Top 10 reasons to invest in real estate right now

10. Real estate is the number one investment vehicle for creating millionaires. If this alone isn’t enough of a reason to become an investor, I don’t know what is!

9. By allowing a person to put their money to good use, real estate investments can make much more money than stocks. A $10,000 investment in stocks can grow 8-10% a year. This is an increase of $800 – $1000 for one year. A $10,000 real estate investment in a $100,000 home that can increase in value 5-6% a year would give you an ROI of $5,000-$6,000, which is a 50-60% return. This is obvious.

8. Instant value! If you do a good deal in real estate, you may end up with 10-30% instant equity. Take the house mentioned above. Let’s say you got a good deal and bought it for $85,000. The house is worth $100,000 and next year it will be worth $105,000. You walk away with $15,000 in instant equity and next year you could sell the property for $20,000 in profit. Spend a couple thousand adding curb appeal to the property and you could maybe get $115,000.

7. The housing market is at or near the bottom. If you buy and hold until the market regains its composure, you can earn a considerable amount of shares.

6. We are in a buyer’s market. With all the foreclosures on the market, many people are struggling to sell their home, which gives you bargaining power when you talk to them.

5. Homeowners who over-leveraged their properties are having a tough time. You may be able to get a good deal if you find the right owner.

4. People are going through hard times with an unemployment rate of around 10%. Many people are losing their homes. If you buy the house before foreclosure, you can help the owner out of their difficult situation. This opens up an opportunity for creative financing using subject to, I would be wary of doing seller financing because if the person ends up declaring bankruptcy they could be out of a home.

3. Many foreclosures and bank properties can be purchased for a fraction of current value. Here in Miami County, Ohio, sheriff’s auction foreclosures are up about 50% this month, and the schedule looks just as packed for the next two months. By going to Sheriff’s sales, you can sometimes get a property for 2/3 of the appraised value.

2. The next big wave of foreclosures is just around the corner. There was a lull in foreclosures from October 2008 to March 2009. The six-month waiting period is now over and foreclosures are starting to rise again, presenting an investment opportunity.

1. The real estate sector is at its lowest point. The current housing market is at levels not seen since the last bankruptcy in 1989. This bankruptcy created many real estate millionaires. People who saw the opportunity in the 1989 housing crash benefited immensely. As many, if not more, opportunities exist in this bust as there were in the 1989 bust.