You need to realize that this imbalance can be corrected by price dropping (as many claim), rents escalating, or combinations of both. In addition, it may not correct as demonstrated in many markets for over 20 years! So your choice becomes "do I sit on sidelines" or "do I learn how to invest safely in this fast moving market." This is a personal choice that you have to make in regards to your own personal style.

Want to know an additional little secret? Like in stock trading, secret to any successful investing is learning how to control your risk relative to your potential gain. It's that simple! As an example, there are preconstruction real estate deals out there where an investor can risk less than $2,000 and can still make a potential reward of $50,000 or more. If investment does not work out, then all that investor is out is $2,000 initial risk. Knowing that little piece of information can potentially save you hundreds of thousands of dollars! For investors that participate in real estate investments on a continuous basis, they always try to educate themselves on risk potential first followed by potential for gain.

The bottom line is that if you follow these simple steps, you can also learn how to invest in markets that other people perceive as dangerous bubbles!

Types of 203K Loans: 30 or 15 year fixed rates One year ARMS Assumable to a qualified buyer, with no money down

Eligible Properties: Single family dwellings Condominium Townhouse Mixed Use (Storefront) 1-4 Unit buildings- you can increase or decrease number of units with this loan.

With some leg work you should be able to find properties that will allow you to bank $50-thousand to $100-thousand at end of every two year period.

The two year holding period gives you time to do rehab work.

Hey, you gotta live somewhere. Why not turn your home into a money machine?

Or if you just can't live in a particular home for 2 years you'll find other profitable ideas at http://www.ThePowerLetter.com