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Essay / How to get maximum return on distressed real estate...
Nowadays, economic forecasting in any sector of the economy is difficult to make in the conditions of the globalized economy when political conflict or environmental disaster can trigger new waves of economic upheaval. crises and slow down the general development of a country. While some sectors of the economy may be less influenced by crises or easier to revitalize, the real estate sector is one that needs long-term stability and clear predictability on the ground. Although the current recession is not a one-time problem, the real estate sector has advantages for investing in the short and long term. Maximum efficiency in purchasing distressed real estate is described by the assigned $150,000 acquisition scenario and the detailed maximum ROI strategy. First of all, let's be rational and consistent. The amount spent on a one-time purchase of distressed real estate with the aim of making a profit is very unlikely to be a one-time activity outside of a more grandiose investment strategy. In the case of this scenario, the proposed purchase is part of a broader investment strategy or multi-investment plan, based on the concept of diversification. In other words, the main objective of the program is to invest in diverse and diversified real estate on the basis of double diversification. In this context, geographical and temporal terms are used. Subsequently, from a geographical point of view, it would be advisable to invest in projects located in different states, since the real estate market situation varies from state to state. Thus, the possible risks would be distributed among the projects and the entire investment default would be avoided (Cornell, Longstaff., & Schwartz, 1996). In order to increase efforts......middle of paper......works citedCornell, B., Longstaff, FA and Schwartz, ES (1996). Throw money away after losing it? Cash infusions and distressed real estate. Real Estate Economics, Vol. 24, iss. 1. 23-36. Kaiser, R. W. (2005). Investment styles and style boxes in real estate stocks: can the emerging model succeed in classifying real estate alternatives? Journal of Real Estate Portfolio Management, Vol. 11, es. 1., 5-21. Lerner, M. (October 1, 2010). Cost savings found in more than just the sale price. The Washington Times, p. C01. Reed, J. T. (2009). Troubled real estate times. Third edition. New York, NY: John T. Reed Publishing. Valley, M. (July 12, 2011). Bank failures will likely pile up in the southeastern United States in the coming months, Trepp warns. National real estate investor. Retrieved from http://nreionline.com/distressedinventory/bank_failures_pile_southeast_trepp_0712/