2009 Rental Property Forecast

With 2009 rapidly approaching, we must consider the changes that have occurred in our market, and plan for what we will experience in the coming year. While 2009 will be a difficult year for many, it will also bring unprecedented opportunities for the few who choose to adapt now, before it’s too late. Investing in cash flow property has never been so lucrative. Never in our lifetime has there been more real estate priced at such a discount. Values are low, rents are high, and moving higher and rehab costs on labor and materials are about to hit a 5 year low.

2009 Forecast

1. Home prices on average will continue to fall but dramatic price drops such as those we saw between 2006 and 2008 are unlikely. The prices in our investor specific markets have dropped very little in comparison to the rest of the country, because we never had the escalation of over pricing. Our markets have appreciated 4.4% per year for 25 years, on average.
   
2. Affordability and lowering interest rates will drive an increase in existing-home sales. Proper pricing, as always, is essential. We buy a home, rehab it, rent it, manage it and sell it, at 70% of current value, with $250 per month in cash flow guaranteed for 12 months. Purchase price will be $75,000, and might as well ask for owner financing at 90%. Cash on cash returns of 30+%.
   
3. More real estate agents, mortgage brokers and investors will be leaving the business as they fail to adapt to market changes. Let http://www.ezkeyre.com be your guide. We're doing boring, consistent and profitable deals.
   
4. Mortgage defaults will remain elevated as job and economic growth slows and the next significant wave of mortgages reset. There will be thousands of new foreclosures every month, in every major market. Which markets are the best to choose from? Watch http://www.easykeyrealestate.com for our updated market specials.
   
5. Short Sales will increase as loan modification efforts are exhausted and the majority of existing loan mods default again. Those that are unaware of short sale options will simply let their homes go back to the bank. Sellers will ask themselves if they are better off walking away, or selling their homes on a short sale, absorbing the hit to their credit reports and becoming renters for a few years. Most people just don’t want to deal with “failure” circumstances. Predictably most will simply walk away and avoid the drama.
   
6. Investors and real estate agents who specialize in short sales and foreclosures will see an increase of business beyond expectations. We are not your short sale people! If you need help we can point you in the right direction. We are foreclosure experts. We buy them, fix them, rent them, and sell them, to investors with guaranteed cash flow for one year.
   

Why do we sell them, some ask? Great question! Just in our small group we have over 300 homes, and as I mentioned there are thousands hitting the street every month, every week for that matter…and there are more to come. The deals keep getting better and better….we simply cannot do them all, not even a small percentage! As a company we are committed to eradicating all conversations of scarcity in the world. If every home owner in America purchased one rental home, the economy would flip in flash! More about this later…

The big question is are you ready for 2009? Are you going to increase your wealth, cash flow, or passive income, or are you going to work harder to try and survive the life you have been living? If you have not owned income producing property, there has never been a better time. If you don’t have time, money, credit, or the knowledge to , call us up or email info@ezkeyre.com and ask how you can still make money in this time of exceptional opportunity.

If you don’t retire yourself from investing in cash flow properties this year…you will just be one year older when you do! Jump in, the water is fine.