By Nathan Stitt
Mike Watson Investing

2008 will be a highly profitable year for real estate investors who know how to profit in our unique national market. Here are five reasons 2008 will be a banner year for investors.

Reason #1
Investing competition has never been lower. Over the past five years, real estate prices soared and anyone could buy a property and ride the wave of appreciation. For example, estimates in Mike Watson’s local Area of Expertise showed that investors owned up to 30% of local real estate. Those days are over.

Now, many of those investors simply aren’t aggressively buying up properties. The lack of competition in the market allows investors to negotiate great terms, get lower prices, and find more deals. This will present amazing chances for building wealth in 2008. Savvy investors will buy properties at low prices, and cash in as rental rates increase!

Reason #2
2008 will bring a huge need for more affordable entry-level housing. By finding the Highest and Best Use of a property, investors can create large amounts of affordable housing.

There will be incredible profits made in 2008 by those investors who know how to find and expose the Highest and Best Use of a property. When we maximize a deal’s potential, the future value of the property skyrockets. The secret is to acquire a property at the low “current value”, and THEN expose the Highest and Best Use or higher “future value”. Doing this creates affordable Entry-Level housing by adding density in areas with that potential.

Reason #3
Smart investors will own cash-flowing rentals in 2008. Just as property prices soared over past 5 years, RENTS will be increasing over the next few years! In fact, on a recent Training Call, Mike explained that he expects rents to double or triple within the next 3-5 years!

Now is the time to own income-producing properties. Due to the lack of affordable entry-level housing and other factors, home ownership is difficult for many at this time. This is putting a lot of renters back into the market. With low purchase prices, and rising rents, cash flow has never been better. In fact, Mike Watson is currently finding sellers that are cash flowing even while charging below-market rents.

Reason #4
2008 will allow investors to create profits by using amazing TERMS! Our current market conditions are allowing us to negotiate amazing terms right now. Sellers have more urgent needs, and are more willing to agree to things like Seller Financing, longer closings, and other negotiated terms. Remember, Seller Financing is often even better for the seller than it is for the buyer. Don’t forget to educate sellers you work with on this point!

Reason #5
Foreclosure rates will stay high in 2008. When you find the highest and best use of a foreclosed property… You WILL profit! The vast majority of foreclosed properties are single family residences with bad financing. For most of these properties the only options are traditional foreclosure techniques. These are not the type of properties we are looking for. However, there is another large segment (15-20%) that have upsides most investors don’t see.  When a foreclosed property has an unexposed Highest and Best Use, THAT is the kind of foreclosure we want! An example is a single home on half acre of land. Another is a home on a lot actually zoned for a much higher density. Foreclosures can be a great way to find deals with this kind of potential.

To learn much more about new and ethical foreclosure strategies make sure to be at the “Any WHERE! Any TIME!” Super Camp this January, in San Diego. At this event, Mike Watson will extensively teach about creating opportunities in the foreclosure market, as well as other strategies to find, evaluate, and profit on investing deals in our current market.

Want to really kick off 2008 with a bang? Make sure to be at the “Any WHERE! Any TIME!” Super Camp on January 22-24, 2008.

Get more information on the “Any WHERE! Any TIME!” Super Camp.