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Old 11-09-2007, 09:13 PM
GittyUP GittyUP is offline
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Join Date: Dec 2006
Posts: 320
Default Re: Real estate newbie

Spex knows his stuff.

I work for a reputable and successful RE investment company and also Re invest on my own. In the very near future might possibly be the best time to RE invest then ever before. Like Spex said in an earlier post appreciation is cream on the cake. Buying with lots of equity is where real RE money is to be made.

In the near future, if not now, this will happen...

People see news stories about how the RE market is tanking, mortgage market is tanking, yada yada yada. While yes this is happening it only happens for so long. The perception that it is happening will continue much longer then it is actually happening. This leads to a influx of motivated sellers who are happy to take anything for their property thinking it will only go down in value in the future. When in reality their property value has stabilized and will actually start to appreciate again. This is where you can get DEALS OF A LIFETIME!!!!

Now of course finding this time is not an easy task but again you can always hedge your bet by buying low end properties that have intrinsic value like someone else stated. Properties that will rent out for something that will cover most if not all of your cash flow. I would avoid middle to upperclass properties until you know that the market has for sure bottomed out. (Some of us will know months and months before others ...AKA you read hundreds of comps on a daily basis)

Bottom line...I know of no other investment tool that is as low risk and profitable as RE if you know what your doing.
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