book or would you rather use the one your next door neighbor had a great experience with? All of your prospects fall into that same situation.

Another reason is that referrals lead to a better closing ratio than any other method of client acquisition. The endorsement from the referral giver, implied or actual, boosts your credibility with the prospect and that increases your probability of converting the prospect to a client.

The third reason is that referrals are the . Wholesale Nike Shoes Wholesale Air Jordan China Wholesale Air Max 270 Cheap Nike Shoes Online Wholesale Nike Air Max Wholesale Max Shoes Wholesale Nike Shoes Shop Wholesale Nike Shoes China Wholesale Nike Air Jordan Wholesale Nike Shoes Online