Prediction: Real estate investments will rise this year

Real estate is as stable as its been in last eight years, and unequivocally, today is one of best times to invest in real estate, said Armando Montelongo, former A&E “Flip This House” host and CEO of Armando Montelongo Companies.

Montelongo said he is seeing a strong interest from clients just like yours who are looking for wealth creation and economic stability.

“Interest rates have maintained historically low levels, while conversely, property values have remained consistent and in most areas have shown initial signs of a strong recovery,” said Montelongo. “Couple that with consumer confidence beginning to accelerate and history tells us real estate is going to surge forward this year.”

Montelongo stressed that education is important for your clients in this market.

“A fool and his money are soon parted is a cliché that became self-evident these past few years. The single biggest risk is always making an uneducated investment. I see too many people buying something, doing nothing, but betting and hoping an increase in value will occur. I only seek investments I already know equity is built within. Understanding the principles that make a sound investment are key and fish where the fish are. Meaning identify an area with an immediate need and don’t chase a market sector,” he explained.

While real estate is not a one-size-fits-all proposition, typically single-family residences or rentals have fared well for initial investments and for a little more advanced, investor multiplexes should be considered within the portfolio so they can earn greater rental income, said Montelongo.

“With that said, an investor will be more motivated by a multiplex then single family home based on the ROI, so it will be an easier sell for the Realtor®,” he said.

In Pennsylvania, 
Montelongo suggests the immediate surrounding areas around Pittsburgh as the best bet for a positive ROI. “I love solid suburbs just outside the metropolis,” he said.

“In the past decade we’ve seen how investing in stocks is a tenuous gamble at best. We are trained to hand money over to people who we think are experts and have no idea of what they’re doing with our money. Investing in real estate is tangible and something at which you are driving the success,” he said.