Great Time to Invest

If you didn't see the Larry King show last night on CNN, you missed a good one. As you know, there is a lot of bad news about the mortgage industry affecting the housing market, which is now affecting the stock market and may even have global ramifications. The media is grabbing a hold of this with a vengance, becauase it's the biggest story since the Iraq war. It's full of drama, mystery, emotion and best of all, it affects all of us right here at home and right in our own wallets. So, yesterday, Countrywide, the nation's largest home lender announced their financial troubles. This is really big news, because if the nation's largest lender is having financial difficulties, what does that mean for the rest of the mortgage industry and for all of us who may be trying to buy or sell real estate. Well, Donald Trump and Robert Kiyosaki had some thoughts about the subject on Larry King last night.

In a nut shell, they both beleive that this is a great time to invest in real estate. Yes, credit may be tightening and rates may be a little higher than they were a year of two ago, but the fact is, the real estate market is experiencing a correction in many markets around the U.S. and now is a good time invest. Kiyosaki said that this is a similar market to the savings and loan crisis of the mid 1980's, prior to the boom. Investors should be looking for good cash flow properties, not flips and rehabs. Flipping property is based on speculation that the property value will increase. Since the market is unstable, now is not a good time to flip property, but a good time to invest in deals at or below market value.

Furthermore, it may even be prudent to sell in this market to avoid further losses. Remember, all real estate is local and every person's situation is unique. Speak to a competent, trustworthy real estate advisor about your unique situation and opporunity.