Real Estate Investing Update: Are You Hedged Against the Housing Slump in Bubbleville?

From the Real Estate Investment Center

“‘It would be difficult to characterize the position of home builders as other than in a hard landing,” says Robert Toll, chief executive of luxury home builder Toll Brothers Inc., which reported in August 2006 that net income fell 19% in the third quarter ended July 31.

“In his 40 hears as a home builder, Mr Toll says, he has never seen a slump unfold like the current one.  ’I've seen a downturn in housing without a downturn in employment or…some macroeconomic nasty condition that took housing down along with other elements of the economy,’ he says. ‘This time, you’ve got low unemployment, you’ve got job creation, you’ve got a stable stock market, and relatively low interest rates.’ ”

It seems a dose of reality is needed for Robert Toll, as well. The macroeconomic connection missed by Robert Toll is that housing was and is in a bubble and bubbles pop. As for “low unemployment and job creation,” it should now be obvious to everyone that the reason they were low was because an overheated housing bubble was creating jobs until the bubble popped. The reason you have not seen a downturn like this before is because you have not seen a national housing bubble like this before.

Discount Real Estate Hedge
As both home builders and home owners increasingly feel the pinch of the housing slump, I encourage investors to hedge themselves…  

Be smart about real estate investing by following the 4-step recipe:

1. Buy discount real estate property – foreclosures, pre-foreclosures, tax sales, real estate auctions, real estate repos and other distressed-seller opportunities.
2. Consider commercial real estate investments – apartment buildings, retail centers, storage unit facilities, office buildings.  I have provided you with an awesome commercial loan resource at my website to buy these properties with as little as 10% down (even 5% down on certain property types).
3. Buy in Bargainville – the next hot emerging real estate markets across the country.  
4. Get a mentor.  Learn from real estate investing experts who have already done this successfully.  There are a number of them featured in the Real Estate Investing Topics Section of my website.

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