I recently read this headline and thought is this a true statement? After pondering the question “Why is it smart to buy real estate now” I concluded that in fact this is a true statement. Here are the reasons why.

1. Prices of most homes have dropped significantly and in some areas as much as 75%. What this means is the only direction for prices going forward is up. Will prices of homes drop lower, perhaps, but just like trying to time the stock market, it is difficult to time the real estate market.

Here in California and specifically in Contra Costa County (where I live), prices data shows we hit the bottom in 2008 and have been going up ever since. Inventories in certain price ranges have dropped and we are seeing days on market decreasing to less than three months.

That doesn’t mean that we will see home prices skyrocket to unrealistic levels as we had in the mid 2000’s. But what it does mean, those in the know and are buying homes now.

2. Interest rates are the lowest they will ever be. They can’t and won’t stay in the 4% to 5% range forever and the prediction is that interest rates will start to go up on 2011. Looking back to 2003 thru 2007 interest rates were in the 6.25% range and actually crept close to 7%. At that time, everyone was excited because just a few years prior to this time period interest rates were up to 8.5%. So when the rates dropped under 7%, it caused a big stir in the market. So rates in the 4% range are unprecedented and should be taken advantage of right now.

Real Estate is an asset and a valuable one which savvy investors understand. There are investors in our area in California that are buying blocks of homes. It was unheard of to find homes in the $200K range, but there were plenty to go around over the past year to year and a half. These investors may rent them now, but look to reap the fortunes in the future – and probably not the too distant future – when prices go back up.

This is also a fantastic opportunity for the first time home buyer. You can get so much more home for your money and in areas that may have been out of reach for many.

If you are on the fence waiting for the right time, this may be the right time.

Linda Urbick – real estate professional serving clients in the purchase and sale of homes in the Contra Costa County area of California. For information on the market or real estate in general, visit my web site lindaurbick.com and send me an email.

Understanding real estate agreements requires a basic knowledge of what rights or interest to property that are affected by a specific agreement or contract. The following is a basic listing of rights that are commonly dealt with and general descriptions. The following listing does not represent a complete list of the various rights that can be held in and to real estate, nor does it give a thorough and full description of the rights covered, but it is sufficient for practical purposes.

A bundle of rights to real estate could include:

a. All the rights, fee simple

b. Mineral rights

c. Air rights

d. Water rights

e. Life estate

f. Remainder interest

g. Equitable rights

1. Land contract

2. Leasehold

3. Option

4. Pending purchase contract

OWNERSHIP- Fee Simple Ownership. This is the highest form of ownership to property. Generally if you have real estate that you have received a warranty deed for, this is what you have.

EQUITABLE INTERESTS- These is rights that are acquired by agreement of the owner, without transferring ownership. In other words, if you have an equitable interest in real estate, you may have the right to acquire title and ownership, but you don’t have it yet. Typical examples of equitable interests are the rights of the purchaser under a full accepted purchase agreement, the rights of an optionee under an option agreement and the rights of the purchaser (vendee) under a land contract.

LEASEHOLD INTEREST- These is the rights to property for duration of time with no promise to transfer ownership. Rental/leasing applies here as well as use licensing.

OWNERSHIP INTERESTS- Ownership to property is a combination of things and rights, and you can own property and not have all parts of ownership and vice versa. These are the basic parts or types of the ownership of real estate: Legal, Equitable, Possession and Use. Legal interest is normally evidenced by having title to the property. Equitable interest is described above. Possession is simply having possession or control of the property. For example, a “squatter” is a person who has possession, but no other rights to the property. “Squatters,” simply by virtue of being in possession of the property have certain rights. Use, is simply the right to use the property. A typical example of this is a letter of permission to hunt on land.

Places you can go to better find out how you can use these buddle of interest and learn more at a very low cost are as follows: Local real estate licensing schools in your area, entrepreneurial resource centers at local colleges, Real Estate Investing Clubs, Real Estate Investment Association, REIAs, Real Estate Investing Classes at high school, Real Estate Investing Groups, Landlord Club, Real Estate Training Classes, Real Estate Seminars, Real Estate Courses, Real Estate Investing Network, and Real Estate Forums. Use Google.com to find locations in your area.

A Real Estate Investing Club’s mission is to provide an entrepreneurial atmosphere for real estate investors to learn, and network with new and experienced investors. Real Estate Investors Clubs have been formed for real estate entrepreneurs and professionals with one of their goals to bring like minded individuals together, to achieve greater real estate goals. REIA members come from many walks of life: first time buyers, new investors, licensed agents and mortgage brokers, commercial investors, attorneys, CPAs, and first time landlords.

Copyright (c) 2007 Ralph Maupin

Ralph Marcus Maupin, Jr. (Mark Maupin), Speaker, Professor, Co-founder National Real Estate Network LLC (REIA), Get Free Real Estate Forms, Terms, Articles and Real Estate Club Locations at: http://MegaEveningEvent.com

It is hard to turn around these days without finding someone who over-leveraged themselves in the last real estate boom by taking on an aggressive debt-to-equity ratio while the market was high. Many property owners find themselves “upside down,” owing more on their property than it is currently worth.

However, a percentage of real estate investors have a diverse real estate portfolio, with some performing and some non-performing properties. For these investors, 2011 may be an excellent time to tighten your portfolio.

First, interest rates are “still” low. Prior to these recent amazingly low offerings below 4% and 5%, consumers had not seen interest rates as low since the 1960’s. Close to 30 years. If you have not locked a fixed rate fully amortized loan on your homes and income properties, you will be grateful to yourself for locking them in now.

Second, the next Southern California real estate “boom” is probably at least a decade away. That means any non-performing properties in your portfolio are not going to suddenly start making money simply because of a market rise… soon.

Finally, if you are able to free up equity as you tighten your portfolio, there may be exciting places to reinvest both in real estate and other sectors over the next few years.

If your real estate investment portfolio includes cash flow negative income properties, and you have been wondering whether to sell or hold, first look for a solution that creates cash flow or at least allows you to break even. If such a solution is not available, and you are not comfortable covering the negative cash flow for the next several years, 2011 may be a great time to let that asset go and focus your resources elsewhere.

Joan Weisman, is a fourth generation California native and has been active in Real Estate since 1998. She is SFR Certified with the National Association of Realtors. As your agent, Joan is efficient, effective and on your side.

Ms. Weisman is a past President of her Toastmasters club (July 2009 – Dec 2010) and is currently serving as Area G-5 Governor for Toastmasters International (July 2010 – June 2011). She is a member of the National Association of Realtors, California Association of Realtors, and the Local Southern California Multiple Listing Service.