Your ideas to make money in RE in a falling market...?

Ok, so for every upmarket its safe to assume more people will make money via an appreciating market vs a falling market.

If you believe it is possible to acquire solid real estate investments during a down market or soft market - what techniques would you employ to continue acquiring property without losing one's proverbial shirt?

I believe this question takes an open mind, as often it is the belief that all will pretty much lose money when the market softens (or as some will say - when the bubble finally bursts)

Im working on more of a contrarian approach that requires going against the grain - what ideas do you have and why?

Cheers

Veronica :)

Most of the money in real estate is made on the purchase and not on the sale (same with stocks), if you buy at a good price you will make money. All the money that is going to be lost by amatuer investors that bought negative cashflow properties, over priced condos, negam / interest only varible rate mortgages are going to be selling way below cost, that is the time to buy and rent them out, once prices stabilize and begin to appreciate that is where the big money is made.

Good value properties are becoming easier to find, the hard part will be selling them so the key is to rent them out for positive cash flow until the prices are right to sell, several years from now.

Yes, I think there are many opportunities still out there. Just keep in mind LOCATION, not all cities will burst as others. Buy to play it safe, I'm not investing in the short run in RE

say what?
I'm a real estate agent and I didn't understand your question. Are you suggesting that you want to do rentals?

There is a way to do it, however most people would not think of it. The method is basically the same method as acquiring stocks in a falling market; you would use options. For real estate this means obtaining a lease. The true definition of lease: rent with the option to buy. You pay a little more in a premium for the lease, however If the market falls you don't lose your money on a house that's worth less than what you're paying for it. If the market rises you can buy the property at a pre-negotiated price which is at a discount to the market price.