DoorFly.com: Diversify with Real Estate Investing

This post is for the potential real estate investor who is on the fence about whether to buy a home(s) for a long-term investment. A lot of people will tell you it’s a bad idea to get caught up into owning multiple properties because of the various risks and headaches associated with it. I say 2 things in response to this: Have you ever done it? If so, how prepared were you? You can eliminate a majority of the risks if you know what you’re doing. But, this is another topic. What I want to discuss is why now is a good opportunity to invest in real estate.

2 Reasons to Invest in Real Estate:
Stocks are Plummeting, Home Prices Have Fallen

STOCKS ARE PLUMMETING
Many experts will tell you that the economic slowdown is just getting started. Meaning it could worse, much worse before stocks begin to climb again. My question is this… Is it smart to continue to throw all your money into stock, bonds, and mutual funds and to be at the mercy of the stock market for all of your personal investments? Or wouldn’t it be smarter to build up a nest egg in the real estate sector in addition to buying stocks? I’m not saying to stop investing in the stock market. All I am suggesting is to diversify some of those funds into other investment options like real estate. Real estate investing provides an investment platform where you have more control. It eliminates the risk we face, especially recently, with the crooked Banks and distressed businesses going bankrupt.

HOME PRICES HAVE FALLEN – REAL ESTATE AFFORDABILITY
This is the best reason why I recommend diversifying into real estate. Now is the best time for buying real estate. If you shop around right, you literally can find a home between 20% and even 40% below the normal price. It truly is a buyers market!

My only warning, make sure you have an exit plan. You should never purchase a home as an investment without knowing how you will sell it. Meaning, if you want to hold onto it and rent it out, make sure you have a plan in place to find good tenants. If you want to flip it quickly, make sure you have a buyer waiting on the other end. You will make a majority of your money going into the investment deal, but if you don’t have an exit plan, you may find difficulty cashing out on your investment.

An article from biggerpockets.com provides further insight into the investment decision…

“If you have judged this market for what it IS and looked at the numbers that have to materialize for the investment to make sense, then now is as good a time as any to invest. It’s a matter of knowing your market and predicting the future fairly well. If you are in a market where the economy is diverse and the only thing holding it back is a national slowdown, then it’s pretty safe to say your market will rebound and probably won’t sink into oblivion.”

Article Source: Real Estate Investment based on how the market IS, not its up-ness or down-ness, Written by Mike Farmer

Lastly, If you do decide to invest in real estate, use DoorFly.com to find a rebate realtor. DoorFly provides a platform to negotiate real estate agent fees. Both parties benefit from using DoorFly’s services. Real estate agents gain new business. The home buyer and seller are able to find a qualified real estate agent that puts cash back in their pocket.