Recession brings opportunities for those with money

One of many Florida homes in foreclosure

One of many Florida homes in foreclosure

This recession that we are slowly starting to come out of gave those who have money to invest some incredible business opportunities that would be hard to come by any other time. The root cause of the recession began when people started to fail in making mortgage payments on homes they purchased. Normally, there is always some small percentage of people that go through this, but in this case it was more than usual because banks gave just about anyone breathing a mortgage if they wanted it. This means that people that don’t deserve to have these mortgages (and responsibility) are not screened out like they should have been even though they had bad credit, no assets, etc… I won’t go in to how that started a domino effect which the whole world economy felt, but I mention the root cause because that is where you can find the best opportunities.

One of the places where you will find some of the best investment opportunities is Florida. This state, which many of us north of it are extremely jealous of right now because it’s December and winter coats make it tough to play golf in (not to mention all the snow), suffered more than most US states in terms of the housing crisis. The saying that one person’s lost in another person’s gain, as sad as it is since we’re talking about peoples homes, is very true here. Condo apartments in Miami which were $200,000 before the crisis can now be purchased for around $60,000 or so. Some deals are even better than that. I won’t go in to throwing numbers and examples at you, I’m sure you get the picture.

If you have this kind of money, or if you and 3 friends can invest $15,000 each, this might be something to consider. It is likely that in 5-7 years from today that condo will get back to that $200,000 mark where it probably should be if the economy gets back on track. It may not be for you if you’re looking to get rich quick. As I said, you’re probably looking at 5-7 years or more until you can realize these great returns, but from the looks of it, it seems likely to happen at some point.

I am not pretending to be an investment advisor, but I can say that this is what I would do in that situation. Before investing however, I would personally take a trip to FL and find a real estate agent and make sure I choose a good area and a solid property to invest in. I wouldn’t just snatch up the first for sale sign I see. Homework is always key to any good investment whether in physical assets, financial instruments like stocks or in your own business. The latter is my strong suit, but diversification is also a key to a good investor.