The New Face Of Real Estate Investors (NAPSA)—It may seem sur- prising to some, but real estate investors can not only do well for themselves, they can do good for the community, too. Here’s How Back when the housing market went bad, investors got a lot of the blame. They were accused of taking on more properties than they could afford, which resulted in increased foreclosures. Now, how- ever, investors are finding valuable opportunities and earning a more respectable reputation. In several areas that were hit hard by the housing and economic recessions, investors are playing a key role in the turnaround. Manyof today’s investors are ordinary people, simply buying a second home in their own neighborhood and turning it into a rental property. So why the surge in real estate investment? These investors see the “perfect storm” of opportunity: historically low interest rates, attractive home prices and a great selection. The new breed of investor also removes many damaged and vacant properties off the market and makes much-neededrepairs to improve the value of their investment and the neighborhood. Because rental demand is strong, today’s investor can realize a positive cash flow and hold the property for appreciation over the long term. Also, Fannie Mae now allows financing for up to 20 properties for individual investors, in addition to financing that will cover both the property purchase and remodelingcosts. During any real estate downturn, all eyes fall on real estate investors. Their activity level often indicates how stable real estate markets are and signals other buyers whenit’s a good time Many communities that suffered during the housing crisis are now benefiting from increased investoractivity. to make a move—typically when investors sense stopped declining. prices have Investors are sending a strong message about their confidence in the current market by making up over 20 percent of all residential real estate buyers. Expert’s Opinion “Real estate is and has always been a sound long-term investment,” said Margaret Kelly, CEO of the real estate franchise company RE/MAX, LLC. “More and more of the folks next door are taking steps to secure one or two rental properties or a vacation homein their favorite locations in hopes of adding to their nest egg.” Interested buyers don’t have to have a large sum of cash on hand to start investing. In fact, it’s even possible to use retirement funds, such as an IRA,to invest in real estate, using an approved custo- dian to manage the investment. Many budding investors may not be aware of the stimulus they provide a challenged industry and a struggling economy. Investors reduce the foreclosure inventory, make improvements and provide housing for families that can’t qualify for a mortgage. All this adds to the momentum of the current housing recovery. Anyone thinking of investing in real estate, however, should seek out professional advice and assistance. “Real estate agents know their communities and can identify the best opportunities. And manyreal estate agents have obtained specific training to help those looking for investment property,” Kelly added. Learn More You can find a nearby, experienced real estate agent and more information on real estate investing at www.remax.com/invest. The site also features millions of properties and attracts more visitors than any other real estate brand website. RE/MAX agents lead the industry in productivity and are specifically trained to help with short sales and investors.
