Real Estate Bubble Bursting

Is the so called real estate bubble finally bursting. The press would have you think so with all of the articles lately on the subject. They have to have something to sell the newspapers and magazines with and real estate is a hot topic. I too read these articles with great interest about the glut of condos and single family homes on the market in Florida, Virginia, Arizona, Las Vegas and other hot markets of yesteryear. There are still a few very hot markets out there that don't seem to get mentioned in these articles and for the savy investor that's just fine for now. By the time the hoard of investors find these gem markets it will just about be time to sell and find the next emerging market that the press and hoard of investors will descend on about a year too late.

Salt Lake City is Hot

Way back in September of 2005 I invested in several pre-constuction homes near Draper Utah. The best of these I bought at $259,000 and is now worth $325,000. The Salt Lke City and Provo areas are on fire. With appreciation running around 2-5% per month it's a beautiful thing. To succeed in this market you have to do your due diligence on what the best zip code is and what type of home to buy. There is still room to profit in this market if you get in now. See my earlier post about investing in emerging markets and good luck to all.

Joint Venture Agreements

A great way to share the wealth is to bring others in on a real estate investment deal with you. Assuming your getting to the point where your track record is great and you only have so much cash to put down you now need to look at bringing in a joint venture partner. This helps in two ways. You can use their credit to obtain a mortgage and or use their money for the down payment and any expenses along the way are split 50/50. I split the expenses 50/50 with my partners but when we sell I get 60% and they get 40% of the profits. This is because we are using my knowledge of real estate investing and I do all the work. The only work my joint venture partner needs to do is go through the mortgage process if I'm using their credit. If I use them only for a credit partner I pay them $500 up front when the deal closes and $2,500 to $3,000 when I sell the property. For a good Joint Venture Agreement example check out Bill Bronchick's book Flipping Properties page 199.

Real Estate Investing Resource

It takes time effort and knowledge to find the most profitable emerging real estate markets in the U.S. but there are shorcuts available. I use Signil Wealth to help me locate emerging markets. They spend over $100,000 for data and then sift through it to find the best markets for their clients to invest in. Signil's process takes the guesswork out of the process of finding emerging markets for the average investor. They do charge a fee for their service but it is very reasonable considering what you get. The service includes their market selection of where to invest, plus they have already set up a team on the ground in that market to assist you in every phase of the process. To find out more on Signil Wealth go to signil.com and see for yourself what they can do for you.

Another Internet Tool For Real Estate Investing

Check out census.gov and go to the Business and Industry catagory. Click on local employment dynamics, on the next page click on local employment dynamics again and then click on State Partners. There you will find the blue coded states that submit emploment figures and articles about that particular states job market. This will help you determine the econmic health of a market. If the job market has been weak but getting stronger this could be a good place to invest. If the job market has been moderate to strong but a large employer is moving to town, pay attention to the neighborhoods that will supply housing for new employees. The more jobs the better chance for real estate profit.