Real estate investor or real estate victim?

Tuesday, July 01, 2008
By Sara Moore

According to The National Association of Realtors, the 5th highest number of home sales in our nation’s history were in 2007. Over 20% of those near-record home sales were to investors or “People who realize that NOW is one of the best times in the history of our country to buy and invest in real estate,” says Craig Rozema, a real estate investment specialist and author of the new book The Next Hot Real Estate Market.

Craig Rozema - The Next Hot Real Estate Market

So why is it that banks, investors and Americans are going broke, while others are making more money than ever? Find out with these tidbits from Rozema’s book on how you can capitalize on the economic housing crisis.

Invest, don’t speculate. Speculators buy property based on ‘gut’ or ‘rumors.’ Investors don’t care if their cousin’s brother says the property is a great deal in an ‘up and coming’ neighborhood. Investors run comparables and put money on facts, figures and fundamentals. “Investing is planning for the future, speculation is gambling with it.”

Don’t restrict yourself to your own backyard. Buying an investment property nearby may be helpful for the real estate newbie because you know your area, but to truly maximize your return you need to look nationwide. There are local markets that haven’t experienced over inflation, so they’re not likely to crash. There are areas of this country that have been growing at a consistent rate and will most likely continue to do so. “In stocks, you don’t want to invest in a company just because they are located in your ‘hometown’; you want to invest in the company that has the best chance to bring you financial success. The same is true for real estate.”

Craig Rozema is the Managing Member and national spokesperson for Craig Martin Investments. He has been firmly ensconced in the real estate world for over two decades, during which time he has developed subdivisions, built new homes and commercial properties and currently maintains a sizeable portfolio of income properties. You can visit his website for more information.

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