by John Souter
The other day I went to an Investing Club in Hawaii where I reside. The speaker that night began talking about a wide variety of investing opportunities, including the stock market, mutual funds, gold, bonds, and so on. But I was surprised by the one topic that he did not bring up: which was real estate.

I had to admit, the majority of the investing ideas that he was covering were to me little more than a crap shoot. The money in your investment could go up and you may make money. But just as easily, the market could go down and you would lose your money.

That’s why I suggested to him the subject of real estate investing. The speaker (who is a licensed investment broker) said he really didn’t know too much about real estate. Although he “liked” real estate, he didn’t personally invest in it too much. But then he said, “But right now is not the time to invest in real estate.” He shared that one or two investor gurus he listened to with reverential awe said that it’s not a good idea to be “in real estate right now.”

Because I have done so consistently well with my real estate investments over the years, I challenged this opinion. Currently, with the sub prime bust, real estate prices are diminishing and it has certainly become a buyer’s market. If you understand what you’re doing, the best time to buy is when properties are selling low. That’s when you can take advantage of the best deals. Foreclosures have also doubled over the last year and you can find many of these properties priced way under their true value.

When people buy more than they can afford, and then are forced out of their homes through foreclosures, where will they go? The vast majority will end up in a rental. How does that affect the price of rentals, even in a bad market? It drives them up. The more urgent the need becomes, the greater rents will go. That’s why it is definitely a great time to be a landlord. The demand for rentals will continue to go up.

Some real estate is certainly going down in price, but you can be sure that its value will start climbing again once the market settles out. Overall the real estate market is the best place to invest. And our experience over the last 35 years has proven this.

John Souter lives in paradise. His company provides Maui weddings in Hawaii. He is also an active investor and an alumni of Nouveau Riche University. For more information on real estate investing, take a look at his website at: nrusuccess.com..

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