Should We Be Worried About Our Real Estate Investments?
by Clifford A. Hockley

As the stock market continues to respond nervously and yo-yo up an down, money market fund yields and 401K balances are shrinking, we are faced with the real question: where to put our funds to invest into the future?

Investors face many issues that continue to astound us, many related to real estate financing; let’s look at what has happened over the past few months.

The Bottom Line

We are in for 12 to 24 months of market reorganization. Those investors that have been sitting on their money will be able to find deals in many markets, especially in Nevada, California and Arizona. Local markets will have pockets of opportunity as properties with high vacancy rates will go back to banks.

The banks in turn will either liquidate the property or see if they can sell to the federal government.

Those investors who have not over-leveraged their investments will be able to sustain the vacancies. Those with too much leverage will need to create a method to negotiate with banks or bring in cash partners to reduce the risk.

So if you have money, you have 6 to 12 months to find some good deals, and hold onto them while the market improves. Simple demographics dictate that our population will continue to grow nationally, and that a strong market will return, albeit a more conservative highly regulated market.

Published: November 11, 2008 Realty Times http://realtytimes.com/rtpages/20081111_invest.htm