And if you are an investor, then you too may be wondering which sections of the economy will be the best performers in the near future.

And if you are a real estate investor who is thinking of buying even more real estate in light of the current trends in the real estate markets in the hope that these trends will stay strong for a long time to come, then you might want to pause and consider this …

Will the precious yellow metal become the darling of investors all over the world now?

Well, in case you have not already read about it, gold prices have are at a 25 year high, and it is only in the last few months or so that this metal has become a super star performer …

Considering that gold was called a “barbaric relic” by none other than the great John Maynard Keynes and has long been given up an a benchmark of currency by every country, does it not come as some surprise that the people of the world still choose to love this metal so much that many want to hoard as much of it as they can, even while they can buy other forms of assets?

And if the people are right in choosing gold over other forms of money offered by their Governments, does it imply that people are wiser than their Governments are? And …

Why do people prefer gold to other forms of money anyway?

The first question may best be left unanswered and to answer the second question, we may want to take a look at the factors favoring gold as a shining investment option…

Gold is regarded as a storehouse of value: Gold, unlike other currencies, shows a remarkable tendency to hold its value and is not subject to inflation like most other currencies. Its purchasing power does not seem to diminish with time.

Gold is rare: Gold production rarely grows by more than 2% a year and unlike most other currencies, little can be done to increase its production rate.

Gold is not controlled by Governments: Gold is free from Government control and Governments cannot change the value of gold in any way.

One question to ask now would be…

Can gold prices keep increasing for a long time?

Well, the answer to that question may not be very clear cut. Some analysts feel gold is overbought and its prices may fall soon, some others see a long term bull market for gold regardless of any short term fluctuations in the gold market.

And in case you are really interested in gold and would like to know what could drive gold prices, well…

Here’s one thing that can drive gold prices wild

If people get tired of stocks, mutual funds and currencies which are susceptible to inflation due to any number of things and start looking for a safe haven for their money, then there could be a record influx of capital into gold market as people scramble to hoard as much gold as they can, then this can drive the market to dizzying heights never seen before.

And now, let’s take a look at …

The factors that favor real estate…

With a relatively healthy economy and well paying jobs, more people are now able to realize the dream of owning a home, and this is creating a huge demand for housing.

With the amount of usable land being limited, an increasing population with better paying jobs can mean the housing market will stay healthy for a long time.

But if you want to decide whether to invest in gold or invest in real estate and would like to hear a definitive answer, then you might want to remind yourself that no analysis can claim to be fully accurate … and even the best analysis may be only a little better than a opinion at times …

So when it comes to choosing gold over real estate or the other way around, then only your intuition may be your best guide!

Gurubhakt is a writer who has written several articles on real estate investing. For some of the best luxury real estate, visit http://www.beautifulhomesandproperty.com which discusses a wide range of real estate investment options like Lake Havasu property and more.

Real, honest flipping is defined generally as one person finding an undervalued opportunity in real estate and getting that property under contract to purchase it. He or she then sells or “assigns” that contract — for a fee– to another investor and that person actually closes on the property. The person buying the property usually does not even need a mortgage – they just write check. It’s really a pretty symbiotic relationship. Finding great deals takes time and people with money and the resources to fix properties don’t usually have lots of that. People who are interested in getting involved in the business usually have lots of time so they do the leg work to find the house. Also people, like me, who dislike the management of crews and the time consuming work of a rehab project prefer to be the wholesalers and to make a business of it. I actually prefer the term “wholesaling houses” to flipping. All business have wholesalers in the distribution chain, this is no different.

For over seventeen years now I’ve felt like a kid on a treasure hunt every morning. My job is to dig up the gold, to find the diamonds in the rough.. This the only really high paying profession I know of that you can start with just a small amount of education and mentorship and a little bit of guts. A profession where you make your own hours and YOU determine how much money you’re going to make.

I’m often asked “how do you find all those great deals, Mike?”

Finding undervalued houses is not rocket science. I call it “reverse sales”. By reverse I mean you aren’t selling something you’re buying it but most of the same principles apply.
You need to prospect or create a steady stream of sellers to talk to. Now like the new salesman you can start by knocking on doors and cold calling or you can work the smart way. You can advertise to find home sellers motivated to sell now!

Advertising driven wholesaling is changing the face of the real estate investing business very rapidly. Large companies like the huge HomeVestors, small mom and pops and smart individuals are all advertising to buy houses. Advertising works, plain and simple, you see bandits signs, billboards, television and radio spots and of course the ads in the newspapers.

What the new or inexperienced wholesaler does not know yet is the term or concept of ROI, that’s return on investment. The phone will ring but is it cost effective? Are you keeping track of what it costs you to buy each deal? Do you know which method is producing the best returns for your invested dollar? Study marketing not real estate.

The business of finding undervalued deals is changing so fast that almost no one can keep up. Don’t be left behind. The advertising driven, ROI business model is taking over the once private, very localized business of flipping houses. Big, organized companies are now getting involved because there are big profits to be had. Don’t be under the misconception that you need lots of money to start. I started with hand written signs on telephone poles and three line ads in tiny local papers – very inexpensive.

Get in the business now and stake claim to your niche in your town. What other business can you earn fees of $3,000, $5,000, $10,000 or more for a few hours work driving around looking at houses?

Mike Collins is the CEO and founder of http://RehabList.com/ – a nationwide marketplace for undervalued deals in real estate. If you would like to find a handyman special in you area or list one you are trying to sell visit us at http://RehabList.com/ listing a property and searching for one to buy are both FREE. We are also searching for Local Partners to work with us in each county nationwide. Mike has been wholesaling houses full time for over 17 years. He loves to teach others the business of wholesaling houses.

An approach to the first acquisition in a real estate investing career involves analysis of the neighborhood.

If the target property is located in a familiar neighborhood, an analysis is clouded by past memories and feelings. Familiarity can preclude objectivity.

And if the target property is located in an unfamiliar neighborhood, the analysis is shrouded in immediate impressions that may or may not be accurate.

Real estate investing today must consider unfavorable elements like drug and prostitution traffic, crime statistics, and the overall visual impression of neighborhood negligence and abuse by property owners and/or tenants. The windshield view will not reveal the whole story.

Research at city planning and the police department might be a starting point, if the initial drive through the neighborhood does not arrive at a negative conclusion. Casual conversations with neighbors might provide clues. Watching from a perch unobtrusively during certain hours might be helpful, such as after school is out and after dark.

If analysis leads to the formation of good judgment, time is needed to assess “the Neighborhood Factor.” When I plunged into my first year of real estate investing, no one warned me of “the Neighborhood Factor,” and still I sometimes overlook it even millions of dollars in property purchases later. Buying $1 million in rental houses during my first year, and another $1 million in properties the next year did not leave me much time for analysis. However, when placing a makeover house on the market after the work is completed, “the Neighborhood Factor” has often come back to haunt me.

The bottom line for developing judgment about “the Neighborhood Factor” is the consumer’s windshield view. The real estate investor can become enamoured over the potential profit margin in a “good deal.” But the home-buyer and house-hunter make instant assessments upon a first approach to the house for sale. Their initial impression of “the Neighborhood Factor” is untrained and irreversible. And in real estate investing, the prospect’s first impression of “the Neighborhood Factor” overshadows their impression of your labored makeover. More times than I like to admit, I have created a “Dream House” from a junker, only to experience a slow sale because of “the Neighborhood Factor.”

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine – http://www.AAREIT.com/.

Return On Investment