Post Boom Real Estate Investing

The boom times of buying a single family home or condo and quickly flipping it for a profit has passed. In spite of warnings of housing bubbles and a real estate market waiting for disaster, investors this time last year were feverishly buying up real estate in Florida, Las Vegas, Arizona and other hot spots. One year later what has happened? Have these people gotten burned? Have they made Hugh profits? Well it all depends on the market. There is not just one real estate market in the US but many local markets. Yes market conditions have changed. The stories have also changed.

Investors who got in early indeed have made profits. Latecomers have not been as fortunate. Dreams of real estate riches for these people likely have not materialized. Why? Because of the timeframe people were looking to make money in and their finances. If flipping for profit was not a goal, many investors bought investor homes, planning to rent them out to cover the cost of the mortgage on the investment home. Well what if there are no renters? Then the investor must have the funds available to pay the mortgage while looking for a renter. As a last resort the investor could always sell the home. Suppose there are many investors in one area facing the same problem and they all try to sell their investment homes at the same time? Now the home values start to drop, homes sit on the market for a long time and overextended investors are facing a financial nightmare. This has happened in some areas of the country. This is how an overheated real estate market unravels. Are we seeing those kinds of markets now?

Not too many. One of the real estate markets that saw the greatest influx of investors was in the Phoenix area. When you get too many investors buying up homes, the local market becomes more volatile. As a result some zip codes in the Phoenix area are seeing a decline in prices and some are not. One thing in common is a slower appreciation of home prices. In the worst hit areas there are price declines.

Looking at the nationwide picture we see foreclosure rates rising in areas like southern California. In spite of the rising foreclosure rates, they are still well below historical highs. The situation bears watching, however at this point it is not ominous.

The main point for real estate investors is their timeframe and financial situation. We just had our boom. Making large profits in three years just isn?t going to happen. If investors are looking at holding properties for ten years of more they should be fine.

Investors need o lookout for real estate ?gurus? pushing investment homes and the prospect of managing and renting the properties for the investor. If you can?t afford to carry the mortgage for many months if renters cannot be found, don?t invest. Finding renters has to do with many factors. Areas with a large increase in job growth are most likely to support a strong rental market. Don?t believe real estate property pushers who give high rental rate figures based on recent years. The markets have changed and finding renters may not be as easy. Buying in areas that are flooded with other investors buying properties may also put you at risk. There is no single national real estate market, just local markets. Do your research before you invest.

Andy Goldman is a freelancer who has been writing articles for the last ten years in the area of finance and investment. He is owner of http://www.carealestateinvest.com

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Oklahoma Mortgage What to Expect When Buying a Home in Oklahoma

Maybe you?re buying your first home in Oklahoma, or perhaps you?re relocating to Oklahoma from another state. Either way, it?s important that you educate yourself on Oklahoma home loans before shopping for a home and mortgage. This article explains what you?ll need to know before buying a home in Oklahoma:

The median price of a home in Oklahoma is $70,700. The price of homes in Oklahoma varies widely between zip codes. For example, in Oklahoma City, Oklahoma, the median price of a home in the summer of 2005 was $120,000; however, in Edmond, Oklahoma, the median price of a home was $130,000, and in Tulsa, Oklahoma, it was $250,000. Average interest and job growth rates in Oklahoma are both above the national average. In fact, Oklahoma has some of the highest interest rates in the nation.

Oklahoma law prohibits ?subsection 10 mortgages? as a consumer transaction that exceed the annual percentage rate or points and fees thresholds set forth by the state. Prepayment fees and penalties are prohibited on all home loans. Also, Oklahoma law prohibits that practice of making equity-based rather than income-based loans.

Oklahoma residents are eligible for both federal and state housing programs. The state of Oklahoma offers housing programs for first-time home buyers, low income home buyers, elderly and disabled home buyers, and people purchasing homes in qualified rural areas.

Jessica Elliott recommends that you visit Mortgage Lenders Plus.com for more information about Oklahoma Mortgage Rates and Loans .

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Is Big Brother Dead?

Has collective collaboration taken the power from the top of the pyramid and dispersed it among the participants?

There is no one overseeing camera that records our every move. There are millions of them, in the hands of the public and on the walls of private businesses. The Mainstream Media cannot get the news to us faster than the masses of bloggers do. In addition, if they push something based on an agenda, it is swarmed by truth seekers. New stars and celebrities are created by choice, not force. Peer to Peer file swapping changed the entertainment industry forever. Google Video and YouTube have leeched television viewership significantly, and foreshadow the future of video entertainment.

Hopefully, my lack of example doesn't spoil the point of the article.

To me it seems that the power, once controlled by the few, is now slipping into the hands of the masses. Not that Orwell had it wrong, but the transmutation of his novel's message, and the prediction of greater totalitarian control in accordance with the development of technology, is wrong.

How does this affect the real estate industry?

Hundreds of thousands of voices can question the leadership, decisions, policies, management and opinions of those above and beside them. These voices can and will be heard whether anonymously, individually or collectively. Accountability is now the highest priority for those that took their power for granted. The NAR can be questioned, MLS's can be questioned, large brokerages can be questioned, top producers can be questioned, the questioners, questioned.

Search Engine results are up for grabs. Top placement is achievable by those who won't settle for static content. The long tail of search results is made up of the many many active voices. The more they say, the more they are heard, the more they are networked, the more Google loves them.

The once coveted access to MLS listings is becoming less of a compelling offer to generate leads. As the barriers soften and the public have access to that which was once locked away in a private, powerful book, service, education and trust define the attraction to an agent. One's ability to be heard among, and supported by the critical mass will replace the gatekeeper mentality and influence.

Reputations, the cornerstone of any long-standing business, depend on the collective voice. It can take years of success to be 'talked about.' One negative blog article can wash it all away.

Soon sellers and their listing agents will be held accountable by the collective audience for the facts they present about a property.

The future of listing a home?: Listing goes online. The audience participates in its description and perception. Property values become influenced by the community's comments.

With great power comes great responsibility.

Jim Cronin is the creator and author of The Real Estate Tomato: http://www.realestatetomato.com

Mission: To Provide Realtors With A Destination For The News, Knowledge, Technology and Service They Need To Be Successful.

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