With the 'pop' of the housing bubble, many investors in Orlando real estate put a hold on increasing their portfolios. Risk, that four-letter word, was the subject of each conversation. However, good investors know they'll still buy real estate and make a profit.
Short-term vs. Long-term Investments
Even now, Orlando real estate is usually a short-term or long-term investment. Let's take a moment to look at the market:
" There's nonetheless no less than a seven-month provide of homes.
" Extra foreclosures are hitting the market, potentially driving down the prices of homes.
" Lenders have turn into stricter with their lending guidelines.
" Many first-time, second-home and upgrade homebuyers are unable to fulfill the stricter lending guidestrains, even with good credit.
If only there was a way to lower the availability of homes, match credible buyers with the home of their desires and make a profit…
Owner Financing as a Long-term Investment
Real estate continues to be a viable long-term investment, but, as with short-term, it comes all the way down to owner financing. (This is not the identical as "For Sale by Owner," though some get the two terms confused). With owner financing, the investor steps into the roll of the lender. As with a traditional lender, the homebuyer signs a real estate note agreeing to pay a certain amount each month for the price of the home, as well as interest.
Why is that this a superb long-term investment? As a result of owner financing gives residual income. The investor receives that amount each month for the life of the mortgage or till the home and interest is paid off. This is good for the buyer who can't get a mortgage via conventional means, and it also advantages the investor who has the upper hand in sale negotiations.
Owner Financing as a Short-term Investment
Most investors wish to make a profit right away; they don't need to wait to make their cash back. Nonetheless, as soon as signed, the real estate note is a negotiable instrument; in other words, it can be sold to the highest bidder.
It doesn't matter what the Orlando real estate market is like, there's all the time opportunity. Look around on the great deals accessible and see what you can make occur in 2010!
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