Tag Archives: investing

Truths about Real Estate Investing

Investing in Real Estate

Investing in Real Estate

Real estate

investing is big business these days, but just as with any “boom” there are some misconceptions out there about what’s really trending. Steve Cook, real estate and government writer, discredits five popular real estate investing myths in his article “

Buying a Home: Facts and Fictions about Investing” on the Equifax Finance Blog.

Myth 1: Real estate investors are basically flippers who buy and sell properties as fast as they can. Flipping isn’t easy these days, because home prices are still incredibly low in most areas. Investors want to buy low and sell high and flippers are having a hard time doing that. They can buy low, but just can’t sell high.

Myth 2: Real estate investors must be rich because they buy homes with cash. According to a study by the National Association of Realtors, 51% of investors did not pay cash – they either took out mortgages on the homes and lived there while fixing them up or they took out home equity loans or second mortgages on their homes. Of the 49% reportedly paying cash, many of those were actually bought with loans from real estate investment firms. The number of homes truly bought with cash is probably much lower.

Myth 3: By turning homes into rentals, investors change the nature of neighborhoods. Cook does a good job explaining the rental/ownership cycle that many neighborhoods will experience. Right now, demand on rentals is high, and investors can make more money by

buying a home and holding onto them as rental units. But as the market shifts, which it will, those renters will want to buy, and demand for rentals will decrease. As rents decrease, it will no longer be cost effective for investors to keep holding onto those properties – they will make more money by selling them.

Myth 4: Investors are interested only in lower-priced properties. Investors can get the best deals on foreclosures and short sales, which are priced much lower than comparable homes for sale. Smaller, entry level homes are in greater demand than larger, more expensive ones, and cost less to fix up.

Myth 5: Real estate investors are full-time professionals. Real estate investing is filled with newbies, one-timers and those who didn’t intend on getting into it. A recent Move study showed that only 36.5% of investors has experience in one or more property transaction.

Have you considered real estate investing? If so, now may be the time. Visit the Equifax blog for more tips on real estate, as well as retirement, credit, insurance and more.

Special Deals for the Ready to Buy in HUD Homes

HUD Homes can be great for ready homebuyers or those eager for investing

HUD Homes can be great for ready homebuyers or those eager for investing

Those looking for the inside scoop on some lesser known real estate deals should consider HUD homes, where those that are ready to buy can scoop up great deals. HUD homes are often popular for those interested in

investing, but they can also be a great path for cash-strapped but savvy homebuyers. The Equifax Finance Blog explores how these homes are different in a recent article, “

How To Buy A HUD Home.”

A HUD home is a special kind of

foreclosure which has been repossessed from Federal Housing Agency loans. In an effort to get these homes back with people living in them, HUD homes are often competitively priced with special incentives for owner-occupiers. These special incentives include a special 30 day window of opportunity for owner occupiers to put in offers.

The offer period and many other facets of HUD homes are different from traditional homes, so it is more important than ever to have an experienced HUD real estate agent when looking for a deal with these homes. The agent can help your tell good from bad in these homes, help you strategize through the online offer process, give you sound advice throughout the entire process and more.

For information about HUD homes as well as

real estate predictions and news, explore the frequently updated Equifax Finance Blog.