For Peter Howe Michigan is not just home, having been born and raised in Birmingham, Michigan, it is also real estate heaven. There has been a significant change in the way real estate investors conduct their business in this area, mainly in response to the financial crisis of 2007. However, the reality is that prices in the area continue to be relative low, which means that investors have the opportunity to strike it big.
Peter Howe Michigan Real Estate Education
Peter Howe believes that the first element of anyone who wants to do business in Michigan, be that in real estate or elsewhere, is education. Without a solid education and understanding of the area, the world of business and real estate, and finance, there is no point even trying to get involved in this area.
The biggest difficulty is that getting a mortgage approved is almost impossible nowadays. When, in February 2007, the housing bubble burst, things started to turn really sour. Interestingly, house values had already been dropping for at least three years. What this means is that, in a way, the state was not as affected by the crisis as areas like Florida, Arizona, Nevada, and California. However, the housing bubble did have an impact globally, and it is important to be aware of this.
The problem is, however, that many real estate investors think that prices in Michigan will always be far lower than anywhere else. In reality, however, they simply follow a different timeline in the economic principle of growth and contraction. Prices in the state generally start rising around three years before they do in the rest of the country, and they start declining again as well. But what isn’t different is that, for people in Michigan, a home is the greatest investment you can – and should – make.
Of course, we are bombarded with statements such as “renting is the new buying”, which are really slogans that have been put out there to help soften the blow of the reality that most people will never get approved for a mortgage again. Instead, it is down to real estate investors to find funds in different locations, so that they can become landlords. According to Peter Howe Michigan has been exemplary of this, showing significant growth in the number of hard money lenders, for instance.
People all over the country look towards Michigan to see what will happen, simply because of the fact that the state tends to be some three years ahead of the rest. Hence, they know that fixing and flipping isn’t the right strategy anymore, simply because nobody is buying. Instead, they are looking at becoming landlords, which in turn means finding people who want to be investing their own private money in real estate projects.
Michigan is a wonderful place with lots of fascinating history. It is also an example of what is likely to happen with the economy in the rest of the country. And for Peter Howe Michigan is both home and the perfect place for someone to become a landlord at present.