If you are interested in real estate investing, you should consider smaller markets, such as Grand Rapids. These are also known as tertiary markets. Lots of big investment funds go into larger markets around the country. However, smaller markets also have a lot of opportunity because people are familiar with them. Now is a great time to get involved in such real estate markets.
Be aware of current trends. We have had a lot of foreclosures, short sales and other troubles in the greater real estate market. There has been a big change in the direction of real estate lately. We are seeing a lot of price increases across the board. Take note of these trends. It is hard to predict where the absolute bottom of the market might be, and sure it’s possible for the real estate market to swing the other way again, but right now things look good. You can buy properties below the replacement cost. Look into the numbers, and you will see it makes a lot of sense.
Consider long term predictions. I like to use an analogy of the Great Depression era. My parents were affected by their parents having survived the Great Depression. You have to wonder about the next 20 years, and how many people are going to be influenced by what just happened. A lot of us saw our family and friends lose their homes, and neighborhoods saw the contents of homes being put out on the lawn. This can be traumatic. I am 
bullish on renting because I think as demographics start to shift and populations begin to increase, renting might be more appealing than homeownership. There are a lot of people questioning the “American dream” of owning a home. It makes sense to invest with the idea that the rental market will continue to grow.
One of my favorite parts of real estate investing is the leverage. For example, if you have $20,000 to invest, you can put it into the stock market and get a 10 percent return on your money. That’s a profit of $2,000, which is a pretty good return. If you take your $20,000 and get a bank loan for 80 percent of a property’s value, you would be able to buy a $100,000 home. A 10 percent return would not be on just the $20,000 you invested. It would be on the valuation of your whole $100,000 property. That’s $10,000. This takes your investment from a 10 percent return to a 50 percent cash-on-cash return on your investment. That makes a lot of sense!
Finally, there are tax benefits to consider. There are deductions for depreciation, expenses and the amortization of your loan. Real estate investing is an attractive opportunity. Make sure you learn as much as you can about it. If you have any questions, contact us at Access Property Management Group.