Real Estate is unlike any other investment or ocupation. You put a small percent down and your return is based on the whole purchase price, not just on your down payment.. When you purchase a property, typically you are borrowing 70 to 80% of the price. You can't do this in the stock market or any other investment.
The market now is depressed around the country, but not all over the country. Some city's are as strong as they ever were. Texas is a good example, many markets are doing great. Our Central Florida market has been tough for over a year. It appears that the trend downward in prices has turned with an increase in sales each of the last three months. The number of properties with pending contracts is about double last month. The total properties in MLS listings is beginning to shrink this month. This does not mean that the slower market is over, but it does mean that it trending in the right direction.
We have been in a Buyers Market for over a year. This means that there are a lot more Sellers than Buyers. There has never been a better time to buy a property than right now. Real Estate Investors always find it is a good time to buy. The difference is that the techniques are different in each market. When it is a Sellers Market it is rare that a Seller will take back paper (a mortgage). As we swing back to a Buyers Market the Seller is more likely to take back paper to make the sale. Every commercial deal I've done, I required them to invest in their property with me. They took back paper for 20 to 80% of the purchase price.
I like Commercial Investing because, when I buy a destressed property, I know that I can increase the value by a third within 6 months or less. This can also be done with single family homes, but the numbers are so much more in Commercial.
