I am a very outgoing networker, so I find myself in conversations about real estate all the time with homeowners and renters who are interested in becoming investors themselves.  I would say that about 50% of these conversations end up talking about how they think that right now is a bad time to invest in real estate because of the current market situation.  Whether or not you agree with them is irrelevant because the fact is that there are a lot of people out there that feel this way.

I believe that the media is really fueling the way that most people view our current real estate market.  Turn on the television or pick up a newspaper and most of what you read will be spun towards the negative, because it is more compelling and creates more of a demand for their news.  If everything was positive all the time, why would someone sit down and watch the news all day?  Think about it.  But as soon as something goes wrong, people glue themselves to their television to soak up as much as they can.  Then the next day at work they can't wait to share it with all their co-workers.

Then, when the market goes up, many homeowners feel that they are smart investors because of all the equity they have gained in their home!  Now, I am not one to judge people, and I believe that "it takes all kinds" in our society, but at the same time I feel bad that so many people are blinded by what they hear from the media.

So is there still opportunity to make money in this supposed down market?  The answer in my opinion is OF COURSE!  Sophisticated investors can make money when the market is down, when the market is flat, and when the market is up.  Most investors I know never like to pay retail for their properties, so they love a down market when everything is on sale!  Then when the market goes up, the average investors starts buying on speculation and the sophisticated investors sells them the property.  Remember the advice: "Buy Low and Sell High!"  Well shouldn't that apply to real estate and not just the stock market?  So why are people so scared when real estate is priced "low"?  Are they worried it will go even lower?

In a rapidly appreciating market, most inventory can sell fast, so it is priced at retail, and there may even be bidding wars where someone pays over retail!  In a down market it is rare to find bidding wars over retail, and most of the time you will find homes discounted to 90%, 80% and even 70% of the current market value.  So not only are you buying low, but you are also buy at a discount below the low price!  Even if the market continued down, if you purchased right there could be a large cushion of breathing room in the deal.  This is why sophisticated investors are gobbling up properties left and right even as I write this article!

So to conclude, Yes there is money to be made in today's market.  It may require learning some new real estate investing strategies, and thinking outside of the box on some deals, but there is definitely an opportunity in front of us.  I recommend studying real estate investing strategies such as pre-foreclosures, short sales, wholesaling, hard money lending, bank reo's, and negotiation techniques.  And don't forget that there are several areas right now that are showing great appreciation as well, so don't fall victim to everything you hear on the media!

Chris Record is an Independent Regional Advisor of Nouveau Riche, which offers a wide variety of courses on creative real estate investment techniques.  If you are interested in learning more about Nouveau Riche, then send Chris an email at the following address:  cashflowchampion (at) gmail.com