Real Estate Bubble Bursting Strategies for Big Profit

[Eric Medemar]

It's no secret that the U.S real estate market is falling apart faster than you can say “Flip this house†five times fast. Having said that, with a few changes in your real estate investing strategies you can still make big time profits in this big time bubble burst market. Here are a couple of low risk, no money down strategies that have worked well for my clients and myself during this “Slow timeâ€.

Coming from Michigan I am all too familiar with a crashing real estate market. It seemed like prices had hit rock bottom a couple years ago. Except things have continued to slide. Many of the homes in my market are selling for 20-25% of their previous highs, leaving over leveraged investors out to dry. So what is an investor to do?

1.Real estate wholesaling is still one of my favorite strategies in both good markets and slow markets. A properly buyer leveraged wholesaler can make money in any market without risk or even the need for credit or cash. Many people mistakenly believe that since the market is in a slump that it would be nearly impossible to wholesale properties, however nothing could be farther from the truth. Investor dollars and great deals on real estate always find a way of coming together, so why not put yourself in the middle somewhere.

2.Lease options are another one of my favorites right now I believe we are in the middle of a perfect lease option storm. Desperate sellers will do just about anything to get their homes sold. Credit poor buyers will do just about anything to get their chunk of the American dream. Once again why not put yourself in between. Lease options offer you a fantastic way to clear large profits without cash, credit or risk. When our real estate market is flourishing then sellers don't need to look at doing creative financing on their homes because there are a plethora of house hungry buyers. Having said that, in our current market approved buyers are getting more difficult to come by. With all of the changes happening in the banking industry, once worthy buyers are now unable to purchase housing because of a lack of funds, or a lack of credit due to our economic downturn. Sellers who are willing can greatly increase their chances of selling by offering lease options.

It would be great to hear some more strategies that are working great for the rest of you!