Monday, January 9, 2012


2012 is set to be a year of many changes, including many new trends continuing to evolve in the world of real estate investing. So what can we expect in the new year and how can real estate investors stay ahead of the curve? Government Programs It is quite likely that we will see a new round of government initiatives or two before the 2012 Presidential Election.

The Future Of Real Estate Investing In 2012


By Duane Ortega
2012 is set to be a year of many changes, including many new trends continuing to evolve in the world of real estate investing. So what can we expect in the new year and how can real estate investors stay ahead of the curve?

Government Programs

It is quite likely that we will see a new round of government initiatives or two before the 2012 Presidential Election. However, as with the last few they are unlikely to directly help many homeowners and if anything will further restrict conventional mortgage lending rather than loosen it up. Perhaps the one exception is the FHA extension of the waiver of the 90 day rule. This investors can continue to flip houses with ease to new buyers who can use low down payment financing immediately.

Inventory

Inventory levels should continue to decline, despite a final clear out of the remaining foreclosures in the works right now. Banks will continue their strategies to maintain rising home prices and a continued uptick will balance new listings. However, in many parts of the country real estate investors will find the shortage of REOs and short sales continues. This will mean needing to work with major bulk REO buyers to get a hold of a significant amount of wholesale properties, meaning that forging new contacts and partnerships now is critical.

Growth

The current improvements in the US housing market are likely to continue and expand exponentially. Home ownership will continue to rise gradually and new confidence from US buyers should offset any slow down in demand from foreign investors who see their own local markets turning around too. As far as hot spots go, coastal resort areas and cities with the best job markets should produce the highest returns. Among the top picks for 2012 are New York, Miami, San Francisco, San Jose and Washington.

Mortgage Lending

With conventional mortgages still hard to get, especially for higher priced properties we will probably see more growth in lower price ranges. As real estate investors become more aware of the availability of transactional funding and focus more of their marketing on attracting buyers, transactional lenders will likely be among the biggest winners in the new year.

Marketing

Marketing will see some of the biggest swings for real estate investors throughout 2012. Investors should not just be sitting down to plan out budgets and dates for next year's marketing but focusing on developing more permission based and mobile marketing initiatives as well as local search. Trying to catch up on new trends next year is going to mean an uphill battle. The time to start developing is now so that the huge number of cash rich buyers at tax time can be cashed in on.

Duane Ortega has been enabling real estate investors to increase their volume and make real profits from real estate in both good times and bad over the last 10 years with no hassle transactional funding through http://www.BestTransactionFunding.com.

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