In 2006, house prices were at a peak and the economy was looking as strong as ever. Fast-forward to a year later in 2007 and we reach what has commonly been referred to as the cl of the house bubble when prices plummeted, demand decreased, and high-interest loans ruled the market. While house prices have since regulated, it has left many would-be investors skeptical on where to place their money.
What Happened to Real Estate?
The credit crisis that resulted from the house bubble burst directly triggered a recession that would last for several years — in fact there are a handful of economists that speculate that we remain in a recession. While this has no doubt negatively impacted our country on a national level, many opportunists took this as a chance to quickly buy up cheap houses and flip them for a profit. Many television shows have followed from this trend, inspiring a number of Americans with surplus cash to try their hand at flipping a house. Unfortunately for many, the weakened state of the economy means that a good deal were not able to recoup their investments, again making residential home investment a gamble.
The State of Modern Real Estate
Since the collapse of the bubble, many analysts agree that the house market is as strong as ever; despite this there are still a number of foreclosures and dissatisfied home buyers due in large part to mortgage lenders. Around 59% of homeowners state that they wished they understood the terms and details of their mortgage better; it is no surprise that as many as 32% of those looking to buy homes are first time home buyers with no experience with mortgages. Statistics from 2014 suggest that there were up to 327,069 home repossessions likely due to homeowners failing to understand or meet the conditions of their mortgage. Likewise, poor investments can be made by those inexperienced with investment mortgage lenders and their tactics.
How to Profit from Commercial Real Estate Investing
The best way to profit from real estate investment is to avoid mortgage lenders and residential properties generally; this can be done through safe commercial real estate investing. Through secured short term loans, commercial real estate investment lenders are able to pool money through several investors to acquire properties used by tomorrow’s business leaders. By mastering the commercial real estate investing basics, individuals can each receive a portion of the profits without having to worry about the typical details that come with home-flipping. By allowing a commercial real estate investment firm to handle the economics, many investors have significantly diversified their investment portfolio with a safer alternative to traditional real estate investment. Contact a commercial real estate investment firm in your area for a quote to see how you can stake your claim in the real estate world.
Refernce materials.