It is generally accepted that the subprime mortgage crisis involving real estate properties was the first domino that fell. This caused the entire United States economy to fall into what is now widely perceived as a recession. The problems in that area spread like wildfire as it started to affect banks and other financial institutions. As soon as it did, banks reacted by placing more stringent policies that made loan refinancing even more difficult for the average consumer. Soon, the subprime lenders were facing foreclosure, while those who used to be eligible for a home loan found it difficult to obtain one. The whole real estate mortgage system was out of whack.

As things go, it was not contained and solved within that industry, so it spread into other industries. Banks and financial institutions soon found themselves in trouble, with some of the largest players now in trouble, or worse facing bankruptcy. Consumer spending was decimated as people held on to their money, and retailers suffered. Then the dominoes began falling all over the world, plunging what used to be the strongest economies into a downturn and even into a recession.
How the Internet can help

While it may sound counter-intuitive, now is the best time to get into real estate. In some states, home prices have gone so low. In Indiana, particularly, most homes go for about half the price of what they were before these all started. And I’m not talking about trash trailer houses, but great houses in good neighborhoods. If you have the money, you can buy a house then sell for a profit at a more opportune time.

There is an age-old maxim in real estate that advises agents and investors to buy properties within a 40-mile radius. That would make everything easy for you. If you don’t live in a house that you bought, you could rent it out and enjoy the cash flow month after month. Now, as I’ve said, some states offer bigger bargains than most. So what happens if you’re in Alaska, you couldn’t possibly take advantage of the rock bottom prices in Indianapolis, right?

Wrong. Here’s where the Internet becomes helpful. The Internet as done away with geographical boundaries so much that a real estate investor in Alaska can own properties–cash flow properties–in Indiana. All he has to do is to hook up with a real estate investment firm in the area and go from there. Everything else that needs to be done can be done via the Internet. One could find contractors for the fix-ups or rehabs, or a property management firm that could collect rent month after month after month, find tenants and basically keep the property in order. The investor in Alaska does not even have to travel to Indiana, all he gets to see are the checks coming into the mail every single month.

So the Internet is the great equalizer, bringing opportunities to those who know how to seek it.
For the average home buyer and home seller, the Internet has also helped. Now it’s easier to do away with the “experts”. When you want to sell a house, you can go to Web sites like Zillow.com that could give you a free valuation of your house, along with comparative data of similar houses in the area and their selling prices. When you want to buy a house, you don’t even have to be physically there to do so. Many realtors now have online presences that give you a virtual tour of the house. If you’re in the mood to shop for houses, there are a variety of Web sites that give you suggestions that is tailored to your preferences like budget, cost, type of property, etc.

Basically put, the Internet has vastly increased the amount of available information that people need to do something. Case in point is insurance policies. Before the Internet, different insurance companies charged different prices for basically the same insurance policy coverage. After the Internet became popular, people started taking various quotes and found that some were grossly overpaying for the same type of coverage. What happened was that insurance policies became cheaper across the board.

If the Internet can alleviate people’s fears in real estate, the one area that most people are now being cautious in, imagine what it could do in other areas. Retailers could augment their sales by having a Web site that accepts orders or feature their merchandise or tell people about their latest promos. Banks can do the same thing. I am sure that most of you would have a myriad of ideas in this aspect.

We’re in a recession, but change gives rise to opportunities. The Internet makes it easier for us to capture to opportunities and turn it into income.

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