We are currently experiencing a very unique situation that we may not see again in our lifetime. I’m talking about the tremendous opportunity in real estate resulting from the tidal wave of residential foreclosures over the past 2-3 years. Because of recent price declines, many see real estate as very risky right now. Understandably so, people are just plain scared to jump in. But let me tell you – this crisis will eventually run its course and the opportunity to pick up great deals will also run its course. This opportunity is temporary.

Real Estate has always been one of the best ways to create wealth. The riskiest time for any investment is at the top of any cycle. Wouldn’t you agree with me that we are no longer at the top? I wish I could call the bottom – no body can – but I see 7 reasons why now may be the time to seriously consider getting in or increasing your holdings.

1. The fluff is gone. Back in the late 90’s Alan Greenspan spoke of “irrational exuberance” when referring to the speculative build up around the internet boom. Well that’s exactly what we had from 2001 – 2006 in real estate. Well that froth is now gone – and along with it the speculative and even fraudulent (in some cases) activities that ran up prices.

2. Prices have flattened and/or dropped in just about all markets. Prices for home in all price ranges are at unbelievable levels now. It’s a good time to pick up value.

3. Government Programs. Say what you will and think what you think about our over-reaching government but you can’t deny that government initiatives are making an impact on home sales. First time home buyers made up better than 50% of all homes sold in 2009 thanks to the home buying tax credits. Congress extended the deadline once already. Don’t be surprised if they do that again. I’d bet on it.

4. Mortgage interest rates are at all time lows. I remember thinking back in my 20’s how “lucky” my parents were to have a mortgage rate of 4.5%. At that time rates were 14-15%. Well that time is here again. Low interest rates will continue to spur buying where prices will eventually steady.

5. As people are forced out of their homes due to foreclosures - they all need a place to live. They have to rent from someone – so why not from you? Rents are bound to climb and this can generate very high rates of return for you if you pick up a property at a good price and at a low interest rate.

6. Simple supply and demand. The population is growing and they all need a place to live. God isn’t making anymore land.

7. The National Association of Realtors (NAR) predicts there will be 5 million home sales in 2010. They estimate nearly half – or 2.5 million will be foreclosures or either short sales. It’s a great time to pick up great value.

So what are you waiting on? I believe we’re right smack dab in the middle of “The Perfect Storm” for real estate investors. It’s time to get off of the fence and profit from what I believe is the opportunity of a lifetime.

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