Five Recession-Proof, High-Equity Real Estate Markets Entice Investors

Hidden Profit Potential in High-Equity Investing

Investing in properties that have minimal mortgage burden is a great hedge to protect investors from inflation. This concept is appealing to a growing number of entrepreneurs who've been watching the markets --and feeling the gravity of the U.S. economic slide this year.


Investing in properties that have minimal mortgage burden is a great hedge to protect investors from inflation. This concept is appealing to a growing number of entrepreneurs who've been watching the markets --and feeling the gravity of the U.S. economic slide this year.

Despite uncertainty in the financial markets and looming constrictions in consumer credit access, there are emerging real estate investment strategies that are ideal for current market conditions because they require no cash or credit to maximize investment returns (ROI).

Even among the 24 million high-equity homeowners who carry no mortgage debt, an estimated 33 percent of them are likely to find their nest eggs at risk of depletion. There are several major factors currently working to diminish homeowner equity, including: insufficient retirement savings, health care expenses, cost of living increases, unemployment and inflation.

Investors with a creative knack who use the right strategies in combination with targeted direct mail real estate marketing can tap high-equity real estate markets for profits and massive growth potential even as the national economy limps towards recovery.

Hidden Profit Potential in High-Equity Investing
With high-equity real estate deals, investors can offer sellers attractive options and also benefit from greater flexibility in how transactions are structured. For example, investors can offer sellers fast cash in exchange for a reduced price, pay for the property over time with a note, or even delay payment until the property is refinanced or sold in the future.

Because high-equity properties carry little to no mortgage burden, there generally are fewer hassles for investors. And with consistent real estate marketing, investors are free to carve their own niche to maximize their expertise in any of five promising high-equity market segments in this wide-open field.

A Real Estate Investor's Field of Dreams
There are five major real estate market segments that offer investors the greatest opportunities to access equity. Use sound marketing strategies, such as direct mail marketing, to tap these markets and boost your bottom line.

Using direct mail empowers investors to systematize and automate their lead generation. This conserves precious time and financial resources in the field.

Five High-Equity Markets Poised for Growth
  1. Absentee Real Estate Owners: This segment of long-distance often includes stressed-out landlords struggling with single-family homes and multi-unit properties. Reach them with real estate postcards every 90 days and update your list after each subsequent mailing.
  2. Adjustable Rate Mortgages: Homeowners with adjustable rate mortgages (ARMs) with equity often are looking to unload their homes before their payments spike. To tap this market, start with a monthly real estate marketing letter, and then send three real estate postcards. Repeat as often as needed.
  3. Homeowners with Minimal Mortgage Debt: Target these homeowners with at least 40 percent equity. Research shows that these folks own one-third of U.S. single-family homes. To reach this market, send inexpensive real estate marketing postcards once every month and a half.
  4. Landlords with Multiple Units: Focus on sellers with equity in at least two units.  Often, these folks are landlords looking for options for relief from their tenant and repair headaches. Approach these owners with a real estate marketing letter every month and a half. Follow up with three well-timed real estate marketing postcards and repeat the process for best results.
  5. Wholesale Real Estate: These properties are typically at least two-decades old and suffer from neglected maintenance and other problems. As long as they have sufficient equity, these homes can be gold mines for real estate investors. Find these properties with a monthly real estate marketing postcard for at least six months. Follow through later with a 90-day drip campaign.

Set Realistic Goals & Use Effective Tools
Motivated investors can build their own DIY mailing lists based on public records. Because records availability can vary among states and counties and is subject to frequent changes, many investors choose to outsource their real estate marketing to save time and money on postage.

Too often for investors working in the real world, real estate marketing is a labor and time-intensive burden. It also can be a costly endeavor if it fails to generate the leads necessary to cultivate healthy business growth. For these reasons, many investors choose to outsource their real estate marketing.

Outsourcing your real estate marketing requires some due diligence in your search for a reputable company that can offer client references and demonstrable results. With a healthy flow of targeted leads and greater efficiency and accountability in ROI, many investors find that overall marketing costs are reduced and even the loftiest goals suddenly are within reach.

Comments

Article rating:
Your rating:

Reviews

    Similar Content on the Web

    Knol translations

    Activity for this knol

    This week:

    16pageviews

    Totals:

    359pageviews
    1comments