Real Estate Wealth Protection With Short Sales
Making Money in Real Estate
WARNING: This single step can double your real estate investing
income in the next 90 days. Decide on your target market
Determine what your target market will be. I know from
experience that it is really easy to want to do...
Is a sharp correction in store for the real estate market?
Fannie Mae, the largest buyer of mortgages in the US, is
worried. They recently warned that the probability of a
housing bust has risen sharply in certain parts of the
Fannie Mae and Freddie Mac financed about 43% of new home
mortgages last year. That's down from 53% the year before.
Fannie and Freddie only buy "conforming loans" In these
days of easy money and competition for borrowers... more
lenders are selling mortgages to non-government sponsored
loan buying companies. They have less stringent lending
standards. That means more risk as it allows home buyers
with poor credit records or unconfirmed income to qualify
for mortgage loans.
Listen to this! 24% of the sub-prime loans sold to
non-conforming buyers in 2004 were adjustable rate mortgages
with an interest only feature. And... these mortgages are not
restricted to less expensive houses. The share of jumbo
mortgages loans ($359,650 & up) accepted without full
documentation increased from 27% in 2001 to 51% in 2004.
Fannie Mae warns that the real estate collapse of the late
1980s was preceded by similar patterns.
Some point out that the real estate bubble is effecting
The Saga Of An Ideal Real Estate Agent
Behind the success of a man is a woman, and behind the success
of a real estate business is an ideal agent. Indeed, it's the
human resource that is considered to be the most important
factor for real estate business to succeed.
just certain areas. But they don't understand that
just 22 of the most expensive metropolitan markets in the
U.S. account for 35% of the total value of the country's
residential real estate.
If those markets begin to collapse they will shock real
estate values everywhere.
What should you do if you are sitting on fat real estate
capital gains. First... make plans now. Once a
correction (crash) begins you will have a hard time getting
out of your property. Values plunge and buyers disappear.
If you don't believe there will be more than a little dip
in real estate appreciation and you want to hold on to your
property... here's an idea. Use the stock market as
insurance. How do you do that?
Find real estate stocks and do short selling. Well managed
this can be an effective strategy.
If real estate values continue to climb you still own your
property and continue to accumulate capital gains.
If real estate values begin to fall you sell short selected
stocks and profit from the decline, which balances the loss
in the value of your real estate. You protect your real
estate gain... and maybe even come out ahead on the
An ETF is an Exchange Traded Fund. That's a basket of
stocks that trade under one symbol
The Benefits of Real Estate Investing
Real estate investing is increasing at a staggering rate these
days. More and more individuals are learning that real estate
investments can offer wonderful earning potential. Real estate
investing is a process which has many attractive...
just like a stock. You
can quickly buy, sell or short an ETF through an online
broker in seconds. You have instant liquidly... something
you don't have with real estate.
Two ETF's that you could be ready to short sell would be:
IYR - A basket of real estate stocks
IYF - A basket of financial stocks.
Lots of areas would be hard hit by a down turn in real
estate including: banks, mortgage lenders, utility
companies, materials suppliers and especially home
The stocks of leading home builders that would suffer
during a real estate bust include:
Brookfield Homes - BHS
Beazer Homse - BZH
Centex Corp - CTX
D R Horton - DHI
K B Home - KBH
Yes, short selling is a radical strategy for the smaller
investor, but aren't you the one who needs the gain
protection the most?
You may find a local stock broker that would give you
some help, but you should understand some basics about the
stock market and trend following.
You can easily learn that here... http://digbig.com/4dxys
About the Author
Mark Walters is an investor-entrepreneur helping other investors from his Web pages at
REAL ESTATE ARTICLES
Investing In Real Estate How Do I Get Rich |
Real Estate Investing and Goal Setting |
Choosing A Reputable Real Estate Appraiser |
Four Great Reasons To Invest In Real Estate |
The Saga Of An Ideal Real Estate Agent |
Estate Foreclosure Profits |
Bonds Real Estate |
In Leveraged Real Estate |
Estate Investing Advice |
Estate Investing Strategy |
Real Estate Asset |
Estate Investment Clubs |
Estate Pre Construction Investment
Estate Investment Advice |
Estate Investing Benefits |
About Real Estate Investing