Is real estate still a good investment?

[sapphire]

It seems that the good ol' days of quick and large profits from speculative investing and flips are over at least for the time being.

Over the last several years I accumulated nearly $2million in various properties some of which are under contruction, but have been getting advise to pull back because according to some, the train wreck is coming.

A real estate agent/friend of mine recently sent me a pretty grim e-mail saying that for the next several years many investors who thought they were going to make money may find themselves dumping their properties at a loss because either they came to late in the game or are overleveraged.

At this point I don't know whether to hang tight and try to weather the storm or seriously think about selling my assets and reinvesting in other areas.

 

[Xericx]

Depends where you are and at what you got in. Move your properties into developing areas where there are good values...I hear Dallas Texas is pretty good. Get out of SoCal/Vegas/Arizona fast and use that money to buy properties elsewhere. If you do get some in these "hot" areas...do them in areas that are "bubble proof".....well established areas that won't suffer a drop in $$$ due to the constant demand to live there.

 

[penkitten]

land is always a good investment, because even if it isnt alot of land, it is still land.
theres people in new york and jersey who cant afford a parking space, and if they purchase one for a years lease, well that pretty high steppin.

 

[STR8UP]

I don't know about a "train wreck" coming (certanly not countrywide), but I would definitely be more selective of what you buy if you do buy anything.

 

[Bonhomme]

If you think your property is located in an inflated area (such as SF or LA), I'd say sell it, and consider other investments, perhaps even appropriate real estate strategies in areas that are not inflated.

There's money to be made in most any market IF you use the right strategy and have the means to execute that strategy.

 

[DrMetallica]

Don't ask financial advise on the internet from people who don't know what their talking about. The guy who said the southwest wasn't booming...and that Jersey is a good market... that is completely ridiculous. All those people from the north-east and midwest are moving to Arizona & Nevada. Go do your own research. Go look at the demographics and population trends of Phoenix, Las Vegas, Los Angeles, Chicago, Detroit, and New York. Pay some professional to tell you what they think, or talk to somebody in the business.

 

[TooColdUlrick]

arizona and nevada are pretty insulated from the crash that is occurring now. california is going to get hit hard, esp los angeles. it already is now.

it'll take 12-24 months to play out. smart money has already sold...like in mid 2005.

 

[Centaurion]

Land is always a good investment. My parents had a piece of crap ass land down in Turkey that they transfered to my name. A couple months back, a 4 star hotel was built next to it. Guess whos gonna make a ****ing fortune?

 

[DrMetallica]

Originally posted by TooColdUlrick
california is going to get hit hard, esp los angeles. it already is now.

California's bubble will burst after the next earthquake. The smart people will buy in the days after the droves of sheep leave for Arizona & Nevada, selling their property dirt cheap. It happened in 1994, and it will happen again.

California is feckin paradise. Anyone who hasn't lived in (costal) California doesn't understand how good it is. Anyone who lives in California doesn't understand how normal life is on the outside... you walk around in your pleasant world, and don't understand how life is elsewhere. Think of it like an orgasm... it only lasts for 3 seconds, but people in California... their orgasm is perpetual.

 

[djbr]

First of all, yea I DO have real estate.

Yes, it is. Here in Brazil the profits are not that great (around 1% per month) but it's still good cause it's safe. YEA YEA I know safe does mean low profit, BUT it makes for a good investment ground. You ought to have other things going, but if everything else fails, real estate will prevent you from being hungry. Got it?

 

[djbr]

Originally posted by Centaurion
Land is always a good investment. My parents had a piece of crap ass land down in Turkey that they transfered to my name. A couple months back, a 4 star hotel was built next to it. Guess whos gonna make a ****ing fortune?

And, as I say, fortune fvcks. So you now can leave the whole DJ thing cause ***** will be like the plague to you. Buy BAYGON instead. (btw, do you got this baygon thing on USA? hehe)

 

[CGE333]

I am in the process of buying my first investment property at this time. It should be closed up next week. I am buying a house that will appraise around $280K for $170K. It needs around $5K in repairs to make it like new. I am setting it up so I will get cash out at closing. I wont be able to rent it for enough to cover the monthly payment but I will have the equity and I have set it up so there is no prepayment penalty on the loan so if I can't rent it out I will just sell it.

 

[STR8UP]

Originally posted by DrMetallica
Don't ask financial advise on the internet from people who don't know what their talking about........ Pay some professional to tell you what they think, or talk to somebody in the business.

Cause we all KNOW that anyone who is on the internet couldn't possibly know what they are talking about!

 

[Xericx]

Originally posted by TooColdUlrick
arizona and nevada are pretty insulated from the crash that is occurring now. [

Tell that to the people that bought into the ICON condos....Las Ramblas? Ivana Trumps?? Michael Jordans? All going down the sink if they haven't already.

"But that's just the condos...."

They are expanding at a groin-grabbingly insane pace...I saw like a 7,000 home place out there....it was NUTS. Prices aren't too bad...I remember seeing a new construction on the outskirts of town a few years ago for BARELY 100k....its location was across from a cemetary...but same place probably goes for 300k now.....





Or this from a year ago...
http://www.lasvegassun.com/sunbin/stories/business/2004/nov/03/517768223.html

 

[Xericx]

Originally posted by DrMetallica
California's bubble will burst after the next earthquake. The smart people will buy in the days after the droves of sheep leave for Arizona & Nevada, selling their property dirt cheap. It happened in 1994, and it will happen again.

California is feckin paradise. Anyone who hasn't lived in (costal) California doesn't understand how good it is. Anyone who lives in California doesn't understand how normal life is on the outside... you walk around in your pleasant world, and don't understand how life is elsewhere. Think of it like an orgasm... it only lasts for 3 seconds, but people in California... their orgasm is perpetual.

Yep. Better than being a crabby "New Yawker" whining about pizza folding and bagels all day!

 

[Egoist]

Originally posted by STR8UP
Cause we all KNOW that anyone who is on the internet couldn't possibly know what they are talking about!

shouldn't you be managing your multi-million dollar real estate portfolio?

 

[STR8UP]

Originally posted by Egoist
shouldn't you be managing your multi-million dollar real estate portfolio?

I am. The good thing about it is that it only takes a couple of hours per week which leaves me plenty of time to try to help others see that it's actually possible to do what I do.

Not everyone wants to be a Wal Mart greeter at age 70. If that's the path you feel you are destined to travel, then so be it. Just don't bring your ignorance and negativity into a discussion you know nothing about. It's not fair to the people who WANT to learn and do something big with their life.

Sometimes I wonder why I even bother...

 

[Egoist]

Originally posted by STR8UP


Not everyone wants to be a Wal Mart greeter at age 70. If that's the path you feel you are destined to travel, then so be it. Just don't bring your ignorance and negativity into a discussion you know nothing about. It's not fair to the people who WANT to learn and do something big with their life.

Sometimes I wonder why I even bother...

No offence, but you don't know much about me or my background, do you? I mean unlike you, I never really bring it up. Lets just say negativity and ignorance do not really apply here.

I just get mildly amused at people who feel the need to state how much they make, own; how successful they are and all that.

Even when it comes to educating the masses, is this really the right place?

 

[sapphire]

Originally posted by STR8UP
I am. The good thing about it is that it only takes a couple of hours per week which leaves me plenty of time to try to help others see that it's actually possible to do what I do.

Not everyone wants to be a Wal Mart greeter at age 70. If that's the path you feel you are destined to travel, then so be it. Just don't bring your ignorance and negativity into a discussion you know nothing about. It's not fair to the people who WANT to learn and do something big with their life.

Sometimes I wonder why I even bother...

What is your secret or rather how do you make real estate work for you? Do you buy and sell, hold on, etc.? I am quite curious.

 

[STR8UP]

Originally posted by Egoist
No offence, but you don't know much about me or my background, do you? I mean unlike you, I never really bring it up. Lets just say negativity and ignorance do not really apply here.

I just get mildly amused at people who feel the need to state how much they make, own; how successful they are and all that.

Even when it comes to educating the masses, is this really the right place?

You know, you really remind me of another poster who used to be a mod here who always made it a point to jump into a wealth building thread with 1000 reasons why something shouldn't be done and ZERO input on how it should be done. Your other user name doesn't start with a "G", does it?

As tempted as I am to get lured into a pissing match with you, I would rather save my responses for something constructive. To my knowledge the only thing that you have ever had to contribute to any of the numerous wealth building threads is "Don't get your advice from people on the internet".

So long as this is your only contribution to these kinds of discussions, I have no choice but to continue to assume that your negativity and ignorance DO apply.

And for the record....

There's a difference between stating facts and bragging. I don't remember ever mentioning anything about my "success" out of the context of using it to illustrate a point.