Michigan Real Estate Investing in 2009
Michigan Real Estate Investing in 2009
With all the bad news about the economy, the stock market,
auto bailouts, and the housing industry you may wonder if
Michigan Real Estate Investing is dead.
While on the surface things may look rather bleak, the
ability to boost your net worth FAST has never been greater
than right now. Why? Because prices have fallen to all
time lows and have set the stage for savvy investors to
position themselves to generate unheard of profits in the
As Michigan goes through a time of change, success as a
real estate investor is dependent on two factors. The
first is selecting the proper investing strategy and the
second is finding funding sources to fuel the growth of
your real estate portfolio in spite of the fact that
lenders are making it increasingly difficult to secure such
Let's focus on the first of these two important areas as it
figures more prominently into your ability squeeze large
profits from this unique and sometimes challenging market.
But before setting your sites on any one investing method,
it's best to get a clear mental picture of the current
state of affairs in southeast Michigan.
Unlike the majority of the regional markets across the
nation which began to see home values decline at the end of
2006 or the beginning of 2007 when the subprime meltdown
began to take effect, values in Michigan began their
downward march as far back as the middle of 2004. At this
same time renegade mortgage brokers in states like
California, Nevada, Arizona, and Florida were still in the
middle of their stated income and no-doc mortgage boom.
This extra "down time" has meant that the Michigan market
has had to handle all the troubles, stresses, and strains
that the national market has been experiencing along with
an additional two years of declining home values which
other areas have not had to deal with.
Now we all know that people are emotional creatures who
often make irrational decisions based on fear and Michigan
residents are no different. Watching values decline for
almost half a decade has left many Michigan residents in a
state of shock. Combine that with the unprecedented number
of jobs lost during this painful time of change that the
auto industry is fighting through and you see why many
locals, deep down inside, hold the misguided belief that
values will continue to fall forever.
This is of course an absurd position to take, but as we
said before, people placed in extreme situations often
cling to flawed concepts and ideas due to their emotional
state. Stay with me and you'll see that it's this core
belief that opens up the opportunity for those who can peer
past the doom-and-gloom news headlines and see it for what
it really is.
A large number of Metro Detroit residents are actually
rejecting a cornerstone part of "The American Dream" which
is the idea that a family's home is their greatest
investment and every family should strive to own one.
After focusing on the short-term reality of where home
prices are at today, we see a new sentiment taking root
among local homeowners that regards renting as actually
being better than owning.
Luckily, such notions have not yet been adopted in other
markets, but in Metro Detroit you'll hear the new
catchphrase "Renting Is the New Buying" being tossed around
real estate offices and at holiday gatherings. Renting has
lost much of its negative stigma and is instead, for the
first time, being heralded as a smart move in the eyes of
friends and family.
This unique situation has created an unprecedented
opportunity for those who want to supercharge the growth of
their investing dollars through the vehicle of Michigan
Real Estate Investing. For you see while values have
declined significantly, rental rates have not!
A three bedroom brick ranch home in a nice area that would
have rented for $950 per month two years ago still commands
that same $950 per month today. However, the price of that
same home two years ago would have averaged out at about
$105,000 while today with a little bit of work and
negotiation, it can be found for as little as $55,000.
So here it is...the secret strategy of creating massive
profits in Michigan Real Estate Investing in 2009. Very
simply all you need to do is buy homes at steep discounts
and then rent them out for monthly cash flow or equity
The old formula of buying a home, fixing it up, and selling
it at a retail price is almost nonexistent in a market
whose participants are beating down the doors in an effort
to be able to rent something.
If you as a real estate investor are willing to give the
market what it wants then you'll be able to reap huge
rewards in the coming years when the market returns from
the artificially low prices that we are seeing today. In
the meantime you receive the benefit of being able to cash
flow $300-$500 per month on each and every property that
you buy, even if you finance the entire amount!
So while you may hear plenty of negative news about
Michigan and its economy the benefits of Michigan Real
Estate Investing far out weigh any associated negatives.
The only question that remains is whether you'll take
advantage of this once in a lifetime opportunity or not.
About the Author:
Brian Kurtz is a real estate investor and licensed Realtor
working in the Metro Detroit area. If you found this
article helpful then visit his video blog and claim your
free 8-part "Funding Fundamentals" video series which shows
how you can find all the money you need to invest in real
estate at =>
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