Released on = March 23, 2007, 11:14 pm

Press Release Author = Wayne Walter

Industry = Real Estate

Press Release Summary = Smart real estate investors look beyond what the current
market is doing. Looking at the facts will tell you when to buy.

Press Release Body = Misguided investors buy when everyone else buys and sell when
they sell. They follow the crowd and land quickly into the poor house. For example,
misguided people flocked to invest into already over-priced real estate during the
boom of the mid 2000\'s. Many lost their shirts when it reversed in California,
Southern Florida, and points in the North East.

That was precisely the time to liquidate rather then acquire real estate in those
markets.

That same crowd now trembles with fear because of national media reports about
subprime lenders closing their doors, real estate markets declining, and credit
requirements tightening.

Smart real estate investors consider affordability of housing in addition to
\"Comparative Market Analysis\". So they either use market value of rents or median
income. Smart real estate investors divide median income by 12 months to get monthly
median income. They take a percentage of that to get the monthly payments most
households can afford. To figure out the value of a local real estate market, they
the take median price of houses and calculate the monthly payment using current
interest rates for fixed interest loans. Finally, they calculate affordability of
housing by comparing the two values above to figure out the value of local real
estate markets.

If the local market looks overpriced, then either hunt for bargain priced properties
locally or invest remotely in another market.

Smart investors never follow the misguided crowd. They look at cold hard facts to
decide whether to invest rather than follow the greedy or the fearful misguided
crowd. For example, smart investors know that the CMA (Comparative Market Analysis)
only shows prices of properties that sold or remain for sale. So the CMA reveals
what the crowd pays instead of the true value. It takes more information to measure
the value.

\"But If the Market Crashes?\"

Many feel terrified of investing in real estate after seeing the losses of those who
played along with the \"misguided crowd\".
WARNING! If you avoid investing in real estate now, it may be the influence of the
misguided crowd affecting you. Instead, use cold hard facts to guide your decisions.

You must understand their mistake to avoid making the same one yourself. So what
exactly did they do wrong? Very simply, investors bought dramatically overpriced
real estate. Real estate that becomes over priced always gets corrected sooner or
later. Unfortunately, many got left holding the bag.

Notice how crazy prices became in California. At the height of the boom, it took
over 90% of the median household income to afford payments on the median priced
house. That forced average families to use exotic loans like interest only, negative
amortization, and adjustable rate mortgages to afford the payments to buy a home.

Unfortunately, those families saw their payments increase dramatically on the first
change date. The foreclosure rates in California soared, further forcing prices
down.

There are ways investors can never suffer the losses of the misguided crowd. You
simply need to know the true value of real estate before you buy.

Smart investors understand that when subprime lenders close their doors and others
tighten credit requirements, it means the demand increases for owner financing using
specific programs.

Of course, they continue to qualify buyers with reasonable cash down payments and
confirm their monthly income.


Web Site = http://www.fieber.oarrealestate.com

Contact Details = Contact Information:
Wayne Walter
OAR Real Estate
1-800-MYCASHFLO
www.fieber.oarrealestate.com