Sub-Prime Mortgage Woes,= Big Time Opportunities in Real Estate Investing!!!

Today’s Real Estate Market: The Right Time To Invest In Real Estate Is Now!

Real estate remains the best investment available, despite the recent turbulence in the market due to concerns with sub-prime lenders.

According to the National Association of Realtors, “Most sellers are seeing a very good return on their investment, with a median of over 50 percent appreciation over the past six years”.

While year-to-year fluctuations do occur, real estate remains one of the best-performing, most consistent long-term investments.

You can still diversify your investment portfolio by adding real estate!
Get RICH SLOW. Adding income and building wealth with real estate is simple, but it is not easy without professional advice from real estate investment experts.

Savvy real estate investors are in buying mode this spring says Jackson, MS real estate investment expert, Jim Adams, President of the MS Real Estate Investors Association and Managing Member of Brown Dog Properties, LLC. The savviest will keep these five things in mind:

1. Negotiate the best deal possible. Sellers are motivated this time of year, and with the number of sellers out there, there is room to wheel and deal.

2. Do your homework. There are plenty of options for low-interest investor loans; find the best one for you. Get pre-approved before shopping for a property.

3. Don’t make the mistake of thinking you need to be rich to invest in real estate. Many investments can be made with little or no money out of pocket.

4. Find a system that works and stick with it. Many people have made a lot of money investing in real estate, so don’t try to re-invent the wheel. Decide on your tolerance for risk and invest accordingly. Single-family homes are more stable and provide returns over the long term.

5. Get over your fear. Many will never think twice about signing a check over to their stock broker, but they hesitate to enter the much more stable world of real estate investing. With this unique buyers market, this is the worst possible time to let your fear paralyze you.


“It is my firm predication that 2007 will represent a fantastic buying opportunity for real estate investors, and the months of April and May are a great time to get started,” Adams said.


Obsession with Sub-Prime Lending Crisis

According to realestateabc.com, "Sub-prime" lending accelerated is certain areas. This isn't necessarily due to more borrowers with bad credit, but because qualifying is easier on these loans since they offer lower down payments with "no-doc" qualifying. This means fewer buyers have to document their incomes and savings in order to qualify for the purchase.
Many of those sub-prime loans, especially ones originated in the last two years, have begun to default.

In addition, some of the loans were fraudulent. Sellers were coming up with straw buyers to purchase the home at an inflated price just so they could get money out of the property, and those borrowers never intended to make ANY payment on the loans. Even though this occurred on a minority of loans, it could have a cascading affect that ripples through the housing industry, but mostly in higher priced areas- not everywhere. The problem occurs because prices were artificially inflated for a variety of reasons, one of which is the fraudulent sellers and buyers who looked to unload properties.

Still, sub-prime loans are only a fraction of all the loans out there. Then, only a fraction of sub-prime loans are defaulting”.

The reaction from the market has opened huge opportunities for real estate investors offering lease to own properties.

About Jim Adams, III: Adams is a former Registered Representative for Princor Financial Services, a division of The Principal Financial Group. For years Adams sold mutual funds and 401k plans for the nation’s largest provider of Retirement Plans.

In 1994 Adams was named by The Mississippi Business Journal, one of the Top 40 Business People In the State Under 40 Years Old. In 2002 Adams left the traditional world of financial services to pursue a career in real estate. He has narrowed his focus and specializes in real estate investing. He has personally owned more than 80 investment properties and has helped dozens of real estate investors from New Jersey to California get started investing in Mississippi Real Estate.