The Real Estate Bubble Fallacy

There has been a lot of talk lately about the "Real Estate Bubble", and a lot of folks are asking the question: "When it is going to burst"?

They are saying that the market just can't sustain this level of growth and appreciation much longer, and I heat them say that it is inevitable that it must come crashing down soon. People are worried. They don't think it can last; That whatever goes up, must come down.

These folks have been conditioned to believe what they believe most likely from the experience of the stock market bubble of 2000, and maybe the 1990's when the real estate market was hit hard in many large metropolitan areas across the country.

Its human nature to feel this way. We all know the saying (or the 80's tune for you big hair folks), "Once Bitten, Twice Shy". Or what about, "All good things must come to an end."? Its how we react to almost everything that affects our well being and general safety. Its a subconscious reaction at the gut level.

Just like in the stock market, there are bulls and bears. Bulls are typically more optimistic about the market and expect it go up, and bears are generally more pessimistic and expect the market to go down. They will always be there to provide free advice and "expert consulting". Remember though, who you decide to listen to will certainly have an effect on your decision making, and ultimately your success.

Well, I'm here to say that there is no real estate bubble! There never was a real estate bubble. Its a complete and utter fallacy.

"How can I say that?" you ask. I can say that because the real estate market is in reality, a Wave. Its a cycle, and we just happen to be riding the big swells, or the crest of this long, consistent, and fairly predictable pattern.

There is no doubt that real estate has been a rock solid investment for decades, and will continue to be for the foreseeable future and for many reasons that I would like to demonstrate here and now. Because you, as a real estate investor, must be able to move forward with confidence when deciding which projects and properties you want to buy and sell. That is the purpose of my website, www.realestateinvestment.net [http://www.realestateinvestment.net], to provide you timely information, strategies and techniques to help you succeed.

But first, what is a bubble? In terms of economics and markets, the best definition is probably something along the lines of "an isolated or ephemeral situation or condition with little support or substantiation from external conditions".

The best example, and the one foremost in the minds of us all, is the stock market tech bubble of 1999 and 2000. We all rushed into the tech stocks and the stock market in general as we saw the .com millionaires being made.

Y2K was a big factor in the tech bubble. People were buying new systems at a unprecedented rate in order to prepare for doomsday. People were also buying consumable goods to stock up for the dreadful event that never came.

So what was holding up, or supporting the "irrational exuberance" as Alan Greenspan characterized it? Well, we learned soon afterward, not much. It was an isolated, temporary incident that had little support from the other conditions. It was indeed like a bubble that burst.

And it has had little support since then. Historically speaking, after the stock market crash of 1929 and 1987, it took decades for the market to recover, although it did eventually recover. Just look at the Dow average and the S&P average for the last hundred years and see the pattern of recovery. You can be sure that a slow steady rise for stocks is in progress.

Now back to real estate. Let me explain why this is not a bubble.

Real Estate is Cyclic

Real estate has had its ups and downs over the years, but it is generally stable, with no drastic swings per se. If you were to look at the cycles on a chart you would see a clear pattern of gently rolling swells. This pattern is consistent across cities and regions all across the United states, although slightly varied in degree.

In addition, the cycles tend to favor the ups rather than the downs. It is not uncommon to see large cycles of appreciation and much smaller downward cycles. In other words, the current double-digit growth we've all come to know and love in recent years will likely be followed by downturns of single digit declines. Its like taking two steps forward and one step back.

In the big picture you will still be further ahead than when you started. You may see slower growth, but it will still be growth.

Real Estate is a Basic Necessity

People need to live somewhere. They need a roof over their head and their children's heads. Like food and clothing we must have a home. People don't need stocks or bonds. Therefore, you can be sure that whether the market is high or low in growth, whether interest rates are up or down, people will be buying, renting, leasing, and selling homes. It is as perennial as the years.

This Real Estate Wave Has Been Around Awhile

I don't know when you first realized we were in an up market in real estate, but it has been on a solid upward trend for at least the last 3-4 years. It didn't just happen yesterday. Of course like anything else, awareness of the general public is a bit latent, and dependant upon the media. It has only been lately that the media has really focused on it and thrust it onto the front page.

The old adage "Success breeds success" is also true. The momentum will grow as other more traditional investors continue to jump on the band wagon and pour their money and resources into real estate investment. It tends to create a perpetual, self-feeding market that is ideal for more seasoned investors.

Real Estate is Local and Regional

It is true that even in today's real estate boom, there are areas in the United States that are not enjoying the high rates of return that others are experiencing. California is a fantastic place to invest, so is Arizona and a host of other places.But the Rust Belt states are not as fortunate. Watch what happens to Florida home values after this horrendous hurricane season. This is because real estate is driven by the primary capitalistic force of Supply and Demand.

Generally speaking, property values increase in areas where the job market is strong, and where there are more people moving into than away from. Of course there are other factors to consider; including interest rates, availability of funding, climate, and governmental policies. These are all important and you must be cognizant of their impacts to your strategy.

However, it is true no that matter what the rates are or how nice the climate is, people will continue to migrate where there are abundant job markets and affordable housing. If you can stay just slightly ahead of that migration, you will profit immensely.

Real Estate Investing is Diverse

You can invest in so many different ways, from foreclosures and fix and flips, to buy and hold and everything in between. Right now the commercial space is relatively soft. It will recover no doubt, but people investing in single family homes are probably doing slightly better in returns. Vacancies are up and rents are down for commercial properties, but fortunately, the forecast is for this sector to improve over the next few years.

The key to successful real estate investing is to understand the forces, trends, and conditions that are driving the market. BE AWARE of your surroundings; Read articles and stay on top of industry news; Look in your own area at the job market and forecasts. Check my website www.realestateinvestment.net [http://www.realestateinvestment.net] for all the news and information you need to help you succeed in your real estate investing career.

There is no real estate bubble, but there is a real estate wave. Like any dedicated surfer, when the surf's up, get in the water and catch a wave! But watch for danger, be flexible, and be smart. Invest wisely and you can prosper in any real estate market.

Top 10 Real Estate Marketing Tools

Real estate agents often ask me, what's the best marketing tool for real estate? In fact, if I had a dollar for each time I heard this question, I would be on vacation right now!

So what are the best marketing tools for real estate? Well, I'm always quick to say that you are your best real estate marketing tool. Yes, you ... the real estate agent reading this article. I've gone so far as to write an article about the most powerful real estate marketing tool, which is the agent behind the marketing.

So that automatically gets into the top-ten list of marketing tools for real estate. But what are the other nine? Here's my list.

1. A Real Estate Website

Each day in your market area, hundreds (possibly thousands) of home buyers and sellers turn to the Internet for real estate information. Having a real estate website is the first step to connecting with this ideal audience. Thus, the website is a core marketing tool for real estate in the modern age.

2. A Web "Presence"

What's the difference between a web presence and a website? Plenty. A website is a grain of sand on a long beach, with little hope of standing out in any significant way. But a web presence increases the chance people will find you online. A web presence includes such things as the real estate website, online press releases, real estate blogging and other online ventures. your chances of be. In an age where so many people use the Internet for real estate research, a strong web presence is a necessary marketing tool for real estate success.

3. A Real Estate Blog

In my opinion, real estate blogs can be one of the most effective marketing tools for real estate agents. Especially when they're used properly. When you publish quality content to a real estate blog on a regular basis, you are increasing your web presence (mentioned above). You're also positioning yourself as an authority in your area. These are just a few of the reasons a blog makes a good marketing tool for real estate success.

4. Real Estate Postcards

"Postcards," you say, "aren't those a little outdated?" Not at all. The postcard marketing strategies used by a lot of real estate agents are indeed outdated, but the medium itself can still bring great rewards. Real estate postcards have been a reliable marketing tool for real estate agents for decades. They can still be highly effective, especially when integrated with some of the other marketing channels on this page.

5. Home-Buying Seminars

I frequently recommend home-buying seminars as a marketing tool for real estate agents. No other real estate marketing technique can produce a room full of potential clients, eager to hear what you have to say. Sure, there are plenty of logistics involved, but the rewards usually outweigh the effort. Home buying seminars are most effective as a real estate marketing tool when conducted in collaboration (i.e., a real estate agent teaming up with a home inspector, mortgage professional, etc.

6. Client Referrals

It's no secret that client referrals lead to a lot of business in the real estate industry. So in this regard, referrals are a powerful marketing tool for real estate agents. But some agents forget that the process leading up to a good referral begins on Day 1 of the working relationship. Take good care of your clients from first contact to closing day, and you'll tap into one of the most powerful marketing tools for real estate -- the client referral.

7. A Big Idea

This is a real estate marketing tool you can't buy in stores, which is partly why it's so effective. Big ideas are everywhere, but it's almost impossible for me to list them for you. Once a big idea has been used in a certain market area, it can never be repeated with equal success. When you can come up with something that gets people in you're area "buzzing" and spreading the word, you've tapped into another powerful marketing tool for real estate success. You've harnessed a big idea!

8. A Modern Outlook

The Internet has forever changed real estate research, as well as the real estate transactions themselves. So it's important for real estate agents to adopt a modern way of thinking about their business. Start with what consumers are doing today, how they're using the Internet, etc. Work backwards from there? How can you use that to your advantage? Keep a modern outlook toward real estate, and you'll acquire yet another marketing tool for real estate success.

9. The Website Listed Below

Currently, there's only one place online where agents can go to learn about direct mail marketing, online marketing, blogs and other topics on the subject. That website is listed below, and it offers dozens of free articles on the topics mentioned above.

10. Behold, the Real Estate Professional

As we discussed at the beginning of this article, you are your most powerful marketing tool for real estate success. None of the other items on this list can be effective without your energy, focus, compassion, intelligence and enthusiasm. So the next time a software or web marketing company says, "We have the most effective marketing tool for real estate business" ... you can say, "No you don't. I do!"

* You may republish this article online if you retain the author's byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.

About the Author
Brandon Cornett is a real estate marketing specialist and the author of several books on the subject. For more information on real estate marketing tools, visit the author's website at http://www.armingyourfarming.com

The L Steps - 6 Steps of Real Estate Investing

Real estate investing in Miami real estate is now becoming popular again as there are many properties in foreclosure, short sale, bank reo's, and government foreclosures. With such an overwhelming inventory of homes available for sale a real estate investor must be able to determine which one to purchase. Investors must follow six steps in order to learn, understand and achieve Miami real estate investment success.

These are the six L steps to Miami real estate investing:

1. Location - Location, location, location is still the key of buying Miami real estate. Buying Miami real estate just because the price is low in a declining area is big mistake that should be avoided. Look for homes in an excellent location like, good schools, economic stable and growing neighborhoods, near shopping centers and malls, near bus stops and metro rails, near hospitals and restaurants. Sometimes it is better to pay a little more for a property in a good location than getting a bargain in a place where it is very hard to sell or rent the asset. Location is often overlooked in purchasing real estate as many investor think they can overcome a bad location if the price is low enough. Out of two homes that are exactly the same, the one in the best location will command a much higher sales price and rental income. Location is the number consideration when purchasing Miami South Florida real estate.

2. Long Term - Real estate investing is a long term proposition. Don't think you are going to be a millionaire over night. It takes years of hard work and dedication in order to succeed. Hold any property at least one year before selling it. Capital gain taxes will be greatly reduced. Consider renting the property for at two or three years. The rental income generated will help you to properly repair and renovate the property. Many investors purchased properties in the middle of real estate boom with no money down and no equity. These investors were thinking of flipping the homes fast and make a killing in the process. Many homes now in foreclosure are due to investors that were caught in the middle and now realize that real estate investing is very hard to time. Long term Miami real estate investing is the secret to a successful real estate career.

3. Lease Option - Never rent a property with a lease option to buy. Either sell or rent it straight out. A lease option usually is a disaster for both buyers and sellers. The tenant will demand a large discount of the rent to go towards the down payment and closing costs. The problem is that tenant will not buy the property at the end of the lease and the landlord/seller will have wasted a lot of money in rebates given to the tenant/buyer. Demand a 20% or 30% deposit from the tenant/buyer and a clause in the contract that if they default on the purchase they will lose the deposit. This technique will force the tenant/buyer to purchase the property or lose the deposit. The risk of losing the deposit will eliminate the tenant from taking advantage of the landlord by walking out of the contract after receiving a monthly rental discount.

4. Local - Buy real estate close to where you live. Don't buy real estate in another state or in another country. Keep real estate investing local. Buy in your own county and in your city. The more you know about the area where you are buying the better the decision will be. The investor should always be close to the investment property. The Miami real estate investor should inspect the property often to determine any repair, roof and other problems. The landlord must inspect the property every month when collecting the rent. Check for the number of tenants actually living in the property, check for damages and destruction of the property and overall condition of the place. The investor/landlord will not be able to inspect and determine the condition of the property if it is located far away. Keeping real estate local is an essential step in real estate investing.

5. Leverage - Most real estate books and seminars tell you to use other people's money when purchasing real estate. This technique is not the best and buyers should try to buy the property in cash if at all possible. Buying a house in cash will help you get a better deal and allow you to negotiate from a position of strength. A cash buyer will always have the upper hand in negotiating with banks, property owners, and other sellers. Cash buyers will not suffer and go into foreclosure if the market turns and they are unable to sell or rent the house right away. Like Dave Ramsey always says "cash is king and debt is dumb". Buying an investment property in cash is an excellent way to avoid Miami real estate investment mistakes.

6. Learn - Research the property and learn everything about it before you buy. A mistake in Miami real estate investing can be very costly. Usually you make your money when you buy not when you sell. Buying the property at the wrong price the wrong place and at the wrong time could be detrimental. One mistake could wipe you out and put you out of business before you start. Ask questions to the experts, real estate agents, appraisers, mortgage brokers, and other real estate investors. Learn, research, educate yourself in all aspects of real estate investing before you purchase the asset.

It is definitely a buyers market in Miami-Dade County. Miami real estate investors have more choices than ever before when it comes to real estate investing. Investors must follow the L steps, the 6 steps real estate investor guide to successful real estate investing in order to achieve their investment goals in the Miami real estate market.

Hector Lesende is owner/licensed real estate broker in Miami, Florida and creator of the (Lesende) L Steps. Please visit http://www.lesende.com We will sell your home fast. We offer a Foreclosure List. Search Miami Real Estate Blog Search Coral Gables Real Estate

Real Estate Schools

When a person is looking for the right living or office space, but does not know how to go about the buying process, then a real estate broker or agent is the person to approach. These professionals not only help a buyer find and select the right property, but also get some of the best deals for their customers. Today, careers in the real estate industry are highly rewarding. Hence, the importance of real estate schools arises.

Aspiring real estate agents are offered real estate pre-license, post-license and continuing education courses in the classroom. They are also provided with online courses. There are various schools that pass knowledge in this faculty. Conveniently located in various states, these schools have been training real estate professionals for more than 20 years. They help a majority of students obtain real estate licenses.

Online real estate courses offered are also second to none. Students are offered online sales associate pre-licensing and online post-licensing courses, with a wide variety of supplemental material to help students pass the real estate exam. Real estate schools offer thorough training to the candidates, making sure they will be prepared the day of their exams.

It is said that choosing the best real estate school can be a tough decision. There is an eligibility criterion that needs to be fulfilled in order to apply for the real estate license. To begin with, the student must be at least 18 years of age and have a high school diploma or GED. In order to apply, a candidate needs to submit application to the Division of Real Estate with the appropriate fee. He must also complete and pass the state approved 63-hour sales associate pre-license course.

Real estate schools have grown in popularity over the years. Most of what is taught in real estate pre-license classes, courses, and training is designed to help the student know what is required to be a qualified licensed real estate professional. In addition to this, one needs good communication and persuasion skills to make a successful career in real estate.

Real Estate Schools provides detailed information on Real Estate Schools, Online Real Estate Schools, Phoenix Real Estate Schools, Scottsdale Real Estate Schools and more. Real Estate Schools is affiliated with Real Estate Agent Courses [http://www.i-realestatecourses.com].

Real Estate Agent - What is It?

A real estate agent is a person that is used as an expert to facilitate the selling of real estate. In my opinion, a real estate agent should be open to new things, including innovative marketing ideas and cutting-edge changes that impact buyers and sellers. A real estate agent should be someone who listens to buyers, sellers and renters to figure out what the public hates about agents and proactively make changes in their own business plan accordingly. A real estate agent should have business hours that are applicable to other professionals that are paid thousands of dollars per transaction.

A real estate agent should practice their skills by using them everyday. A real estate agent should not be part-time in the business. This means they should not have a full-time job and sell real estate when they need some extra money. A real estate agent should be skilled at keeping their cool when something goes wrong. A real estate agent should be professional and never hang up on a client or another real estate agent, no matter what was said or done.

A real estate agent should be responsible to learn, understand and keep up with all marketing tools that could and probably should be employed in selling or buying a home. The fact that a real estate agent is "not comfortable with the Internet" when most homes are now sold via the viewing on the Internet by a buyer is no longer an excuse. A real estate agent should be diligent about understanding modes of communication and marketing via every type of media from which a buyer can search and ultimately buy a home.

A real estate agent should not have to turn on their fax machine when they return from the store. They should be in business, full-time, and be set up to do business anytime inside their business hours. A real estate agent should not leave town without backup and just leave a deal hanging as a result. No one cares that the real estate agent is on vacation other than the agent himself. A real estate agent should never tell a seller that open houses don't work, when in fact, open houses sell properties, everyday. A real estate agent should never be so in-the-box that they laugh at someone for discussing the use of a St. Joseph's statute. They shouldn't scoff at the fact that apple pie scent may or may not sell a house just because they don't want to go to the trouble to explain what may or may not work to the seller.

A real estate agent should not cry when a seller tells them that they no longer want to sell their home or that they are not going to use them to sell the home. A real estate agent should not steal yard signs from lawns or directional signs from subdivisions just because someone did not choose to list the house with them but a competitor. A real estate agent should not bash other business models. They should simply point out the things that they bring to the table and why they feel their business model works better.

A real estate agent should not open the house for a buyer and let them stay in there alone, just because the buyer looks nice. A real estate agent should always look at the identification of a buyer because they recognize that they are responsible for the seller's property. A real estate agent should always be grateful that someone is willing to pay them thousands of dollars for a job that has never been fully explained to the public as to how little knowledge an agent needs and how little you're trained when getting your license.

America is unfortunately the only place where all of these standards, or should I say the lack of standards, are applauded everyday as good and acceptable behavior. The public needs to be reminded that an overwhelming number of inexperienced, part-time real estate agents hold in their hands the fate of most people's largest asset. When will we put our foot down and say enough is enough... real estate is a real profession that requires skill, knowledge and a constant reach to perform strategies and results for clients.

The clients deserve better.

If you are a seller of real estate, view more marketing tips on my website. http://www.DuffyRealtyofAtlanta.com

If you are a real estate agent I invite you to learn more about how I sell real estate with a FREE 14 part mini-course at http://www.MillionaireAgentAcademy.com

From Rhonda Duffy, Real Estate Broker and National Consumer Advocate The Real Estate Powerhouse

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Online Real Estate Courses

Buying a home is a major decision because it involves choosing a place where you will live for a number of years. This decision also has major implications on your financial status because of the usually high cost of homes and the loan applications that accompany such purchases.

Due to the enormity of the decision of purchasing a piece of property, most buyers solicit the help of real estate agents. Real estate agents are persons licensed by the government of a certain jurisdiction to handle real estate sales. Usually, real estate agents are under the employ of real estate brokers who can be either individuals or companies that have overall responsibility for the actions of real estate agents. There are also instances when real estate agents use the services of real estate appraisers to help them determine the market value of a home that is put up for sale.

Getting a License

Given the delicate and complex nature of real estate transactions, it is important that buyers get the right information so that they are properly guided in their decisions. Real estate agents, brokers, and appraisers need to have an understanding of the market and the technical aspect of real estate. To be able to get a level of competence in real estate, these persons need to take courses on the different aspect of real estate and take a licensing exam so that they can be certified by the state as persons who can handle real estate transactions.

Traditionally, people who wish to become agents, brokers, and appraisers enroll in institutions that offer courses on real estate subjects and take the subsequent exams for licensing afterwards. However, it is now possible for people who to take these courses in the comfort of their own homes because online courses are available on the Internet.

Online Courses

A search on the Internet can lead to you to a large number of online schools that offer real estate courses. Under this set-up, students enroll online, receive their materials through e-mail and they take exams online. These online courses promise that taking these courses is the same as or even better than the traditional way because students do not have to deal with the problems of traveling and face to face communication with instructors. These courses also offer review lessons on how the students can improve their chances in the licensing exams given by the government. Apart from being more convenient, these online courses also offer potential agents more opportunities since real estate courses on the different states are also offered. Given this new development, people who wish to be agents can now also avail of the benefits that the Internet offers.

Real Estate Courses [http://www.i-realestatecourses.com] provides detailed information on Online Real Estate Courses, Real Estate Agent Courses, Real Estate Appraisal Courses, Real Estate Broker Courses and more. Real Estate Courses is affiliated with Phoenix Real Estate Schools.