It’s been a year of mixed reviews for many people! Certainly, there were highlights, but many folks are happy to see 2009 ushered out and welcome 2010!
With the New Year – and new decade – there are going to be lots of changes to come in real estate investing, online marketing, information marketing, and business in general.

I know that lots of people are posting their thoughts, predictions, and opinions for the coming year! Here are just a few of my predictions for real estate industry – specifically for investors.

1. Property Values Will Stabilize.
   We’re not going to see a huge change in property values this year. Many of the markets have bottomed out, or are close thereto. However, there is a lot of inventory that has yet to hit the market before we can start to see an increase in value. This will make it easier to evaluate properties and determine the after repair values as there’s less decline to calculate. However, there are still pockets that are going to continue to take some hits and you’ll want to watch on neighborhood levels, especially those where banks have been slow to foreclose. Real estate will begin to return to a “safe” long term investment.
2. Lending Remains Tight.
   Lending guidelines will not loosen… Investors are going to have to use creative financing strategies to get more deals done. Successful real estate investors are going to be using strategies like lease options and seller financing to get the deals done. Private lending is going to be a big factor in putting deals together this year as well, but investors are going to have to prove to lenders that their investment is secure and that the deals are spectacular.
3. Increase in Short Sales and Foreclosures
   Short sales will be easier to get through. The first wave of foreclosures was caused by defaults in the subprime market. The current and next wave of foreclosures and short sales will be caused by delinquencies among prime borrowers. The causes are job losses, resets of adjustable and option ARM (and other exotic) loans, and strategic defaults in which underwater property owners decide it’s better to lose a home through a short sale rather than be saddled with an asset that offers no upside.
4. Existing Home Sales Will Slump Again In Late Spring
   The $8000 tax credit has been extended through April. This will encourage home sales early on in the year. However, when the credit expires, combined with the increase of inventory that is expected to flood the market with a new wave of foreclosures, we will see another slump in the market and possibly a slight dip in prices, though nothing anywhere near the levels of the past 2+ years.
5. Taxes Will Increase*
   You can bet that many tax benefits are going to be reduced and/or eliminated. There is discussion about returning the capital gains tax rate to 20% after 2010. The tax-free capital gains for primary residence, as of January 1, 2009, apply only for those in their principal residence for a 5-year period. For example, if the property was rented out for portions of the 5 year period, then this would be a non-qualifying and may be subjected to capital gains tax on a pro-rated basis with respect to the property’s total period of ownership. And you can rest assured, your personal taxes will go up! *Seek tax advice from a legal and competent professional
6. Increase In Real Estate Online Marketing
   Real estate investors and real estate agents have been trying to “figure out” the whole online marketing world and how it relates to business. This year, with many of the changes with the FTC, Google, and other bodies, the industry is going to go through a major shift. Real estate investors that are quick to adopt this are going to be rewarded ten-fold. (We will be focusing on quit a bit of this in the coming year).
7. Online Video Will Be Come An Essential Marketing Tool For Buyers AND Sellers
   A lot of investors and real estate agents have been testing the waters with online video (and other social media). In 2010, we’re going to see improved quality in video and more effective web 2.0 marketing. It’s not going to be enough to stick up talking heads and basic video tours. Online video is going to transform in 2010 especially as it relates to real estate.
8. A Return To the Fundamentals
   Real estate investors, agents, and other professionals are going to have to return to the basics: Finding GREAT deals, Funding those deals (be it seller financing, lease optioning, or some other method), and Executing the best exit strategy (wholesale, rehabs, rentals, etc.). The tried and true fundamental basics will guide the successful investors in 2010.

In the coming months, we’re going to be focusing on teaching on the fundamentals, building the online component of your real estate business THE RIGHT WAY, and giving you educational tools and resources that you can use immediately.

We encourage you to post your comments, thoughts, and feedback and let us know what specifically it is that you are needing to take your real estate investing business to the next level in 2010 – or to simply get started… the right way…