How the Bailout will Affect Real Estate

The United States Government is in the process of a 1 trillion dollar bailout of banks and mortgage companies. In my opinion, if it is done properly, it would help stop the continuation of the current up tick in foreclosures, and hopefully the Real Estate market would stabilize.
With that said, I do not believe that buying bank and mortgage companies bonds will be the immediate help home owners, that are either in or facing foreclosure, need to make an immediate impact on the Real Estate market.
To make an immediate impact, I would like to see a criteria in place to help the people that legitimately need it and let the speculators take their loses. If the bailout money was used to supplement the banks and mortgage companies costs of reducing the interest rates on owners already in or facing foreclosure. This would allow owners to retain their homes, pay on their mortgages and would not benefit banks and mortgage companies for their bad decisions in the past.
If this were to take place, I believe that the Real Estate market would stabilize, and bottom out in mid to late 2009. Depending on how deep and what other sectors of the economy will be affected by the economic crisis is unsure at this time. Alot of what happens will depend on what the Government does or better yet, does not do, regarding the auto industry, energy and other related industries.
Now is the time to learn everything you can about Real Estate Investing, wait too long and you miss the opportunities that are out there. Real Estate has always rebounded, the growth may be slow, but overtime it always does well. If you look at all the recessions and depressions through our history, there have been losers and winners. Now is the time to put your plan together on what you want to do.
What are your views? Do you agree or disagree with my opinion. Don't hesitate write your comments now, share your knowledge with us.

Why Invest in Real Estate

The majority of personal wealth by regular people is their home. Normally, they buy the home at a lower cost and over time the value of the home increases. After 30 years their home is paid for, and will comprise the majority of their estate, and will be used to pay final expenses and then passed on to their children.
After the great stock market crash, people lost their jobs and their homes, but some people made big money. How did they do it? They had cash on hand and as home values dropped their cash actually gained value. They were able to purchased realestate cheep, and over time the value increased, they sold it and made a killing.
What are we looking at today? Home values dropping, people losing their jobs and their homes. Financial institutions strapped for cash, looking for buyers. Even during good times realestate has always been a winner, over time.
The projections by realestate professionals are that in 2009, the realestate market will have hit bottom and will start a slow recovery. Instead of home values increasing 5% to 10% annually, they are projected to recover at a slower rate of 2% to 3%.
Realestate has become more complicated as far as the financial instruments used today as compared to the 1930’s and 1940’s. Most people do not understand the language that realestate brokers or agents use and are intimidated. Why do Realestate professional always seem to buy a lot of properties. It’s not because they are smarter than anyone else, they understand how realestate works, find properties at a good value and take advantage of it.
That is your goal, first learn as much as you can and then look for good deals, and do it. Realestate is not a secrete, mystical world, that mere mortals cannot understand. It takes educations, hard work, motivation and the determination to succeed. I can only give you the information you need to succeed, learning it, having the motivation, and doing the work it takes to succeed is up to you.
True story, a man, married with three young children, worked as a ditch digger for a local electrical company. He soon realized that living pay check to pay check would not insure his or his family’s success. He married early and dropped out of High School to support his family. He and his family had to move in with his in-laws for about a year to save up for a down payment to buy a small, two bedroom home on the other side of the tracks. He worked for 15 years, still making house payment, kids getting ready to go to college, still living from pay check to pay check. At work one day, he fell and busted his ankle, his job was over. He medically retired as he could no longer do any work that required him to be on his feet for any period of time. In retrospect, this was the beginning of his success, he had to learn a new trade. A friend from his Church was a realestate agent and talked him into applying for his realestate license. At first he did not think he could do it, filled with self doubt, frustration and worry, but he worked hard, and eventually got his realestate license. This was where his life changed, he finally realized that he had been working too hard and getting nowhere. Due to his new found education, he was able to purchase two homes. With a little bit of manual labor, he fixed up the homes and rented them out for about five years. He had always dreamed of becoming a farmer, like his Father. After five years he sold the two homes and made a decent return on his money. Sold his residence and bought a four bedroom home on five acres of farm land. Several years later he was lucky enough to buy an additional five acres on an adjoining piece of property. He then purchased a home from a local community college trades programs and placed it on the newly purchased property. Within 20 years, he went from buying a home and living pay check to pay check, to building an Estate valued at 2.4 Million dollars. This is a true story, the man I have talked about was my Father. With a little bit of knowledge and a lot of hard work he turned his life and his family’s life around. In 1992, he passed away, but he was able to leave behind an estate that supported my Mother, till her death in 2007 and passed on 1.8 million dollars to my brothers and I.
If my Father, an uneducated man, but a hard worker with a vision, determination and motivation can succeed, you can too. Don’t procrastinate, don’t think yourself into non-action, if you have the qualities I have just described, you can succeed. Now is the time, educate yourself about realestate, improve you and your family’s life, and stop living from pay check to pay check. As I have often heard, if you have not succeeded and you continue to do what you’re doing, what is going to change?
I wish all of you good luck in the exciting field of Real Estate Investing, and hope that investing brings you all the rewards that your hard work, dedication and sacrifice deserve.
Real Estate Investing!