Image courtesy BAKOKO

This surge in investor buying activity, which includes private equity firms, hedge funds and rich individual investors alike, is being driven by a growing realization that the window of opportunity could be about to slam shut as market conditions improve.

Brad Geisen, CEO of Foreclosure.com, tells CNN Money that many investors believe that the days of rock bottom prices and a well-stocked inventory will be short lived.

“No one knows how long it will last,” explains Geisen. “So these investors are trying to buy as much as they can right now.”

The Blackstone Group is a classic example of an investment firm scrambling to take advantage of the situation while it still can. Last year, it spent around $2.7 billion on the purchase of some 17,000 foreclosed homes, which have since been turned into rentals. Even now, the firm continues to snap up thousands of homes each month while it still can. Meanwhile, Pine River Capital Management’s Silver Bay Realty Trust has recently jumped onto the bandwagon, buying up more than 2,500 homes in some of the country’s worst-hit markets since it went public last December. The trust has plans to buy another 3,000 homes, according to CNN Money.

Investors are also seeing opportunity away from distressed homes. John Paulson, manager of the Paulson & Co., hedge fund, is betting on the new home market picking up steam in the coming months and years, buying up swathes of undeveloped land in states like Arizona, California and Nevada. So far, the firm has snapped up enough prime real estate to accommodate 25,000 homes.

Finally, investors are also looking to the stock market as a way of cashing in on housing, with publicly traded home builders like KB

Image courtesy nwtransplant

As 2012 drew to a close, there were successive sales of two mansions at Westway Drive in the Lido Shores area involving deals worth a total of nearly $10.4 million, while in May SBRE sold a Ritz-Carlton condo near the Golden Gate Point Peninsula area, a transaction that was worth nearly $1.2 million. Although the firm feels the outlook is encouraging, it still thinks there is a largely untapped growth potential within this sector.

At the end of the year there were 700 luxury homes listed for sale, representing a 20 month inventory. The overall market has an inventory of just four months.  SBRE is in agreement with other realtors, in that enticing more foreign buyers, particularly European investors would add more excitement to the Southwest Florida luxury home market.

In 2012 there was a 15% increase in the number of foreign visitors in the area, and real estate agents feel additional gains could be achieved if more direct flights from points of origin overseas are accommodated at the Sarasota Bradenton international Airport. At the moment this airport only has a Canadian air linkage. Some of the larger realty firms are already spending substantial sums to try to stimulate interest in affluent overseas buyers, particularly those from Canada, Latin America and Europe.

Lake Club, an upscale gated community in the master-planned development of Lakewood Ranch is just one property that has already seen significant success in attracting overseas buyers. Approximately 11% of the residents in this neighborhood are from foreign countries including Canada, Poland, Spain, France and the UK. This particular development was named as being the best master-planned community in the US in 2011, but still has around seven years of construction before it is completely built out.

Tiehel commented on the certification saying “By using the Investor Center, real estate investors can learn how to best capitalize on the struggling housing market by researching and acquiring quality real estate assets as a long-term wealth creation strategy. The Investor Center guides new real estate investors down the right path and streamlines the process for more seasoned investors.”

Ferguson went on to explain further saying “The market is great for investors, but investing in real estate is quite different than traditional home buying and selling. It’s a more complex process requiring additional levels of expertise. The Investor Center provides the resources to make investing in real estate simple, profitable and even fun.”

Alan Ferguson is a multimillion dollar producer, and is top producer in Long & Fosters Philadelphia Region. He has experience in all phases of real estate, and is licensed in Pennsylvania, New Jersey and Delaware.

The CEO of OwnAmerica and host of WABC’s Rand on Real Estate is quoted as saying “We’ve seen too many people giving bad advice about ‘getting rich quick’ in real estate. In truth, real estate is a long-term wealth building assets. It works when you do it right. We want to show our clients how to do it right.”

Alan Ferguson can be contacted at 484-832-4553, or you can visit his website.

© kovaleff – Fotolia.com

Anyone who does not qualify for a mortgage will still need a place to live. This provides an opportunity for homeowners to rent out their properties while waiting for their investments to appreciate. The question for these investors becomes, “In this see-saw real estate market, where is the best place to buy a property?”

The following list can shed light on this dilemma, as it highlights the top five cities in the United States where rental demand is high and housing inventories are falling.

1. Tucson, Arizona, a city with a median single-family home list price at $170K, this metropolis is now the number-one city for real estate investing in the United States. The investment strategy in Tuscan is to buy a home at a discount in a market where prices have dropped thirty-one percent, hold it, and rent the property out while waiting for its value to appreciate. Collecting rent offers property owners a steady monthly income, which they can use to help pay their taxes, mortgagees or maintenance. Tucson is a college town and popular vacation spot where there is no shortage of renters, since the average Joe in Arizona still cannot qualify for a home loan.

Tucson, Arizona: Number one in the US for investors right now © Andy – Fotolia.com

2. Austin, Texas, is next on the list, mostly because the city is one of the newest tech-business hubs in the United States. For 230K, investors can find a home in a city that was immune to the housing crisis, as Austin’s property values remained stable when the rest of the country broke down. This metro-area is also a college community and is well-known for its vibrant nightlife. The student housing demand and yuppies in the area who are looking for a place to live provides a winning mix that has investors finding it hard to lose in the city of Austin.

The tech hub that is Austin could be a source of riches for all wannabe investors © Brandon Seidel – Fotolia.com

3. Kansas City, Missouri, home prices were hit hard a few years ago, but property values in this city have now become some of the fastest in the country to recover. At an average increase of four percent per annum, investors can buy a single-family home, condo or co-op for about $135K. However, new home buyers will need to act quickly, as the word is out on Kansas City where housing inventory is down twenty percent from a year ago and is shrinking fast.

If you’re looking to make a quick buck, you want make it anywhere faster than Kansas © Tupungato – Fotolia

4. Baltimore, Maryland, home prices are stabilizing, and according to realtor.com, property values have hit the bottom. The average median list price in this city is $240K with a forecast to increase over three percent a year. Economists also estimate that Baltimore will receive a full economic recovery within the next two years, which is the reason why investors are scooping up properties in this high-demand metropolis. Most likely, an economic recovery will appreciate city’s property values, dramatically.

Baltimore hit rock bottom months ago – now, there’s only one direction in which it can go © John Keith – Fotolia.com

5. Salt Lake City, Utah, a town where housing inventories have shrunk the most out of all the five cites on the list. Buyers scooped up more than thirty-eight percent of the available units in Salt Lake City after realizing a five-and-half increase in median price in the last year. The small town has become a growing tourist site, and most people residing in Utah still cannot qualify for a home mortgage, which forces them to rent properties.

Salt Lake City: Inventory may have sunk, but few residents can afford to buy anyway © Andy – Fotolia.com

The report found that the median cap rate for single tenant net leased Dollar General and Family Dollar properties compressed by 16 basis points between the third quarter of 2011 and the first quarter of this year. This is due to a lack of investment-grade assets available at a low absolute dollar amount, historically low interest rates, and a surplus of 1031 exchange investors with low equity requirements.

Dollar General and Family Dollar assets have an average asking price of $888,754, giving an average price per square foot of $103. There is a strong consumer demand for dollar stores, and there are rapid expansion plans for Dollar General and Family Dollar for next year. This year Family Dollar increased new store development by more than 50%, and there were 1100 new Family Dollar and Dollar General stores constructed.

These stores attract customers due to the low cost of the goods sold as well as the convenience of the smaller store format. Dollar stores have also increased the competition for grocery stores, and there is an increasing percentage of consumers who purchase grocery items at dollar stores each year.

Transaction volumes are heavily concentrated in recently constructed dollar store properties, but those stores located in above average markets with strong demographics are in high demand. It is expected this demand will remain high as private investors continue to look for properties with long-term leases, attractive price points and investment-grade tenants. You can read the full report here.

The Boulder Group is a boutique investment real estate firm specializing in single tenant net lease properties. It is headquartered in suburban Chicago and was founded in 1997.

Assuming there is no agreement forthcoming for avoiding the “fiscal cliff”, real estate investors should be giving some serious thought to how your real estate investments, rental houses and commercial buildings might be impacted. For some there will be little change, but for others who have properties located in or near markets that will be directly impacted, the changes could be swift and severe.

According to reports concerning analysis of the impact, one of the most significant aspects of the sequestration bill would be large cuts in various types of defense related spending. If you own rental real estate in an area near a major military base, chances are you could see a local impact that would potentially reduce demand for rental housing, and could lead to an increase in tenants who would lose their jobs.

One such area that would be dramatically impacted is Fayetteville, North Carolina, home of Fort Bragg. The required automatic cuts in new defense contracts, reductions in personnel, and budget cuts dictated by the sequestration process are designed to reduce government outlays. And as painful as this will be, something has to be done to avoid an even worse situation somewhere down the road. But some communities will experience dramatic changes in their local real estate market, at least for a few years. Unemployment among veterans will rise. Communities where military and defense related jobs are concentrated will see a relatively fast impact that will quickly bleed over into the local housing market.

The government posturing over sequestration is getting somewhat tiresome, as everyone is merely jockeying for position, and no detailed terms for an agreement have yet been identified. Here is a list of the general cuts that would be implemented. Your challenge is to determine how this list might impact your real estate investments, or any investments for that matter.

My guess is that falling off of this particular fiscal cliff might be less painful that waiting for a higher fiscal cliff to arise, so in some ways perhaps we’ve got a better chance of long term survival if we go ahead and accept these cuts now. I get that. But as real estate investors, this is a classic example of a looming change in the fundamentals that will come quickly in some markets. Therefore, it’s important to know whether your properties are located in a market that will be sensitive to these changes.

Other states most vulnerable to military and defense cuts are Virginia, Texas, California and Florida. Virginia has a major concentration of military and defense related jobs and industries. And there will be specific local areas within each state that will be most affected.

Investors located near military and defense related installations or businesses should take careful note as to how the approaching changes might impact your local market. It would appear that a reduction in demand is a very likely outcome if the planned cut backs begin to take hold. The military-defense sector would be one of the first, and would be big enough to have a significant impact on local markets in a variety of areas.

In today’s challenging market, it pays to remain alert and vigilant to follow your local market fundamentals, and be aware of how any negative changes in those fundamentals could impact your properties and your cash flow.
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Donna S. Robinson is a real estate investor, author and residential market analyst located in Atlanta, GA. Follow her on twitter at donnaconsults. Her latest book, Basics Of Real Estate Investing is now available on Amazon.

mage by porchlife via flickr.com

We’ve already had 4 years to get a feel for Obama’s impact on housing. It shouldn’t be too difficult to make some educated guesses about the best real estate investment strategies, based on what we’ve already seen.

We already know that student loan funding is a priority for the Obama administration. As long as student loans are readily available, rental properties well located in cities with major colleges and universities should see strong demand, low vacancy rates, and the ability to rent for above-market rates, since a 3 bedroom house may be rented to three separate students.

Consider this article from Market Watch, listing the top ten towns for rentals to college students. Most folks probably didn’t know that there are over 40 major educational institutions in the Boston – Cambridge market where Harvard and MIT are located. 3 bedroom homes in the college market are renting for an average total of $3900 a month, when rented to 3 students. Compare that to a typical mortgage payment there of $1370 per month, and you can see how this might be an interesting investing angle.

Atlanta is also on the top ten list, with a 3 bedroom / 3 student rent rate of $1485 compared to average mortgage payment of $650. Atlanta is also a hotbed for foreclosures, many of which are located near various educational facilities within the downtown area. Combine a good buy on a foreclosed home with a student rental in a market like Georgia State, Georgia Tech, Emory University or Spellman College, for a winning combination of low buy price and high market rental income.

Also included on the top ten list were Nashville, TN, South Bend, Indiana, St. Louis, Syracuse, NY, Houston, TX, Washington DC and Chigago, Il. Notably these towns are more likely to see growth in the construction sector as a direct result of expansion of academic facilities. One of the few commercial sectors that has been doing steady business is additions or improvement projects for colleges and universities. I’ve personally seen several colleges in my local area building new facilities or expanding existing facilities since Obama took office in 2009.

Another “holy grail” of the Obama administration will be the full implementation of Obamacare. Many college towns are also home to one or more major hospital or medical facilities that may also be tied to a local university. Demand for workers of all types in the medical profession will be growing in the years ahead, no matter who is president, as a result of the aging of the baby boomer generation.

Rome, Georgia, a small town located in the northwestern mountains did not make the top ten list, but Rome is one of those towns that exemplifies the educational – medical relationship. The population of Rome is only about 37,000 officially, but Rome has several universities and colleges, as well as two major hospitals and lots of other clinical facilities. As such, the employment rate and rental market in this town has not suffered nearly as much as it has in other nearby cities that do not have colleges or major hospitals.

Another related segment that is seeing increasing demand is in the unique niche of providing access to short term housing or apartment rentals for family members of those who are in town to receive medical treatments. When a patient has to undergo several days or weeks of chemotherapy for example, family members would prefer accommodations in the immediate area that, unlike hotels, will allow them more space and the ability to eat “at home” to avoid extra costs. Veterans hospitals have many out of town families with a need to stay close by for extended periods of time.

The rental property market does best where job growth is strongest. The Educational and Medical sectors are primed for major growth over the next four years and probably well beyond that time frame. Incidentally, the advances in medical technology and educational technology have not yet resulted in a reduction of their labor force. Instead labor needs have increased along with the availability of new equipment and applications. This is unique when you consider that technology is also the reason why many industries such as manufacturing, no longer need a large labor force.

In today’s challenging economic climate, it makes sense to think creatively about the economic and legislative fundamentals that lie before us, and develop real estate investment strategies that are most likely to be supported by those fundamentals.
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Donna S. Robinson is a real estate investor, author and residential market analyst located in Atlanta, GA. Follow her on twitter at donnaconsults. Her latest book, Basics Of Real Estate Investing is now available on Amazon.

Screenshot of a sample website from www.realestateinvestorswebsites.net

This means that real estate investors can now actively engage with those visitors to their websites that are looking to sell or buy. Their aim is to attract leads through advanced onsite search engine optimization, targeting the local market. As soon as visitors land on the website they receive a welcome from a video speaking model. This gives personalized, helpful information, commanding their instant attention, adding credibility to the website and helping to convert more visitors to prospects.

The marketing process is carried out by inbuilt auto responders, sending out well-timed personalized information. The aim of these email messages is to convert more prospects into closed deals. Each website is fully customizable, and comes with a simple virtual back office that can be used by anyone with only a basic knowledge of computers. These websites can be ordered and ready for business in just one hour.

Image by Gregory Han via flickr.com

Setting up your home office is no different than setting up any other business.  If you don’t have the right tools and equipment then you’re going to make things much harder on yourself than they need to be.

Here’s a good checklist to use to make sure you have all of the things you will need to make your home office a place that makes you money.

Reliable, Fast Computer

This is the nerve center of your home business.  Everything you do will involve your computer in one way or another.  You need to make sure it is capable of running today’s sophisticated software programs with speed to spare.  Also that it has plenty of storage for both documents along with photographs and videos.

Dual Monitors

There is too much information out there on the web to try and see it all on one screen.  Many times you are researching one document while writing another. Or watching a podcast while making notes on a spreadsheet.  Trying to do this all on one monitor is beyond frustrating.  Save yourself the headache and get a good pair of monitors.  The prices on monitors have dropped that you can now get two for the same price that one would have cost you just a short time ago.

Computer Speakers

It pretty much goes without saying that we live in a multimedia world.  Everything online now not only has video buy audio as well.  The only way you’re going to hear it is with a good set of desktop speakers.  They don’t have to be top of the line but you also don’t want ones that are going to sound tinny or rattle on your desk if the volume is turned up.

Wireless Keyboard and Mouse

You really don’t know how important these are until you start using them.  I love being able to move my keyboard all around my desk and still be able to type away.  Or sit back and put it in my lap and type from a comfortable reclined position.  And having a mouse that can go anywhere without being tied down gives you more room on your desktop and less cables.

Comfortable Headset with Noise Canceling Microphone

This falls under the same category as the wireless keyboard and mouse, except this is much more important.  So much business today is done through VOIP. (Voice Over Internet Protocol). This is the feature that lets you talk and surf the web at the same time using your internet connection.  It allows programs like Skype to connect people from all over the globe using nothing more than their internet connection and yet they can see and talk to each other.  Having a good headset and noise canceling microphone is a must for using any of these online communication services.

Surge Protector

All of your equipment is at risk from the smallest spark of static electricity in your lines if you do not have a surge protector.  I recommend getting one that also has a battery backup.  That way if your power surges not only is your computer protected but you’ll have time to save your work and power off your computer properly.

Color Printer

This goes along with the same train of thought as desktop speakers.  Not only is the world multimedia but it’s only in living color!  To be successful you are going to need to be able to share your thoughts, ideas and business proposals with others using eye catching colors and graphics.  Having a good color printer is the only way to go.

Laptop or Tablet Computer

While not so much a necessity, these items just make your life a whole lot easier.  Laptops let your work anywhere you like.  Most laptops today have as much computing power as a comparable desktop.  And tablet computers like the iPad make taking your work on the road much more convenient.  You can download a document or article you want to read onto your tablet and take it with you anywhere.

High Speed Internet Connection and Modem

Most of today’s websites incorporate video as part of their content.  Video requires a ton of bandwidth to watch without it getting all choppy.  Because of this you are going to want to get a mid-range high speed internet connection.  Broadband speeds have come a long way over the past few years and what used to be top speed and highly expensive is now considered mid-level and very affordable.  Along with broadband you are going to want a modem that can handle the increased amount of data that will be coming into and going out of your home.  If your modem is not up to par, then a data “bottleneck” will happen and you’ll see parts of your home network slowing down or crashing.

Daniel Doran is a 20+ year veteran in the real estate industry. He is a previous owner of a law firm, mortgage and title company. Daniel has also written several books on mortgage modification, short sales and real estate investing. He currently specializes in Commercial Finance and Real Estate Development and is a graduate of Manhattanville College and Brooklyn Law School. You can contact Dan at Buildings By Owner.

The leads will reach the inboxes of thousands of interested investors around the clock, to ensure that they are privy to all the important real estate investment possibilities that might have otherwise slipped through their fingers.

When the report pertaining to increased foreclosures was made public, there was a sense of shock in the industry, although this presents itself as a golden opportunity for people interested in bying properties as investments. Their investment portfolio is sure to be enhanced by these latest additions at prices way below the current market value.

Investors Classified also hopes that these new developments will ensure that there is greater interest among potential investors, who’ll now want to be more aware of the happenings in the real estate market. Along with the knowledge of the run of the mill purchases & sales, potential investors will also have an opportunity to make smart decisions by focusing on good foreclosure opportunities.

The free leads are currently being offered at Investor Classified’s website. All potential investors simply need to sign up with their basic information such as their name, contact address, phone number and e-mail address which are safely stored by Investor Classified. The signed up individuals will then get a steady stream of real time updates on every new investment opportunity that presents itself. This of course will have both the business-as-usual deals as well as deal pertaining to properties that have been lined up for foreclosure.