Is it possible to successfully invest in RE during this bubble?

And by successfully invest I mean consecutive positive cash flow numbers per month?

I forgot to say hi! :wink:

It is very hard for someone without much REI knowledge to know what to listen to with all the media exposure on the RE world.

What precautionary steps do you need to take to invest during this RE recession?

Thank you for your expertise!

Well the bubble has burst for the most part. But there are ways to make money in RE in any climate. The key is to develop a criteria for purchasing properties that produce cashflow. Appreciation and tax benefits are secondary but helpful. For a beginning investor, there are some good books and courses out there. Here’s a few books that I like.

  1. “The Millionare Real Estate Investor” by Gary Keller ($25).
  2. The “Rich Dad” series books ( $15 - $20 ea.).
  3. “One minute to Rental Property Riches” by Mike Rossi (Propertymanager).

A good beginners course is the Carleton Sheets course. I bought one on ebay for $40. They have more. Just make sure it’s relatively recent. You don’t need to spend a lot of money on courses. The basics are not that complicated and there is no “secret” to success. Good luck.

Thanks for the reply!

Are all the exit strategies still “good” to use? I am really interested in lease to own strategy, but I was wondering if all the other strategys are good to use during this time?

Also, I have heard that the bubble is going to get worst, not that it has ended?

I’ve seen some posts on here about how we’ve only seen about $200 billion worth of loans reset and look at the mess now. This year it’s supposed to be about $900 billion, so it could get worse before it gets better.
As far as exit strategies go…
If you’re buying rentals with cash flow to hold over the long term, you will ride out this market. If you use the 50% rule so often posted on here for purchasing rentals, you’ll see what a property is worth to an investor based on its income. Remember to verify the numbers; don’t go simply off what an owner “says.” You’ll see tons of properties that don’t come near working out using the 50% rule. But there are always people who’ve heard the “get rich with Real Estate” speech and will purchase anything just to say they own something.
Money can still be made in this market with rehabbing & flipping, but you have to buy right and know what key improvements will give you the most return on your money and work.
Remember, there is always money to be made no matter how bad the market. It all just depends on how well you buy and when you can actually realize that income. The current market lends itself to a ton of foreclosures and there are always landlords who are desparate to pass off a property.

I don’t know for sure but I do know one thing:

Whether you believe that you can or cannot your absolutely correct. If there is one person in your real estate market making money as an investor, than their is room for you to make money as an investor

Yes, you can make money in this market. However, in a declining market and especially in a market that is so volatile, you’ve got to buy at a HUGE DISOUNT.

If you’re going to do any of the flipping strategies, you better buy cheap, rehab fast, and offer the property at enough of a discount that you can sell it quickly.

If you are going to buy and hold (rent), then you better buy cheap, rehab fast, rent it fast, and have enough margin that when rents GO DOWN, you’re still making money!

This is a historic opportunity to buy property at a huge discount and probably to become quite rich, BUT YOU BETTER BUY AT A HUGE DISCOUNT – HUGE! Did I already mention that?

Good Luck,


Yep, the most successful RE investments were ones acquired in this type of market. If you can’t see the opportunity to buy in this turmoil amidst all the gloom and doom on the news, then you are likely to be the type of investor that will wait until people are buying again and miss being able to buy at HUGE discounts. Right, Mike?

I’m not a flipper, so I can’t speak to the returns of those types of investments. I buy rentals, so as an investor, I’m actually quite happy with the gloom and doom of the moment. I’m finally buying again after no aquisistions at all in 2007. As a buyer, I’m king of the world, and able to dictate price and terms to my heart’s desire. And my heart’s desire is to acquire at HUGE discounts.

Are you saying you are able to dictate the prices because of the market (aka someone needing to get rid of a property fast so they can give you the discount you are looking for)? Or is it something else?

No, I can’t dictate prices, but I can refuse to buy anything that doesn’t meet my criteria. A retail seller isn’t like to rapidly become a wholesale deal. However, there are sellers out there that are already DESPERATE.