The “Real Estate Bubble” is a Hoax

Those who watch television and listen to the media long enough, more than likely will begin to hear about the real estate bubble and its affects on the national economy and stock market. Recently, the media has begun to talk about their theory that the bubble is soon to burst, and they have done an excellent job of creating a hype about their theory, which actually has no merit whatsoever. Before investors get taken away in a media hype that suggests the real estate bubble is going to break, one needs to get a basic understanding of the real estate market and how it works.First of all, it is important to understand that, in reality, there is no national real estate market. The real estate market is much more localized and can not be studied or judged on a national level. From state to state, and even from town to town, the real estate market is going to vary greatly, and it is a grave error to try to base your understanding of real estate on a supposed national market that does not exist.It is also important to understand that the real estate market as a whole neither explodes nor crashes. Real estate is a market that can go down in some areas while going up in other areas. Even when the market does appear to be going down in some places, much of the time it has only fallen flat instead of continuing to increase, which makes it appear like there is a problem with value going down. Even when the real estate market goes up or down, it takes a long time to see changes that occur across the board. While real estate prices do fluctuate and go through cycles, it is important to realize that the economy of a country is not going to crash if property values start to go down a bit or they hold steady instead of increasing.Some people tend to view the real estate market as they do the stock market, and the two are very different. The real estate market cannot be viewed as a national market, and much of the time, it is actually based on local economies and how they are doing. On the other hand, the stock market is based on national merit and the rise and fall of the stock market has very little to do with the price of real estate.In some communities, it is true that the price of real estate is going down, but if one looks closely, there are a variety of reasons that cause it to lose value. In some cases, it is simply the fact that a city has built too many new houses, which can make it appear as if the real estate market is going down. If you are going to invest in real estate, there are a variety of economic trends that you should consider to be sure that the market is going to stay strong in the area.One thing that assures a strong real estate market is the arrival of more and more immigrants to the United States every year. Another thing that assures a strong real estate market is the later age at which people are getting married. Many are not getting married until they are in their middle to late 30s and this is resulting in even more single people purchasing their own homes. The interest rates are also helping to keep the real estate market strong, and since they are lower than ever before, it is easy for people to get the home loan they need.Those who are interested in investing in real estate need to throw away the concept of the real estate bubble and the idea of a national real estate market. Broad statistics, including national, state, and even city statistics, will, in reality, be no help when you are looking for properties to invest in. It is more important that investors look closely at the real estate market in certain neighborhoods and communities and that they look at relevant material such as average prices in the area, number of times the property has been on the market, and how the sales prices have changed since the last year. Keeping your focus local and small will help you find the best real estate investment properties.While the media may be trying to convince people that the real estate bubble is about to burst and that there may be a real estate market crash, there is no proof to back this up. In some cases, people are not building as many homes as a result of this news and it is actually causing real estate prices to go up since the demand is high and the supply is low. Investors need to understand that the market need not affect how successful they can be as a real estate investor. Investors that understand how real estate works will be able to find great investment properties that will make them money.Being successful as a real estate investor does not depend on the market or the real estate bubble, but it depends on how good an investor is at their job. Those who take the time to study communities and to look at local statistics will be able to find the best places to invest. If an investor relies on the media, there may be failure in the future, but a well planned and well studied investment can lead to profit and success.

Real Estate Investing and the Internet

Okay, so you finally decided to make the move to get into investing in real estate. You need to know where to start and what the most immediate tools are for you as a new investor.Let’s look at the Internet.Internet allows you to do all the research that you would basically spend days, or in some cases even weeks doing on” foot.” You could go ahead and spend your time going through and shopping through the local newspaper for handyman, contractors, and real estate agents or maybe even take some time thumbing through the Yellow Pages, letting your fingers do the walking.The Internet allows you to do all of these things in a far shorter time, as well as give you an interactive result for any questions you may have. Let’s say that you want to go ahead and contact a real estate agent that you found on the Internet. You have the option of either sending them an e-mail, or more often than not you have a direct phone number to contact them and get your questions answered. The Internet can save you so much more time as a new real estate investor. It’s absolutely an obscene in comparison to how we did things as investors prior to it coming along. Make 100% utilization of the Internet; make sure that you’re on it, doing your research.Building your teamThe Internet allows the new real estate investor to build a team and get first-hand knowledge of the areas that they want to do investing in. For example let’s say that you live in Los Angeles, but want to invest in a small community in Houston. Now you have two options here. You can do with the tried-and-true method. Ask around wait for a response from someone that could possibly recommend someone to you in Houston. Or you could go right ahead log online and start looking for real estate agents. In that particular area that you looking to invest in.My suggestion however is not to do either one. My suggestion would be to log on to the Internet. Look for real estate investing groups in the geographical location that you want to invest in. Why do you want look for real estate investment groups. Simply put, Word-of-mouth. THIS IS OF VALUE to you. You won’t have to necessarily walk into dealing with someone in that area of the country that you’ve never met. You can read reviews, hear firsthand accounts. Talk to people who have worked with them, and more often than not, get feedback. Ask questions, post questions on a local blogger forum section of that part of the country.Continuing with doing your research and building your team using the Internet.The internet has countless resources on it that a real estate investor can use. Mortgage Calculators, track interest rates, network with investors in your area of interest…as well as other areas of investing you may consider working in. You can find real estate investment groups from all over the country, as well as local real estate investment groups in your same area. You can literally find and interview new candidates for the skills that you’ll need to do your investments. Whether that’s a plumber, mortgage broker, real estate agent, or landscaper.Let’s briefly discuss networking online.You can login to one of the popular social networking sites such as Face book or MySpace, and look there for real estate investment blogs, groups or just to talk to other investors. Or, as previously mentioned, you can find real estate investing clubs and groups both in your local area as well as across the country. No matter how you do your networking don’t underestimate the value of it. Okay, let’s say that you’ve been thinking about getting into commercial real estate, but have no knowledge of how to do so. By doing your homework and networking you can find a vast amount of individuals who can help you get into commercial real estate investing and/or any of the side ventures thereof.Finding like minded individuals is far easier when you have the Internet as part of your arsenal of weapons.