What’s the Difference Between a Landlord and a Real Estate Investor?

The goals are the same, but the road to get there is quite different.

A landlord and an investor both acquire property to rent out for cash flow while the value increases over time. The tenant covers the costs while the net worth of the owner goes up.

The similarities end there.

The landlord is very hands on. They are cleaning, repairing and getting the property ready to be seen by potential tenants. Advertising, interviewing, back ground checks, obtaining the deposits, collecting rent, dealing with on-going maintenance and surprise issues, accounting rent and deposit funds. If the tenant falls behind, the landlord has to post notice at the property, initiate eviction proceedings and appear before the judge to obtain the eviction. Then begin the process all over again – get the property ready for a new tenant, advertise and find the tenant etc…

The real estate investor is very hands off. After buying the property, they may oversee the renovations and then turn everything over to a property manager who finds the tenants and takes care of the whole list of things needed to properly run a profitable rental property. The property manager may even oversee the renovations, allowing the investor to spend time on hobbies, vacations, or remain focused on their primary occupation.

The landlord knows that every time the phone rings, it could be a tenant calling with a plugged sink drain, notice they are moving out, or an excuse for why the rent will be late this month.

The investor knows that those calls will all be handled by the property manager.

The saying in real estate is that the money is made at the time of purchase. The strategies and concerns during the purchase are an entire topic for another time.

If you are contemplating investing in income-producing properties, talk to your favorite full-time licensed real estate professional for guidance specific to your situation and goals.

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO

Realtor

Re/Max Alliance Group

Mobile: 941-306-7384

35 Home-Selling Mistakes To Avoid

Did you know there are 35 Reasons Why a Property Doesn’t Sell?

It’s pretty annoying when your listing expires. All of these agents are calling to tell you how great they are, yet they really just want to get your listing and reduce the price.

They don’t even care what the real problem is. The only solution they have is the one that costs you the most money.

But – price is only one of the 35 reasons!

It’s easy for the agents because no matter what the real reason is, if you price it low enough, it will sell.

But that costs you money! Wouldn’t it be better to find out what the real reason is and address that? Sellers want to blame the agent, or the advertising. Agents want to blame the price or the market.

Don’t throw your money away! Find out what the Real Problem is, and then you can make decisions based on reality, and keep more money in your pocket!

35 Home-Selling Mistakes To Avoid

 Process of Elimination:

Buyers don’t look for a home to buy; they look for reasons NOT to buy this home! Before they even look at homes in person, they are looking online for reasons not to go see your home at all. Every step along the journey offers opportunities to capture and hold the buyer’s attention, or lose them forever.

Review this list to maximize your prospects and reduce the pitfalls.

35 Reasons why properties don’t sell:

    1. Not enough photographs: Buyers assume that if you don’t show pictures of the home, it must be ugly and there is no reason to come see it (unless they want a fixer-upper!). Photos also boost online ranking.
    2. Poorly shot photos: Photos taken “into the light” or very dark; Listings that lack a full complement of photos, compelling narrative, robust descriptions and no calls to action are “web white noise”. No one sees or cares about them. Both the photos and the description are vital to sell your home. It’s the image your visitors will see once they begin their search online. The first impression matters!
    3. Missed Target Market. The most likely buyer must be identified and the property should be positioned to attract them. This is a huge issue!
    4. Incorrect data or information: Subdivision names misspelled; Tax IDs that are incorrect; Data entry errors in the databases reduce buyers and agents finding the home in their searches. Beds, baths, price, location, square footage etc… online search is data-driven.
    5. Lost in the shuffle: Some agents carry huge listing inventories of unsold homes. You want a Realtor with the experience to get the job done, and the time to give your sale the attention you deserve.
    6. Secret listings: Pocket listings, in-house, off-market and “coming soon” listings cost sellers money and sales! Restrictions of advertising to other REALTORS or the public reduce the number of potential buyers for your home. Only full market exposure brings full market value! I offer a Full Market Exposure Guarantee.
    7. Extravagant decorating or unusual floor plan. The costs to remedy must be reflected in the pricing strategy.
    8. Poorly written marketing/advertising materials: Words and pictures combine to attract the right buyers for your house. Marketing Matters!
    9. Agent skill set lacking. Ineffective or undeveloped communication, negotiation or networking skills; 70-75% of agents in Florida are part-time, doing real estate on the side or as a hobby to supplement their retirement.
    10. Key features not highlighted effectively. I utilize a simple strategy to capitalize on every showing, regardless of experience and skill of the agent.
    11. Listing isn’t found where 90% of the buyers are. We utilize syndication agreements, IDX internet data exchanges, and VOW virtual office websites to obtain worldwide internet exposure on thousands of websites!
    12. Agent is not technologically savvy. Technology is a blessing and a curse! We are combining the best of today’s technology with enhanced listings on the most popular websites, and good old fashioned customer service.
    13. Incentives are not properly structured to enhance the success of the listing.
    14. Ineffective timeframe of listing agreement: Not researched well enough to allow the proper time to market the property.
    15. Agent didn’t discuss absorption rate with the Seller. The majority of homes do not sell during the first listing period. Do you want to list your home, or sell it? Don’t be another statistic.
    16. Agent isn’t skilled in the type of property that they listed. Qualifications matter.
    17. Poor planning, poor systems, poor execution, poor Sellers!
    18. Hope as a strategy. When a REALTOR rests on their laurels, the result is a seller with a languishing listing. It’s just lying around, too. Get Action.
    19. The house wasn’t presented in the best light. Property is not staged for a quick sale. Personal items should be packed up and the property must be depersonalized. Make it as easy as possible for your visitor to visualize himself/herself living there.
    20. The home has incurable defects. “There’s a buyer for every home, but at the buyer’s price” is an old but very true real estate motto. Some residences have incurable defects that cannot be corrected, and these defects must be considered when setting the asking price.
    21. Ineffective use of Virtual Tours. Some tours discourage showings.
    22. No feedback from agents and buyers, or a failure to act on market perceptions and realities.
    23. The curb appeal needs help. If buyers don’t like the state of your house from the outside, they’re not as likely to come inside to see the rest of it. Many times a buyer has decided against a home before they get in the door. It can even be difficult to complete a scheduled showing if they are turned off when the agent pulls into the driveway.
    24. You’re trying to go it alone. Real estate agents’ fees can take a decent amount out of your total sale proceeds, it’s true. But if you go the DIY home-selling route, you run the risk of getting zero proceeds when it doesn’t sell at all. If you’re having trouble selling your home on your own, it may be time to call in a qualified pro.
    25. You’re smothering buyers. As much as you may want to see “how things are going” or be around to answer questions or offer insights, you need to let your real estate agent handle things. Go out for coffee, go see a movie, go do anything that gets you out of the house (and out of buyers’ hair!) when your home is being shown. Not only will this put less pressure on buyers; it will enable them to feel free to voice their real opinions – which can help your agent identify sticking points you need to work on to make your home more appealing.
    26. Mapping problems: Property doesn’t appear in the proper location online.
    27. Low commission splits to agents? They are only humans trying to make a living.
    28. Is the home Clean, Uncluttered, Tidy, and Smelling nice? – C.U.T.S. There is no quicker way to repel a buyer than to present an untidy, cluttered, unloved home. If you don’t show that you love it, the buyer won’t either. If it doesn’t CUTS it, you are definitely handicapping the chance of a quick, well-priced sale. Inside and out, it needs to look its absolute best! The seller controls the condition.
    29. Owner doesn’t actually want to sell. Is the owner clear on the benefits of selling now, or just fishing? Unrealistic expectations hinder sales.
    30. The listing agent is the obstacle.  As in any profession, there are top-quality people and “others”. To be polite, some agents are “out of touch” and are more of a hurdle to home sales than a help. If an agent is hard to get along with, arrogant, or has otherwise made herself unpopular, well… It’s just human nature to tend to skip over someone you don’t like when scheduling showings. You want a knowledgeable, likeable, full-time professional representing you and managing your sale.
    31. Agent doesn’t want the home to sell; it is “Buyer Bait”. Overpriced listings and discounted commissions may indicate the agent is more interested in generating buyers to sell other homes to.
    32. It is difficult to show your house to your audience: “If the house isn’t getting shown, it isn’t going to get sold.” Make every effort to accommodate showing requests.
    33. Seller interference in the selling process. Hire someone you trust and then let your agent do his/her job.
    34. Market conditions and external forces. Sometimes this is just an excuse. If legitimate, then marketing and positioning strategies must be utilized.
    35. The last possible reason why: The house wasn’t priced correctly. Price point must be clearly determined and communicated to the right buyer pool.

     Consequences of overpricing:

  • Limits the number of qualified buyers
  • Results in fewer prospects & showings
  • Reduces the number of offers
  • Creates lack of interest in the home
  • Limits financing options
  • Causes appraisal issues
  • Increases the sales time
  • Less net revenue for the seller

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO

Realtor

Re/Max Alliance Group

Mobile: 941-306-7384

Three Buying Scenarios; One Winning Strategy

There is a lot of advice on how to win a multiple bid scenario (escalation clause, humanize the buyer with a letter to the seller, snipe the competing buyers, etc…).

In this blog post, I am only going to talk about one strategy that you can use effectively without overpaying and even if you don’t have unlimited funds.

1.)  I currently have a sale pending on a listing where the seller accepted an offer lower than I would have guessed.

Buyer offered cash, close in 14 days, no inspection contingency, and put 75% of the sales price down as the earnest money escrow deposit. That convinced the seller this was as close to a done deal as you can get before actually closing, so after a little negotiation, they signed a contract.

A clean offer with strong deposit is an obvious winning strategy.

2.)  Years ago I showed a home that was priced to sell quickly, to a buyer who was philosophically opposed to paying more than list price, even though he admitted it was worth more than asking price. His wife warned him that if he lost this home because of his foolish pride, he was going to regret it.

The other offer was above list price. Our full-price offer included a $50,000 earnest money escrow deposit which was almost 50% of the sales price. Money talks and the seller accepted our lower offer with the big earnest check attached.

What if you are not a cash buyer with the ability to lay down the big money smack?

Do what you can to make your offer stand out.

3.)  I just closed on a home that had competing offers that were almost identical. Both had financing contingencies, low down payment loans, and were full price.

What made one stand out? Offer A had a $500 escrow deposit, offer B had a $3,000 deposit.

Sure, that is only a $2,500 difference, but if you multiply those numbers by ten, it is like comparing $5,000 to $30,000. A significant difference!

Even the $2,500 difference caused the seller to decide, “Buyer B seems more committed, let’s go with that one.”

In the old days, 10% of the sales price was common for the deposit. We went through a period during the easy money boom years where a token $1,000 deposit was common. That might be a serious commitment from a buyer who is going for a ‘no money down’ loan, or 3-5% down payment financing.

However, if you are a cash buyer or getting a conventional 20% down loan, and you offer a token deposit with your offer, you should not expect to be taken seriously.

I send a bi-weekly, digital newsletter with insights into the real estate market, as well as helpful hints, tips and trends for homeowners. If you would like to receive it, just send me a message with your email and I will add you to the next mailing.

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO, ILHM

REALTOR

Featured in Scene Magazine’s Men on the Scene 2016 issue

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming soon)

Jim Sweat – Helping Buyers & Sellers Choose Wisely Since 1995 ™”

Re/Max Alliance Group

Mobile: 941-306-7384

http://myfloridahomesmls.com/JimSweat (Home Search)

https://jimsweat.wordpress.com/ (Blog)

www.linkedin.com/in/jimsweat (LinkedIn)

A Proven Professional Working for You!

22 Years Experience

Should You Sell By Owner To Avoid Having To Disclose Property Defects?

Many people mistakenly believe that Seller’s Disclosure only benefits the buyer, but there is significant benefit to the seller in making disclosure.

But first, let me point out that the fact some people think this way means we have to add it to the list of potential dangers for a buyer who is working directly with an owner.

Did you know Seller’s Disclosure is not a Realtor requirement? It is required by law, whether you are working with a licensed real estate professional or not.

A seller’s disclosure is a legally required statement that discloses important or relevant information to a real property buyer. A seller’s property disclosure form is governed by state and federal laws.

It is easy to understand how the seller’s disclosure can protect the buyer. When the property condition is disclosed, the buyer can make the purchase decision based on the facts, rather than on the hope that everything is great. Or the false hope that all is well, when in reality there is a defect that will become apparent later.

Some sellers don’t want to disclose defects because it could affect the price.

Well, yes. It could, and likely should, affect the price. But it may not prevent an offer; kill the sale at inspection; or worse.

Consider if you were the buyer of a used car, and the odometer had been rolled back (youngsters, just play along like you know what that means).

The value of the car is less than portrayed because of the higher actual miles. If the person who sold you the car hid the fact the mileage was wrong, they committed fraud, and you could take them to court.

The court looks at two main things:

1.)  Was the buyer harmed (in this case, yes)

2.)  Did the seller intentionally commit the fraud?

If the seller was also a victim of odometer fraud, and unknowingly bought the car, and subsequently sold it without knowledge of the fraud, then they would have to take that up with the person they bought it from.

And by “take that up with” I mean, “take them to court”.

If the seller made the buyer aware of the incorrect mileage, the buyer may still have bought the car, and the seller would not have to look forward to attorney and court costs.

That is the benefit of disclosing known defects. Without a required seller’s disclosure, a seller can be held liable.

I always tell my sellers, “Disclosure is lawsuit protection. You cannot be sued for things that you disclose, but you may be sued for things that you conceal.”

Protect yourself and disclose as required by the laws in your state. Laws vary.

Florida law provides that, with some exceptions, you (as a home seller) must disclose any facts or conditions about your property that have a substantial impact on its value or desirability, and that others cannot easily see for themselves (This comes from the court case of  Johnson v. Davis, 480 So.2d 625 (Fla. 1985)). 

I send a bi-weekly, digital newsletter with insights into the real estate market, as well as helpful hints, tips and trends for homeowners. If you would like to receive it, just send me a message with your email and I will add you to the next mailing.

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO, ILHM

REALTOR

Featured in Scene Magazine’s Men on the Scene 2016 issue

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming soon)

Jim Sweat – Helping Buyers & Sellers Choose Wisely Since 1995 ™”

Re/Max Alliance Group

Mobile: 941-306-7384

http://myfloridahomesmls.com/JimSweat (Home Search)

https://jimsweat.wordpress.com/ (Blog)

www.linkedin.com/in/jimsweat (LinkedIn)

A Proven Professional Working for You!

22 Years Experience

Seven Factors Affecting Home Prices – And the Stock Market Wild Card

DOW 40,000 or DOW 8,000 – where does real estate stand?

Many pundits agree the stock market is overvalued based on price to earnings ratios. This is pointing to a market correction. What does that mean for real estate?

What You Really Want to Know When Asking “How’s the Market?”

This generic query masks many deep concerns, questions, hopes and fears.

At the root, folks want to know things like:

Am I going to lose my money? Is this a good time to buy, or should I sell now? Does it make sense to invest more at this time, or should I be taking profits out of the market? Is the current trend likely to continue? Will I regret not increasing my investment in this market? Will I leave money on the table if I sell now?

Essentially, what does the future hold?

“How’s the market?”

Because I am in real estate, this question usually refers to that market. My quick answer right now is the market is strong, inventory is low, and prices are rising with demand.

Before I get into where the real estate market may be heading, let’s talk about the stock market. The DOW breaking 21,000 for the first time ever has made headlines everywhere.

Full Disclosure: I am not a stock broker, and am not making any predictions. This is just a collection of observations and how one market may affect another. My opinions are irrelevant when even the professional market forecasters are so wildly diverse. My purpose here is to expose you to the variety of professional opinions, and to relate that to the real estate market.

Stocks are at an all-time high. For some, that means it is a great time to be investing more because “the trend is your friend”.

Others see record high valuations as a warning that “what goes up, must come down”.

If you do some research, it quickly becomes apparent that there is very little consensus as to where the market is heading. The predictions are all over the map, actually.

Do you want the good news or the bad news first?

Some forecasters are predicting DOW 25,000; 30,000; even 50,000 by 2025.

On the other hand, others are predicting DOW 12,000; 10,000; even 6,000 as early as 2018.

Those are the extremes, certainly. And they don’t answer any of the questions folks really want to know when asking about the market.

My research has found there are those in two strongly opposing camps, and others in the middle ground area.

The strategies you would follow if you agreed with one prediction would be devastating if the other scenario actually came into reality. And vice versa.

Bust: the deflationary camp expects the markets to reset downward. Rapidly and painfully downward. DOW 8,000 or less. Gold under $700 per ounce, which would be almost another 50% drop from recent levels, which are almost 40% off of the highs for the precious metal. This scenario states the values of everything will decrease. Real estate would see another tumble similar to the one we had a few years ago during the Great Recession. Cars, food, commodities. Everything would be cheaper, not just stocks.

The strategy for those planning on this scenario is to sell all of your current assets, convert them to cash, and get ready to buy back everything on sale.

Boom: the inflationary camp is just the opposite. The stock market, real estate market, cost of food, gold, everything – continuing to go up. Some in this camp even see rapid increases and possibly hyperinflation similar to that which hit Venezuela, Argentina, and numerous other countries over the last 25 years. Gold prices jumping to $2,500; $5,000 even $10,000 per ounce. Real estate values going through the roof. Prices for everyday expenses rising faster than you can imagine.

The strategy for this scenario is to buy all of the assets you can get your hands on, because cash will be worthless and “things” will have value.

I admit, the two extremes hold no appeal to me. I don’t want to live in a world where gold is worth $10,000 an ounce, almost overnight. Nor does the prospect of going through another Great Recession sound interesting to me. Especially not when there are huge numbers of people who have not had much of a recovery from the last one, and don’t have the resources to weather another storm so soon.

Most of the mainstream projections are a lot milder, and the middle of the road is more appealing to most of us. Even if markets don’t care about what appeals to us.

A few things that many do agree on: Quantitative Easing (opening the spigot and flooding the market with cash) has pushed up the stock market, but has not brought about the economic expansion that was hoped for. That money is pumping up Wall Street, but not enough of that cash is falling into the pockets of the average man or woman on Main Street.

Similarly, zero percent interest rates from the Fed have not spurred the economic activity needed to bring about a strong recovery.

We may see more QE and near zero rates, but neither of these “Solutions” can be utilized for extended periods without significant negative implications.

Where does that leave us?

Quite frankly, hoping that the middle ground wins.

Many pundits agree the stock market is overvalued based on price to earnings ratios. This is pointing to a market correction. Hopefully just a middle of the road correction to cool the jets, not anything drastic.

What does that mean for real estate?

In the past, many of the investors who get out of the stock market prior to a correction have put their money into real estate. Likewise, those who didn’t get out first, pull the cash out when the market is falling and look for some good deals in real estate to park it in. Both of these are bullish for real estate even when the stock market is bearish.

Note: All real estate is local. The real estate market is not national. There can even be significant variances within small geographical areas. Consult a qualified real estate professional in your area before buying or selling.

There are a number of factors favoring real estate right now. And of course, there are some concerns to be addressed.

Leverage. One of the most attractive things about real estate as an investment is the ability to buy it with just a small amount down. Your out of pocket cost can be a fraction of the value. If you want to buy $100,000 worth of stock, you need $100,000. But you can buy $100,000 of real estate with as little as $20,000, $10,000 even $5,000 of your own money. That is significant leverage! If your $100k property increases in value by $5,000, that is a 25% gain if you put $20k down; a 50% gain if you put $10k down; and a whopping 100% gain if you only put $5,000 down!

What if you paid all cash? A 5% gain beats the socks off what you would get with that money sitting in a bank account!

Demand. People are looking to buy real estate and demand is strong. Baby boomers are retiring and buying in areas they have dreamed of their whole lives. The clock is ticking for them. Many put the dream on hold during the recession and now that markets around the country have recovered, they are moving forward with their plans.

Interest rates. Low interest rates are bullish for real estate because it allows folks to leverage a small down payment into a large purchase. This frees up their cash for improvements and other things, like vacations and investments. Interest rates will rise over time, so locking in at lower rates favors those who act quickly.

Favored status. The US government grants owners of real estate tax deductions and privileges that increase the value of owning. 1031 Tax-deferred Exchanges also allow individuals to sell a property, lock in the gain and rather than paying taxes on the gain, roll it into another property and defer the tax indefinitely. There is some talk of changes coming to the 1031 program. Changes may actually spur more real estate activity if owners want to trade their current properties for different ones under the current guidelines. Talk to your CPA about tax savings.

Millenials. The youngest generation of potential homebuyers actually outnumbers the baby boomers. They should have a significant impact on the value of real estate over the course of their lifetime. However, they are not impacting it as much as could be expected because many are hindered from obtaining mortgages by large student loan debts and jobs that don’t pay as well as the jobs their parents had. When debts go down and pay goes up, they will become a driving force similar to the baby boomers, based on the sheer number of them.

Pent up demand. This comes from the millenials who are stuck living with their parents (or multiple friends) and also from the baby boomers and Gen X-ers whose plans were put on hold. During the recession, not enough new homes were being built to meet the average needed for a growing population, new family creation and replacement of older homes.

Rental Nation. Many who are mentioned above are renters by necessity. Strong rental demand and rising rents are encouraging investors to buy all types of properties and rent them for cash flow.

We know where the market has been, and where it is now. What the future holds is anyone’s guess.

Make decisions based on your personal wants and needs. One major benefit of real estate is that it is tangible. A home has usefulness and value beyond just the price put on it. You can live in it, create cash flow with it, and spend time in it with those you love, whether the value is going up or down.

When is the last time your family spent a cozy evening inside your stock portfolio?

When stocks go down, all there seems to be is pain, unless you were betting against them.

Many folks invest in real estate to diversify their portfolio and as a hedge against inflation, even if they aren’t buying cash flow properties. As the saying goes, “Buy land, they aren’t making any more of it!”

Real estate offers the ability to create memories for a lifetime, and generational wealth. Contact your favorite Realtor to see what opportunities are available to you in today’s market that matches your long-term goals.

I send a bi-weekly, digital newsletter with insights into the real estate market, as well as helpful hints, tips and trends for homeowners. If you would like to receive it, just send me a message with your email and I will add you to the next mailing.

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO, ILHM

REALTOR

Featured in Scene Magazine’s Men on the Scene 2016 issue

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming soon)

Jim Sweat – Helping Buyers & Sellers Choose Wisely Since 1995 ™”

Re/Max Alliance Group

Mobile: 941-306-7384

http://myfloridahomesmls.com/JimSweat (Home Search)

https://jimsweat.wordpress.com/ (Blog)

www.linkedin.com/in/jimsweat (LinkedIn)

A Proven Professional Working for You!

22 Years Experience

 

Jim Sweat featured in Sarasota’s Scene Magazine “Men on the Scene 2016” Issue

 

publisher-quote-motsjulie-milton

 

 

The profiles are arranged alphabetically, so just like in school, I am near the back of the line.

Feel free to share, tag and post if you know anyone who would like an agent with the “protective nature of a guard dog” helping them to get the best price.

Jim Sweat Profile in Scene Magazine click here for the profile link.

 

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO, ILHM

REALTOR

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming soon)

Jim Sweat – Helping Buyers & Sellers Choose Wisely Since 1995 ™

 Re/Max  Alliance Group

Mobile: 941-306-7384

http://myfloridahomesmls.com/JimSweat (Home Search)

https://jimsweat.wordpress.com/ (Blog)

www.linkedin.com/in/jimsweat (LinkedIn)

A Proven Professional Working for You!

21 Years Experience

What Goes Up Must Come Down

What goes up must come down.

That is the concern of many as the stock market is in all-time-record territory. Some of the wary are interested in moving a portion of their portfolio into something more stable, like real estate.

Real estate offers the ability to create memories for a lifetime, and generational wealth.

Are concerns about the stock market legitimate? The answer you get will depend on who you ask. Everyone loves a winner, and there is a crowd who is excited to see the stock market setting new highs.

I am not a stock broker, analyst, or even a current investor; seek the advice and counsel of a qualified, licensed securities broker before making any decisions.

Here are some of the concerns of the contrarians:

1.)    Easy money – low interest rates and QE – quantitative easing where the Fed fired up the printing presses and has flooded the markets with cheap, easy money and the potential for longer term damage in the form of inflation and higher interest rates.

Quantitative Easing has had multiple rounds, and the experts are not all in agreement what the long term repercussions will be. The markets can react, or overreact, to concerns.

2.)    Some feel that companies have done too much cutting in pursuit of higher stock values. Everyone can agree that cutting the fat makes perfect sense. Lean and mean profit-making machine.

However, when the cutting continues and core strengths and customer services are cut too much, a company is actually too weak. Removing the muscle and sinew just leaves bone, and bone by itself isn’t very capable. The stock gains seen in over-cutting will be followed by losses as companies falter in the marketplace.

One phenomenon that I have witnessed in past stock market corrections is a move of investors out of the equities markets and into real estate. For a pure investment (where you are not going to use the property personally) real estate can even be purchased in a self-directed IRA for tax advantages.

Properties can be used personally on occasion and still garner tax advantages (talk to your CPA) and some folks just like the idea that real estate is tangible. You can see it, touch it, even walk through it, sleep in it and enjoy it with friends and family.

When is the last time your family spent a cozy evening inside your stock portfolio?

Vacation-area second homes are another popular investment for money that folks pull out of stocks and decide to enjoy while it appreciates. Heck, even if the market stumbles again, you can still use the property as intended.

Again, real estate offers the ability to create memories for a lifetime, and generational wealth. Contact your favorite Realtor to see what opportunities are available to you in today’s market that match your long-term goals.

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO, ILHM

REALTOR

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming soon)

Jim Sweat – Helping Buyers & Sellers Choose Wisely Since 1995 ™

 

Re/Max  Alliance Group

Mobile: 941-306-7384

http://myfloridahomesmls.com/JimSweat (Home Search)

https://jimsweat.wordpress.com/ (Blog)

www.linkedin.com/in/jimsweat (LinkedIn)

A Proven Professional Working for You!

21 Years Experience