I believe the best real estate investments in this economy are probably commercial real estate investments, more specifically multi-family, apartment buildings, mixed use and similar income producing properties purchased correctly. This is where we are currently focusing on the investing and lending side. I have been involved with real estate investing since 1998 and commercial lending since 2002. I agree with soapyfire that residential property for rentals and holding for the long term represents a rare opportunity that many of us may only see 1, maybe 2 times in a lifetime. The average economic cycle from boom to bust is about 7 to 12 years if history is any indicator. That said, purchasing residential properties at no more than 65-70 cents on the dollar including all acquisition, repair, financing costs, etc and holding for a cycle can prove to be extremely profitable. In this market, 10-50 cents on the dollar is possible...imagine the wealth. Make no mistakes this is the shift of wealth you're heard about in your textbooks but rarely see in action. This is where, pardon the cliche, "the rich get richer and the poor get poorer." All these foreclosures were somebody’s life savings and so the road to recovery will be slow. Good luck and careful investing to you!
SVP, Managing Partner
http://www.TVMFunding.com or http://www.TVMFG.com